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

Free H&r Block Tax

Https Www Freefilefillableforms Com Ffa Freefileforms HtmFile An Amended Tax ReturnMilitary Tax CreditsFile 2011 Taxes Free OnlineHow Do I File Self Employment TaxesFile A Tax AmendmentIrs Gov EfileH & R Block Free File 2012H&r Block 1040ezFree State Filing TurbotaxEz 1040Amended Tax Return Form 2012Us Irs Tax FormsFederal Tax Form 1040ezFile Federal And State Taxes Free OnlineE File 2010 Taxes OnlineState Tax Free File1040ez BookletIrs Ez Form 20122010 Amended Tax ReturnFree Federal And State Tax2012 Tax Forms2010 Tax Forms And InstructionsSoftware For 1040nrFiling State Taxes FreeIrs Gov Form1040ezInstructions For 1040xH And R Block 1040xIrs Form 1040Free State Efile TaxesMilitary Filing State Taxes2012 Tax SoftwareFree Federal And State Tax ReturnsHow To Prepare A 1040xTurbotax 2012Hrblock FreeAmended Tax10402012 Tax FormH And R Block Free Taxes

Free H&r Block Tax

Free h&r block tax 23. Free h&r block tax   Gastos de Intereses Table of Contents Introduction Useful Items - You may want to see: Intereses Hipotecarios de ViviendaCantidad Deducible Puntos Primas de Seguro Hipotecario Formulario 1098, Estado de Cuenta de los Intereses Hipotecarios Intereses Procedentes de InversionesBienes de Inversión Asignación de Gastos de Intereses Límite sobre la Deducción Cantidades que No Puede DeducirIntereses Personales Asignación de Intereses Cómo Hacer la DeclaraciónMás de un prestatario. Free h&r block tax Fondos procedentes de una hipoteca utilizados para negocios o inversiones. Free h&r block tax Introduction Este capítulo trata sobre los intereses que usted puede deducir. Free h&r block tax Los intereses son la cantidad que paga por usar dinero prestado. Free h&r block tax Los siguientes son tipos de intereses que se pueden deducir como deducciones detalladas en el Anexo A (Formulario 1040), Itemized Deductions (Deducciones detalladas), en inglés: Los intereses hipotecarios de vivienda, incluidos ciertos puntos y primas de seguro hipotecario. Free h&r block tax Intereses procedentes de inversiones. Free h&r block tax Este capítulo explica estas deducciones. Free h&r block tax Asimismo, explica dónde deducir otros tipos de intereses y enumera algunos tipos de intereses que no puede deducir. Free h&r block tax Use la Tabla 23-1 para averiguar dónde obtener más información sobre varios tipos de intereses, incluidos los intereses de inversiones. Free h&r block tax Useful Items - You may want to see: Publicación 936 Home Mortgage Interest Deduction (Deducción por intereses hipotecarios de vivienda), en inglés. Free h&r block tax 550 Investment Income and Expenses (Ingresos y gastos de inversiones), en inglés. Free h&r block tax Intereses Hipotecarios de Vivienda Por lo general, los intereses hipotecarios de vivienda son todos los intereses que paga sobre un préstamo garantizado por su vivienda (vivienda principal o segunda vivienda). Free h&r block tax El préstamo puede ser una hipoteca para la compra de su vivienda, una segunda hipoteca, una línea de crédito o un préstamo sobre el valor neto de la vivienda. Free h&r block tax Puede deducir los intereses hipotecarios de vivienda si se reúnen todas las siguientes condiciones: Presenta el Formulario 1040 y detalla deducciones en el Anexo A (Formulario 1040). Free h&r block tax La hipoteca es una deuda garantizada sobre una vivienda calificada en la cual tiene participación como dueño de la misma. Free h&r block tax (Por lo general, una hipoteca es una deuda garantizada si pone como garantía su vivienda para proteger los intereses del prestamista. Free h&r block tax El término “vivienda calificada” quiere decir su vivienda principal o segunda vivienda. Free h&r block tax Para más información, vea la Publicación 936, Home Mortgage Interest Deduction (Deducción por intereses hipotecarios de vivienda), en inglés). Free h&r block tax  Tanto usted como el prestamista tienen que tener la intención de que se pague el préstamo. Free h&r block tax Cantidad Deducible En la mayor parte de los casos, podrá deducir todos los intereses hipotecarios de vivienda. Free h&r block tax Cuánto puede deducir depende de la fecha en que obtuvo la hipoteca, la cantidad de la hipoteca y cómo usted usa los fondos procedentes de la misma. Free h&r block tax Intereses totalmente deducibles. Free h&r block tax   Si todas sus hipotecas corresponden a una o más de las tres categorías siguientes en todo momento durante el año, puede deducir todos los intereses sobre dichas hipotecas. Free h&r block tax (Si una hipoteca corresponde a más de una categoría, sume la deuda que corresponde a cada categoría a la otra deuda de la misma categoría). Free h&r block tax   Las tres categorías son: Las hipotecas que obtuvo a más tardar el 13 de octubre de 1987 (denominadas deudas con refugio legal). Free h&r block tax Las hipotecas que obtuvo después del 13 de octubre de 1987 para comprar, construir o mejorar su vivienda (denominadas deudas por adquisición de vivienda), pero únicamente si a lo largo del año 2013 dichas hipotecas, más toda deuda contraída el 13 de octubre de 1987 o antes, ascendieron a $1 millón o menos ($500,000 o menos si es casado que presenta la declaración por separado). Free h&r block tax Las hipotecas que obtuvo después del 13 de octubre de 1987 que no fueran para comprar, construir o mejorar su vivienda (denominadas deudas sobre el valor neto de la vivienda), pero únicamente si a lo largo del año 2013 dichas hipotecas ascendieron a $100,000 o menos ($50,000 o menos si es casado que presenta la declaración por separado) y cuyo total no era mayor que el valor justo de mercado de su vivienda reducido por los puntos (1) y (2). Free h&r block tax Los límites en dólares para la segunda y tercera categoría son aplicables a la suma de las hipotecas sobre su vivienda principal y segunda vivienda. Free h&r block tax   Vea la Parte II de la Publicación 936, en inglés, para definiciones más amplias de la deuda con refugio legal, deuda por adquisición de vivienda y deuda sobre el valor neto de la vivienda. Free h&r block tax   Puede usar la Figura 23-A para verificar si los intereses hipotecarios de vivienda son totalmente deducibles. Free h&r block tax Figura 23-A. Free h&r block tax ¿Son Totalmente Deducibles los Intereses Hipotecarios de mi Vivienda? Instrucciones: Incluya los saldos de TODAS las hipotecas garantizadas por su vivienda principal y segunda vivienda. Free h&r block tax Please click here for the text description of the image. Free h&r block tax Figura 23−A. Free h&r block tax ¿Son Totalmente Deducibles los Intereses Hipotecarios de mi Vivienda? Límites sobre la deducción. Free h&r block tax   No puede deducir totalmente los intereses de una hipoteca que no corresponda a alguna de las tres categorías indicadas anteriormente. Free h&r block tax Si éste es su caso, vea la Parte II de la Publicación 936, en inglés, para calcular la cantidad de los intereses que puede deducir. Free h&r block tax Situaciones Especiales Esta sección describe ciertos elementos que se pueden incluir como intereses hipotecarios de vivienda y otros que no. Free h&r block tax Además, describe ciertas situaciones especiales que podrían afectar su deducción. Free h&r block tax Recargos por pagos hipotecarios tardíos. Free h&r block tax   Puede deducir como intereses hipotecarios de vivienda un recargo por pagos tardíos si no fue por un servicio específico que se prestó en relación a su préstamo hipotecario. Free h&r block tax Multa por pago adelantado de la hipoteca. Free h&r block tax   Si salda su hipoteca de vivienda por adelantado, podría verse obligado a pagar una multa. Free h&r block tax Puede deducir dicha multa como intereses hipotecarios de vivienda con tal de que la multa no sea por un servicio específico que se prestó, o costo en el que se incurrió, con respecto a su préstamo hipotecario. Free h&r block tax Venta de vivienda. Free h&r block tax   Si vende su vivienda, puede deducir los intereses hipotecarios de vivienda (sujetos a los límites correspondientes) pagados hasta la fecha de venta, excluyendo tal fecha. Free h&r block tax Ejemplo. Free h&r block tax Juan y Margarita Gallegos vendieron su vivienda el 7 de mayo. Free h&r block tax Hasta el 30 de abril, hicieron pagos de intereses hipotecarios de vivienda de $1,220. Free h&r block tax El informe de cierre de la venta de la vivienda mostraba intereses de $50 para el período de 6 días en el mes de mayo hasta la fecha de venta, excluyendo tal fecha. Free h&r block tax Su deducción por intereses hipotecarios es $1,270 ($1,220 + $50). Free h&r block tax Intereses pagados por adelantado. Free h&r block tax   Si paga intereses por adelantado para un período que va más allá del final del año tributario, tiene que pagar dichos intereses a plazos intercalados a lo largo de los años tributarios correspondientes. Free h&r block tax Puede deducir en cada año únicamente los intereses que puedan considerarse intereses hipotecarios de vivienda para ese año. Free h&r block tax No obstante, hay una excepción correspondiente a los puntos, tema que se aborda más adelante. Free h&r block tax Crédito por intereses hipotecarios. Free h&r block tax   Quizás pueda reclamar un crédito por intereses hipotecarios si un gobierno estatal o local le otorgó un certificado de crédito hipotecario (MCC, por sus siglas en inglés). Free h&r block tax Calcule el crédito en el Formulario 8396, Mortgage Interest Credit (Crédito por intereses hipotecarios), en inglés. Free h&r block tax Si toma este crédito, tiene que reducir la deducción de intereses hipotecarios por la cantidad del crédito. Free h&r block tax   Para más información sobre el crédito, vea el capítulo 37 . Free h&r block tax Subsidio de vivienda para ministros de la iglesia y personal militar. Free h&r block tax   Si es ministro de una iglesia o miembro de las Fuerzas Armadas y recibe un subsidio de vivienda que no está sujeto a impuestos, aún puede deducir sus intereses hipotecarios de vivienda. Free h&r block tax Hardest Hit Fund (Fondo de ayuda para propietarios de vivienda más afectados) y los programas de préstamos de emergencia para propietarios de viviendas. Free h&r block tax   Puede utilizar un método especial para calcular la deducción de los intereses de la hipoteca y los impuestos de bienes inmuebles en su vivienda principal si reúne ambas de las siguientes condiciones: Usted recibió ayuda conforme a: Un programa del Hardest Hit Fund (Fondo de ayuda para los propietarios de vivienda más afectados que viven en estados con alto desempleo y una baja en el precio de viviendas) del State Housing Finance Agency (State HFA) (Agencia del Financiamiento de Viviendas (HFA estatal)) para los mercados inmobiliarios, en el cual los pagos procedentes de dichos programas pueden usarse para pagar los intereses hipotecarios o Un Emergency Homeowner's Loan Program (Programa de préstamos de emergencia para propietarios de viviendas), administrado por el Departamento de Vivienda y Desarrollo Urbano (HUD, por sus siglas en inglés) o por un estado. Free h&r block tax Usted reúne las condiciones de los reglamentos para deducir todos los intereses hipotecarios del préstamo y todos los impuestos de bienes inmuebles de su vivienda principal. Free h&r block tax   Si reúne todas las condiciones, entonces puede deducir todos los pagos que hizo durante el año al prestamista hipotecario, a la HFA estatal o a HUD, en la hipoteca de la vivienda (incluyendo el monto que muestra el recuadro 3 del Formulario 1098-MA, Mortgage Assistance Payments (Pagos de ayuda para la hipoteca), pero no más de la suma de las cantidades mostradas en el Formulario 1098, Mortgage Interest Statement (Estado de cuenta de los intereses hipotecarios), en el recuadro 1 (intereses recibidos del (de los) pagador(es)), el recuadro 4 (primas de seguro hipotecario) y el recuadro 5 (impuestos sobre los bienes inmuebles). Free h&r block tax Sin embargo, a usted no se le requiere utilizar este método especial para calcular la deducción para los intereses de la hipoteca y los impuestos de los bienes inmuebles en su vivienda principal. Free h&r block tax Pagos de asistencia hipotecaria conforme a la sección 235 de la Ley de Vivienda Nacional. Free h&r block tax   Si reúne los requisitos para recibir pagos de asistencia hipotecaria para familias de bajos recursos conforme a la sección 235 de la Ley de Vivienda Nacional (National Housing Act), la totalidad o parte de los intereses sobre su hipoteca podrían ser pagados en nombre suyo. Free h&r block tax No puede deducir los intereses pagados en nombre suyo. Free h&r block tax No tiene otro efecto sobre los impuestos. Free h&r block tax   No incluya estos pagos de asistencia hipotecaria en sus ingresos. Free h&r block tax Además, no use estos pagos para reducir otras deducciones, tales como los impuestos sobre bienes raíces. Free h&r block tax Personas divorciadas o separadas. Free h&r block tax   Si un acuerdo de divorcio o un acuerdo de separación matrimonial exige que usted o su cónyuge o ex cónyuge pague intereses hipotecarios de vivienda de la cual ambos son dueños, el pago de intereses podría considerarse pensión para el cónyuge divorciado. Free h&r block tax Vea el tema Pagos por una vivienda comprada conjuntamente , en el capítulo 18. Free h&r block tax Alquiler de terreno rescatable. Free h&r block tax   Si hace pagos de alquiler anuales o periódicos sobre un alquiler de terreno rescatable, los puede deducir como intereses hipotecarios. Free h&r block tax   Los pagos hechos para terminar el contrato de arrendamiento y para comprar la parte completa del arrendador de la tierra no se pueden deducir como intereses hipotecarios. Free h&r block tax Para más información, vea la Publicación 936, en inglés. Free h&r block tax Alquileres de terreno no rescatables. Free h&r block tax   Los pagos hechos sobre un alquiler de terreno no rescatable no son intereses hipotecarios. Free h&r block tax Los puede deducir como alquiler si son un gasto comercial o si corresponden a propiedad de alquiler. Free h&r block tax Hipotecas inversas. Free h&r block tax   Una hipoteca inversa es un préstamo cuyas condiciones permiten al prestamista pagarle (ya sea en suma global, con pago mensual por adelantado, línea de crédito o una combinación de estos tres métodos) mientras usted sigue como residente en su vivienda. Free h&r block tax Una hipoteca inversa le da derecho a mantener la escritura de su vivienda. Free h&r block tax Según el plan que tenga, la hipoteca inversa vence y comienza a generar intereses cuando se mude, venda su vivienda, llegue al término del plazo de un préstamo preseleccionado o fallezca. Free h&r block tax Puesto que las hipotecas inversas se consideran anticipos de préstamo y no ingresos, el monto que reciba no está sujeto a impuestos. Free h&r block tax Los intereses devengados (incluyendo un descuento de los intereses originales) sobre una hipoteca inversa no se pueden deducir hasta que se reembolse la totalidad del préstamo. Free h&r block tax La deducción a la que tenga derecho podría estar limitada ya que un préstamo de hipoteca inversa suele estar sujeto al límite sobre la Home Equity Debt (Deuda sobre el valor neto de la vivienda), tema que se explica en la Publicación 936, en inglés. Free h&r block tax Pagos de alquiler. Free h&r block tax   Si vive en una casa antes del cierre final de la compra, todos los pagos que haga para ese período son alquiler y no son intereses. Free h&r block tax Esto es cierto aun si se denominan intereses en los documentos relacionados con el cierre. Free h&r block tax No puede deducir esos pagos como intereses hipotecarios de vivienda. Free h&r block tax Fondos procedentes de una hipoteca invertidos en valores exentos de impuestos. Free h&r block tax   No puede deducir los intereses hipotecarios de vivienda sobre la deuda con refugio legal o deuda sobre el valor neto de la vivienda si utilizó los fondos procedentes de la hipoteca para comprar valores o certificados que generan ingresos exentos de impuestos. Free h&r block tax La “deuda con refugio legal” y la “deuda sobre el valor neto de la vivienda” se definen anteriormente bajo Cantidad Deducible. Free h&r block tax Reembolsos de intereses. Free h&r block tax   Si recibe un reembolso de intereses en el mismo año tributario en que los pagó, tiene que reducir su gasto de intereses por la cantidad que se le reembolse. Free h&r block tax Si recibe un reembolso de intereses que dedujo en un año anterior, por regla general tiene que incluirlo en sus ingresos en el año en que lo reciba. Free h&r block tax No obstante, necesita incluirlo sólo hasta la cantidad de la deducción que redujo su impuesto el año anterior. Free h&r block tax Esto es cierto independientemente de si los intereses cobrados en exceso le fueron reembolsados o se usaron para reducir el principal pendiente de su hipoteca. Free h&r block tax    Si recibe un reembolso de intereses que pagó en exceso en un año anterior, generalmente recibirá el Formulario 1098, Mortgage Interest Statement (Estado de cuenta de los intereses hipotecarios), en inglés, que muestra el reembolso en el recuadro 3. Free h&r block tax Para más información sobre el Formulario 1098, vea Formulario 1098, Estado de Cuenta de los Intereses Hipotecarios , más adelante. Free h&r block tax   Para más información sobre cómo tratar los reembolsos de intereses deducidos en años anteriores, vea Recuperación de Fondos , en el capítulo 12. Free h&r block tax Puntos El término “puntos” se usa para describir ciertos cargos pagados, o tratados como pagados, por un prestatario para obtener una hipoteca de vivienda. Free h&r block tax Los puntos también se pueden llamar costos originarios de un préstamo, cargos máximos de un préstamo, descuento del préstamo o puntos de descuento. Free h&r block tax A un prestatario se le trata como si pagara todos los puntos que paga un vendedor de vivienda por la hipoteca del prestatario. Free h&r block tax Vea Puntos pagados por el vendedor , más adelante. Free h&r block tax Regla General Por lo general, no se puede deducir la cantidad completa de puntos en el año en que se pagaron. Free h&r block tax Debido a que son intereses pagados por adelantado, generalmente se deducen proporcionalmente a lo largo de la vigencia (duración) de la hipoteca. Free h&r block tax Vea Deducción Permitida Proporcionalmente , que se presenta a continuación. Free h&r block tax Para excepciones a la regla general, vea Deducción Permitida en el Año del Pago , más adelante. Free h&r block tax Deducción Permitida Proporcionalmente Si no reúne las condiciones mencionadas a continuación bajo Deducción Permitida en el Año del Pago , el préstamo no es considerado un préstamo para mejoras de viviendas, o si escoge no deducir la totalidad de sus puntos en el año en que los pagó, puede deducir los puntos proporcionalmente (igualmente) a lo largo de la vida del préstamo si reúne todas las condiciones siguientes: Utiliza el método contable a base de efectivo. Free h&r block tax Esto significa que declara sus ingresos en el año en que los reciba y deduce sus gastos en el año en que los paga. Free h&r block tax La mayoría de las personas usan este método. Free h&r block tax Su préstamo está garantizado por una vivienda. Free h&r block tax (La vivienda no necesita ser su vivienda principal). Free h&r block tax El plazo del préstamo no es más de 30 años. Free h&r block tax Si el plazo del préstamo es más de 10 años, las condiciones de su préstamo son las mismas que las de otros préstamos ofrecidos en su área para el mismo plazo o un plazo más largo. Free h&r block tax El monto de su préstamo es de $250,000 o menos o el número de puntos no sobrepasa: 4, si el plazo del préstamo es 15 años o menos o 6, si el plazo del préstamo es más de 15 años. Free h&r block tax Deducción Permitida en el Año del Pago Puede deducir la totalidad de los puntos en el año en que se pagaron si cumple todas las condiciones siguientes. Free h&r block tax (Puede usar la Figura 23-B como guía rápida de referencia para averiguar si sus puntos son totalmente deducibles en el año del pago). Free h&r block tax Su préstamo