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How Do I File My 2011 Taxes Late

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How Do I File My 2011 Taxes Late

How do i file my 2011 taxes late 21. How do i file my 2011 taxes late   Gastos Médicos y Dentales Table of Contents Qué Hay de Nuevo Introduction Useful Items - You may want to see: ¿Qué Son Gastos Médicos? ¿Qué Gastos Puede Incluir Este Año?Estados donde rige la ley de los bienes gananciales. How do i file my 2011 taxes late ¿Qué Cantidad de los Gastos Puede Deducir? ¿De Qué Personas Puede Incluir Gastos Médicos?Usted Cónyuge Dependiente Difuntos ¿Qué Gastos Médicos se Pueden Incluir?Primas de Seguros Comidas y Alojamiento Transporte Gastos del Cuidado de un Dependiente Incapacitado ¿Cómo se Tratan los Reembolsos?Reembolso de Seguros Indemnizaciones por Lesiones Personales Cómo Calcular y Reclamar la Deducción en su Declaración de Impuestos¿Qué Formulario Debe Usar para la Declaración? Gastos de Trabajo Relacionados con un Impedimento Costos del Seguro Médico para Personas que Trabajan por Cuenta Propia Qué Hay de Nuevo Gastos médicos y dentales. How do i file my 2011 taxes late  Comenzando el 1 de enero de 2013, usted puede deducir sólo la parte de sus gastos médicos y dentales que exceda del 10% de su ingreso bruto ajustado (AGI, por sus siglas en inglés) (7. How do i file my 2011 taxes late 5% si usted o su cónyuge tiene 65 años de edad o más). How do i file my 2011 taxes late Tarifa estándar por milla. How do i file my 2011 taxes late  La tarifa estándar por milla permitida para gastos de operación de un automóvil cuando se usa por razones médicas es 24 centavos por milla. How do i file my 2011 taxes late Vea Transporte bajo ¿Qué Gastos Médicos se Pueden Incluir?, más adelante. How do i file my 2011 taxes late Introduction Este capítulo le ayudará a determinar: Qué son gastos médicos. How do i file my 2011 taxes late Qué gastos puede incluir este año. How do i file my 2011 taxes late Qué cantidad de los gastos puede deducir. How do i file my 2011 taxes late De qué personas puede incluir gastos médicos. How do i file my 2011 taxes late Qué gastos médicos se pueden incluir. How do i file my 2011 taxes late Cómo tratar los reembolsos. How do i file my 2011 taxes late Cómo declarar la deducción en la declaración de impuestos. How do i file my 2011 taxes late Cómo declarar gastos de trabajo relacionados con la incapacidad. How do i file my 2011 taxes late Cómo declarar los costos del seguro médico si trabaja por cuenta propia. How do i file my 2011 taxes late Useful Items - You may want to see: Publicaciones 502 Medical and Dental Expenses (Gastos médicos y dentales), en inglés 969 Health Savings Accounts and Other Tax-Favored Health Plans (Cuentas de ahorros para gastos médicos y otros planes para gastos médicos con beneficios tributarios), en inglés Formularios (e Instrucciones) Anexo A (Formulario 1040) Itemized Deductions (Deducciones detalladas), en inglés ¿Qué Son Gastos Médicos? Los gastos médicos incluyen pagos por diagnóstico, cura, alivio, tratamiento o prevención de enfermedades o por tratamientos que afecten alguna parte o función del cuerpo. How do i file my 2011 taxes late Estos gastos abarcan los pagos por servicios médicos legales prestados por médicos, cirujanos, dentistas y otros profesionales de la salud. How do i file my 2011 taxes late Incluyen los costos de equipo, suministros y dispositivos de diagnósticos que se necesiten para estos propósitos. How do i file my 2011 taxes late Los gastos de cuidados médicos tienen que ser principalmente para aliviar o prevenir un defecto o enfermedad física o mental. How do i file my 2011 taxes late No incluya gastos que sean tan sólo beneficiosos para la salud en general, como vitaminas o vacaciones. How do i file my 2011 taxes late Los gastos médicos incluyen las primas pagadas por un seguro que cubra los gastos de cuidados médicos y las cantidades pagadas por transporte para recibir cuidados médicos. How do i file my 2011 taxes late Los gastos médicos también incluyen cantidades pagadas por servicios calificados de cuidados a largo plazo y cantidades limitadas pagadas por cualquier contrato de cuidados a largo plazo calificado. How do i file my 2011 taxes late ¿Qué Gastos Puede Incluir Este Año? Puede incluir sólo los gastos médicos y dentales que pagó este año, independientemente de cuándo se proveyeron los servicios. How do i file my 2011 taxes late Si paga gastos médicos por cheque, el día en que envíe o entregue el cheque suele ser la fecha de pago. How do i file my 2011 taxes late Si paga sus gastos médicos por medio de una “cuenta a pagar por teléfono” o Internet, la fecha indicada en el estado de cuentas de la institución financiera que señala cuándo se hizo el pago se considera la fecha de pago. How do i file my 2011 taxes late Si utiliza una tarjeta de crédito, incluya los gastos médicos que cargue a su tarjeta de crédito en el año en que se haga el cargo, no en el que de hecho pague el monto cargado a su tarjeta de crédito. How do i file my 2011 taxes late Declaraciones por separado. How do i file my 2011 taxes late   Si usted y su cónyuge viven en un estado donde no rigen las leyes de los bienes gananciales y presentan declaraciones por separado, cada uno de ustedes puede incluir sólo los gastos médicos que cada uno de hecho pagó. How do i file my 2011 taxes late Todos los gastos médicos pagados de una cuenta corriente conjunta en la cual son dueños por igual usted y su cónyuge se consideran pagados equitativamente por cada uno de ustedes, a menos que pueda demostrar lo contrario. How do i file my 2011 taxes late Estados donde rige la ley de los bienes gananciales. How do i file my 2011 taxes late   Si usted y su cónyuge viven en un estado donde rigen las leyes de los bienes gananciales y presentan declaraciones por separado o están inscritos como parejas de hecho en Nevada, Washington o California, todos los gastos médicos pagados de fondos de la comunidad conyugal se dividen por igual. How do i file my 2011 taxes late Cada uno de ustedes debería incluir la mitad de los gastos. How do i file my 2011 taxes late Si los gastos médicos se pagan de los fondos separados de un cónyuge, sólo el cónyuge que pagó los gastos médicos puede incluirlos. How do i file my 2011 taxes late Si usted vive en un estado donde rigen las leyes de los bienes gananciales, y no presenta una declaración conjunta, vea la Publicación 555, Community Property (Bienes gananciales), en inglés. How do i file my 2011 taxes late ¿Qué Cantidad de los Gastos Puede Deducir? Por lo general, puede deducir en el Anexo A (Formulario 1040) sólo la cantidad de sus gastos médicos y dentales que exceda del 10% (7. How do i file my 2011 taxes late 5% si usted o su cónyuge tiene 65 años de edad o más) de su ingreso bruto ajustado (AGI, por sus siglas en inglés) (línea 38 del Formulario 1040). How do i file my 2011 taxes late Ejemplo. How do i file my 2011 taxes late Usted no está casado, es menor de 65 años de edad y su ingreso bruto ajustado es $40,000. How do i file my 2011 taxes late El 10% de esa cantidad es $4,000. How do i file my 2011 taxes late Usted pagó gastos médicos de $2,500. How do i file my 2011 taxes late No puede deducir ningunos de sus gastos médicos porque éstos no son mayores que el 10% de su ingreso bruto ajustado. How do i file my 2011 taxes late ¿De Qué Personas Puede Incluir Gastos Médicos? Normalmente, puede incluir gastos médicos que pagó por usted mismo o por alguien que fuera su cónyuge o su dependiente cuando se proporcionaron los servicios o cuando usted los pagó. How do i file my 2011 taxes late Hay reglas distintas para personas fallecidas y personas nombradas en acuerdos de manutención múltiple. How do i file my 2011 taxes late Vea Manutención reclamada conforme a un acuerdo de manutención múltiple , más adelante. How do i file my 2011 taxes late Usted Puede incluir los gastos médicos que pagó por usted mismo. How do i file my 2011 taxes late Cónyuge Puede incluir los gastos médicos que pagó por su cónyuge. How do i file my 2011 taxes late Para incluir estos gastos, tiene que haber estado casado en el momento en que su cónyuge recibió los servicios médicos o en el momento en que usted los pagó. How do i file my 2011 taxes late Ejemplo 1. How do i file my 2011 taxes late María recibió tratamiento médico antes de casarse con Guillermo. How do i file my 2011 taxes late Guillermo pagó por el tratamiento después de casarse. How do i file my 2011 taxes late Guillermo puede incluir estos gastos al calcular su deducción por gastos médicos aunque Guillermo y María presenten declaraciones separadas. How do i file my 2011 taxes late Si María hubiera pagado los gastos, Guillermo no podría incluir los gastos de María en la declaración separada de él. How do i file my 2011 taxes late María incluiría las cantidades que ella pagó a lo largo del año en su declaración separada. How do i file my 2011 taxes late Si presentaran una declaración conjunta, los gastos médicos que ambos pagaron a lo largo del año se usarían para calcular la deducción de gastos médicos de ambos. How do i file my 2011 taxes late Ejemplo 2. How do i file my 2011 taxes late Este año, Juan pagó gastos médicos por su cónyuge Luisa, la cual murió el año pasado. How do i file my 2011 taxes late Juan se casó con Beatriz este año y presentan una declaración conjunta. How do i file my 2011 taxes late Debido a que Juan estaba casado con Luisa cuando ella recibió los servicios médicos, puede incluir esos gastos al calcular su deducción por gastos médicos correspondiente a este año. How do i file my 2011 taxes late Dependiente Puede incluir los gastos médicos que pagó por su dependiente. How do i file my 2011 taxes late Para incluir estos gastos, la persona tiene que haber sido su dependiente en el momento en que se proveyeron los servicios médicos o en el momento en que usted pagó los gastos. How do i file my 2011 taxes late Generalmente, una persona puede considerarse su dependiente para propósitos de la deducción de gastos médicos si se cumplen los dos requisitos siguientes: La persona era hijo calificado (definido más adelante) o pariente calificado (definido más adelante) y La persona era ciudadana o nacional de los Estados Unidos o era residente de los Estados Unidos, Canadá o México. How do i file my 2011 taxes late Si su hijo calificado fue adoptado, vea el tema que se presenta a continuación, Excepción por hijo adoptivo . How do i file my 2011 taxes late Puede incluir los gastos médicos que pagó a nombre de una persona que hubiera sido su dependiente, salvo que: Dicha persona recibió ingresos brutos de $3,900 o más en 2013, Dicha persona presentó una declaración conjunta para el año 2013 o Usted, o su cónyuge si presentan una declaración conjunta, puede ser reclamado como dependiente en la declaración de 2013 de otra persona. How do i file my 2011 taxes late Excepción por hijo adoptivo. How do i file my 2011 taxes late   Si usted es ciudadano o nacional estadounidense y su hijo adoptivo vivió con usted como miembro de su unidad familiar durante el año 2013, dicho hijo no tiene que ser ciudadano o nacional estadounidense ni ser residente de los Estados Unidos, Canadá o México. How do i file my 2011 taxes late Hijo Calificado Un hijo calificado es un hijo que: Es su hijo o hija, hijastro o hijastra, hijo de crianza, hermano o hermana, hermanastro o hermanastra, medio hermano o media hermana o descendiente de cualquiera de ellos (por ejemplo, su nieto, sobrino o sobrina), Tenía: Menos de 19 años de edad al final del año 2013 y era menor que usted (o su cónyuge, si presenta una declaración conjunta), Menos de 24 años de edad al final del año 2013, era estudiante de tiempo completo y menor que usted (o su cónyuge, si presenta una declaración conjunta) o Cualquier edad y estaba total y permanentemente incapacitado, Vivió con usted por más de la mitad del año 2013, No proveyó más de la mitad de su propia manutención durante el año 2013 y No presentó una declaración conjunta, a menos que la haya presentado únicamente para reclamar un reembolso. How do i file my 2011 taxes late Hijo adoptivo. How do i file my 2011 taxes late   Un hijo legalmente adoptado se considera su propio hijo. How do i file my 2011 taxes late Esto incluye a un hijo colocado legalmente bajo su cargo para adopción legal. How