está garantizado por su vivienda principal. Free h&r block tax (Su vivienda principal es aquélla donde usted reside la mayor parte del tiempo). Free h&r block tax Pagar puntos es una práctica comercial establecida en el área donde se efectuó el préstamo. Free h&r block tax Los puntos pagados no eran mayores que los puntos que se suelen cobrar en esa área. Free h&r block tax Utiliza el método contable a base de efectivo. Free h&r block tax Esto significa que declara sus ingresos en el año en que los reciba y deduce sus gastos en el año en que los paga. Free h&r block tax (Si desea más información acerca de este método, vea Métodos Contables en el capítulo 1). Free h&r block tax Los puntos no se pagaron en lugar de cantidades que suelen declarase por separado en el informe de cierre, tales como cargos por tasación, cargos por inspección, honorarios correspondientes al título de la propiedad, honorarios de abogado e impuestos sobre la propiedad. Free h&r block tax Los fondos que usted proveyó antes del cierre, o en el momento del mismo, más los puntos pagados por el vendedor, eran por lo menos iguales a los puntos que se cobraron. Free h&r block tax No se requiere que los fondos que proveyó hayan sido aplicados a los puntos. Free h&r block tax Pueden incluir un pago inicial o de enganche, un depósito en plica, un depósito de buena fe y otros fondos que usted pagó en el momento, o antes, del cierre por cualquier razón. Free h&r block tax No puede haber tomado prestados dichos fondos de su prestamista o agente hipotecario. Free h&r block tax Usa el préstamo para comprar o construir su vivienda principal. Free h&r block tax Los puntos se calcularon como un porcentaje del principal de la hipoteca. Free h&r block tax La cantidad aparece indicada claramente en el informe de cierre (tal como el Settlement Statement, Form HUD-1 (Informe de Cierre, Formulario HUD-1, del Departamento de Vivienda y Desarrollo Urbano)) como puntos cobrados por la hipoteca. Free h&r block tax Los puntos pueden aparecer indicados como puntos pagados con fondos suyos o del vendedor. Free h&r block tax Figura 23-B. Free h&r block tax ¿Son los Puntos Totalmente Deducibles este Año? Please click here for the text description of the image. Free h&r block tax Figura 23-B. Free h&r block tax ¿Son Los Puntos Totalmente Deducibles Este Año? Nota: Si reúne todas estas condiciones, puede optar por deducir la totalidad de los puntos en el año en que los pagó o deducirlos a lo largo de la vigencia del préstamo. Free h&r block tax Préstamo para mejoras de vivienda. Free h&r block tax   También puede deducir, en el año en que fueron pagados, la totalidad de los puntos pagados sobre un préstamo para mejorar su vivienda principal, si se cumplen las condiciones (1) a (6). Free h&r block tax Segunda vivienda. Free h&r block tax No puede deducir la totalidad de los puntos que pague sobre préstamos garantizados por su segunda vivienda en el año en el que los pagó. Free h&r block tax Puede deducir esos puntos únicamente a lo largo de la vida del préstamo. Free h&r block tax Refinanciamiento. Free h&r block tax   Por regla general, los puntos que pague para refinanciar una hipoteca no son deducibles en su totalidad el año en que los pague. Free h&r block tax Esto es cierto aunque la nueva hipoteca esté garantizada por su vivienda principal. Free h&r block tax   Sin embargo, si usa parte de los fondos procedentes de la hipoteca refinanciada para mejorar su vivienda principal y cumple las primeras 6 condiciones que aparecen bajo Deducción Permitida en el Año del Pago , anteriormente, puede deducir toda la parte de los puntos relacionada con la mejora en el año en que los pagó con sus propios fondos. Free h&r block tax Puede deducir el resto de los puntos a lo largo de la vida del préstamo. Free h&r block tax Ejemplo 1. Free h&r block tax En 1998, Guillermo Campos obtuvo una hipoteca para comprar una vivienda. Free h&r block tax En el año 2013, Guillermo refinanció dicha hipoteca con un préstamo hipotecario de $100,000 a 15 años. Free h&r block tax La hipoteca está garantizada por su vivienda. Free h&r block tax Para obtener el nuevo préstamo, tuvo que pagar tres puntos ($3,000). Free h&r block tax Dos puntos ($2,000) eran por intereses pagados por adelantado y un punto ($1,000) por servicios, en lugar de cantidades que generalmente se declaran por separado en el informe de cierre. Free h&r block tax Guillermo pagó los puntos con sus fondos personales en vez de pagarlos con los fondos procedentes del nuevo préstamo. Free h&r block tax El pago de los puntos es una práctica comercial establecida en esa área y los puntos que se cobraron no son mayores que la cantidad que se suele cobrar en dicha área. Free h&r block tax El plazo para el primer pago de Guillermo sobre el nuevo préstamo venció el 1 de julio. Free h&r block tax Hizo seis pagos sobre el préstamo en el año 2013 y es un contribuyente que sigue el método contable a base de efectivo. Free h&r block tax Guillermo usó los fondos procedentes de la nueva hipoteca para amortizar su hipoteca actual. Free h&r block tax Aunque el nuevo préstamo hipotecario era para que Guillermo siguiera siendo el dueño de su vivienda principal, dicho préstamo no era para la compra o mejora de aquella vivienda. Free h&r block tax No puede deducir todos los puntos en el año 2013. Free h&r block tax Puede deducir dos puntos ($2,000) proporcionalmente a lo largo de la vida del préstamo. Free h&r block tax Deduce $67 [($2,000 ÷ 180 meses) × 6 pagos] de los puntos en el año 2013. Free h&r block tax El otro punto ($1,000) era un cargo por servicios y no se puede deducir. Free h&r block tax Ejemplo 2. Free h&r block tax Los hechos son iguales a los del Ejemplo 1, excepto que Guillermo usó $25,000 de los fondos procedentes del préstamo para mejorar su vivienda y $75,000 para amortizar su hipoteca actual. Free h&r block tax Guillermo deduce el 25% ($25,000 ÷ $100,000) de los puntos ($2,000) en el año 2013. Free h&r block tax Su deducción es de $500 ($2,000 × 25%). Free h&r block tax Además, Guillermo deduce la parte proporcionada de los $1,500 sobrantes ($2,000 − $500) que se tiene que pagar a plazos intercalados a lo largo de la vida del préstamo. Free h&r block tax Esto es $50 [($1,500 ÷ 180 meses) × 6 pagos] en el año 2013. Free h&r block tax La cantidad total que Guillermo deduce en el año 2013 es $550 ($500 + $50). Free h&r block tax Situaciones Especiales Esta sección describe ciertas situaciones especiales que podrían afectar su deducción de puntos. Free h&r block tax Descuento de la emisión original. Free h&r block tax   Si no reúne los requisitos para deducir los puntos en el año en que los pagó o deducirlos proporcionalmente a lo largo de la vida del préstamo, o si escoge no utilizar ninguno de estos métodos, los puntos reducen el precio de emisión del préstamo. Free h&r block tax Esta reducción resulta en un descuento de la emisión original, el cual se explica en el capítulo 4 de la Publicación 535, Business Expenses (Gastos de negocios), en inglés. Free h&r block tax Cantidades cobradas por servicios. Free h&r block tax   Las cantidades cobradas por el prestamista por servicios específicos relacionados con el préstamo no son intereses. Free h&r block tax Ejemplos de estos cargos son: Cargos de tasación, Cargos por servicios de notario y Costos de preparación del pagaré hipotecario o escritura de título. Free h&r block tax No puede deducir estas cantidades como puntos ni en el año en que las pagó ni a lo largo de la vigencia de la hipoteca. Free h&r block tax Puntos pagados por el vendedor. Free h&r block tax   El término “puntos” incluye cargos por colocación del préstamo que el vendedor le paga al prestamista para proporcionar financiamiento para el comprador. Free h&r block tax En el caso del vendedor. Free h&r block tax   El vendedor no puede deducir estos cargos como intereses. Free h&r block tax Pero sí son un gasto de venta que reduce la cantidad obtenida por el mismo. Free h&r block tax Vea el capítulo 15 para información sobre la venta de su vivienda. Free h&r block tax En el caso del comprador. Free h&r block tax    El comprador reduce la base de la vivienda por la cantidad de los puntos pagados por el vendedor y trata los puntos como si él o ella los hubiera pagado. Free h&r block tax Si se cumplen todas las condiciones anteriores bajo Deducción Permitida en el Año del Pago , el comprador puede deducir los puntos en el año en que los pagó. Free h&r block tax Si no se reúne alguna de esas condiciones, el comprador deduce los puntos a lo largo de la vida del préstamo. Free h&r block tax   Para más información sobre la base, vea el capítulo 13 . Free h&r block tax Si los fondos provistos son menores que los puntos. Free h&r block tax   Si reúne todas las condiciones de la sección anterior Deducción Permitida en el Año del Pago , excepto que los fondos que proveyó eran menores que los puntos que le fueron cobrados (condición (6)), puede deducir los puntos en el año en que los pagó, hasta la cantidad de fondos que proveyó. Free h&r block tax Además, puede deducir todo punto pagado por el vendedor. Free h&r block tax Ejemplo 1. Free h&r block tax Cuando sacó un préstamo hipotecario de $100,000 para comprar su vivienda en diciembre, le cobraron un punto ($1,000). Free h&r block tax Usted reúne todas las condiciones para deducir puntos en el año en que los pagó, excepto que los únicos fondos que proveyó eran los de un pago inicial o enganche de $750. Free h&r block tax De los $1,000 cobrados por puntos, puede deducir $750 en el año en que los pagó. Free h&r block tax Puede deducir los $250 sobrantes a lo largo de la vigencia de la hipoteca. Free h&r block tax Ejemplo 2. Free h&r block tax Los hechos son iguales a los del Ejemplo 1, excepto que la persona que le vendió su vivienda también pagó un punto ($1,000) para ayudarlo a obtener su hipoteca. Free h&r block tax En el año del pago, usted puede deducir $1,750 ($750 de la cantidad que le cobraron a usted más los $1,000 pagados por el vendedor). Free h&r block tax Puede deducir los $250 sobrantes a lo largo de la vigencia de la hipoteca. Free h&r block tax Tiene que restar de la base de su vivienda los $1,000 pagados por el vendedor. Free h&r block tax Puntos en exceso. Free h&r block tax   Si reúne todas las condiciones de la sección anterior, Deducción Permitida en el Año del Pago , salvo que los puntos pagados eran mayores que los que generalmente se pagan en su área (condición (3)), en el año del pago deduce sólo los puntos que se suelen cobrar. Free h&r block tax Tiene que deducir los puntos adicionales a lo largo de la vigencia de la hipoteca. Free h&r block tax Hipoteca que termina antes del plazo de vigencia convenido. Free h&r block tax   Si distribuye la deducción de los puntos a lo largo de la vigencia de la hipoteca, puede deducir todo saldo restante en el año en que vence la hipoteca. Free h&r block tax Sin embargo, si la refinancia con el mismo prestamista, no puede deducir ningún saldo restante de los puntos distribuidos a lo largo de la vigencia de dicha hipoteca. Free h&r block tax En vez de ello, deduzca el saldo restante a lo largo de la vigencia del nuevo préstamo. Free h&r block tax    Una hipoteca podría vencer antes de lo programado debido al pago por adelantado, refinanciamiento, ejecución de hipoteca o acontecimiento parecido. Free h&r block tax Ejemplo. Free h&r block tax Daniel pagó $3,000 en puntos en 2002 que tuvo que deducir distribuidos a lo largo de la vigiencia de su hipoteca de 15 años. Free h&r block tax Deduce $200 en puntos por año. Free h&r block tax Ha deducido $2,200 de estos puntos hasta el año 2012, inclusive. Free h&r block tax Daniel pagó por adelantado la totalidad de su hipoteca en el año 2013. Free h&r block tax Puede deducir los $800 de puntos restantes en el año 2013. Free h&r block tax Límites sobre la deducción. Free h&r block tax   No puede deducir la totalidad de los puntos sobre una hipoteca a menos que la misma corresponda a una de las categorías enumeradas anteriormente bajo Intereses totalmente deducibles . Free h&r block tax Vea la Publicación 936, en inglés, para más información. Free h&r block tax Primas de Seguro Hipotecario Las primas pagadas por un seguro hipotecario calificado durante el año 2013 se pueden deducir como intereses hipotecarios de vivienda. Free h&r block tax Dicho seguro tiene que estar relacionado con una deuda por adquisición de vivienda; el contrato de seguro tiene que haberse emitido después del año 2006. Free h&r block tax Seguro hipotecario calificado. Free h&r block tax   El seguro hipotecario calificado incluye seguros hipotecarios facilitados por el Departamento de Asuntos de los Veteranos, la Administración Federal de Vivienda o el Servicio de la Vivienda Rural y seguros hipotecarios privados (como se define en la sección 2 de la Homeowners Protection Act (Ley de Protección del Propietario de Vivienda) de 1998, según vigencia del 20 de diciembre de 2006). Free h&r block tax   El seguro hipotecario provisto por el Departamento de Asuntos de los Veteranos se conoce comúnmente como cargo de financiamiento (funding fee). Free h&r block tax Si es provisto por el Servicio de la Vivienda Rural, entonces se conoce como cargo de garantía (guarantee fee). Free h&r block tax Si el contrato de seguro hipotecario entró en vigencia en el año 2013, dichas comisiones se pueden deducir en su totalidad en ese mismo año. Free h&r block tax Póngase en contacto con el emisor del seguro hipotecario para calcular el monto deducible, si éste no se ha declarado en el recuadro 4 del Formulario 1098. Free h&r block tax Reglas especiales para pagos adelantados de seguro hipotecario. Free h&r block tax   Normalmente, si pagó primas de un seguro hipotecario calificado que se puedan asignar a algún período después del cierre del año tributario, se considera que dichas primas se han pagado en el período al que se asignan. Free h&r block tax Tiene que asignar las primas a lo largo del plazo de vigencia establecido por la hipoteca u 84 meses, lo que sea más corto, a partir del mes en el que se obtuvo el seguro. Free h&r block tax No se permite deducción alguna por el saldo no amortizado si se paga la hipoteca antes del plazo de vigencia convenido. Free h&r block tax Este párrafo no corresponde en el caso de un seguro hipotecario calificado que le haya facilitado el Departamento de Asuntos de los Veteranos o el Servicio de la Vivienda Rural. Free h&r block tax Vea el Ejemplo que se presenta a continuación. Free h&r block tax Ejemplo. Free h&r block tax Ronaldo compró una vivienda en mayo de 2012 y la financió por medio de una hipoteca de 15 años. Free h&r block tax Además, Ronaldo pagó por adelantado la totalidad de los $9,240 en seguros hipotecarios privados que estuvo obligado a pagar en el momento del cierre, en el mes de mayo. Free h&r block tax Ya que los $9,240 en seguros hipotecarios privados se pueden asignar a períodos posteriores a 2012, Ronaldo tiene que asignar los $9,240 a lo largo del plazo de vigencia establecido por la hipoteca u 84 meses, lo que sea más corto. Free h&r block tax Los ingresos brutos ajustados de Ronaldo son $76,000 para 2012. Free h&r block tax Ronaldo puede deducir $880 ($9,240 ÷ 84 x 8 meses) por primas de un seguro hipotecario calificado en 2012. Free h&r block tax Para 2013, Ronaldo puede deducir $1,320 ($9,240 ÷ 84 x 12 meses) si sus ingresos brutos ajustados son $100,000 o menos. Free h&r block tax En este ejemplo, las primas de seguro hipotecario son asignadas a lo largo de 84 meses, lo cual es más corto que el plazo de vigencia de 15 años (180 meses) establecido por la hipoteca. Free h&r block tax Límite sobre la deducción. Free h&r block tax   Si su ingreso bruto ajustado en la línea 38 del Formulario 1040 es más de $100,000 ($50,000, si es casado que presenta la declaración por separado), se reduce, e incluso podría eliminarse, la cantidad de las primas del seguro hipotecario que de otro modo serían deducibles. Free h&r block tax Para calcular la cantidad que puede deducir, vea Line 13 (Línea 13) en las Instrucciones del Anexo A (Formulario 1040) y complete la Mortgage Insurance Premiums Deduction Worksheet (Hoja de trabajo para la deducción de primas de seguro hipotecario). Free h&r block tax Si su ingreso bruto ajustado es más de $109,000 ($54,500, si es casado que presenta la declaración por separado) no puede deducir las primas de un seguro hipotecario. Free h&r block tax Formulario 1098, Estado de Cuenta de los Intereses Hipotecarios Si usted pagó $600 o más en intereses hipotecarios (incluidos ciertos puntos y primas de seguro hipotecario) durante el año sobre una hipoteca, generalmente recibirá un Formulario 1098, o estado de cuenta parecido, del titular de la hipoteca. Free h&r block tax Recibirá el estado de cuenta si le paga intereses a una persona (incluyendo una institución financiera o una sociedad anónima cooperativa de viviendas) en el transcurso de la ocupación o negocio de aquella persona. Free h&r block tax Una unidad del gobierno se considera una persona para fines de facilitar el estado de cuenta. Free h&r block tax El estado de cuenta para cada año debería serle enviado a usted a más tardar el 31 de enero del año siguiente. Free h&r block tax Una copia de este formulario también le será enviada al IRS. Free h&r block tax En el estado de cuenta aparecerá el total de los intereses que usted pagó durante el año, todas las primas de seguro hipotecario que pagó y, si compró una vivienda principal durante el año, también aparecerán en el estado de cuenta los puntos deducibles pagados durante el año, incluidos puntos pagados por el vendedor. Free h&r block tax Sin embargo, el estado de cuenta no debería mostrar ningún interés que una dependencia del gobierno haya pagado en nombre suyo. Free h&r block tax Por regla general, el Formulario 1098 incluirá sólo los puntos que usted puede deducir totalmente en el año en que los pagó. Free h&r block tax Sin embargo, ciertos puntos no incluidos en el Formulario 1098 también podrían ser deducibles en el año en que los pagó o a lo largo de la vigencia del préstamo. Free h&r block tax Vea la sección anterior Puntos , para determinar si puede deducir puntos que no aparecen en el Formulario 1098. Free h&r block tax Intereses pagados por adelantado en el Formulario 1098. Free h&r block tax   Si pagó intereses por adelantado en el año 2013 devengados en su totalidad para el 15 de enero de 2014, estos intereses pagados por adelantado podrían ser incluidos en el recuadro 1 del Formulario 1098. Free h&r block tax No obstante, no puede deducir la cantidad pagada por adelantado para enero del año 2014 en el año 2013. Free h&r block tax (Vea Intereses pagados por adelantado , anteriormente). Free h&r block tax Tendrá que calcular los intereses devengados en el año 2014 y restarlos de la cantidad del recuadro 1. Free h&r block tax Incluirá los intereses para enero del año 2014 con los demás intereses que pague para el año 2014. Free h&r block tax Vea Cómo Hacer la Declaración , más adelante. Free h&r block tax Intereses reembolsados. Free h&r block tax   Si recibió un reembolso de intereses hipotecarios que pagó en exceso en un año anterior, por lo general, recibirá un Formulario 1098 que muestre el reembolso en el recuadro 3. Free h&r block tax Vea Reembolsos de intereses , anteriormente. Free h&r block tax Primas de seguro hipotecario. Free h&r block tax   La cantidad de primas de seguro hipotecario que pagó en el año 2013 podría aparecer en el recuadro 4 del Formulario 1098. Free h&r block tax Vea Primas de Seguro Hipotecario , anteriormente. Free h&r block tax Intereses Procedentes de Inversiones Esta sección trata sobre los gastos de intereses que quizás podría deducir como inversionista. Free h&r block tax Si saca un préstamo para comprar propiedad que tiene con fines de inversión, los intereses que pague son intereses de inversión. Free h&r block tax Puede deducir intereses de inversión conforme al límite explicado más adelante. Free h&r block tax Sin embargo, no puede deducir intereses en los que incurrió para generar ingresos exentos de impuestos. Free h&r block tax Tampoco puede