do i file my 2011 taxes late   Puede incluir los gastos médicos que pagó por un hijo antes de la adopción si el hijo reunía los requisitos para ser su dependiente cuando se proveyeron los servicios médicos o cuando se pagaron los gastos. How do i file my 2011 taxes late   Si reintegra a una agencia de adopciones o a otras personas los gastos médicos que ellas pagaron bajo un acuerdo con usted, es como si usted hubiera pagado dichos gastos con tal de que demuestre claramente que el pago es directamente atribuible al cuidado médico del hijo. How do i file my 2011 taxes late   Pero si usted paga a la agencia o a otra persona el cuidado médico que fue provisto y pagado antes de que empezaran las negociaciones de adopción, no los puede incluir como gastos médicos. How do i file my 2011 taxes late    Tal vez pueda tomar un crédito por otros gastos relacionados con la adopción. How do i file my 2011 taxes late Vea las Instrucciones para el Formulario 8839, Qualified Adoption Expenses (Gastos calificados de adopciones), en inglés, para más información. How do i file my 2011 taxes late Hijo de padres divorciados o separados. How do i file my 2011 taxes late   Para propósitos de la deducción de gastos médicos y dentales, un hijo de padres divorciados o separados puede considerarse dependiente de ambos padres. How do i file my 2011 taxes late Cada padre puede incluir los gastos médicos que él o ella pague por el hijo, aunque el otro padre declare la exención de dependencia del hijo, si: El hijo queda bajo la custodia de uno o ambos padres por más de la mitad del año, El hijo recibe más de la mitad de su manutención durante el año de sus padres y Los padres del hijo: Están divorciados o legalmente separados bajo un fallo de divorcio o de manutención por separación judicial, Están separados bajo un acuerdo de separación judicial escrito o Viven separados en todo momento durante los últimos 6 meses del año. How do i file my 2011 taxes late Esto no corresponde si la exención del hijo se reclama conforme a un acuerdo de manutención múltiple (explicado más adelante). How do i file my 2011 taxes late Pariente Calificado Un pariente calificado es una persona: Que es su: Hijo o hija, hijastro o hijastra, hijo de crianza o descendiente de cualquiera de ellos (por ejemplo, su nieto), Hermano o hermana, medio hermano o media hermana o un hijo de cualquiera de ellos, Padre, madre o antecesor o hermano o hermana de cualquiera de ellos (por ejemplo, su abuelo o abuela, o tío o tía), Hermanastro o hermanastra, padrastro, madrastra, yerno, nuera, suegro o suegra, cuñado o cuñada o Cualquier otra persona (que no sea su cónyuge) que haya vivido con usted durante todo el año como integrante de su unidad familiar si su relación no violó la ley local, Quien no era hijo calificado (vea Hijo Calificado , anteriormente) de cualquier otra persona para el año 2013 y Para la cual usted proveyó más de la mitad de la manutención del año 2013. How do i file my 2011 taxes late Pero vea Hijo de padres divorciados o separados , anteriormente, y Manutención reclamada conforme a un acuerdo de manutención múltiple, que aparece a continuación. How do i file my 2011 taxes late Manutención reclamada conforme a un acuerdo de manutención múltiple. How do i file my 2011 taxes late   Si se considera que usted proveyó más de la mitad de la manutención de un pariente conforme a un acuerdo de manutención múltiple, puede incluir los gastos médicos que pague por dicho pariente. How do i file my 2011 taxes late El acuerdo de manutención múltiple se usa cuando dos o más personas proveen más de la mitad de la manutención de una persona, pero ninguna persona sola provee más de la mitad. How do i file my 2011 taxes late   Todos los demás gastos médicos pagados por otras personas que firmaron con usted el acuerdo no pueden ser incluidos como gastos médicos por nadie. How do i file my 2011 taxes late Sin embargo, usted puede incluir la totalidad de la cantidad no reembolsada que usted pagó por concepto de gastos médicos. How do i file my 2011 taxes late Ejemplo. How do i file my 2011 taxes late Usted y sus tres hermanos proveen cada uno una cuarta parte del total de la manutención de su madre. How do i file my 2011 taxes late Conforme a un acuerdo de manutención múltiple, usted declara a su madre como su dependiente. How do i file my 2011 taxes late Usted pagó todos sus gastos médicos. How do i file my 2011 taxes late Sus hermanos le reembolsaron a usted las tres cuartas partes de dichos gastos. How do i file my 2011 taxes late Al calcular su deducción de gastos médicos, usted puede incluir sólo una cuarta parte de los gastos médicos de su madre. How do i file my 2011 taxes late Sus hermanos no pueden incluir ninguna parte de los gastos. How do i file my 2011 taxes late Sin embargo, si usted y sus hermanos comparten los gastos que no sean de manutención médica y usted paga por separado todos los gastos médicos de su madre, usted puede incluir la cantidad no reembolsada que pagó por concepto de gastos médicos en los gastos médicos de usted. How do i file my 2011 taxes late Difuntos Los gastos médicos que fueron pagados por el difunto antes de que falleciera se incluyen al calcular las deducciones por gastos médicos y dentales en la declaración de impuestos final sobre el ingreso del difunto. How do i file my 2011 taxes late Esto incluye gastos tanto para el cónyuge y los dependientes del difunto como para el mismo difunto. How do i file my 2011 taxes late El sobreviviente o representante personal de un difunto puede optar por tratar ciertos gastos médicos del difunto pagados por el caudal hereditario del mismo como si hubieran sido pagados por el difunto en el momento en que se le proveyeron los servicios médicos. How do i file my 2011 taxes late Los gastos se tienen que pagar dentro del plazo de 1 año a partir del día siguiente al día del fallecimiento. How do i file my 2011 taxes late Si usted es el sobreviviente o representante personal que elige esta opción, tendrá que adjuntar un documento escrito al Formulario 1040 del difunto (o la declaración enmendada del difunto, Formulario 1040X) explicando que los gastos no han sido y no serán declarados en la declaración del impuesto del caudal hereditario. How do i file my 2011 taxes late Los gastos médicos calificados que el difunto pagó antes de su muerte no son deducibles si fueron pagados por medio de una distribución exenta de impuestos proveniente de una cuenta Archer MSA de ahorros médicos, cuenta Medicare Advantage MSA u otra cuenta de ahorros para gastos médicos. How do i file my 2011 taxes late Las declaraciones enmendadas y reclamaciones de reembolsos se explican en el capítulo 1 . How do i file my 2011 taxes late ¿Y si usted paga gastos médicos de un cónyuge fallecido o un dependiente fallecido?   Si usted pagó gastos médicos para su cónyuge o dependiente fallecido, inclúyalos como gastos médicos en su Formulario 1040 en el año en que fueron pagados, independientemente de si se pagan antes o después de la muerte del difunto. How do i file my 2011 taxes late Los gastos pueden ser incluidos si la persona era su cónyuge o dependiente en el momento en que se proveyeron los servicios médicos o en el momento en que usted pagó los gastos. How do i file my 2011 taxes late ¿Qué Gastos Médicos se Pueden Incluir? Use la Tabla 21-1, anteriormente, como guía para determinar qué gastos médicos y dentales puede incluir en el Anexo A (Formulario 1040). How do i file my 2011 taxes late Esta tabla no abarca todos los gastos médicos en los que se puede incurrir. How do i file my 2011 taxes late Para determinar si un gasto no indicado en la tabla se puede incluir en el cálculo de la deducción por gastos médicos, vea la sección ¿Qué Son Gastos Médicos? , anteriormente. How do i file my 2011 taxes late Tabla 21-1. How do i file my 2011 taxes late Lista de Gastos Médicos y Dentales. How do i file my 2011 taxes late Vea la Publicación 502 para más información sobre estos gastos, entre otros. How do i file my 2011 taxes late Puede incluir: No puede incluir: Vendas Píldoras anticonceptivas recetadas por su médico Escaneo electrónico del cuerpo Libros en Braille Extractor de leche materna (sacaleches) y suministros relacionados Gastos de capital para equipo o mejoras a su vivienda que se necesitan para el cuidado médico (vea la hoja de trabajo de la Publicación 502, en inglés) Dispositivos de diagnóstico Gastos de un donante de órganos Cirugía ocular —para promover el funcionamiento correcto del ojo Ciertos procedimientos para aumentar la fertilidad Perros guía u otros animales de ayuda para personas ciegas, sordas o incapacitadas Cargos por servicios hospitalarios (pruebas de laboratorio, terapia, servicios de enfermería, cirugía, etc. How do i file my 2011 taxes late ) Eliminación de pintura a base de plomo Aborto legal Operación legal para evitar tener niños tal como una vasectomía o ligadura de trompas Contratos calificados del cuidado a largo plazo Comidas y alojamiento provistos por un hospital durante un tratamiento médico Cargos por servicios médicos (de médicos, dentistas, cirujanos, especialistas y otros profesionales médicos) Primas de la Parte D de Medicare Primas de seguros médicos y hospitalarios Servicios de enfermería Equipo de oxígeno y oxígeno Parte del cargo por cuidados de vida pagados a un hogar de ancianos designado para cuidados médicos Exámen físico Paquete para pruebas de embarazo Medicamentos recetados (por un médico) e insulina Tratamiento siquiátrico y sicológico Impuesto al Seguro Social, Impuesto al Medicare, prestaciones por desempleo (FUTA) e impuesto estatal sobre el salario de un trabajador que provee cuidados médicos (vea Salarios por servicios de enfermería, más adelante) Artículos especiales (piernas y brazos artificiales, dientes postizos, lentes (espejuelos), lentes de contacto, audífonos, muletas, sillas de ruedas, etc. How do i file my 2011 taxes late ) Educación especial para personas mental o físicamente incapacitadas Programas para dejar de fumar Transporte para cuidados médicos necesarios Tratamiento en un centro de rehabilitación para la adicción a drogas o alcohol (incluye las comidas y el alojamiento provistos por el centro) Salarios por servicios de enfermería Reducción de peso, ciertos gastos relacionados con la obesidad Cuidado infantil Agua embotellada Aportaciones hechas a una cuenta Archer MSA de ahorros médicos (vea la Publicación 969, en inglés) Servicio de pañales Gastos por concepto de su salud en general (aunque usted esté siguiendo los consejos de su médico) tales como: —La cuota de un club deportivo —Ayuda doméstica (incluso si es por recomendación de un médico) —Actividades sociales, tales como cursos de baile o de natación —Viaje para la mejora general de la salud Reembolsos de una cuenta para gastos médicos flexible (flexible spending account) (si las aportaciones fueron hechas antes de impuestos) Gastos de funeral, sepelio o cremación Pagos hechos a cuentas de ahorros para gastos médicos Operación, tratamiento o medicamento ilegal Pólizas de seguro de vida o de protección de ingresos, ni pólizas que proporcionen pagos en caso de pérdida de la vida, una extremidad, la vista, etc. How do i file my 2011 taxes late Ropa de maternidad Seguro médico incluido en una póliza de seguro de automóvil que cubra a todas las personas lesionadas en el automóvil o por el mismo Medicamentos que usted compre sin receta Cuidado de enfermería para un bebé que tenga buena salud Medicamentos recetados que usted trajo (o pidió por envío) de otro país, en la mayoría de los casos Suplementos nutritivos, vitaminas, suplementos a base de hierbas, “medicinas naturales”, etc. How do i file my 2011 taxes late , a menos que sean recomendados por un profesional médico como tratamiento para un padecimiento médico específico que haya sido diagnosticado por un médico Cirugía para propósitos puramente cosméticos Pasta de dientes, artículos de tocador, cosméticos, etc. How do i file my 2011 taxes late Blanqueamiento de dientes Gastos de reducción de peso que no sean para el tratamiento de la obesidad u otra enfermedad Primas de Seguros Puede incluir en los gastos médicos las primas que pague por pólizas de seguros que cubran los cuidados médicos. How do i file my 2011 taxes late Las pólizas de cuidados médicos pueden pagar por tratamientos que abarcan: Hospitalización, servicios de cirugía, radiografías, Medicamentos recetados e insulina, Cuidado dental, Reemplazo de lentes de contacto perdidos o dañados o Cuidados a largo plazo (sujetos a limitaciones adicionales). How do i file my 2011 taxes late Vea Qualified Long-Term Care Insurance Contracts (Contratos de seguro de cuidados a largo plazo calificados) en la Publicación 502, en inglés. How do i file my 2011 taxes late Si tiene una póliza que pague por cuidados que no sean médicos, puede incluir las primas por la parte de la póliza que corresponda a los cuidados médicos si el cargo por esta parte es razonable. How do i file my 2011 taxes late El costo de la parte médica se tiene que indicar por separado en el contrato del seguro o se le tiene que entregar a usted en un estado de cuentas por separado. How do i file my 2011 taxes late Nota: Al calcular la cantidad de primas de seguros que puede incluir en los gastos médicos en el Anexo A, no incluya ningún pago adelantado del crédito tributario por cobertura del seguro médico que aparezca en el recuadro 1 del Formulario 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments (Pagos adelantados del crédito tributario por cobertura de seguro médico (HCTC, por sus siglas en inglés)). How do i file my 2011 taxes late Además, no incluya las primas de seguro que corresponden a un hijo no dependiente menor de 27 años de edad si sus primas aumentaron como resultado de incluir a este hijo en su póliza. How do i file my 2011 taxes late Plan de seguro médico provisto por el empleador. How do i file my 2011 taxes late   No incluya en sus gastos médicos y dentales ninguna prima de seguro pagada por un plan de seguro médico provisto por el empleador a menos que las primas se incluyan en el recuadro 1 del Formulario W-2. How do i file my 2011 taxes late Además, no incluya ningún otro gasto médico o dental pagado por dicho plan a menos que la cantidad pagada se incluya en el recuadro 1 del Formulario W-2. How do i file my 2011 taxes late Ejemplo. How do i file my 2011 taxes late Usted es empleado federal que participa en el plan de conversión de primas del programa de Federal Employee Health Benefits o FEHB, por sus siglas en inglés (Beneficios de salud para empleados federales). How do i file my 2011 taxes late Su parte de la prima del FEHB se paga mediante una reducción de su salario antes de imponerle impuestos. How do i file my 2011 taxes late Como usted es un empleado cuyas primas de seguro se pagan con dinero que nunca se incluye en sus ingresos brutos, no puede deducir las primas que fueron pagadas con dicho dinero. How do i file my 2011 taxes late Servicios de cuidado a largo plazo. How do i file my 2011 taxes late   Las aportaciones hechas por su empleador para proveer cobertura por servicios de cuidados a largo plazo calificados bajo una cuenta para gastos médicos flexible, o cuenta similar, tienen que ser incluidas en sus ingresos. How do i file my 2011 taxes late Esta cantidad será declarada como salario en el recuadro 1 del Formulario W-2. How do i file my 2011 taxes late Plan de reembolso de gastos médicos. How do i file my 2011 taxes late   Si tiene gastos médicos que son reembolsados por un plan de reembolso de gastos médicos (HRA, por sus siglas en inglés), no puede incluirlos en sus gastos médicos. How do i file my 2011 taxes late Esto se debe a que un HRA es financiado únicamente por el empleador. How do i file my 2011 taxes late Funcionarios jubilados del sector de seguridad pública. How do i file my 2011 taxes late   Si usted es funcionario jubilado de seguridad pública, no incluya como gastos médicos ninguna prima de un seguro médico o de cuidados a largo plazo si eligió que dicha prima se pagara con distribuciones exentas de impuestos procedentes de su plan de jubilación. How do i file my 2011 taxes late Esto corresponde solamente a distribuciones que de otro modo se incluirían en los ingresos. How do i file my 2011 taxes late Medicare A. How do i file my 2011 taxes late   Si está cubierto bajo el Seguro Social (o si es empleado del gobierno que pagó el impuesto del Medicare), está inscrito en el Medicare A. How do i file my 2011 taxes late El impuesto sobre la nómina pagado para el Medicare A no es gasto médico. How do i file my 2011 taxes late   Si no está cubierto bajo el Seguro Social (o si no es empleado del gobierno que pagó el impuesto del Medicare), puede inscribirse voluntariamente en el Medicare A. How do i file my 2011 taxes late En esta situación, puede incluir las primas pagadas por concepto de Medicare A como gasto médico. How do i file my 2011 taxes late Medicare B. How do i file my 2011 taxes late    Medicare B es un seguro médico suplementario. How do i file my 2011 taxes late Las primas que paga por concepto del Medicare B son un gasto médico. How do i file my 2011 taxes late Verifique la información que recibió de la Administración del Seguro Social para averiguar la prima correspondiente. How do i file my 2011 taxes late Medicare D. How do i file my 2011 taxes late    Medicare D es un programa voluntario de seguro para medicamentos recetados dirigido a personas con Medicare A o B. How do i file my 2011 taxes late Puede incluir las primas que pague por el Medicare D como un gasto médico. How do i file my 2011 taxes late Primas de seguros pagadas por adelantado. How do i file my 2011 taxes late   Las primas que pague antes de cumplir 65 años de edad por seguros de cuidados médicos a nombre de usted, su cónyuge o sus dependientes después de que usted alcance la edad de 65 años son gastos de cuidados médicos en el año en que se pagan si son: Pagaderas en plazos anuales fijos, o plazos más frecuentes y Pagaderas por al menos 10 años, o hasta que cumpla 65 años de edad (pero no por menos de 5 años). How do i file my 2011 taxes late Licencia por enfermedad sin usar para pagar primas. How do i file my 2011 taxes late   Tiene que incluir en los ingresos brutos los pagos en efectivo que reciba a la fecha de jubilarse por licencia de enfermedad que no haya usado. How do i file my 2011 taxes late También tiene que incluir en los ingresos brutos el valor de la licencia sin usar que, según usted elija, su empleador utiliza para cubrir el costo de su participación continuada en el plan de salud del empleador después de jubilarse. How do i file my 2011 taxes late Puede incluir este costo de participación continuada en el plan médico como gasto médico. How do i file my 2011 taxes late   Si participa en un plan de salud en el que su empleador utiliza automáticamente el valor de la licencia por enfermedad sin usar para cubrir el costo de su participación continuada en el plan de salud (y usted no tiene la opción de recibir dinero en efectivo), no incluya el valor de la licencia por enfermedad sin usar en los ingresos brutos. How do i file my 2011 taxes late No puede incluir este costo de su participación continuada en dicho plan de salud como gasto médico. How do i file my 2011 taxes late Comidas y Alojamiento Puede incluir en los gastos médicos el costo de comidas y alojamiento en un hospital o institución parecida si el motivo principal para estar allí es recibir cuidados médicos. How do i file my 2011 taxes late Vea Hogar de ancianos y de convalecencia , más adelante. How do i file my 2011 taxes late Tal vez pueda incluir en los gastos médicos el costo de alojamiento que no sea en un hospital o institución semejante. How do i file my 2011 taxes late Puede incluir el costo de tal alojamiento mientras esté lejos de su casa si se reúnen todos los siguientes requisitos: El alojamiento es principal y esencialmente para fines de cuidado médico. How do i file my 2011 taxes late El cuidado médico lo provee un médico de un hospital autorizado o de un centro médico asociado con un hospital autorizado o equivalente al mismo. How do i file my 2011 taxes late El alojamiento no es lujoso ni extravagante, dadas las circunstancias. How do i file my 2011 taxes late El placer personal, el recreo o las vacaciones no son factores significativos de la estadía fuera de su hogar. How do i file my 2011 taxes late La cantidad que incluya en los gastos médicos por concepto de alojamiento no puede ser mayor de $50 por cada noche por persona. How do i file my 2011 taxes late Puede incluir el alojamiento para una persona que viaje con la persona que recibe el cuidado médico. How do i file my 2011 taxes late Por ejemplo, si un padre o una madre viaja con un hijo enfermo, se pueden incluir hasta $100 por noche como gasto médico por alojamiento. How do i file my 2011 taxes late No se incluyen comidas. How do i file my 2011 taxes late Hogar de ancianos y de convalecencia. How do i file my 2011 taxes late   Puede incluir en los gastos médicos el costo del cuidado médico en un hogar de ancianos y de convalecencia, residencia de ancianos o un centro similar para usted, su cónyuge o sus dependientes. How do i file my 2011 taxes late Esto incluye el costo de comidas y alojamiento en el hogar o residencia si un motivo principal para estar allí es recibir cuidado médico. How do i file my 2011 taxes late   No incluya el costo de comidas y alojamiento si el motivo para estar en el hogar o residencia es personal. How do i file my 2011 taxes late Puede, sin embargo, incluir en los gastos médicos la parte del costo que corresponda al cuidado médico o de convalecencia. How do i file my 2011 taxes late Transporte Incluya en los gastos médicos cantidades pagadas por transporte si es principal y esencialmente para fines de cuidados médicos. How do i file my 2011 taxes late Puede incluir: Tarifas de autobús, taxi, tren o avión o servicios de ambulancia, Gastos de transporte de un padre o una madre que tiene que acompañar a un hijo que necesita cuidado médico, Gastos de transporte de una enfermera u otra persona que pueda poner inyecciones, suministrar medicamentos u otro tratamiento necesario para un paciente que viaje para recibir cuidado médico y que no pueda viajar solo y Gastos de transporte por visitas regulares a un dependiente que tenga una enfermedad mental, si dichas visitas son recomendadas como parte de su tratamiento. How do i file my 2011 taxes late Gastos de automóvil. How do i file my 2011 taxes late   Puede incluir gastos de bolsillo, tal como el costo de gasolina y aceite, cuando use su automóvil por razones médicas. How do i file my 2011 taxes late No puede incluir depreciación, seguro, reparaciones generales ni gastos de mantenimiento. How do i file my 2011 taxes late   Si no desea usar los gastos reales para el año 2013, puede usar una tarifa estándar de 24 centavos. How do i file my 2011 taxes late    También, puede incluir cargos por estacionamiento y peaje. How do i file my 2011 taxes late Puede añadir estos cargos a sus gastos médicos independientemente de si usa los gastos reales o la tarifa estándar por milla. How do i file my 2011 taxes late Ejemplo. How do i file my 2011 taxes late En 2013, Guillermo Martínez manejó 2,800 millas por razones médicas. How do i file my 2011 taxes late Gastó $500 en gasolina, $30 en aceite y $100 en peajes y estacionamiento. How do i file my 2011 taxes late Quiere calcular la cantidad que puede incluir en gastos médicos de ambas maneras para ver cuál de las dos le da la mayor deducción. How do i file my 2011 taxes late Calcula primero los gastos reales. How do i file my 2011 taxes late Suma los $500 por gasolina, $30 por aceite y $100 por peaje y estacionamiento, lo que da un total de $630. How do i file my 2011 taxes late Luego, Guillermo calcula la cantidad de la tarifa estándar por milla. How do i file my 2011 taxes late Multiplica las 2,800 millas por 24 centavos por milla y llega a un total de $672. How do i file my 2011 taxes late Luego, añade los $100 por peaje y estacionamiento, lo que da un total de $772. How do i file my 2011 taxes late Guillermo incluye los gastos de automóvil de $772 con sus demás gastos médicos para el año, ya que $772 es más que los $630 que calculó usando sus gastos reales. How do i file my 2011 taxes late Gastos de transporte que no puede incluir. How do i file my 2011 taxes late   No puede incluir en los gastos médicos el costo de los gastos de transporte en las siguientes situaciones: Ida y vuelta del trabajo, aun si su condición exije un medio de transporte poco común. How do i file my 2011 taxes late Viajes por motivos puramente personales a otra ciudad para una operación u