deducir gastos de intereses sobre una doble opción simultánea de compra y venta. Free h&r block tax Los intereses de inversión no incluyen intereses hipotecarios sobre una vivienda calificada. Free h&r block tax Tampoco incluyen intereses que se hayan tenido en cuenta al calcular ingresos o pérdidas provenientes de una actividad pasiva. Free h&r block tax Bienes de Inversión Los bienes que se tienen para fines de inversión incluyen bienes que producen intereses, dividendos, anualidades o regalías no generados en el curso normal de las operaciones de una ocupación o negocio. Free h&r block tax Además, incluyen bienes que producen ganancias o pérdidas (no generadas en el curso normal de las operaciones de una ocupación o negocio) provenientes de la venta o intercambio comercial de bienes que producen este tipo de ingresos o que se tienen para fines de inversión (a excepción de intereses en una actividad pasiva). Free h&r block tax Los bienes de inversión también incluyen la participación en una actividad relacionada con su ocupación o negocio en la que usted no participó materialmente (a excepción de una actividad pasiva). Free h&r block tax Socios, accionistas y beneficiarios. Free h&r block tax   Para determinar sus intereses de inversión, sume su participación en los intereses de inversión de una sociedad colectiva, sociedad anónima de tipo S, caudal hereditario o fideicomiso más sus demás intereses de inversión. Free h&r block tax Asignación de Gastos de Intereses Si saca un préstamo para fines comerciales o personales además de fines de inversión, tiene que asignar la deuda entre estos fines. Free h&r block tax Sólo el gasto de intereses de la parte de la deuda que se usa para fines de inversión se considera intereses de inversión. Free h&r block tax La asignación no se ve afectada por el uso de bienes que garantizan la deuda. Free h&r block tax Límite sobre la Deducción Por regla general, la deducción por gastos de intereses de inversión se limita a la cantidad del ingreso neto de inversiones. Free h&r block tax Puede trasladar al año tributario siguiente la cantidad de intereses de inversión que no pudo deducir debido a este límite. Free h&r block tax Los intereses trasladados se consideran intereses de inversión pagados o acumulados en ese año siguiente. Free h&r block tax Puede trasladar al año tributario siguiente intereses de inversión denegados aun si son mayores que su ingreso tributable en el año en que los intereses se pagaron o se acumularon. Free h&r block tax Ingresos Netos de Inversiones Determine la cantidad de sus ingresos netos de inversiones restando sus gastos de inversión (a excepción de los gastos de intereses) de sus ingresos de inversiones. Free h&r block tax Ingresos procedentes de inversiones. Free h&r block tax    Por regla general, esto incluye su ingreso bruto proveniente de bienes que se tengan con fines de inversión (tales como intereses, dividendos, anualidades y regalías). Free h&r block tax El ingreso de inversiones no incluye dividendos del Alaska Permanent Fund (Fondo Permanente de Alaska). Free h&r block tax Tampoco incluye dividendos calificados o ganancias de capital netas a no ser que usted escoja incluirlos. Free h&r block tax Si escoge incluir dividendos calificados. Free h&r block tax   Los ingresos de inversiones normalmente no incluyen dividendos calificados, explicados en el capítulo 8. Free h&r block tax No obstante, puede escoger incluir la totalidad o parte de sus dividendos calificados en los ingresos de inversiones. Free h&r block tax   Esta opción se hace llenando la línea 4g del Formulario 4952, en inglés, según las instrucciones del mismo. Free h&r block tax   Si escoge incluir alguna cantidad de sus dividendos calificados en los ingresos de inversiones, tendrá que restar esa misma cantidad de los dividendos calificados con derecho a las tasas tributarias más bajas aplicadas a ganancias de capital. Free h&r block tax Si escoge incluir ganancias netas de capital. Free h&r block tax   Por regla general, los ingresos de inversiones no incluyen ganancias netas de capital provenientes de la enajenación de bienes de inversión (incluidas distribuciones de ganancias de capital provenientes de fondos mutuos). Free h&r block tax No obstante, puede escoger incluir la totalidad o parte de sus ganancias netas de capital en los ingresos de inversiones. Free h&r block tax    Esta opción se hace llenando la línea 4g del Formulario 4952, en inglés, según las instrucciones del mismo. Free h&r block tax   Si escoge incluir alguna cantidad de sus ganancias netas de capital en los ingresos de inversiones, tiene que restar esa misma cantidad de las ganancias netas de capital con derecho a las tasas tributarias más bajas aplicadas a ganancias de capital. Free h&r block tax    Antes de escoger entre las dos opciones, tenga en cuenta el efecto general sobre su obligación tributaria. Free h&r block tax Compare el impuesto que pagaría si tomara una o ambas opciones con el impuesto si no tomara ninguna de las dos. Free h&r block tax Ingresos de inversiones de un hijo declarados por los padres. Free h&r block tax    Los ingresos de inversiones incluyen la parte del ingreso de intereses y dividendos de su hijo que escoge declarar en su declaración. Free h&r block tax Si el hijo no tiene dividendos calificados, dividendos del Alaska Permanent Fund (Fondo Permanente de Alaska) o distribuciones de ganancias de capital, esta cantidad corresponde a la línea 6 del Formulario 8814, Parents' Election To Report Child's Interest and Dividends (Elección de los padres de declarar los intereses y dividendos del hijo), en inglés. Free h&r block tax Dividendos calificados del hijo. Free h&r block tax   Si parte de la cantidad que usted declara corresponde a los dividendos calificados de su hijo, esa parte (la cual se declara en la línea 9b del Formulario 1040) generalmente no cuenta como ingreso de inversiones. Free h&r block tax Sin embargo, puede escoger incluir toda o parte de la misma en los ingresos de inversiones, como se explica en Si escoge incluir dividendos calificados , anteriormente. Free h&r block tax   Sus ingresos de inversiones también incluyen la cantidad de la línea 12 del Formulario 8814 (o, si corresponde, la cantidad reducida calculada bajo Dividendos del Alaska Permanent Fund (Fondo Permanente de Alaska) del hijo, tema presentado a continuación. Free h&r block tax Dividendos del Alaska Permanent Fund (Fondo Permanente de Alaska) del hijo. Free h&r block tax   Si parte de la cantidad que declara corresponde a los dividendos de su hijo del Alaska Permanent Fund, dicha parte no cuenta como ingresos de inversiones. Free h&r block tax Para calcular la cantidad de los ingresos de su hijo que usted puede considerar ingresos de inversiones suyos, empiece con la cantidad que aparece en la línea 6 del Formulario 8814. Free h&r block tax Multiplique dicha cantidad por un porcentaje que sea igual a los dividendos del Alaska Permanent Fund divididos por el total de la línea 4 del Formulario 8814. Free h&r block tax Reste el resultado de la cantidad de la línea 12 del Formulario 8814. Free h&r block tax Distribuciones de las ganancias de capital del hijo. Free h&r block tax    Si parte de la cantidad que usted declara corresponde a distribuciones de las ganancias de capital de su hijo, dicha parte (la cual se declara en la línea 13 del Anexo D o la línea 13 del Formulario 1040) generalmente no cuenta como ingresos de inversiones. Free h&r block tax Sin embargo, puede escoger incluir la totalidad o parte de la misma en los ingresos de inversiones, como se explica en Si escoge incluir ganancias netas de capital , anteriormente. Free h&r block tax   Sus ingresos de inversiones también incluyen la cantidad de la línea 12 del Formulario 8814 (o, si corresponde, la cantidad reducida calculada bajo Dividendos del Alaska Permanent Fund (Fondo Permanente de Alaska) del hijo , anteriormente). Free h&r block tax Gastos de inversión. Free h&r block tax   Los gastos de inversión incluyen las deducciones permitidas (a excepción de los gastos de intereses) relacionados directamente con la generación de ingresos de inversión. Free h&r block tax Los gastos de inversión que se incluyan como deducción detallada miscelánea en el Anexo A (Formulario 1040) son deducciones permisibles después de haberse aplicado el límite del 2% que corresponde a las deducciones detalladas misceláneas. Free h&r block tax Utilice la cantidad que sea menor entre: Los gastos de inversión incluidos en la línea 23 del Anexo A (Formulario 1040) o La cantidad de la línea 27 del Anexo A. Free h&r block tax Pérdidas de actividades pasivas. Free h&r block tax   Los ingresos o gastos que usted utilizó al calcular su ingreso o pérdida de una actividad pasiva no se incluyen al determinar sus ingresos o gastos de inversión (incluidos gastos de intereses de inversión). Free h&r block tax Vea la Publicación 925, Passive Activity and At-Risk Rules (Actividad pasiva y reglas sobre el monto a riesgo), en inglés, para información acerca de las actividades pasivas. Free h&r block tax Formulario 4952 Use el Formulario 4952, Investment Interest Expense Deduction (Deducción por gastos de intereses de inversión), en inglés, para calcular su deducción por intereses de inversión. Free h&r block tax Excepción al uso del Formulario 4952. Free h&r block tax   No tiene que llenar el Formulario 4952 ni adjuntarlo a su declaración si reúne todos los requisitos siguientes: Sus gastos de intereses de inversión no son mayores que sus ingresos de inversión provenientes de intereses y dividendos ordinarios menos los dividendos calificados. Free h&r block tax No tiene ningún otro gasto de inversión deducible. Free h&r block tax No ha traspasado ningún gasto de intereses de inversión del año 2012. Free h&r block tax Si reúne todas estas condiciones, puede deducir todos sus intereses de inversión. Free h&r block tax Información Adicional Para más información sobre los intereses de inversión, vea Interest Expenses (Gastos de intereses), en el capítulo 3 de la Publicación 550, en inglés. Free h&r block tax Cantidades que No Puede Deducir Algunos pagos de intereses no son deducibles. Free h&r block tax Ciertos gastos semejantes a los intereses tampoco son deducibles. Free h&r block tax Los gastos no deducibles incluyen los siguientes: Intereses personales (explicados más adelante). Free h&r block tax Cargos por servicios (no obstante, vea Otros Gastos (Línea 23) en el capítulo 28). Free h&r block tax Cargos anuales por tarjetas de crédito. Free h&r block tax Cargos de préstamos. Free h&r block tax Cargos por investigación de crédito. Free h&r block tax Intereses para comprar o tener valores exentos de impuestos. Free h&r block tax Multas y sanciones. Free h&r block tax   No puede deducir multas y sanciones pagadas a un gobierno por violaciones de la ley, independientemente de su naturaleza. Free h&r block tax Intereses Personales Los intereses personales no son deducibles. Free h&r block tax Los intereses personales son aquellos intereses que no son intereses hipotecarios de vivienda, intereses de inversión, intereses comerciales u otros intereses deducibles. Free h&r block tax Incluyen lo siguiente: Intereses sobre préstamos de automóvil (a menos que usted use el automóvil para negocios). Free h&r block tax Intereses sobre el impuesto federal, estatal o local sobre el ingreso. Free h&r block tax Cargos por financiamiento de tarjetas de crédito, contratos de venta al por menor a plazos y cuentas de crédito rotativas en los que se ha incurrido por gastos personales. Free h&r block tax Multas por pagos atrasados por una empresa de servicios públicos. Free h&r block tax Quizás pueda deducir los intereses que pague sobre un préstamo de estudios calificado. Free h&r block tax Para más detalles, vea la Publicación 970, Tax Benefits for Education (Beneficios tributarios por estudios), en inglés. Free h&r block tax Asignación de Intereses Si usa los fondos de un préstamo para más de un propósito (por ejemplo, personal y comercial), tiene que asignar los intereses sobre el préstamo para cada uso. Free h&r block tax Sin embargo, no tiene que asignar intereses hipotecarios de vivienda si son totalmente deducibles, independientemente de cómo se usen los fondos. Free h&r block tax Los intereses sobre un préstamo (a excepción de intereses hipotecarios de vivienda totalmente deducibles) se asignan igual que se asigna el préstamo mismo. Free h&r block tax Esto se hace averiguando cómo se asignaron a usos específicos los desembolsos de los fondos procedentes de la deuda. Free h&r block tax Para más información sobre cómo hacer esto, vea el capítulo 4 de la Publicación 535, en inglés. Free h&r block tax Cómo Hacer la Declaración Tiene que presentar el Formulario 1040 para deducir los gastos de intereses hipotecarios de vivienda en su declaración de impuestos. Free h&r block tax El lugar donde se deducen los gastos de intereses suele depender de cómo se usen los fondos procedentes del préstamo. Free h&r block tax Vea la Tabla 23-1 para un resumen de dónde deducir sus gastos de intereses. Free h&r block tax Tabla 23-1. Free h&r block tax Dónde Deducir los Gastos de Intereses SI usted tiene. Free h&r block tax . Free h&r block tax . Free h&r block tax ENTONCES dedúzcalo en la. Free h&r block tax . Free h&r block tax . Free h&r block tax Y para más información pase a la(s). Free h&r block tax . Free h&r block tax . Free h&r block tax intereses deducibles sobre un préstamo de estudios línea 33 del Formulario 1040 o la línea 18 del Formulario 1040A Publicación 970, en inglés. Free h&r block tax intereses deducibles sobre una hipoteca de vivienda y puntos declarados en el Formulario 1098 línea 10 del Anexo A (Formulario 1040) Publicación 936, en inglés. Free h&r block tax intereses deducibles sobre una hipoteca de vivienda no declarados en el Formulario 1098 línea 11 del Anexo A (Formulario 1040) Publicación 936, en inglés. Free h&r block tax puntos deducibles no declarados en el Formulario 1098 línea 12 del Anexo A (Formulario 1040) Publicación 936, en inglés. Free h&r block tax primas de un seguro hipotecario deducibles línea 13 del Anexo A (Formulario 1040) Publicación 936, en inglés. Free h&r block tax intereses de inversión deducibles (a excepción de intereses en los que se haya incurrido para generar alquileres o regalías) línea 14 del Anexo A (Formulario 1040) Publicación 550, en inglés. Free h&r block tax intereses comerciales deducibles (no agrícolas) Anexo C o C-EZ (Formulario 1040) Publicación 535, en inglés. Free h&r block tax intereses deducibles de negocio agrícola Anexo F (Formulario 1040) Publicaciones 225 y 535, en inglés. Free h&r block tax intereses deducibles en los que se haya incurrido para generar alquileres o regalías Anexo E (Formulario 1040) Publicaciones 527 y 535, en inglés. Free h&r block tax intereses personales no deducibles. Free h&r block tax Intereses y puntos de una hipoteca de vivienda. Free h&r block tax   Deduzca los intereses y puntos de una hipoteca de vivienda que le sean declarados a usted en el Formulario 1098, anotándolos en la línea 10 del Anexo A (Formulario 1040). Free h&r block tax Si usted le pagó a la institución financiera más intereses deducibles que la cantidad que aparece en el Formulario 1098, anote la cantidad deducible que sea mayor en la línea 10. Free h&r block tax Adjunte un documento escrito explicando la diferencia y escriba “See attached” (Vea el documento adjunto) en letra de molde al lado de la línea 10. Free h&r block tax    En el caso de los intereses hipotecarios de vivienda que no se le declararon a usted en el Formulario 1098, dedúzcalos en la línea 11 del Anexo A (Formulario 1040). Free h&r block tax Si le pagó intereses hipotecarios de vivienda a la persona a la cual le compró su vivienda, anote el nombre, dirección y número de identificación del contribuyente (TIN, por sus siglas en inglés) de dicha persona en la línea de puntos al lado de la línea 11. Free h&r block tax El vendedor tiene que darle a usted este número y usted tiene que darle al vendedor su número de identificación del contribuyente. Free h&r block tax Para este fin, puede utilizar el Formulario W-9(SP), Solicitud y Certificación del Número de Identificación del Contribuyente (o el Formulario W-9, en inglés). Free h&r block tax La falta de cumplimiento de alguno de estos requisitos podría resultar en una multa de $50 por cada incumplimiento. Free h&r block tax El TIN puede ser un número de Seguro Social, un número de identificación de contribuyente individual (emitido por el IRS) o un número de identificación del empleador. Free h&r block tax Vea Número de Seguro Social , en el capítulo 1, para más información sobre los TIN. Free h&r block tax    Si puede declarar una deducción por puntos que no le fueron comunicados en el Formulario 1098, deduzca esos puntos en la línea 12 del Anexo A (Formulario 1040). Free h&r block tax    Deduzca primas de seguro hipotecario en la línea 13 del Anexo A (Formulario 1040). Free h&r block tax Más de un prestatario. Free h&r block tax   Si usted y por lo menos otra persona (que no sea su cónyuge, si presenta una declaración conjunta) eran responsables de pagar, y pagaron, los intereses de una hipoteca para su vivienda, y la otra persona recibió un Formulario 1098 mostrando los intereses pagados durante el año, adjunte un documento escrito a su declaración de impuestos explicándolo. Free h&r block tax Anote la cantidad de los intereses que cada uno pagó y dé el nombre y la dirección de la persona que recibió el formulario. Free h&r block tax Deduzca su parte de los intereses en la línea 11 del Anexo A (Formulario 1040) y escriba “ See attached ” (Vea el documento adjunto) en letra de molde al lado de esta línea. Free h&r block tax Además, deduzca su parte de toda prima de seguro hipotecario en la línea 13 del Anexo A (Formulario 1040). Free h&r block tax   Del mismo modo, si es el pagador oficial de una hipoteca sobre la cual hay otros prestatarios con derecho a una deducción por los intereses que aparecen en el Formulario 1098 que recibió, deduzca únicamente su parte de los intereses en la línea 10 del Anexo A (Formulario 1040). Free h&r block tax Usted debe comunicarles a los demás prestatarios qué participación en los intereses tiene cada uno. Free h&r block tax Fondos procedentes de una hipoteca utilizados para negocios o inversiones. Free h&r block tax    Si su deducción por intereses hipotecarios de vivienda es limitada pero la totalidad o una parte de los fondos procedentes de la hipoteca se utilizaron para fines comerciales, de inversión o para otras actividades deducibles, vea la Tabla 23-1 . Free h&r block tax La misma indica dónde deducir las partes de los intereses en exceso que correspondan a esas actividades. Free h&r block tax Intereses de inversión. Free h&r block tax    Deduzca los intereses de inversión, sujetos a ciertos límites explicados en la Publicación 550, en inglés, anotándolos en la línea 14 del Anexo A (Formulario 1040). Free h&r block tax Amortización de primas sobre bonos. Free h&r block tax   Hay varias maneras de tratar las primas que se pagan para comprar bonos tributables. Free h&r block tax Vea Bond Premium Amortization (Amortización de Primas sobre Bonos) en la Publicación 550, en inglés. Free h&r block tax Intereses por regalías o de alquiler que generen ingresos. Free h&r block tax   Deduzca en la Parte I del Anexo E (Formulario 1040) los intereses sobre un préstamo para bienes de alquiler que generen ingresos o bienes que generen regalías y que no se usen en un negocio. Free h&r block tax Ejemplo. Free h&r block tax Usted alquila una parte de su vivienda y saca un préstamo para hacer reparaciones. Free h&r block tax Puede deducir sólo el pago de intereses de la parte alquilada anotándolo en la Parte I del Anexo E (Formulario 1040). Free h&r block tax Deduzca el resto del pago de intereses en el Anexo A (Formulario 1040) si son intereses hipotecarios de vivienda deducibles. Free h&r block tax Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Law Enforcement Assistance Pilot Program on Identity Theft Activity Involving the IRS