otros cuidados médicos. How do i file my 2011 taxes late Viajes que son únicamente para mejorar la salud en general. How do i file my 2011 taxes late Los costos de operar un automóvil especialmente equipado por motivos que no sean médicos. How do i file my 2011 taxes late Gastos del Cuidado de un Dependiente Incapacitado Algunos gastos de cuidado de un dependiente incapacitado podrían reunir los requisitos para ser: Gastos médicos o Gastos relacionados con el empleo para reclamar un crédito por el cuidado de dependientes. How do i file my 2011 taxes late (Vea el capítulo 32 y la Publicación 503, Child and Dependent Care Expenses (Gastos del cuidado de menores y dependientes), en inglés). How do i file my 2011 taxes late Puede escoger aplicarlos de una u otra manera siempre que no use los mismos gastos para reclamar tanto un crédito como una deducción por gastos médicos. How do i file my 2011 taxes late ¿Cómo se Tratan los Reembolsos? Puede incluir en los gastos médicos únicamente las cantidades pagadas durante el año tributario para las cuales no recibió ningún reembolso de seguros ni de otro tipo. How do i file my 2011 taxes late Reembolso de Seguros Tiene que deducir del total de sus gastos médicos incurridos durante el año todos los reembolsos de gastos médicos que reciba de seguros u otras fuentes a lo largo del año. How do i file my 2011 taxes late Esto incluye los pagos de Medicare. How do i file my 2011 taxes late Aun si una póliza provee reembolso sólo por ciertos gastos médicos específicos, tiene que restar las cantidades que reciba de esa póliza del total de sus gastos médicos, incluyendo aquéllos que dicha póliza no reembolsa. How do i file my 2011 taxes late Ejemplo. How do i file my 2011 taxes late Usted tiene pólizas de seguros que cubren sus facturas de hospital y de médicos pero no sus facturas de cuidados de enfermería. How do i file my 2011 taxes late El pago que recibe del seguro para cubrir las facturas del hospital y de médico es superior a lo que le cobraron. How do i file my 2011 taxes late Al calcular su deducción médica, tiene que deducir de la cantidad total que gastó en cuidados médicos la cantidad total que recibió del seguro aun si las pólizas no cubren algunos de sus gastos médicos. How do i file my 2011 taxes late Plan (arreglo) de reembolso de gastos médicos. How do i file my 2011 taxes late   Un plan (arreglo) de reembolsos médicos (HRA, por sus siglas en inglés) es un plan establecido con fondos del empleador que reembolsa gastos de cuidados médicos a los empleados y permite trasladar al año siguiente cantidades no usadas. How do i file my 2011 taxes late Un plan HRA es financiado sólo por el empleador y los reembolsos por gastos médicos (hasta una cantidad máxima de dinero por período de cobertura) no se incluyen en sus ingresos. How do i file my 2011 taxes late Otros reembolsos. How do i file my 2011 taxes late   Por lo general, no se deduce de los gastos médicos la cantidad de los pagos que recibe por concepto de: La pérdida permanente o la pérdida del uso de un miembro o función del cuerpo (pérdida de una extremidad, vista, oído, etc. How do i file my 2011 taxes late ) o la desfiguración, siempre y cuando el pago se base en la naturaleza de la lesión, independientemente de cuánto tiempo esté ausente del trabajo o La pérdida de ingresos. How do i file my 2011 taxes late   Sin embargo, tiene que deducir de sus gastos médicos la parte de esos pagos que esté destinada a costos médicos. How do i file my 2011 taxes late Vea Cómo Calcular y Reclamar la Deducción en su Declaración de Impuestos , más adelante. How do i file my 2011 taxes late   Para saber cómo tratar las indemnizaciones recibidas por lesiones personales o enfermedad, vea Indemnizaciones por Lesiones Personales , más adelante. How do i file my 2011 taxes late No tiene una deducción médica si se le reembolsan todos sus gastos médicos del año. How do i file my 2011 taxes late Reembolso en exceso. How do i file my 2011 taxes late   Si se le reembolsa más de sus gastos médicos, podría verse obligado a incluir el excedente en los ingresos. How do i file my 2011 taxes late Puede utilizar la Figura 21-A como guía para decidir si alguna parte de su reembolso está sujeta a impuestos. How do i file my 2011 taxes late Primas pagadas por usted. How do i file my 2011 taxes late   Tiene un reembolso en exceso si paga la totalidad de la prima de su seguro médico, o todos los costos de un plan similar, y los pagos de seguro u otros reembolsos son mayores al total de los gastos médicos del año. How do i file my 2011 taxes late Generalmente no se incluye un reembolso en exceso en el ingreso bruto. How do i file my 2011 taxes late Primas pagadas por usted y su empleador. How do i file my 2011 taxes late   Si tanto usted como su empleador contribuyen a su plan de seguro médico y las aportaciones de su empleador no están incluidas en su ingreso bruto, tiene que incluir en su ingreso bruto la parte del reembolso en exceso contribuida por su empleador. How do i file my 2011 taxes late   Vea la Publicación 502, en inglés, para calcular el monto del reembolso en exceso que tiene que incluir en su ingreso bruto. How do i file my 2011 taxes late Reembolso en un año posterior. How do i file my 2011 taxes late   Si se le reembolsan en un año posterior los gastos médicos que dedujo en un año anterior, normalmente tiene que declarar el reembolso como ingreso hasta la cantidad que dedujo anteriormente por gastos médicos. How do i file my 2011 taxes late   No obstante, no declare como ingresos el reembolso que recibió, hasta la cantidad de deducciones médicas que no redujeron su impuesto del año anterior. How do i file my 2011 taxes late Para más información sobre la recuperación de una cantidad que declaró como deducción detallada en un año anterior, vea Recuperaciones de Deducciones Detalladas , en el capítulo 12. How do i file my 2011 taxes late    Figura 21-A. How do i file my 2011 taxes late ¿Es Tributable su Reembolso Médico en Exceso? Please click here for the text description of the image. How do i file my 2011 taxes late Figura 21−A. How do i file my 2011 taxes late ¿Es Tributable su Reembolso Médico en Exceso? Gastos médicos no deducidos. How do i file my 2011 taxes late   Si no dedujo un gasto médico en el año en que lo pagó porque sus gastos médicos no fueron más del 10% de su ingreso bruto ajustado (7. How do i file my 2011 taxes late 5% si usted o su cónyuge tiene 65 años de edad o más) o porque no detalló las deducciones, no incluya en sus ingresos el reembolso hasta el máximo de la cantidad del gasto. How do i file my 2011 taxes late No obstante, si el reembolso es mayor que el gasto, vea Reembolso en exceso , anteriormente. How do i file my 2011 taxes late Ejemplo. How do i file my 2011 taxes late En 2013, usted no estuvo casado, era menor de 65 años de edad y tuvo gastos médicos de $500. How do i file my 2011 taxes late No puede deducir los $500 porque es menos del 10% de su ingreso bruto ajustado. How do i file my 2011 taxes late Si, en un año posterior, se le reembolsa alguna parte de los $500 en gastos médicos, entonces usted no incluye esa cantidad en su ingreso bruto. How do i file my 2011 taxes late Indemnizaciones por Lesiones Personales Si recibe una indemnización en una demanda por lesiones personales, parte de esa indemnización podría corresponder a gastos médicos que dedujo en un año anterior. How do i file my 2011 taxes late De ser así, tiene que incluir esa parte en sus ingresos del año en el que la recibe en la medida en que dicha cantidad redujo sus ingresos tributables en el año anterior. How do i file my 2011 taxes late Vea Reembolso en un año posterior , presentado anteriormente bajo ¿Cómo se Tratan los Reembolsos? Gastos médicos futuros. How do i file my 2011 taxes late   Si recibe una indemnización por lesiones personales en una demanda por daños y perjuicios, parte de dicha indemnización podría estar destinada a futuros gastos médicos. How do i file my 2011 taxes late De ser así, tiene que reducir todos los gastos médicos futuros en los que incurra por esas lesiones hasta que se agote la cantidad que recibió. How do i file my 2011 taxes late Cómo Calcular y Reclamar la Deducción en su Declaración de Impuestos Una vez que haya determinado qué gastos médicos puede incluir, calcule y declare la deducción en su declaración de impuestos. How do i file my 2011 taxes late ¿Qué Formulario Debe Usar para la Declaración? Calcule la deducción por gastos médicos en el Anexo A (Formulario 1040). How do i file my 2011 taxes late No puede declarar gastos médicos en el Formulario 1040A ni en el Formulario 1040EZ. How do i file my 2011 taxes late Si necesita más información sobre las deducciones detalladas o no está seguro de poder detallar sus deducciones, vea el capítulo 20 de esta publicación. How do i file my 2011 taxes late Anote la cantidad que pagó por gastos médicos y dentales en el Anexo A (Formulario 1040). How do i file my 2011 taxes late Esta cantidad debería ser los gastos que no fueron reembolsados por seguros o alguna otra fuente. How do i file my 2011 taxes late Por lo general, puede deducir únicamente la cantidad de sus gastos médicos y dentales que sea más del 10% de su ingreso bruto ajustado (7. How do i file my 2011 taxes late 5% si usted o su cónyuge tiene 65 años de edad o más), el cual se encuentra en la línea 38 del Formulario 1040. How do i file my 2011 taxes late Gastos de Trabajo Relacionados con un Impedimento Si usted es una persona con una discapacidad, puede tomar una deducción de gastos de negocio que sean necesarios para poder trabajar. How do i file my 2011 taxes late Si toma una deducción de estos gastos de negocio relacionados con un impedimento, no reclame una deducción médica por los mismos gastos. How do i file my 2011 taxes late Usted tiene una discapacidad si tiene: Una discapacidad física o mental (por ejemplo, ceguera o sordera) que lo limite funcionalmente para trabajar o Un impedimento físico o mental (por ejemplo, un impedimento de la vista o del oído) que limita considerablemente una o más de las actividades importantes de su vida, como llevar a cabo tareas manuales, caminar, hablar, respirar, aprender o trabajar. How do i file my 2011 taxes late Definición de gastos de trabajo relacionados con un impedimento. How do i file my 2011 taxes late   Los “gastos de trabajo relacionados con un impedimento” son los gastos de negocio habituales y necesarios que: Son necesarios para que usted haga su trabajo de modo satisfactorio, Son para bienes y servicios que no se exigen ni se usan, salvo de manera imprevista, en sus actividades personales y No están cubiertos por otras leyes que rigen el impuesto sobre el ingreso. How do i file my 2011 taxes late Dónde se anota la deducción. How do i file my 2011 taxes late   Si trabaja por cuenta propia, deduzca los gastos de negocio en el formulario correspondiente (Anexo C, C-EZ, E o F) para declarar ingresos y gastos de negocio. How do i file my 2011 taxes late   Si es empleado, llene el Formulario 2106, Employee Business Expenses (Gastos de negocio del empleado), o el Formulario 2106-EZ, Unreimbursed Employee Business Expenses (Gastos de negocio del empleado no reembolsados), ambos en inglés. How do i file my 2011 taxes late Anote en el Anexo A (Formulario 1040) la parte de la cantidad del Formulario 2106, o el Formulario 2106-EZ, relacionada con su impedimento. How do i file my 2011 taxes late Anote la cantidad que no esté relacionada con su impedimento en el Anexo A (Formulario 1040). How do i file my 2011 taxes late Los gastos de trabajo relacionados con un impedimento no están sujetos al límite del 2% del ingreso bruto ajustado que corresponde a otros gastos de negocio del empleado. How do i file my 2011 taxes late Ejemplo. How do i file my 2011 taxes late Usted es ciego. How do i file my 2011 taxes late Necesita un lector para realizar su trabajo. How do i file my 2011 taxes late Tiene que servirse del lector tanto durante sus horas normales de trabajo en su lugar de trabajo como fuera de dicho lugar y horario. How do i file my 2011 taxes late Los servicios del lector son únicamente para su trabajo. How do i file my 2011 taxes late Puede deducir sus gastos por los servicios del lector como gastos de negocio. How do i file my 2011 taxes late Costos del Seguro Médico para Personas que Trabajan por Cuenta