As part of its comprehensive identity theft strategy, the IRS is expanding the law enforcement assistance pilot program designed to help law enforcement obtain tax return data vital to their local efforts in investigating and prosecuting specific cases of identity theft. In addition to the initial State of Florida, this pilot program is expanding to work with law enforcement in eight additional states: Alabama, California, Georgia, New Jersey, New York, Oklahoma, Pennsylvania and Texas.

The IRS launched the initial pilot in Florida in April of 2012.  Over 750 waiver requests have been received through October from roughly 50 state and local law enforcement agencies in Florida participating in the pilot. 

Under the pilot program, state and local law enforcement officials with evidence of identity theft involving fraudulently filed federal tax returns will be able to have identity theft victims complete a special IRS disclosure form. Taxpayers must give their permission for the IRS to provide law enforcement with the returns submitted using their Social Security number. Law enforcement officials will need to contact the identity theft victims in order to request and secure the victims' consent for disclosure of the records. In certain instances, the IRS will assist law enforcement in locating taxpayers and soliciting their consent.

Law enforcement would then submit a disclosure authorization form, which the IRS created solely for use by victims of identity theft for this pilot program, to the Criminal Investigation (CI) Division of the IRS, along with a copy of the police report and the IRS Identity Theft Affidavit if available. It is important that identity theft victims still submit the original copy of the IRS Identity Theft Affidavit to the IRS according to the instructions on the back of the form that fit their specific circumstances.

Federal law imposes restrictions on sharing of taxpayer information, including information that can be shared with state and local law enforcement.  This program allows taxpayers the option to permit information to be shared with state and local law enforcement specifically to assist law enforcement officials with their efforts in pursuing identity theft perpetrators.  During this expanded pilot program, the IRS will process the disclosure forms received and forward the documentation to the law enforcement officer who requested the documents. The documents will not be sent directly to the taxpayer. However, the IRS will continue to work directly with taxpayers to resolve their tax accounts as quickly as possible.

Law enforcement in the nine states in this pilot program who are interested in working with the IRS should contact their local IRS Criminal Investigation field office.

Following the pilot, the IRS will carefully assess the results and performance before deciding on how to proceed with the program.

The IRS comprehensive identity theft strategy comprises a dual effort, focusing both on fraud prevention and victim assistance. On the prevention side, this includes implementing new processes for handling returns, new filters to detect fraud, new initiatives to partner with stakeholders and a continued commitment to investigate the criminals who perpetrate these crimes. As for victim assistance, the IRS is working to accelerate case resolution, provide more training for our employees who assist victims of identity theft, and increase outreach to and education of taxpayers so they can prevent and resolve tax-related identity theft issues quickly.

Taxpayers looking for additional information can consult the Taxpayer Guide to Identity Theft or the IRS Identity Theft Protection page on the IRS website.

Page Last Reviewed or Updated: 06-Dec-2013

The Free H&r Block Tax

Free h&r block tax Publication 537 - Main Content Table of Contents What Is an Installment Sale?Special rule. Free h&r block tax General RulesFiguring Installment Sale Income Reporting Installment Sale Income Other RulesElecting Out of the Installment Method Payments Received or Considered Received Escrow Account Depreciation Recapture Income Sale to a Related Person Like-Kind Exchange Contingent Payment Sale Single Sale of Several Assets Sale of a Business Unstated Interest and Original Issue Discount (OID) Disposition of an Installment Obligation Repossession Interest on Deferred Tax Reporting an Installment SaleRelated person. Free h&r block tax Several assets. Free h&r block tax Special situations. Free h&r block tax Schedule D (Form 1040). Free h&r block tax Form 4797. Free h&r block tax How To Get Tax Help What Is an Installment Sale? An installment sale is a sale of property where you receive at least one payment after the tax year of the sale. Free h&r block tax The rules for installment sales do not apply if you elect not to use the installment method (see Electing Out of the Installment Method under Other Rules, later) or the transaction is one for which the installment method may not apply. Free h&r block tax The installment sales method cannot be used for the following. Free h&r block tax Sale of inventory. Free h&r block tax   The regular sale of inventory of personal property does not qualify as an installment sale even if you receive a payment after the year of sale. Free h&r block tax See Sale of a Business under Other Rules, later. Free h&r block tax Dealer sales. Free h&r block tax   Sales of personal property by a person who regularly sells or otherwise disposes of the same type of personal property on the installment plan are not installment sales. Free h&r block tax This rule also applies to real property held for sale to customers in the ordinary course of a trade or business. Free h&r block tax However, the rule does not apply to an installment sale of property used or produced in farming. Free h&r block tax Special rule. Free h&r block tax   Dealers of time-shares and residential lots can treat certain sales as installment sales and report them under the installment method if they elect to pay a special interest charge. Free h&r block tax For more information, see section 453(l). Free h&r block tax Stock or securities. Free h&r block tax   You cannot use the installment method to report gain from the sale of stock or securities traded on an established securities market. Free h&r block tax You must report the entire gain on the sale in the year in which the trade date falls. Free h&r block tax Installment obligation. Free h&r block tax   The buyer's obligation to make future payments to you can be in the form of a deed of trust, note, land contract, mortgage, or other evidence of the buyer's debt to you. Free h&r block tax General Rules If a sale qualifies as an installment sale, the gain must be reported under the installment method unless you elect out of using the installment method. Free h&r block tax See Electing Out of the Installment Method under Other Rules, later, for information on recognizing the entire gain in the year of sale. Free h&r block tax Sale at a loss. Free h&r block tax   If your sale results in a loss, you cannot use the installment method. Free h&r block tax If the loss is on an installment sale of business or investment property, you can deduct it only in the tax year of sale. Free h&r block tax Unstated interest. Free h&r block tax   If your sale calls for payments in a later year and the sales contract provides for little or no interest, you may have to figure unstated interest, even if you have a loss. Free h&r block tax See Unstated Interest and Original Issue Discount (OID) under Other Rules, later. Free h&r block tax Figuring Installment Sale Income You can use the following discussions or Form 6252 to help you determine gross profit, contract price, gross profit percentage, and installment sale income. Free h&r block tax Each payment on an installment sale usually consists of the following three parts. Free h&r block tax Interest income. Free h&r block tax Return of your adjusted basis in the property. Free h&r block tax Gain on the sale. Free h&r block tax In each year you receive a payment, you must include in income both the interest part and the part that is your gain on the sale. Free h&r block tax You do not include in income the part that is the return of your basis in the property. Free h&r block tax Basis is the amount of your investment in the property for installment sale purposes. Free h&r block tax Interest Income You must report interest as ordinary income. Free h&r block tax Interest is generally not included in a down payment. Free h&r block tax However, you may have to treat part of each later payment as interest, even if it is not called interest in your agreement with the buyer. Free h&r block tax Interest provided in the agreement is called stated interest. Free h&r block tax If the agreement does not provide for enough stated interest, there may be unstated interest or original issue discount. Free h&r block tax See Unstated Interest and Original Issue Discount (OID) under Other Rules, later. Free h&r block tax Adjusted Basis and Installment Sale Income (Gain on Sale) After you have determined how much of each payment to treat as interest, you treat the rest of each payment as if it were made up of two parts. Free h&r block tax A tax-free return of your adjusted basis in the property, and Your gain (referred to as installment sale income on Form 6252). Free h&r block tax Figuring adjusted basis for installment sale purposes. Free h&r block tax   You can use Worksheet A to figure your adjusted basis in the property for installment sale purposes. Free h&r block tax When you have completed the worksheet, you will also have determined the gross profit percentage necessary to figure your installment sale income (gain) for this year. Free h&r block tax Worksheet A. Free h&r block tax Figuring Adjusted Basis and Gross Profit Percentage 1. Free h&r block tax Enter the selling price for the property   2. Free h&r block tax Enter your adjusted basis for the property     3. Free h&r block tax Enter your selling expenses     4. Free h&r block tax Enter any depreciation recapture     5. Free h&r block tax Add lines 2, 3, and 4. Free h&r block tax  This is your adjusted basis for installment sale purposes   6. Free h&r block tax Subtract line 5 from line 1. Free h&r block tax If zero or less, enter -0-. Free h&r block tax  This is your gross profit     If the amount entered on line 6 is zero, stop here. Free h&r block tax You cannot use the installment method. Free h&r block tax   7. Free h&r block tax Enter the contract price for the property   8. Free h&r block tax Divide line 6 by line 7. Free h&r block tax This is your gross profit percentage   Selling price. Free h&r block tax   The selling price is the total cost of the property to the buyer and includes any of the following. Free h&r block tax Any money you are to receive. Free h&r block tax The fair market value (FMV) of any property you are to receive (FMV is discussed in Property Used As a Payment under Other Rules, later). Free h&r block tax Any existing mortgage or other debt the buyer pays, assumes, or takes (a note, mortgage, or any other liability, such as a lien, accrued interest, or taxes you owe on the property). Free h&r block tax Any of your selling expenses the buyer pays. Free h&r block tax   Do not include stated interest, unstated interest, any amount recomputed or recharacterized as interest, or original issue discount. Free h&r block tax Adjusted basis for installment sale purposes. Free h&r block tax   Your adjusted basis is the total of the following three items. Free h&r block tax Adjusted basis. Free h&r block tax Selling expenses. Free h&r block tax Depreciation recapture. Free h&r block tax Adjusted basis. Free h&r block tax   Basis is your investment in the property for installment sale purposes. Free h&r block tax The way you figure basis depends on how you acquire the property. Free h&r block tax The basis of property you buy is generally its cost. Free h&r block tax The basis of property you inherit, receive as a gift, build yourself, or receive in a tax-free exchange is figured differently. Free h&r block tax   While you own property, various events may change your original basis. Free h&r block tax Some events, such as adding rooms or making permanent improvements, increase basis. Free h&r block tax Others, such as deductible casualty losses or depreciation previously allowed or allowable, decrease basis. Free h&r block tax The result is adjusted basis. Free h&r block tax   For more information on how to figure basis and adjusted basis, see Publication 551. Free h&r block tax For more information regarding your basis in property you inherited from someone who died in 2010 and whose executor filed Form 8939, Allocation of Increase In Basis for Property Acquired From a Decedent, see Publication 4895. Free h&r block tax Selling expenses. Free h&r block tax   Selling expenses relate to the sale of the property. Free h&r block tax They include commissions, attorney fees, and any other expenses paid on the sale. Free h&r block tax Selling expenses are added to the basis of the sold property. Free h&r block tax Depreciation recapture. Free h&r block tax   If the property you sold was depreciable property, you may need to recapture part of the gain on the sale as ordinary income. Free h&r block tax See Depreciation Recapture Income under Other Rules, later. Free h&r block tax Gross profit. Free h&r block tax   Gross profit is the total gain you report on the installment method. Free h&r block tax   To figure your gross profit, subtract your adjusted basis for installment sale purposes from the selling price. Free h&r block tax If the property you sold was your home, subtract from the gross profit any gain you can exclude. Free h&r block tax See Sale of Your Home , later, under Reporting Installment Sale Income. Free h&r block tax Contract price. Free h&r block tax   Contract price equals: The selling price, minus The mortgages, debts, and other liabilities assumed or taken by the buyer, plus The amount by which the mortgages, debts, and other liabilities assumed or taken by the buyer exceed your adjusted basis for installment sale purposes. Free h&r block tax Gross profit percentage. Free h&r block tax   A certain percentage of each payment (after subtracting interest) is reported as installment sale income. Free h&r block tax This percentage is called the gross profit percentage and is figured by dividing your gross profit from the sale by the contract price. Free h&r block tax   The gross profit percentage generally remains the same for each payment you receive. Free h&r block tax However, see the Example under Selling Price Reduced, later, for a situation where the gross profit percentage changes. Free h&r block tax Example. Free h&r block tax You sell property at a contract price of $6,000 and your gross profit is $1,500. Free h&r block tax Your gross profit percentage is 25% ($1,500 ÷ $6,000). Free h&r block tax After subtracting interest, you report 25% of each payment, including the down payment, as installment sale income from the sale for the tax year you receive the payment. Free h&r block tax The remainder (balance) of each payment is the tax-free return of your adjusted basis. Free h&r block tax Amount to report as installment sale income. Free h&r block tax   Multiply the payments you receive each year (less interest) by the gross profit percentage. Free h&r block tax The result is your installment sale income for the tax year. Free h&r block tax In certain circumstances, you may be treated as having received a payment, even though you received nothing directly. Free h&r block tax A receipt of property or the assumption of a mortgage on the property sold may be treated as a payment. Free h&r block tax For a detailed discussion, see Payments Received or Considered Received under Other Rules, later. Free h&r block tax Selling Price Reduced If the selling price is reduced at a later date, the gross profit on the sale also will change. Free h&r block tax You then must refigure the gross profit percentage for the remaining payments. Free h&r block tax Refigure your gross profit using Worksheet B. Free h&r block tax You will spread any remaining gain over future installments. Free h&r block tax Worksheet B. Free h&r block tax New Gross Profit Percentage — Selling Price Reduced 1. Free h&r block tax Enter the reduced selling  price for the property   2. Free h&r block tax Enter your adjusted  basis for the  property     3. Free h&r block tax Enter your selling  expenses     4. Free h&r block tax Enter any depreciation  recapture     5. Free h&r block tax Add lines 2, 3, and 4. Free h&r block tax   6. Free h&r block tax Subtract line 5 from line 1. Free h&r block tax  This is your adjusted  gross profit   7. Free h&r block tax Enter any installment sale  income reported in  prior year(s)   8. Free h&r block tax Subtract line 7 from line 6   9. Free h&r block tax Future installments   10. Free h&r block tax Divide line 8 by line 9. Free h&r block tax  This is your new gross profit percentage*   * Apply this percentage to all future payments to determine how much of each of those payments is installment sale income. Free h&r block tax Example. Free h&r block tax In 2011, you sold land with a basis of $40,000 for $100,000. Free h&r block tax Your gross profit was $60,000. Free h&r block tax You received a $20,000 down payment and the buyer's note for $80,000. Free h&r block tax The note provides for four annual payments of $20,000 each, plus 8% interest, beginning in 2012. Free h&r block tax Your gross profit percentage is 60%. Free h&r block tax You reported a gain of $12,000 on each payment received in 2011 and 2012. Free h&r block tax In 2013, you and the buyer agreed to reduce the purchase price to $85,000 and payments during 2013, 2014, and 2015 are reduced to $15,000 for each year. Free h&r block tax The new gross profit percentage, 46. Free h&r block tax 67%, is figured on Example—Worksheet B. Free h&r block tax You will report a gain of $7,000 (46. Free h&r block tax 67% of $15,000) on each of the $15,000 installments due in 2013, 2014, and 2015. Free h&r block tax Example — Worksheet B. Free h&r block tax New Gross Profit Percentage — Selling Price Reduced 1. Free h&r block tax Enter the reduced selling  price for the property 85,000 2. Free h&r block tax Enter your adjusted  basis for the  property 40,000   3. Free h&r block tax Enter your selling  expenses -0-   4. Free h&r block tax Enter any depreciation  recapture -0-   5. Free h&r block tax Add lines 2, 3, and 4. Free h&r block tax 40,000 6. Free h&r block tax Subtract line 5 from line 1. Free h&r block tax  This is your adjusted  gross profit 45,000 7. Free h&r block tax Enter any installment sale  income reported in  prior year(s) 24,000 8. Free h&r block tax Subtract line 7 from line 6 21,000 9. Free h&r block tax Future installments 45,000 10. Free h&r block tax Divide line 8 by line 9. Free h&r block tax  This is your new gross profit percentage* 46. Free h&r block tax 67% * Apply this percentage to all future payments to determine how much of each of those payments is installment sale income. Free h&r block tax Reporting Installment Sale Income Generally, you will use Form 6252 to report installment sale income from casual sales of real or personal property during the tax year. Free h&r block tax You also will have to report the installment sale income on Schedule D (Form 1040), Capital Gains and Losses, or Form 4797, or both. Free h&r block tax See Schedule D (Form 1040) and Form 4797 , later. Free h&r block tax If the property was your main home, you may be able to exclude part or all of the gain. Free h&r block tax See Sale of Your Home , later. Free h&r block tax Form 6252 Use Form 6252 to report an installment sale in the year it takes place and to report payments received, or considered received because of related party resales, in later years. Free h&r block tax Attach it to your tax return for each year. Free h&r block tax Form 6252 will help you determine the gross profit, contract price, gross profit percentage, and installment sale income. Free h&r block tax Which parts to complete. Free h&r block tax   Which part to complete depends on whether you are filing the form for the year of sale or a later year. Free h&r block tax Year of sale. Free h&r block tax   Complete lines 1 through 4, Part I, and Part II. Free h&r block tax If you sold property to a related party during the year, also complete Part III. Free h&r block tax Later years. Free h&r block tax   Complete lines 1 through 4 and Part II for any year in which you receive a payment from an installment sale. Free h&r block tax   If you sold a marketable security to a related party after May 14, 1980, and before January 1, 1987, complete Form 6252 for each year of the installment agreement, even if you did not receive a payment. Free h&r block tax (After December 31, 1986, the installment method is not available for the sale of marketable securities. Free h&r block tax ) Complete lines 1 through 4 and Part II for any year in which you receive a payment from the sale. Free h&r block tax Complete Part III unless you received the final payment during the tax year. Free h&r block tax   If you sold property other than a marketable security to a related party after May 14, 1980, complete Form 6252 for the year of sale and for 2 years after the year of sale, even if you did not receive a payment. Free h&r block tax Complete lines 1 through 4 and Part II for any year during this 2-year period in which you receive a payment from the sale. Free h&r block tax Complete Part III for the 2 years after the year of sale unless you received the final payment during the tax year. Free h&r block tax Schedule D (Form 1040) Enter the gain figured on Form 6252 (line 26) for personal-use property (capital assets) on Schedule D (Form 1040), as a short-term gain (line 4) or long-term gain (line 11). Free h&r block tax If your gain from the installment sale qualifies for long-term capital gain treatment in the year of sale, it will continue to qualify in later tax years. Free h&r block tax Your gain is long-term if you owned the property for more than 1 year when you sold it. Free h&r block tax Form 4797 An installment sale of property used in your business or that earns rent or royalty income may result in a capital gain, an ordinary gain, or both. Free h&r block tax All or part of any gain from the disposition of the property may be ordinary gain from depreciation recapture. Free h&r block tax For trade or business property held for more than 1 year, enter the amount from line 26 of Form 6252 on Form 4797, line 4. Free h&r block tax If the property was held 1 year or less or you have an ordinary gain from the sale of a noncapital asset (even if the holding period is more than 1 year), enter this amount on Form 4797, line 10, and write “From Form 6252. Free h&r block tax ” Sale of Your Home If you sell your home, you may be able to exclude all or part of the gain on the sale. Free h&r block tax See Publication 523 for information about excluding the gain. Free h&r block tax If the sale is an installment sale, any gain you exclude is not included in gross profit when figuring your gross profit percentage. Free h&r block tax Seller-financed mortgage. Free h&r block tax   If you finance the sale of your home to an individual, both you and the buyer may have to follow special reporting procedures. Free h&r block tax   When you report interest income received from a buyer who uses the property as a personal residence, write the buyer's name, address, and social security number (SSN) on line 1 of Schedule B (Form 1040A or 1040), Interest and Ordinary Dividends. Free h&r block tax   When deducting the mortgage interest, the buyer must write your name, address, and SSN on line 11 of Schedule A (Form 1040), Itemized Deductions. Free h&r block tax   If either person fails to include the other person's SSN, a $50 penalty will be assessed. Free h&r block tax Other Rules The rules discussed in this part of the publication apply only in certain circumstances or to certain types of property. Free h&r block tax The following topics are discussed. Free h&r block tax Electing out of the installment method. Free h&r block tax Payments received or considered received. Free h&r block tax Escrow account. Free h&r block tax Depreciation recapture income. Free h&r block tax Sale to a related person. Free h&r block tax Like-kind exchange. Free h&r block tax Contingent payment sale. Free h&r block tax Single sale of several assets. Free h&r block tax Sale of a business. Free h&r block tax Unstated interest and original issue discount. Free h&r block tax Disposition of an installment obligation. Free h&r block tax Repossession. Free h&r block tax Interest on deferred tax. Free h&r block tax Electing Out of the Installment Method If you elect not to use the installment method, you generally report the entire gain in the year of sale, even though you do not receive all the sale proceeds in that year. Free h&r block tax To figure the amount of gain to report, use the fair market value (FMV) of the buyer's installment obligation that represents the buyer's debt to you. Free h&r block tax Notes, mortgages, and land contracts are examples of obligations that are included at FMV. Free h&r block tax You must figure the FMV of the buyer's installment obligation, whether or not you would actually be able to sell it. Free h&r block tax If you use the cash method of accounting, the FMV of the obligation will never be considered to be less than the FMV of the property sold (minus any other consideration received). Free h&r block tax Example. Free h&r block tax You sold a parcel of land for $50,000. Free h&r block tax You received a $10,000 down payment and will receive the balance over the next 10 years at $4,000 a year, plus 8% interest. Free h&r block tax The buyer gave you a note for $40,000. Free h&r block tax The note had an FMV of $40,000. Free h&r block tax You paid a commission of 6%, or $3,000, to a broker for negotiating the sale. Free h&r block tax The land cost $25,000, and you owned it for more than one year. Free h&r block tax You decide to elect out of the installment method and report the entire gain in the year of sale. Free h&r block tax Gain realized:     Selling price $50,000 Minus: Property's adj. Free h&r block tax basis $25,000     Commission 3,000 28,000 Gain realized $22,000 Gain recognized in year of sale:   Cash $10,000 Market value of note 40,000 Total realized in year of sale $50,000 Minus: Property's adj. Free h&r block tax basis $25,000     Commission 3,000 28,000 Gain recognized $22,000 The recognized gain of $22,000 is long-term capital gain. Free h&r block tax You include the entire gain in income in the year of sale, so you do not include in income any principal payments you receive in later tax years. Free h&r block tax The interest on the note is ordinary income and is reported as interest income each year. Free h&r block tax How to elect out. Free h&r block tax   To make this election, do not report your sale on Form 6252. Free h&r block tax Instead, report it on Form 8949, Sales and Other Dispositions of Capital Assets, Form 4797, or both. Free h&r block tax When to elect out. Free h&r block tax   Make this election by the due date, including extensions, for filing your tax return for the year the sale takes place. Free h&r block tax Automatic six-month extension. Free h&r block tax   If you timely file your tax return without making the election, you still can make the election by filing an amended return within 6 months of the due date of your return (excluding extensions). Free h&r block tax Write “Filed pursuant to section 301. Free h&r block tax 9100-2” at the top of the amended return and file it where the original return was filed. Free h&r block tax Revoking the election. Free h&r block tax   Once made, the election can be revoked only with IRS approval. Free h&r block tax A revocation is retroactive. Free h&r block tax You will not be allowed to revoke the election if either of the following applies. Free h&r block tax One of the purposes is to avoid federal income tax. Free h&r block tax The tax year in which any payment was received has closed. Free h&r block tax Payments Received or Considered Received You must figure your gain each year on the payments you receive, or are treated as receiving, from an installment sale. Free h&r block tax In certain situations, you are considered to have received a payment, even though the buyer does not pay you directly. Free h&r block tax These situations occur when the buyer assumes or pays any of your debts, such as a loan, or pays any of your expenses, such as a sales commission. Free h&r block tax However, as discussed later, the buyer's assumption of your debt is treated as a recovery of your basis rather than as a payment in many cases. Free h&r block tax Buyer Pays Seller's Expenses If the buyer pays any of your expenses related to the sale of your property, it is considered a payment to you in the year of sale. Free h&r block tax Include these expenses in the selling and contract prices when figuring the gross profit percentage. Free h&r block tax Buyer Assumes Mortgage If the buyer assumes or pays off your mortgage, or otherwise takes the property subject to the mortgage, the following rules apply. Free h&r block tax Mortgage not more than basis. Free h&r block tax   If the buyer assumes a mortgage that is not more than your installment sale basis in the property, it is not considered a payment to you. Free h&r block tax It is considered a recovery of your basis. Free h&r block tax The contract price is the selling price minus the mortgage. Free h&r block tax Example. Free h&r block tax You sell property with an adjusted basis of $19,000. Free h&r block tax You have selling expenses of $1,000. Free h&r block tax The buyer assumes your existing mortgage of $15,000 and agrees to pay you $10,000 (a cash down payment of $2,000 and $2,000 (plus 12% interest) in each of the next 4 years). Free h&r block tax The selling price is $25,000 ($15,000 + $10,000). Free h&r block tax Your gross profit is $5,000 ($25,000 − $20,000 installment sale basis). Free h&r block tax The contract price is $10,000 ($25,000 − $15,000 mortgage). Free h&r block tax Your gross profit percentage is 50% ($5,000 ÷ $10,000). Free h&r block tax You report half of each $2,000 payment received as gain from the sale. Free h&r block tax You also report all interest you receive as ordinary income. Free h&r block tax Mortgage more than basis. Free h&r block tax   If the buyer assumes a mortgage that is more than your installment sale basis in the property, you recover your entire basis. Free h&r block tax The part of the mortgage greater than your basis is treated as a payment received in the year of sale. Free h&r block tax   To figure the contract price, subtract the mortgage from the selling price. Free h&r block tax This is the total amount (other than interest) you will receive directly from the buyer. Free h&r block tax Add to this amount the payment you are considered to have received (the difference between the mortgage and your installment sale basis). Free h&r block tax The contract price is then the same as your gross profit from the sale. Free h&r block tax    If the mortgage the buyer assumes is equal to or more than your installment sale basis, the gross profit percentage always will be 100%. Free h&r block tax Example. Free h&r block tax The selling price for your property is $9,000. Free h&r block tax The buyer will pay you $1,000 annually (plus 8% interest) over the next 3 years and assume an existing mortgage of $6,000. Free h&r block tax Your adjusted basis in the property is $4,400. Free h&r block tax You have selling expenses of $600, for a total installment sale basis of $5,000. Free h&r block tax The part of the mortgage that is more than your installment sale basis is $1,000 ($6,000 − $5,000). Free h&r block tax This amount is included in the contract price and treated as a payment received in the year of sale. Free h&r block tax The contract price is $4,000: Selling price $9,000 Minus: Mortgage (6,000) Amount actually received $3,000 Add difference:   Mortgage $6,000   Minus: Installment sale basis 5,000 1,000 Contract price $4,000       Your gross profit on the sale is also $4,000: Selling price $9,000 Minus: Installment sale basis (5,000) Gross profit $4,000 Your gross profit percentage is 100%. Free h&r block tax Report 100% of each payment (less interest) as gain from the sale. Free h&r block tax Treat the $1,000 difference between the mortgage and your installment sale basis as a payment and report 100% of it as gain in the year of sale. Free h&r block tax Mortgage Canceled If the buyer of your property is the person who holds the mortgage on it, your debt is canceled, not assumed. Free h&r block tax You are considered to receive a payment equal to the outstanding canceled debt. Free h&r block tax Example. Free h&r block tax Mary Jones loaned you $45,000 in 2009 in exchange for a note and a mortgage in a tract of land you owned. Free h&r block tax On April 4, 2013, she bought the land for $70,000. Free h&r block tax At that time, $30,000 of her loan to you was outstanding. Free h&r block tax She agreed to forgive this $30,000 debt and to pay you $20,000 (plus interest) on August 1, 2013, and $20,000 on August 1, 2014. Free h&r block tax She did not assume an existing mortgage. Free h&r block tax She canceled the $30,000 debt you owed her. Free h&r block tax You are considered to have received a $30,000 payment at the time of the sale. Free h&r block tax Buyer Assumes Other Debts If the buyer assumes any other debts, such as a loan or back taxes, it may be considered a payment to you in the year of sale. Free h&r block tax If the buyer assumes the debt instead of paying it off, only part of it may have to be treated as a payment. Free h&r block tax Compare the debt to your installment sale basis in the property being sold. Free h&r block tax If the debt is less than your installment sale basis, none of it is treated as a payment. Free h&r block tax If it is more, only the difference is treated as a payment. Free h&r block tax If the buyer assumes more than one debt, any part of the total that is more than your installment sale basis is considered a payment. Free h&r block tax These rules are the same as the rules discussed earlier under Buyer Assumes Mortgage . Free h&r block tax However, they apply only to the following types of debt the buyer assumes. Free h&r block tax Those acquired from ownership of the property you are selling, such as a mortgage, lien, overdue interest, or back taxes. Free h&r block tax Those acquired in the ordinary course of your business, such as a balance due for inventory you purchased. Free h&r block tax If the buyer assumes any other type of debt, such as a personal loan or your legal fees relating to the sale, it is treated as if the buyer had paid off the debt at the time of the sale. Free h&r block tax The value of the assumed debt is then considered a payment to you in the year of sale. Free h&r block tax Property Used As a Payment If you receive property other than money from the buyer, it is still considered a payment in the year received. Free h&r block tax However, see Like-Kind Exchange , later. Free h&r block tax Generally, the amount of the payment is the property's FMV on the date you receive it. Free h&r block tax Exception. Free h&r block tax   If the property the buyer gives you is payable on demand or readily tradable, the amount you should consider as payment in the year received is: The FMV of the property on the date you receive it if you use the cash method of accounting, The face amount of the obligation on the date you receive it if you use the accrual method of accounting, or The stated redemption price at maturity less any original issue discount (OID) or, if there is no OID, the stated redemption price at maturity appropriately discounted to reflect total unstated interest. Free h&r block tax See Unstated Interest and Original Issue Discount (OID) , later. Free h&r block tax Debt not payable on demand. Free h&r block tax   Any evidence of debt you receive from the buyer not payable on demand is not considered a payment. Free h&r block tax This is true even if the debt is guaranteed by a third party, including a government agency. Free h&r block tax Fair market value (FMV). Free h&r block tax   This is the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having a reasonable knowledge of all the necessary facts. Free h&r block tax Third-party note. Free h&r block tax   If the property the buyer gives you is a third-party note (or other obligation of a third party), you are considered to have received a payment equal to the note's FMV. Free h&r block tax Because the FMV of the note is itself a payment on your installment sale, any payments you later receive from the third party are not considered payments on the sale. Free h&r block tax The excess of the note's face value over its FMV is interest. Free h&r block tax Exclude this interest in determining the selling price of the property. Free h&r block tax However, see Exception under Property Used As a Payment, earlier. Free h&r block tax Example. Free h&r block tax You sold real estate in an installment sale. Free h&r block tax As part of the down payment, the buyer assigned to you a $50,000, 8% interest third-party note. Free h&r block tax The FMV of the third-party note at the time of the sale was $30,000. Free h&r block tax This amount, not $50,000, is a payment to you in the year of sale. Free h&r block tax The third-party note had an FMV equal to 60% of its face value ($30,000 ÷ $50,000), so 60% of each principal payment you receive on this note is a nontaxable return of capital. Free h&r block tax The remaining 40% is interest taxed as ordinary income. Free h&r block tax Bond. Free h&r block tax   A bond or other evidence of debt you receive from the buyer that is payable on demand or readily tradable in an established securities market is treated as a payment in the year you receive it. Free h&r block tax For more information on the amount you should treat as a payment, see Exception under Property Used As a Payment, earlier. Free h&r block tax    If you receive a government or corporate bond for a sale before October 22, 2004, and the bond has interest coupons attached or can be readily traded in an established securities market, you are considered to have received payment equal to the bond's FMV. Free h&r block tax However, see Exception under Property Used As a Payment, earlier. Free h&r block tax Buyer's note. Free h&r block tax   The buyer's note (unless payable on demand) is not considered payment on the sale. Free h&r block tax However, its full face value is included when figuring the selling price and the contract price. Free h&r block tax Payments you receive on the note are used to figure your gain in the year received. Free h&r block tax Installment Obligation Used as Security (Pledge Rule) If you use an installment obligation to secure any debt, the net proceeds from the debt may be treated as a payment on the installment obligation. Free h&r block tax This is known as the pledge rule, and it applies if the selling price of the property is over $150,000. Free h&r block tax It does not apply to the following dispositions. Free h&r block tax Sales of property used or produced in farming. Free h&r block tax Sales of personal-use property. Free h&r block tax Qualifying sales of time-shares and residential lots. Free h&r block tax The net debt proceeds are the gross debt minus the direct expenses of getting the debt. Free h&r block tax The amount treated as a payment is considered received on the later of the following dates. Free h&r block tax The date the debt becomes secured. Free h&r block tax The date you receive the debt proceeds. Free h&r block tax A debt is secured by an installment obligation to the extent that payment of principal or interest on the debt is directly secured (under the terms of the loan or any underlying arrangement) by any interest in the installment obligation. Free h&r block tax For sales after December 16, 1999, payment on a debt is treated as directly secured by an interest in an installment obligation to the extent an arrangement allows you to satisfy all or part of the debt with the installment obligation. Free h&r block tax Limit. Free h&r block tax   The net debt proceeds treated as a payment on the pledged installment obligation cannot be more than the excess of item (1) over item (2), below. Free h&r block tax The total contract price on the installment sale. Free h&r block tax Any payments received on the installment obligation before the date the net debt proceeds are treated as a payment. Free h&r block tax Installment payments. Free h&r block tax   The pledge rule accelerates the reporting of the installment obligation payments. Free h&r block tax Do not report payments received on the obligation after it has been pledged until the payments received exceed the amount reported under the pledge rule. Free h&r block tax Exception. Free h&r block tax   The pledge rule does not apply to pledges made after December 17, 1987, to refinance a debt under the following circumstances. Free h&r block tax The debt was outstanding on December 17, 1987. Free h&r block tax The debt was secured by that installment sale obligation on that date and at all times thereafter until the refinancing occurred. Free h&r block tax   A refinancing as a result of the creditor's calling of the debt is treated as a continuation of the original debt so long as a person other than the creditor or a person related to the creditor provides the refinancing. Free h&r block tax   This exception applies only to refinancing that does not exceed the principal of the original debt immediately before the refinancing. Free h&r block tax Any excess is treated as a payment on the installment obligation. Free h&r block tax Escrow Account In some cases, the sales agreement or a later agreement may call for the buyer to establish an irrevocable escrow account from which the remaining installment payments (including interest) are to be made. Free h&r block tax These sales cannot be reported on the installment method. Free h&r block tax The buyer's obligation is paid in full when the balance of the purchase price is deposited into the escrow account. Free h&r block tax When an escrow account is established, you no longer rely on the buyer for the rest of the payments, but on the escrow arrangement. Free h&r block tax Example. Free h&r block tax You sell property for $100,000. Free h&r block tax The sales agreement calls for a down payment of $10,000 and payment of $15,000 in each of the next 6 years to be made from an irrevocable escrow account containing the balance of the purchase price plus interest. Free h&r block tax You cannot report the sale on the installment method because the full purchase price is considered received in the year of sale. Free h&r block tax You report the entire gain in the year of sale. Free h&r block tax Escrow established in a later year. Free h&r block tax   If you make an installment sale and in a later year an irrevocable escrow account is established to pay the remaining installments plus interest, the amount placed in the escrow account represents payment of the balance of the installment obligation. Free h&r block tax Substantial restriction. Free h&r block tax   If an escrow arrangement imposes a substantial restriction on your right to receive the sale proceeds, the sale can be reported on the installment method, provided it otherwise qualifies. Free h&r block tax For an escrow arrangement to impose a substantial restriction, it must serve a bona fide purpose of the buyer, that is, a real and definite restriction placed on the seller or a specific economic benefit conferred on the buyer. Free h&r block tax Depreciation Recapture Income If you sell property for which you claimed or could have claimed a depreciation deduction, you must report any depreciation recapture income in the year of sale, whether or not an installment payment was received that year. Free h&r block tax Figure your depreciation recapture income (including the section 179 deduction and the section 179A deduction recapture) in Part III of Form 4797. Free h&r block tax Report the recapture income in Part II of Form 4797 as ordinary income in the year of sale. Free h&r block tax The recapture income is also included in Part I of Form 6252. Free h&r block tax However, the gain equal to the recapture income is reported in full in the year of the sale. Free h&r block tax Only the gain greater than the recapture income is reported on the installment method. Free h&r block tax For more information on depreciation recapture, see chapter 3 in Publication 544. Free h&r block tax The recapture income reported in the year of sale is included in your installment sale basis in determining your gross profit on the installment sale. Free h&r block tax Determining gross profit is discussed under General Rules , earlier. Free h&r block tax Sale to a Related Person If you sell depreciable property to a related person and the sale is an installment sale, you may not be able to report the sale using the installment method. Free h&r block tax If you sell property to a related person and the related person disposes of the property before you receive all payments with respect to the sale, you may have to treat the amount realized by the related person as received by you when the related person disposes of the property. Free h&r block tax These rules are explained under Sale of Depreciable Property and under Sale and Later Disposition , later. Free h&r block tax Sale of Depreciable Property If you sell depreciable property to certain related persons, you generally cannot report the sale using the installment method. Free h&r block tax Instead, all payments to be received are considered received in the year of sale. Free h&r block tax However, see Exception , below. Free h&r block tax Depreciable property for this rule is any property the purchaser can depreciate. Free h&r block tax Payments to be received include the total of all noncontingent payments and the FMV of any payments contingent as to amount. Free h&r block tax In the case of contingent payments for which the FMV cannot be reasonably determined, your basis in the property is recovered proportionately. Free h&r block tax The purchaser cannot increase the basis of the property acquired in the sale before the seller includes a like amount in income. Free h&r block tax Exception. Free h&r block tax   You can use the installment method to report a sale of depreciable property to a related person if no significant tax deferral benefit will be derived from the sale. Free h&r block tax You must show to the satisfaction of the IRS that avoidance of federal income tax was not one of the principal purposes of the sale. Free h&r block tax Related person. Free h&r block tax   Related persons include the following. Free h&r block tax A person and all controlled entities with respect to that person. Free h&r block tax A taxpayer and any trust in which such taxpayer (or his spouse) is a beneficiary, unless that beneficiary's interest in the trust is a remote contingent interest. Free h&r block tax Except in the case of a sale or exchange in satisfaction of a pecuniary bequest, an executor of an estate and a beneficiary of that estate. Free h&r block tax Two or more partnerships in which the same person owns, directly or indirectly, more than 50% of the capital interests or the profits interests. Free h&r block tax   For information about which entities are controlled entities, see section 1239(c). Free h&r block tax Sale and Later Disposition Generally, a special rule applies if you sell or exchange property to a related person on the installment method (first disposition) who then sells, exchanges, or gives away the property (second disposition) under the following circumstances. Free h&r block tax The related person makes the second disposition before making all payments on the first disposition. Free h&r block tax The related person disposes of the property within 2 years of the first disposition. Free h&r block tax This rule does not apply if the property involved is marketable securities. Free h&r block tax Under this rule, you treat part or all of the amount the related person realizes (or the FMV if the disposed property is not sold or exchanged) from the second disposition as if you received it at the time of the second disposition. Free h&r block tax See Exception , later. Free h&r block tax Related person. Free h&r block tax   Related persons include the following. Free h&r block tax Members of a family, including only brothers and sisters (either whole or half), husband and wife, ancestors, and lineal descendants. Free h&r block tax A partnership or estate and a partner or beneficiary. Free h&r block tax A trust (other than a section 401(a) employees trust) and a beneficiary. Free h&r block tax A trust and an owner of the trust. Free h&r block tax Two corporations that are members of the same controlled group as defined in section 267(f). Free h&r block tax The fiduciaries of two different trusts, and the fiduciary and beneficiary of two different trusts, if the same person is the grantor of both trusts. Free h&r block tax A tax-exempt educational or charitable organization and a person (if an individual, including members of the individual's family) who directly or indirectly controls such an organization. Free h&r block tax An individual and a corporation when the individual owns, directly or indirectly, more than 50% of the value of the outstanding stock of the corporation. Free h&r block tax A fiduciary of a trust and a corporation when the trust or the grantor of the trust owns, directly or indirectly, more than 50% in value of the outstanding stock of the corporation. Free h&r block tax The grantor and fiduciary, and the fiduciary and beneficiary, of any trust. Free h&r block tax Any two S corporations if the same persons own more than 50% in value of the outstanding stock of each corporation. Free h&r block tax An S corporation and a corporation that is not an S corporation if the same persons own more than 50% in value of the outstanding stock of each corporation. Free h&r block tax A corporation and a partnership if the same persons own more than 50% in value of the outstanding stock of the corporation and more than 50% of the capital or profits interest in the partnership. Free h&r block tax An executor and a beneficiary of an estate unless the sale is in satisfaction of a pecuniary bequest. Free h&r block tax Example 1. Free h&r block tax In 2012, Harvey Green sold farm land to his son Bob for $500,000, which was to be paid in five equal payments over 5 years, plus adequate stated interest on the balance due. Free h&r block tax His installment sale basis for the farm land was $250,000 and the property was not subject to any outstanding liens or mortgages. Free h&r block tax His gross profit percentage is 50% (gross profit of $250,000 ÷ contract price of $500,000). Free h&r block tax He received $100,000 in 2012 and included $50,000 in income for that year ($100,000 × 0. Free h&r block tax 50). Free h&r block tax Bob made no improvements to the property and sold it to Alfalfa Inc. Free h&r block tax , in 2013 for $600,000 after making the payment for that year. Free h&r block tax The amount realized from the second disposition is $600,000. Free h&r block tax Harvey figures his installment sale income for 2013 as follows: Lesser of: 1) Amount realized on second disposition, or 2) Contract price on first disposition $500,000 Subtract: Sum of payments from Bob in 2012 and 2013 - 200,000 Amount treated as received because of second disposition $300,000 Add: Payment from Bob in 2013 + 100,000 Total payments received and treated as received for 2013 $400,000 Multiply by gross profit % × . Free h&r block tax 50 Installment sale income for 2013 $200,000 Harvey will not include in his installment sale income any principal payments he receives on the installment obligation for 2014, 2015, and 2016 because he has already reported the total payments of $500,000 from the first disposition ($100,000 in 2012 and $400,000 in 2013). Free h&r block tax Example 2. Free h&r block tax Assume the facts are the same as Example 1 except that Bob sells the property for only $400,000. Free h&r block tax The gain for 2013 is figured as follows: Lesser of: 1) Amount realized on second disposition, or 2) Contract price on first disposition $400,000 Subtract: Sum of payments from Bob in 2012 and 2013 − 200,000 Amount treated as received because of second disposition $200,000 Add: Payment from Bob in 2013 + 100,000 Total payments received and treated as received for 2013 $300,000 Multiply by gross profit % × . Free h&r block tax 50 Installment sale income for 2013 $150,000     Harvey receives a $100,000 payment in 2014 and another in 2015. Free h&r block tax They are not taxed because he treated the $200,000 from the disposition in 2013 as a payment received and paid tax on the installment sale income. Free h&r block tax In 2016, he receives the final $100,000 payment. Free h&r block tax He figures the installment sale income he must recognize in 2016 as follows: Total payments from the first disposition received by the end of 2016 $500,000 Minus the sum of:     Payment from 2012 $100,000   Payment from 2013 100,000   Amount treated as received in 2013 200,000   Total on which gain was previously recognized  − 400,000 Payment on which gain is recognized for 2016  $100,000 Multiply by gross profit % × . Free h&r block tax 50 Installment sale income for 2016 $ 50,000 Exception. Free h&r block tax   This rule does not apply to a second disposition, and any later transfer, if you can show to the satisfaction of the IRS that neither the first disposition (to the related person) nor the second disposition had as one of its principal purposes the avoidance of federal income tax. Free h&r block tax Generally, an involuntary second disposition will qualify under the nontax avoidance exception, such as when a creditor of the related person forecloses on the property or the related person declares bankruptcy. Free h&r block tax   The nontax avoidance exception also applies to a second disposition that is also an installment sale if the terms of payment under the installment resale are substantially equal to or longer than those for the first installment sale. Free h&r block tax However, the exception does not apply if the resale terms permit significant deferral of recognition of gain from the first sale. Free h&r block tax   In addition, any sale or exchange of stock to the issuing corporation is not treated as a first disposition. Free h&r block tax An involuntary conversion is not treated as a second disposition if the first disposition occurred before the threat of conversion. Free h&r block tax A transfer after the death of the person making the first disposition or the related person's death, whichever is earlier, is not treated as a second disposition. Free h&r block tax Like-Kind Exchange If you trade business or investment property solely for the same kind of property to be held as business or investment property, you can postpone reporting the gain. Free h&r block tax These trades are known as like-kind exchanges. Free h&r block tax The property you receive in a like-kind exchange is treated as if it were a continuation of the property you gave up. Free h&r block tax You do not have to report any part of your gain if you receive only like-kind property. Free h&r block tax However, if you also receive money or other property (boot) in the exchange, you must report your gain to the extent of the money and the FMV of the other property received. Free h&r block tax For more information on like-kind exchanges, see Like-Kind Exchanges in chapter 1 of Publication 544. Free h&r block tax Installment payments. Free h&r block tax   If, in addition to like-kind property, you receive an installment obligation in the exchange, the following rules apply to determine the installment sale income each year. Free h&r block tax The contract price is reduced by the FMV of the like-kind property received in the trade. Free h&r block tax The gross profit is reduced by any gain on the trade that can be postponed. Free h&r block tax Like-kind property received in the trade is not considered payment on the installment obligation. Free h&r block tax Example. Free h&r block tax In 2013, George Brown trades personal property with an installment sale basis of $400,000 for like-kind property having an FMV of $200,000. Free h&r block tax He also receives an installment note for $800,000 in the trade. Free h&r block tax Under the terms of the note, he is to receive $100,000 (plus interest) in 2014 and the balance of $700,000 (plus interest) in 2015. Free h&r block tax George's selling price is $1,000,000 ($800,000 installment note + $200,000 FMV of like-kind property received). Free h&r block tax His gross profit is $600,000 ($1,000,000 − $400,000 installment sale basis). Free h&r block tax The contract price is $800,000 ($1,000,000 − $200,000). Free h&r block tax The gross profit percentage is 75% ($600,000 ÷ $800,000). Free h&r block tax He reports no gain in 2013 because the like-kind property he receives is not treated as a payment for figuring gain. Free h&r block tax He reports $75,000 gain for 2014 (75% of $100,000 payment received) and $525,000 gain for 2015 (75% of $700,000 payment received). Free h&r block tax Deferred exchanges. Free h&r block tax   A deferred exchange is one in which you transfer property you use in business or hold for investment and receive like-kind property later that you will use in business or hold for investment. Free h&r block tax Under this type of exchange, the person receiving your property may be required to place funds in an escrow account or trust. Free h&r block tax If certain rules are met, these funds will not be considered a payment until you have the right to receive the funds or, if earlier, the end of the exchange period. Free h&r block tax See Regulations section 1. Free h&r block tax 1031(k)-1(j)(2) for these rules. Free h&r block tax Contingent Payment Sale A contingent payment sale is one in which the total selling price cannot be determined by the end of the tax year of sale. Free h&r block tax This happens, for example, if you sell your business and the selling price includes a percentage of its profits in future years. Free h&r block tax If the selling price cannot be determined by the end of the tax year, you must use different rules to figure the contract price and the gross profit percentage than those you use for an installment sale with a fixed selling price. Free h&r block tax For rules on using the installment method for a contingent payment sale, see Regulations section 15a. Free h&r block tax 453-1(c). Free h&r block tax Single Sale of Several Assets If you sell different types of assets in a single sale, you must identify each asset to determine whether you can use the installment method to report the sale of that asset. Free h&r block tax You also have to allocate part of the selling price to each asset. Free h&r block tax If you sell assets that constitute a trade or business, see Sale of a Business , later. Free h&r block tax Unless an allocation of the selling price has been agreed to by both parties in an arm's-length transaction, you must allocate the selling price to an asset based on its FMV. Free h&r block tax If the buyer assumes a debt, or takes the property subject to a debt, you must reduce the FMV of the property by the debt. Free h&r block tax This becomes the net FMV. Free h&r block tax A sale of separate and unrelated assets of the same type under a single contract is reported as one transaction for the installment method. Free h&r block tax However, if an asset is sold at a loss, its disposition cannot be reported on the installment method. Free h&r block tax It must be reported separately. Free h&r block tax The remaining assets sold at a gain are reported together. Free h&r block tax Example. Free h&r block tax You sold three separate and unrelated parcels of real property (A, B, and C) under a single contract calling for a total selling price of $130,000. Free h&r block tax The total selling price consisted of a cash payment of $20,000, the buyer's assumption of a $30,000 mortgage on parcel B, and an installment obligation of $80,000 payable in eight annual installments, plus interest at 8% a year. Free h&r block tax Your installment sale basis for each parcel was $15,000. Free h&r block tax Your net gain was $85,000 ($130,000 − $45,000). Free h&r block tax You report the gain on the installment method. Free h&r block tax The sales contract did not allocate the selling price or the cash payment received in the year of sale among the individual parcels. Free h&r block tax The FMV of parcels A, B, and C were $60,000, $60,000, and $10,000, respectively. Free h&r block tax The installment sale basis for parcel C was more than its FMV, so it was sold at a loss and must be treated separately. Free h&r block tax You must allocate the total selling price and the amounts received in the year of sale between parcel C and the remaining parcels. Free h&r block tax Of the total $130,000 selling price, you must allocate $120,000 to parcels A and B together and $10,000 to parcel C. Free h&r block tax You should allocate the cash payment of $20,000 received in the year of sale and the note receivable on the basis of their proportionate net FMV. Free h&r block tax The allocation is figured as follows:   Parcels   A and B Parcel C FMV $120,000 $10,000 Minus: Mortgage assumed 30,000 -0- Net FMV $ 90,000 $10,000 Proportionate net FMV:     Percentage of total 90% 10% Payments in year of sale:     $20,000 × 90% $18,000   $20,000 × 10%   $2,000 Excess of parcel B mortgage over installment sale basis 15,000 -0- Allocation of payments  received (or considered  received) in year of sale $ 33,000 $ 2,000 You cannot report the sale of parcel C on the installment method because the sale results in a loss. Free h&r block tax You report this loss of $5,000 ($10,000 selling price − $15,000 installment sale basis) in the year of sale. Free h&r block tax However, if parcel C was held for personal use, the loss is not deductible. Free h&r block tax You allocate the installment obligation of $80,000 to the properties sold based on their proportionate net FMVs (90% to parcels A and B, 10% to parcel C). Free h&r block tax Sale of a Business The installment sale of an entire business for one overall price under a single contract is not the sale of a single asset. Free h&r block tax Allocation of Selling Price To determine whether any of the gain on the sale of the business can be reported on the installment method, you must allocate the total selling price and the payments received in the year of sale between each of the following classes of assets. Free h&r block tax Assets sold at a loss. Free h&r block tax Real and personal property eligible for the installment method. Free h&r block tax Real and personal property ineligible for the installment method, including: Inventory, Dealer property, and Stocks and securities. Free h&r block tax Inventory. Free h&r block tax   The sale of inventories of personal property cannot be reported on the installment method. Free h&r block tax All gain or loss on their sale must be reported in the year of sale, even if you receive payment in later years. Free h&r block tax   If inventory items are included in an installment sale, you may have an agreement stating which payments are for inventory and which are for the other assets being sold. Free h&r block tax If you do not, each payment must be allocated between the inventory and the other assets sold. Free h&r block tax   Report the amount you receive (or will receive) on the sale of inventory items as ordinary business income. Free h&r block tax Use your basis in the inventory to figure the cost of goods sold. Free h&r block tax Deduct the part of the selling expenses allocated to inventory as an ordinary business expense. Free h&r block tax Residual method. Free h&r block tax   Except for assets exchanged under the like-kind exchange rules, both the buyer and seller of a business must use the residual method to allocate the sale price to each business asset sold. Free h&r block tax This method determines gain or loss from the transfer of each asset and the buyer's basis in the assets. Free h&r block tax   The residual method must be used for any transfer of a group of assets that constitutes a trade or business and for which the buyer's basis is determined only by the amount paid for the assets. Free h&r block tax This applies to both direct and indirect transfers, such as the sale of a business or the sale of a partnership interest in which the basis of the buyer's share of the partnership assets is adjusted for the amount paid under section 743(b). Free h&r block tax   A group of assets constitutes a trade or business if goodwill or going concern value could, under any circumstances, attach to the assets or if the use of the assets would constitute an active trade or business under section 355. Free h&r block tax   The residual method provides for the consideration to be reduced first by cash and general deposit accounts (including checking and savings accounts but excluding certificates of deposit). Free h&r block tax The consideration remaining after this reduction must be allocated among the various business assets in a certain order. Free h&r block tax   For asset acquisitions occurring after March 15, 2001, make the allocation among the following assets in proportion to (but not more than) their fair market value on the purchase date in the following order. Free h&r block tax Certificates of deposit, U. Free h&r block tax S. Free h&r block tax Government securities, foreign currency, and actively traded personal property, including stock and securities. Free h&r block tax Accounts receivable, other debt instruments, and assets that you mark to market at least annually for federal income tax purposes. Free h&r block tax However, see Regulations section 1. Free h&r block tax 338-6(b)(2)(iii) for exceptions that apply to debt instruments issued by persons related to a target corporation, contingent debt instruments, and debt instruments convertible into stock or other property. Free h&r block tax Property of a kind that would properly be included in inventory if on hand at the end of the tax year or property held by the taxpayer primarily for sale to customers in the ordinary course of business. Free h&r block tax All other assets except section 197 intangibles. Free h&r block tax Section 197 intangibles except goodwill and going concern value. Free h&r block tax Goodwill and going concern value (whether or not they qualify as section 197 intangibles). Free h&r block tax   If an asset described in (1) through (6) is includible in more than one category, include it in the lower number category. Free h&r block tax For example, if an asset is described in both (4) and (6), include it in (4). Free h&r block tax Agreement. Free h&r block tax   The buyer and seller may enter into a written agreement as to the allocation of any consideration or the fair market value of any of the assets. Free h&r block tax This agreement is binding on both parties unless the IRS determines the amounts are not appropriate. Free h&r block tax Reporting requirement. Free h&r block tax   Both the buyer and seller involved in the sale of business assets must report to the IRS the allocation of the sales price among section 197 intangibles and the other business assets. Free h&r block tax Use Form 8594, Asset Acquisition Statement Under Section 1060, to provide this information. Free h&r block tax The buyer and seller should each attach Form 8594 to their federal income tax return for the year in which the sale occurred. Free h&r block tax Sale of Partnership Interest A partner who sells a partnership interest at a gain may be able to report the sale on the installment method. Free h&r block tax The sale of a partnership interest is treated as the sale of a single capital asset. Free h&r block tax The part of any gain or loss from unrealized receivables or inventory items will be treated as ordinary income. Free h&r block tax (The term “unrealized receivables” includes depreciation recapture income, discussed earlier. Free h&r block tax ) The gain allocated to the unrealized receivables and the inventory cannot be reported under the installment method. Free h&r block tax The gain allocated to the other assets can be reported under the installment method. Free h&r block tax For more information on the treatment of unrealized receivables and inventory, see Publication 541. Free h&r block tax Example — Sale of a Business On June 4, 2013, you sold the machine shop you had operated since 2005. Free h&r block tax You received a $100,000 down payment and the buyer's note for $120,000. Free h&r block tax The note payments are $15,000 each, plus 10% interest, due every July 1 and January 1, beginning in 2014. Free h&r block tax The total selling price is $220,000. Free h&r block tax Your selling expenses are $11,000. Free h&r block tax The selling expenses are divided among all the assets sold, including inventory. Free h&r block tax Your selling expense for each asset is 5% of the asset's selling price ($11,000 selling expense ÷ $220,000 total selling price). Free h&r block tax The FMV, adjusted basis, and depreciation claimed on each asset sold are as follows:     Depre- ciation Adj. Free h&r block tax Asset FMV Claimed Basis Inventory $ 10,000 -0- $ 8,000 Land 42,000 -0- 15,000 Building 48,000 $9,000 36,000 Machine A 71,000 27,200 63,800 Machine B 24,000 12,960 22,040 Truck 6,500 18,624 5,376   $201,500 $67,784 $150,216         Under the residual method, you allocate the selling price to each of the assets based on their FMV ($201,500). Free h&r block tax The remaining $18,500 ($220,000 - $201,500) is allocated to your section 197 intangible, goodwill. Free h&r block tax The assets included in the sale, their selling prices based on their FMVs, the selling expense allocated to each asset, the adjusted basis, and the gain for each asset are shown in the following chart. Free h&r block tax   Sale  Price Sale   Exp. Free h&r block tax Adj. Free h&r block tax   Basis Gain Inventory $ 10,000 $ 500 $ 8,000 $ 1,500 Land 42,000 2,100 15,000 24,900 Building 48,000 2,400 36,000 9,600 Mch. Free h&r block tax A 71,000 3,550 63,800 3,650 Mch. Free h&r block tax B 24,000 1,200 22,040 760 Truck 6,500 325 5,376 799 Goodwill 18,500 925 -0- 17,575   $220,000 $11,000 $150,216 $58,784 The building was acquired in 2005, the year the business began, and it is section 1250 property. Free h&r block tax There is no depreciation recapture income because the building was depreciated using the straight line method. Free h&r block tax All gain on the truck, machine A, and machine B is depreciation recapture income since it is the lesser of the depreciation claimed or the gain on the sale. Free h&r block tax Figure depreciation recapture in Part III of Form 4797. Free h&r block tax The total depreciation recapture income reported in Part II of Form 4797 is $5,209. Free h&r block tax This consists of $3,650 on machine A, $799 on the truck, and $760 on machine B (the gain on each item because it was less than the depreciation claimed). Free h&r block tax These gains are reported in full in the year of sale and are not included in the installment sale computation. Free h&r block tax Of the $220,000 total selling price, the $10,000 for inventory assets cannot be reported using the installment method. Free h&r block tax The selling prices of the truck and machines are also removed from the total selling price because gain on these items is reported in full in the year of sale. Free h&r block tax The selling price equals the contract price for the installment sale ($108,500). Free h&r block tax The assets included in the installment sale, their selling price, and their installment sale bases are shown in the following chart. Free h&r block tax   Selling  Price Install- ment  Sale  Basis Gross  Profit Land $ 42,000 $17,100 $24,900 Building 48,000 38,400 9,600 Goodwill 18,500 925 17,575 Total $108,500 $56,425 $52,075         The gross profit percentage (gross profit ÷ contract price) for the installment sale is 48% ($52,075 ÷ $108,500). Free h&r block tax The gross profit percentage for each asset is figured as follows: Percentage Land— $24,900 ÷ $108,500 22. Free h&r block tax 95 Building— $9,600 ÷ $108,500 8. Free h&r block tax 85 Goodwill— $17,575 ÷ $108,500 16. Free h&r block tax 20 Total 48. Free h&r block tax 00 The sale includes assets sold on the installment method and assets for which the gain is reported in full in the year of sale, so payments must be allocated between the installment part of the sale and the part reported in the year of sale. Free h&r block tax The selling price for the installment sale is $108,500. Free h&r block tax This is 49. Free h&r block tax 3% of the total selling price of $220,000 ($108,500 ÷ $220,000). Free h&r block tax The selling price of assets not reported on the installment method is $111,500. Free h&r block tax This is 50. Free h&r block tax 7% ($111,500 ÷ $220,000) of the total selling price. Free h&r block tax Multiply principal payments by 49. Free h&r block tax 3% to determine the part of the payment for the installment sale. Free h&r block tax The balance, 50. Free h&r block tax 7%, is for the part reported in the year of the sale. Free h&r block tax The gain on the sale of the inventory, machines, and truck is reported in full in the year of sale. Free h&r block tax When you receive principal payments in later years, no part of the payment for the sale of these assets is included in gross income. Free h&r block tax Only the part for the installment sale (49. Free h&r block tax 3%) is used in the installment sale computation. Free h&r block tax The only payment received in 2013 is the down payment of $100,000. Free h&r block tax The part of the payment for the installment sale is $49,300 ($100,000 × 49. Free h&r block tax 3%). Free h&r block tax This amount is used in the installment sale computation. Free h&r block tax Installment income for 2013. Free h&r block tax   Your installment income for each asset is the gross profit percentage for that asset times $49,300, the installment income received in 2013. Free h&r block tax Income Land—22. Free h&r block tax 95% of $49,300 $11,314 Building—8. Free h&r block tax 85% of $49,300 4,363 Goodwill—16. Free h&r block tax 2% of $49,300 7,987 Total installment income for 2013 $23,664 Installment income after 2013. Free h&r block tax   You figure installment income for years after 2013 by applying the same gross profit percentages to 49. Free h&r block tax 3% of the total payments you receive on the buyer's note during the year. Free h&r block tax Unstated Interest and Original Issue Discount (OID) An installment sale contract may provide that each deferred payment on the sale will include interest or that there will be an interest payment in addition to the principal payment. Free h&r block tax Interest provided in the contract is called stated interest. Free h&r block tax If an installment sale contract does not provide for adequate stated interest, part of the stated principal amount of the contract may be recharacterized as interest. Free h&r block tax If section 483 applies to the contract, this interest is called unstated interest. Free h&r block tax If section 1274 applies to the contract, this interest is called original issue discount (OID). Free h&r block tax An installment sale contract does not provide for adequate stated interest if the stated interest rate is lower than the test rate (defined later). Free h&r block tax Treatment of unstated interest and OID. Free h&r block tax   Generally, if a buyer gives a debt in consideration for personal use property, the unstated interest rules do not apply. Free h&r block tax As a result, the buyer cannot deduct the unstated interest. Free h&r block tax The seller must report the unstated interest as income. Free h&r block tax   Personal-use property is any property in which substantially all of its use by the buyer is not in connection with a trade or business or an investment activity. Free h&r block tax   If the debt is subject to the section 483 rules and is also subject to the below-market loan rules, such as a gift loan, compensation-related loan, or corporation-shareholder loan, then both parties are subject to the below-market loan rules rather than the unstated interest rules. Free h&r block tax Rules for the seller. Free h&r block tax   If either section 1274 or section 483 applies to the installment sale contract, you must treat part of the installment sale price as interest, even though interest is not called for in the sales agreement. Free h&r block tax If either section applies, you must reduce the stated selling price of the property and increase your interest income by this unstated interest. Free h&r block tax   Include the unstated interest in income based on your regular method of accounting. Free h&r block tax Include OID in income over the term of the contract. Free h&r block tax   The OID includible in income each year is based on the constant yield method described in section 1272. Free h&r block tax (In some cases, the OID on an installment sale contract also may include all or part of the stated interest, especially if the stated interest is not paid at least annually. Free h&r block tax )   If you do not use the installment method to report the sale, report the entire gain under your method of accounting in the year of sale. Free h&r block tax Reduce the selling price by any stated principal treated as interest to determine the gain. Free h&r block tax   Report unstated interest or OID on your tax return, in addition to stated interest. Free h&r block tax Rules for the buyer. Free h&r block tax   Any part of the stated selling price of an installment sale contract treated by the buyer as interest reduces the buyer's basis in the property and increases the buyer's interest expense. Free h&r block tax These rules do not apply to personal-use property (for example, property not used in a trade or business). Free h&r block tax Adequate stated interest. Free h&r block tax   An installment sale contract generally provides for adequate stated interest if the contract's stated principal amount is at least equal to the sum of the present values of all principal and interest payments called for under the contract. Free h&r block tax The present value of a payment is determined based on the test rate of interest, defined next. Free h&r block tax (If section 483 applies to the contract, payments due within six months after the sale are taken into account at face value. Free h&r block tax ) In general, an installment sale contract provides for adequate stated interest if the stated interest rate (based on an appropriate compounding period) is at least equal to the test rate of interest. Free h&r block tax Test rate of interest. Free h&r block tax   The test rate of interest for a contract is the 3-month rate. Free h&r block tax The 3-month rate is the lower of the following applicable federal rates (AFRs). Free h&r block tax The lowest AFR (based on the appropriate compounding period) in effect during the 3-month period ending with the first month in which there is a binding written contract that substantially provides the terms under which the sale or exchange is ultimately completed. Free h&r block tax The lowest AFR (based on the appropriate compounding period) in effect during the 3-month period ending with the month in which the sale or exchange occurs. Free h&r block tax Applicable federal rate (AFR). Free h&r block tax   The AFR depends on the month the binding