Propia Si usted trabajó por cuenta propia y tuvo una utilidad neta ese año, es posible que pueda deducir, como un ajuste a sus ingresos, las cantidades pagadas por seguro médico y seguro de cuidado a largo plazo calificado para usted, su cónyuge, sus dependientes y sus hijos menores de 27 años de edad a finales del año 2013. How do i file my 2011 taxes late Para ese fin, se considera que trabajó por cuenta propia si fue socio general (o socio en una sociedad limitada y recibía pagos garantizados) o recibió un salario de una sociedad anónima de tipo S en la que tenía una participación como accionista de más del 2%. How do i file my 2011 taxes late El plan de seguros debe estar a nombre de su ocupación o negocio y la deducción no puede ser mayor que su ingreso del trabajo procedente de dicha ocupación o negocio. How do i file my 2011 taxes late No puede deducir pagos por seguro médico por ningún mes en el que haya cumplido los requisitos para participar en algún plan de salud subvencionado por su empleador, el empleador de su cónyuge o el empleador de su dependiente o de su hijo menor de 27 años de edad a finales del año 2013. How do i file my 2011 taxes late No puede deducir pagos por un contrato de cuidados a largo plazo en ningún mes en el que haya cumplido los requisitos para participar en algún plan de seguro por cuidados a largo plazo subvencionado por su empleador o el empleador de su cónyuge. How do i file my 2011 taxes late Si reúne los requisitos para reclamar la deducción, use la Self-Employed Health Insurance Deduction Worksheet (Hoja de trabajo para deducciones del seguro médico para personas que trabajan por cuenta propia) de las Instrucciones del Formulario 1040, en inglés, para calcular la cantidad que puede deducir. How do i file my 2011 taxes late Pero si corresponde alguno de los siguientes puntos, no use dicha hoja de trabajo: Tuvo más de una fuente de ingresos sujeta al impuesto sobre el trabajo por cuenta propia. How do i file my 2011 taxes late Presenta el Formulario 2555, Foreign Earned Income (Ingreso devengado en el extranjero) o el Formulario 2555-EZ, Foreign Earned Income Exclusion (Exclusión de ingreso devengado en el extranjero), ambos en inglés. How do i file my 2011 taxes late Calcula la deducción usando cantidades pagadas por un seguro de cuidados a largo plazo calificado. How do i file my 2011 taxes late Si no puede usar la hoja de trabajo de las Instrucciones del Formulario 1040, use la hoja de trabajo de la Publicación 535, Business Expenses (Gastos de negocio), en inglés, para calcular su deducción. How do i file my 2011 taxes late Nota: Al calcular la cantidad que puede deducir por primas de seguros, no incluya ningún pago adelantado que aparezca en el Formulario 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments (Pagos adelantados del crédito tributario por cobertura de seguro médico (HCTC, por sus siglas en inglés)). How do i file my 2011 taxes late Asimismo, si reclama el crédito tributario por cobertura de seguro médico, reste la cantidad que aparece en el Formulario 8885, en inglés, del total de las primas de seguros que pagó. How do i file my 2011 taxes late No incluya cantidades pagadas por cobertura de seguro médico si dichas cantidades se pagaron con distribuciones de un plan de jubilación que estaban exentas de impuestos porque usted es funcionario de seguridad pública jubilado. How do i file my 2011 taxes late Dónde se anota la deducción. How do i file my 2011 taxes late    Haga esta deducción en el Formulario 1040. How do i file my 2011 taxes late Si detalla sus deducciones y no declara en el Formulario 1040 el 100% de su seguro médico para personas que trabajan por cuenta propia, generalmente puede incluir las demás primas con todos los demás gastos médicos en el Anexo A (Formulario 1040), sujetos al límite del 10% (7. How do i file my 2011 taxes late 5% si usted o su cónyuge tiene 65 años de edad o más). How do i file my 2011 taxes late Vea el tema titulado “Self-Employed Health Insurance Deduction” (Deducción del seguro de salud de la persona que trabaja por cuenta propia), en el capítulo 6 de la Publicación 535, Business Expenses (Gastos de negocio), y el tema titulado “Medical and Dental Expenses” (Gastos médicos y dentales), en las Instrucciones para el Anexo A (Formulario 1040), ambos disponibles en inglés, para más información. How do i file my 2011 taxes late Prev  Up  Next   Home   More Online Publications
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The How Do I File My 2011 Taxes Late

How do i file my 2011 taxes late Publication 537 - Main Content Table of Contents What Is an Installment Sale?Special rule. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Several assets. How do i file my 2011 taxes late Special situations. How do i file my 2011 taxes late Schedule D (Form 1040). How do i file my 2011 taxes late Form 4797. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late The installment sales method cannot be used for the following. How do i file my 2011 taxes late Sale of inventory. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late See Sale of a Business under Other Rules, later. How do i file my 2011 taxes late Dealer sales. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late This rule also applies to real property held for sale to customers in the ordinary course of a trade or business. How do i file my 2011 taxes late However, the rule does not apply to an installment sale of property used or produced in farming. How do i file my 2011 taxes late Special rule. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late For more information, see section 453(l). How do i file my 2011 taxes late Stock or securities. How do i file my 2011 taxes late   You cannot use the installment method to report gain from the sale of stock or securities traded on an established securities market. How do i file my 2011 taxes late You must report the entire gain on the sale in the year in which the trade date falls. How do i file my 2011 taxes late Installment obligation. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late See Electing Out of the Installment Method under Other Rules, later, for information on recognizing the entire gain in the year of sale. How do i file my 2011 taxes late Sale at a loss. How do i file my 2011 taxes late   If your sale results in a loss, you cannot use the installment method. How do i file my 2011 taxes late If the loss is on an installment sale of business or investment property, you can deduct it only in the tax year of sale. How do i file my 2011 taxes late Unstated interest. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late See Unstated Interest and Original Issue Discount (OID) under Other Rules, later. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Each payment on an installment sale usually consists of the following three parts. How do i file my 2011 taxes late Interest income. How do i file my 2011 taxes late Return of your adjusted basis in the property. How do i file my 2011 taxes late Gain on the sale. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late You do not include in income the part that is the return of your basis in the property. How do i file my 2011 taxes late Basis is the amount of your investment in the property for installment sale purposes. How do i file my 2011 taxes late Interest Income You must report interest as ordinary income. How do i file my 2011 taxes late Interest is generally not included in a down payment. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Interest provided in the agreement is called stated interest. How do i file my 2011 taxes late If the agreement does not provide for enough stated interest, there may be unstated interest or original issue discount. How do i file my 2011 taxes late See Unstated Interest and Original Issue Discount (OID) under Other Rules, later. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late A tax-free return of your adjusted basis in the property, and Your gain (referred to as installment sale income on Form 6252). How do i file my 2011 taxes late Figuring adjusted basis for installment sale purposes. How do i file my 2011 taxes late   You can use Worksheet A to figure your adjusted basis in the property for installment sale purposes. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Worksheet A. How do i file my 2011 taxes late Figuring Adjusted Basis and Gross Profit Percentage 1. How do i file my 2011 taxes late Enter the selling price for the property   2. How do i file my 2011 taxes late Enter your adjusted basis for the property     3. How do i file my 2011 taxes late Enter your selling expenses     4. How do i file my 2011 taxes late Enter any depreciation recapture     5. How do i file my 2011 taxes late Add lines 2, 3, and 4. How do i file my 2011 taxes late  This is your adjusted basis for installment sale purposes   6. How do i file my 2011 taxes late Subtract line 5 from line 1. How do i file my 2011 taxes late If zero or less, enter -0-. How do i file my 2011 taxes late  This is your gross profit     If the amount entered on line 6 is zero, stop here. How do i file my 2011 taxes late You cannot use the installment method. How do i file my 2011 taxes late   7. How do i file my 2011 taxes late Enter the contract price for the property   8. How do i file my 2011 taxes late Divide line 6 by line 7. How do i file my 2011 taxes late This is your gross profit percentage   Selling price. How do i file my 2011 taxes late   The selling price is the total cost of the property to the buyer and includes any of the following. How do i file my 2011 taxes late Any money you are to receive. How do i file my 2011 taxes late 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). How do i file my 2011 taxes late 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). How do i file my 2011 taxes late Any of your selling expenses the buyer pays. How do i file my 2011 taxes late   Do not include stated interest, unstated interest, any amount recomputed or recharacterized as interest, or original issue discount. How do i file my 2011 taxes late Adjusted basis for installment sale purposes. How do i file my 2011 taxes late   Your adjusted basis is the total of the following three items. How do i file my 2011 taxes late Adjusted basis. How do i file my 2011 taxes late Selling expenses. How do i file my 2011 taxes late Depreciation recapture. How do i file my 2011 taxes late Adjusted basis. How do i file my 2011 taxes late   Basis is your investment in the property for installment sale purposes. How do i file my 2011 taxes late The way you figure basis depends on how you acquire the property. How do i file my 2011 taxes late The basis of property you buy is generally its cost. How do i file my 2011 taxes late The basis of property you inherit, receive as a gift, build yourself, or receive in a tax-free exchange is figured differently. How do i file my 2011 taxes late   While you own property, various events may change your original basis. How do i file my 2011 taxes late Some events, such as adding rooms or making permanent improvements, increase basis. How do i file my 2011 taxes late Others, such as deductible casualty losses or depreciation previously allowed or allowable, decrease basis. How do i file my 2011 taxes late The result is adjusted basis. How do i file my 2011 taxes late   For more information on how to figure basis and adjusted basis, see Publication 551. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Selling expenses. How do i file my 2011 taxes late   Selling expenses relate to the sale of the property. How do i file my 2011 taxes late They include commissions, attorney fees, and any other expenses paid on the sale. How do i file my 2011 taxes late Selling expenses are added to the basis of the sold property. How do i file my 2011 taxes late Depreciation recapture. How do i file my 2011 taxes late   If the property you sold was depreciable property, you may need to recapture part of the gain on the sale as ordinary income. How do i file my 2011 taxes late See Depreciation Recapture Income under Other Rules, later. How do i file my 2011 taxes late Gross profit. How do i file my 2011 taxes late   Gross profit is the total gain you report on the installment method. How do i file my 2011 taxes late   To figure your gross profit, subtract your adjusted basis for installment sale purposes from the selling price. How do i file my 2011 taxes late If the property you sold was your home, subtract from the gross profit any gain you can exclude. How do i file my 2011 taxes late See Sale of Your Home , later, under Reporting Installment Sale Income. How do i file my 2011 taxes late Contract price. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late Gross profit percentage. How do i file my 2011 taxes late   A certain percentage of each payment (after subtracting interest) is reported as installment sale income. How do i file my 2011 taxes late This percentage is called the gross profit percentage and is figured by dividing your gross profit from the sale by the contract price. How do i file my 2011 taxes late   The gross profit percentage generally remains the same for each payment you receive. How do i file my 2011 taxes late However, see the Example under Selling Price Reduced, later, for a situation where the gross profit percentage changes. How do i file my 2011 taxes late Example. How do i file my 2011 taxes late You sell property at a contract price of $6,000 and your gross profit is $1,500. How do i file my 2011 taxes late Your gross profit percentage is 25% ($1,500 ÷ $6,000). How do i file my 2011 taxes late 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. How do i file my 2011 taxes late The remainder (balance) of each payment is the tax-free return of your adjusted basis. How do i file my 2011 taxes late Amount to report as installment sale income. How do i file my 2011 taxes late   Multiply the payments you receive each year (less interest) by the gross profit percentage. How do i file my 2011 taxes late The result is your installment sale income for the tax year. How do i file my 2011 taxes late In certain circumstances, you may be treated as having received a payment, even though you received nothing directly. How do i file my 2011 taxes late A receipt of property or the assumption of a mortgage on the property sold may be treated as a payment. How do i file my 2011 taxes late For a detailed discussion, see Payments Received or Considered Received under Other Rules, later. How do i file my 2011 taxes late Selling Price Reduced If the selling price is reduced at a later date, the gross profit on the sale also will change. How do i file my 2011 taxes late You then must refigure the gross profit percentage for the remaining payments. How do i file my 2011 taxes late Refigure your gross profit using Worksheet B. How do i file my 2011 taxes late You will spread any remaining gain over future installments. How do i file my 2011 taxes late Worksheet B. How do i file my 2011 taxes late New Gross Profit Percentage — Selling Price Reduced 1. How do i file my 2011 taxes late Enter the reduced selling  price for the property   2. How do i file my 2011 taxes late Enter your adjusted  basis for the  property     3. How do i file my 2011 taxes late Enter your selling  expenses     4. How do i file my 2011 taxes late Enter any depreciation  recapture     5. How do i file my 2011 taxes late Add lines 2, 3, and 4. How do i file my 2011 taxes late   6. How do i file my 2011 taxes late Subtract line 5 from line 1. How do i file my 2011 taxes late  This is your adjusted  gross profit   7. How do i file my 2011 taxes late Enter any installment sale  income reported in  prior year(s)   8. How do i file my 2011 taxes late Subtract line 7 from line 6   9. How do i file my 2011 taxes late Future installments   10. How do i file my 2011 taxes late Divide line 8 by line 9. How do i file my 2011 taxes late  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. How do i file my 2011 taxes late Example. How do i file my 2011 taxes late In 2011, you sold land with a basis of $40,000 for $100,000. How do i file my 2011 taxes late Your gross profit was $60,000. How do i file my 2011 taxes late You received a $20,000 down payment and the buyer's note for $80,000. How do i file my 2011 taxes late The note provides for four annual payments of $20,000 each, plus 8% interest, beginning in 2012. How do i file my 2011 taxes late Your gross profit percentage is 60%. How do i file my 2011 taxes late You reported a gain of $12,000 on each payment received in 2011 and 2012. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late The new gross profit percentage, 46. How do i file my 2011 taxes late 67%, is figured on Example—Worksheet B. How do i file my 2011 taxes late You will report a gain of $7,000 (46. How do i file my 2011 taxes late 67% of $15,000) on each of the $15,000 installments due in 2013, 2014, and 2015. How do i file my 2011 taxes late Example — Worksheet B. How do i file my 2011 taxes late New Gross Profit Percentage — Selling Price Reduced 1. How do i file my 2011 taxes late Enter the reduced selling  price for the property 85,000 2. How do i file my 2011 taxes late Enter your adjusted  basis for the  property 40,000   3. How do i file my 2011 taxes late Enter your selling  expenses -0-   4. How do i file my 2011 taxes late Enter any depreciation  recapture -0-   5. How do i file my 2011 taxes late Add lines 2, 3, and 4. How do i file my 2011 taxes late 40,000 6. How do i file my 2011 taxes late Subtract line 5 from line 1. How do i file my 2011 taxes late  This is your adjusted  gross profit 45,000 7. How do i file my 2011 taxes late Enter any installment sale  income reported in  prior year(s) 24,000 8. How do i file my 2011 taxes late Subtract line 7 from line 6 21,000 9. How do i file my 2011 taxes late Future installments 45,000 10. How do i file my 2011 taxes late Divide line 8 by line 9. How do i file my 2011 taxes late  This is your new gross profit percentage* 46. How do i file my 2011 taxes late 67% * Apply this percentage to all future payments to determine how much of each of those payments is installment sale income. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late You also will have to report the installment sale income on Schedule D (Form 1040), Capital Gains and Losses, or Form 4797, or both. How do i file my 2011 taxes late See Schedule D (Form 1040) and Form 4797 , later. How do i file my 2011 taxes late If the property was your main home, you may be able to exclude part or all of the gain. How do i file my 2011 taxes late See Sale of Your Home , later. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Attach it to your tax return for each year. How do i file my 2011 taxes late Form 6252 will help you determine the gross profit, contract price, gross profit percentage, and installment sale income. How do i file my 2011 taxes late Which parts to complete. How do i file my 2011 taxes late   Which part to complete depends on whether you are filing the form for the year of sale or a later year. How do i file my 2011 taxes late Year of sale. How do i file my 2011 taxes late   Complete lines 1 through 4, Part I, and Part II. How do i file my 2011 taxes late If you sold property to a related party during the year, also complete Part III. How do i file my 2011 taxes late Later years. How do i file my 2011 taxes late   Complete lines 1 through 4 and Part II for any year in which you receive a payment from an installment sale. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late (After December 31, 1986, the installment method is not available for the sale of marketable securities. How do i file my 2011 taxes late ) Complete lines 1 through 4 and Part II for any year in which you receive a payment from the sale. How do i file my 2011 taxes late Complete Part III unless you received the final payment during the tax year. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Complete Part III for the 2 years after the year of sale unless you received the final payment during the tax year. How do i file my 2011 taxes late 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). How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Your gain is long-term if you owned the property for more than 1 year when you sold it. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late All or part of any gain from the disposition of the property may be ordinary gain from depreciation recapture. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late ” Sale of Your Home If you sell your home, you may be able to exclude all or part of the gain on the sale. How do i file my 2011 taxes late See Publication 523 for information about excluding the gain. How do i file my 2011 taxes late If the sale is an installment sale, any gain you exclude is not included in gross profit when figuring your gross profit percentage. How do i file my 2011 taxes late Seller-financed mortgage. How do i file my 2011 taxes late   If you finance the sale of your home to an individual, both you and the buyer may have to follow special reporting procedures. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late   When deducting the mortgage interest, the buyer must write your name, address, and SSN on line 11 of Schedule A (Form 1040), Itemized Deductions. How do i file my 2011 taxes late   If either person fails to include the other person's SSN, a $50 penalty will be assessed. How do i file my 2011 taxes late Other Rules The rules discussed in this part of the publication apply only in certain circumstances or to certain types of property. How do i file my 2011 taxes late The following topics are discussed. How do i file my 2011 taxes late Electing out of the installment method. How do i file my 2011 taxes late Payments received or considered received. How do i file my 2011 taxes late Escrow account. How do i file my 2011 taxes late Depreciation recapture income. How do i file my 2011 taxes late Sale to a related person. How do i file my 2011 taxes late Like-kind exchange. How do i file my 2011 taxes late Contingent payment sale. How do i file my 2011 taxes late Single sale of several assets. How do i file my 2011 taxes late Sale of a business. How do i file my 2011 taxes late Unstated interest and original issue discount. How do i file my 2011 taxes late Disposition of an installment obligation. How do i file my 2011 taxes late Repossession. How do i file my 2011 taxes late Interest on deferred tax. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Notes, mortgages, and land contracts are examples of obligations that are included at FMV. How do i file my 2011 taxes late You must figure the FMV of the buyer's installment obligation, whether or not you would actually be able to sell it. How do i file my 2011 taxes late 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). How do i file my 2011 taxes late Example. How do i file my 2011 taxes late You sold a parcel of land for $50,000. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late The buyer gave you a note for $40,000. How do i file my 2011 taxes late The note had an FMV of $40,000. How do i file my 2011 taxes late You paid a commission of 6%, or $3,000, to a broker for negotiating the sale. How do i file my 2011 taxes late The land cost $25,000, and you owned it for more than one year. How do i file my 2011 taxes late You decide to elect out of the installment method and report the entire gain in the year of sale. How do i file my 2011 taxes late Gain realized:     Selling price $50,000 Minus: Property's adj. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late basis $25,000     Commission 3,000 28,000 Gain recognized $22,000 The recognized gain of $22,000 is long-term capital gain. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late The interest on the note is ordinary income and is reported as interest income each year. How do i file my 2011 taxes late How to elect out. How do i file my 2011 taxes late   To make this election, do not report your sale on Form 6252. How do i file my 2011 taxes late Instead, report it on Form 8949, Sales and Other Dispositions of Capital Assets, Form 4797, or both. How do i file my 2011 taxes late When to elect out. How do i file my 2011 taxes late   Make this election by the due date, including extensions, for filing your tax return for the year the sale takes place. How do i file my 2011 taxes late Automatic six-month extension. How do i file my 2011 taxes late   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). How do i file my 2011 taxes late Write “Filed pursuant to section 301. How do i file my 2011 taxes late 9100-2” at the top of the amended return and file it where the original return was filed. How do i file my 2011 taxes late Revoking the election. How do i file my 2011 taxes late   Once made, the election can be revoked only with IRS approval. How do i file my 2011 taxes late A revocation is retroactive. How do i file my 2011 taxes late You will not be allowed to revoke the election if either of the following applies. How do i file my 2011 taxes late One of the purposes is to avoid federal income tax. How do i file my 2011 taxes late The tax year in which any payment was received has closed. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late In certain situations, you are considered to have received a payment, even though the buyer does not pay you directly. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Include these expenses in the selling and contract prices when figuring the gross profit percentage. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Mortgage not more than basis. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late It is considered a recovery of your basis. How do i file my 2011 taxes late The contract price is the selling price minus the mortgage. How do i file my 2011 taxes late Example. How do i file my 2011 taxes late You sell property with an adjusted basis of $19,000. How do i file my 2011 taxes late You have selling expenses of $1,000. How do i file my 2011 taxes late 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). How do i file my 2011 taxes late The selling price is $25,000 ($15,000 + $10,000). How do i file my 2011 taxes late Your gross profit is $5,000 ($25,000 − $20,000 installment sale basis). How do i file my 2011 taxes late The contract price is $10,000 ($25,000 − $15,000 mortgage). How do i file my 2011 taxes late Your gross profit percentage is 50% ($5,000 ÷ $10,000). How do i file my 2011 taxes late You report half of each $2,000 payment received as gain from the sale. How do i file my 2011 taxes late You also report all interest you receive as ordinary income. How do i file my 2011 taxes late Mortgage more than basis. How do i file my 2011 taxes late   If the buyer assumes a mortgage that is more than your installment sale basis in the property, you recover your entire basis. How do i file my 2011 taxes late The part of the mortgage greater than your basis is treated as a payment received in the year of sale. How do i file my 2011 taxes late   To figure the contract price, subtract the mortgage from the selling price. How do i file my 2011 taxes late This is the total amount (other than interest) you will receive directly from the buyer. How do i file my 2011 taxes late Add to this amount the payment you are considered to have received (the difference between the mortgage and your installment sale basis). How do i file my 2011 taxes late The contract price is then the same as your gross profit from the sale. How do i file my 2011 taxes late    If the mortgage the buyer assumes is equal to or more than your installment sale basis, the gross profit percentage always will be 100%. How do i file my 2011 taxes late Example. How do i file my 2011 taxes late The selling price for your property is $9,000. How do i file my 2011 taxes late The buyer will pay you $1,000 annually (plus 8% interest) over the next 3 years and assume an existing mortgage of $6,000. How do i file my 2011 taxes late Your adjusted basis in the property is $4,400. How do i file my 2011 taxes late You have selling expenses of $600, for a total installment sale basis of $5,000. How do i file my 2011 taxes late The part of the mortgage that is more than your installment sale basis is $1,000 ($6,000 − $5,000). How do i file my 2011 taxes late This amount is included in the contract price and treated as a payment received in the year of sale. How do i file my 2011 taxes late 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%. How do i file my 2011 taxes late Report 100% of each payment (less interest) as gain from the sale. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Mortgage Canceled If the buyer of your property is the person who holds the mortgage on it, your debt is canceled, not assumed. How do i file my 2011 taxes late You are considered to receive a payment equal to the outstanding canceled debt. How do i file my 2011 taxes late Example. How do i file my 2011 taxes late Mary Jones loaned you $45,000 in 2009 in exchange for a note and a mortgage in a tract of land you owned. How do i file my 2011 taxes late On April 4, 2013, she bought the land for $70,000. How do i file my 2011 taxes late At that time, $30,000 of her loan to you was outstanding. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late She did not assume an existing mortgage. How do i file my 2011 taxes late She canceled the $30,000 debt you owed her. How do i file my 2011 taxes late You are considered to have received a $30,000 payment at the time of the sale. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late If the buyer assumes the debt instead of paying it off, only part of it may have to be treated as a payment. How do i file my 2011 taxes late Compare the debt to your installment sale basis in the property being sold. How do i file my 2011 taxes late If the debt is less than your installment sale basis, none of it is treated as a payment. How do i file my 2011 taxes late If it is more, only the difference is treated as a payment. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late These rules are the same as the rules discussed earlier under Buyer Assumes Mortgage . How do i file my 2011 taxes late However, they apply only to the following types of debt the buyer assumes. How do i file my 2011 taxes late Those acquired from ownership of the property you are selling, such as a mortgage, lien, overdue interest, or back taxes. How do i file my 2011 taxes late Those acquired in the ordinary course of your business, such as a balance due for inventory you purchased. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late The value of the assumed debt is then considered a payment to you in the year of sale. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late However, see Like-Kind Exchange , later. How do i file my 2011 taxes late Generally, the amount of the payment is the property's FMV on the date you receive it. How do i file my 2011 taxes late Exception. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late See Unstated Interest and Original Issue Discount (OID) , later. How do i file my 2011 taxes late Debt not payable on demand. How do i file my 2011 taxes late   Any evidence of debt you receive from the buyer not payable on demand is not considered a payment. How do i file my 2011 taxes late This is true even if the debt is guaranteed by a third party, including a government agency. How do i file my 2011 taxes late Fair market value (FMV). How do i file my 2011 taxes late   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. How do i file my 2011 taxes late Third-party note. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late The excess of the note's face value over its FMV is interest. How do i file my 2011 taxes late Exclude this interest in determining the selling price of the property. How do i file my 2011 taxes late However, see Exception under Property Used As a Payment, earlier. How do i file my 2011 taxes late Example. How do i file my 2011 taxes late You sold real estate in an installment sale. How do i file my 2011 taxes late As part of the down payment, the buyer assigned to you a $50,000, 8% interest third-party note. How do i file my 2011 taxes late The FMV of the third-party note at the time of the sale was $30,000. How do i file my 2011 taxes late This amount, not $50,000, is a payment to you in the year of sale. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late The remaining 40% is interest taxed as ordinary income. How do i file my 2011 taxes late Bond. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late For more information on the amount you should treat as a payment, see Exception under Property Used As a Payment, earlier. How do i file my 2011 taxes late    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. How do i file my 2011 taxes late However, see Exception under Property Used As a Payment, earlier. How do i file my 2011 taxes late Buyer's note. How do i file my 2011 taxes late   The buyer's note (unless payable on demand) is not considered payment on the sale. How do i file my 2011 taxes late However, its full face value is included when figuring the selling price and the contract price. How do i file my 2011 taxes late Payments you receive on the note are used to figure your gain in the year received. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late This is known as the pledge rule, and it applies if the selling price of the property is over $150,000. How do i file my 2011 taxes late It does not apply to the following dispositions. How do i file my 2011 taxes late Sales of property used or produced in farming. How do i file my 2011 taxes late Sales of personal-use property. How do i file my 2011 taxes late Qualifying sales of time-shares and residential lots. How do i file my 2011 taxes late The net debt proceeds are the gross debt minus the direct expenses of getting the debt. How do i file my 2011 taxes late The amount treated as a payment is considered received on the later of the following dates. How do i file my 2011 taxes late The date the debt becomes secured. How do i file my 2011 taxes late The date you receive the debt proceeds. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Limit. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late The total contract price on the installment sale. How do i file my 2011 taxes late Any payments received on the installment obligation before the date the net debt proceeds are treated as a payment. How do i file my 2011 taxes late Installment payments. How do i file my 2011 taxes late   The pledge rule accelerates the reporting of the installment obligation payments. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Exception. How do i file my 2011 taxes late   The pledge rule does not apply to pledges made after December 17, 1987, to refinance a debt under the following circumstances. How do i file my 2011 taxes late The debt was outstanding on December 17, 1987. How do i file my 2011 taxes late The debt was secured by that installment sale obligation on that date and at all times thereafter until the refinancing occurred. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late   This exception applies only to refinancing that does not exceed the principal of the original debt immediately before the refinancing. How do i file my 2011 taxes late Any excess is treated as a payment on the installment obligation. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late These sales cannot be reported on the installment method. How do i file my 2011 taxes late The buyer's obligation is paid in full when the balance of the purchase price is deposited into the escrow account. How do i file my 2011 taxes late When an escrow account is established, you no longer rely on the buyer for the rest of the payments, but on the escrow arrangement. How do i file my 2011 taxes late Example. How do i file my 2011 taxes late You sell property for $100,000. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late You cannot report the sale on the installment method because the full purchase price is considered received in the year of sale. How do i file my 2011 taxes late You report the entire gain in the year of sale. How do i file my 2011 taxes late Escrow established in a later year. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late Substantial restriction. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Figure your depreciation recapture income (including the section 179 deduction and the section 179A deduction recapture) in Part III of Form 4797. How do i file my 2011 taxes late Report the recapture income in Part II of Form 4797 as ordinary income in the year of sale. How do i file my 2011 taxes late The recapture income is also included in Part I of Form 6252. How do i file my 2011 taxes late However, the gain equal to the recapture income is reported in full in the year of the sale. How do i file my 2011 taxes late Only the gain greater than the recapture income is reported on the installment method. How do i file my 2011 taxes late For more information on depreciation recapture, see chapter 3 in Publication 544. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Determining gross profit is discussed under General Rules , earlier. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late These rules are explained under Sale of Depreciable Property and under Sale and Later Disposition , later. How do i file my 2011 taxes late Sale of Depreciable Property If you sell depreciable property to certain related persons, you generally cannot report the sale using the installment method. How do i file my 2011 taxes late Instead, all payments to be received are considered received in the year of sale. How do i file my 2011 taxes late However, see Exception , below. How do i file my 2011 taxes late Depreciable property for this rule is any property the purchaser can depreciate. How do i file my 2011 taxes late Payments to be received include the total of all noncontingent payments and the FMV of any payments contingent as to amount. How do i file my 2011 taxes late In the case of contingent payments for which the FMV cannot be reasonably determined, your basis in the property is recovered proportionately. How do i file my 2011 taxes late The purchaser cannot increase the basis of the property acquired in the sale before the seller includes a like amount in income. How do i file my 2011 taxes late Exception. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Related person. How do i file my 2011 taxes late   Related persons include the following. How do i file my 2011 taxes late A person and all controlled entities with respect to that person. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Two or more partnerships in which the same person owns, directly or indirectly, more than 50% of the capital interests or the profits interests. How do i file my 2011 taxes late   For information about which entities are controlled entities, see section 1239(c). How do i file my 2011 taxes late 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. How do i file my 2011 taxes late The related person makes the second disposition before making all payments on the first disposition. How do i file my 2011 taxes late The related person disposes of the property within 2 years of the first disposition. How do i file my 2011 taxes late This rule does not apply if the property involved is marketable securities. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late See Exception , later. How do i file my 2011 taxes late Related person. How do i file my 2011 taxes late   Related persons include the following. How do i file my 2011 taxes late Members of a family, including only brothers and sisters (either whole or half), husband and wife, ancestors, and lineal descendants. How do i file my 2011 taxes late A partnership or estate and a partner or beneficiary. How do i file my 2011 taxes late A trust (other than a section 401(a) employees trust) and a beneficiary. How do i file my 2011 taxes late A trust and an owner of the trust. How do i file my 2011 taxes late Two corporations that are members of the same controlled group as defined in section 267(f). How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late The grantor and fiduciary, and the fiduciary and beneficiary, of any trust. How do i file my 2011 taxes late Any two S corporations if the same persons own more than 50% in value of the outstanding stock of each corporation. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late An executor and a beneficiary of an estate unless the sale is in satisfaction of a pecuniary bequest. How do i file my 2011 taxes late Example 1. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late His installment sale basis for the farm land was $250,000 and the property was not subject to any outstanding liens or mortgages. How do i file my 2011 taxes late His gross profit percentage is 50% (gross profit of $250,000 ÷ contract price of $500,000). How do i file my 2011 taxes late He received $100,000 in 2012 and included $50,000 in income for that year ($100,000 × 0. How do i file my 2011 taxes late 50). How do i file my 2011 taxes late Bob made no improvements to the property and sold it to Alfalfa Inc. How do i file my 2011 taxes late , in 2013 for $600,000 after making the payment for that year. How do i file my 2011 taxes late The amount realized from the second disposition is $600,000. How do i file my 2011 taxes late 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 % × . How do i file my 2011 taxes late 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). How do i file my 2011 taxes late Example 2. How do i file my 2011 taxes late Assume the facts are the same as Example 1 except that Bob sells the property for only $400,000. How do i file my 2011 taxes late 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 % × . How do i file my 2011 taxes late 50 Installment sale income for 2013 $150,000     Harvey receives a $100,000 payment in 2014 and another in 2015. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late In 2016, he receives the final $100,000 payment. How do i file my 2011 taxes late 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 % × . How do i file my 2011 taxes late 50 Installment sale income for 2016 $ 50,000 Exception. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late However, the exception does not apply if the resale terms permit significant deferral of recognition of gain from the first sale. How do i file my 2011 taxes late   In addition, any sale or exchange of stock to the issuing corporation is not treated as a first disposition. How do i file my 2011 taxes late An involuntary conversion is not treated as a second disposition if the first disposition occurred before the threat of conversion. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late These trades are known as like-kind exchanges. How do i file my 2011 taxes late The property you receive in a like-kind exchange is treated as if it were a continuation of the property you gave up. How do i file my 2011 taxes late You do not have to report any part of your gain if you receive only like-kind property. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late For more information on like-kind exchanges, see Like-Kind Exchanges in chapter 1 of Publication 544. How do i file my 2011 taxes late Installment payments. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late The contract price is reduced by the FMV of the like-kind property received in the trade. How do i file my 2011 taxes late The gross profit is reduced by any gain on the trade that can be postponed. How do i file my 2011 taxes late Like-kind property received in the trade is not considered payment on the installment obligation. How do i file my 2011 taxes late Example. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late He also receives an installment note for $800,000 in the trade. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late George's selling price is $1,000,000 ($800,000 installment note + $200,000 FMV of like-kind property received). How do i file my 2011 taxes late His gross profit is $600,000 ($1,000,000 − $400,000 installment sale basis). How do i file my 2011 taxes late The contract price is $800,000 ($1,000,000 − $200,000). How do i file my 2011 taxes late The gross profit percentage is 75% ($600,000 ÷ $800,000). How do i file my 2011 taxes late He reports no gain in 2013 because the like-kind property he receives is not treated as a payment for figuring gain. How do i file my 2011 taxes late 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). How do i file my 2011 taxes late Deferred exchanges. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late Under this type of exchange, the person receiving your property may be required to place funds in an escrow account or trust. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late See Regulations section 1. How do i file my 2011 taxes late 1031(k)-1(j)(2) for these rules. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late This happens, for example, if you sell your business and the selling price includes a percentage of its profits in future years. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late For rules on using the installment method for a contingent payment sale, see Regulations section 15a. How do i file my 2011 taxes late 453-1(c). How do i file my 2011 taxes late 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. How do i file my 2011 taxes late You also have to allocate part of the selling price to each asset. How do i file my 2011 taxes late If you sell assets that constitute a trade or business, see Sale of a Business , later. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late This becomes the net FMV. How do i file my 2011 taxes late A sale of separate and unrelated assets of the same type under a single contract is reported as one transaction for the installment method. How do i file my 2011 taxes late However, if an asset is sold at a loss, its disposition cannot be reported on the installment method. How do i file my 2011 taxes late It must be reported separately. How do i file my 2011 taxes late The remaining assets sold at a gain are reported together. How do i file my 2011 taxes late Example. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Your installment sale basis for each parcel was $15,000. How do i file my 2011 taxes late Your net gain was $85,000 ($130,000 − $45,000). How do i file my 2011 taxes late You report the gain on the installment method. How do i file my 2011 taxes late The sales contract did not allocate the selling price or the cash payment received in the year of sale among the individual parcels. How do i file my 2011 taxes late The FMV of parcels A, B, and C were $60,000, $60,000, and $10,000, respectively. How do i file my 2011 taxes late The installment sale basis for parcel C was more than its FMV, so it was sold at a loss and must be treated separately. How do i file my 2011 taxes late You must allocate the total selling price and the amounts received in the year of sale between parcel C and the remaining parcels. How do i file my 2011 taxes late Of the total $130,000 selling price, you must allocate $120,000 to parcels A and B together and $10,000 to parcel C. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late You report this loss of $5,000 ($10,000 selling price − $15,000 installment sale basis) in the year of sale. How do i file my 2011 taxes late However, if parcel C was held for personal use, the loss is not deductible. How do i file my 2011 taxes late 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). How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Assets sold at a loss. How do i file my 2011 taxes late Real and personal property eligible for the installment method. How do i file my 2011 taxes late Real and personal property ineligible for the installment method, including: Inventory, Dealer property, and Stocks and securities. How do i file my 2011 taxes late Inventory. How do i file my 2011 taxes late   The sale of inventories of personal property cannot be reported on the installment method. How do i file my 2011 taxes late All gain or loss on their sale must be reported in the year of sale, even if you receive payment in later years. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late If you do not, each payment must be allocated between the inventory and the other assets sold. How do i file my 2011 taxes late   Report the amount you receive (or will receive) on the sale of inventory items as ordinary business income. How do i file my 2011 taxes late Use your basis in the inventory to figure the cost of goods sold. How do i file my 2011 taxes late Deduct the part of the selling expenses allocated to inventory as an ordinary business expense. How do i file my 2011 taxes late Residual method. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late This method determines gain or loss from the transfer of each asset and the buyer's basis in the assets. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late 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). How do i file my 2011 taxes late   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. How do i file my 2011 taxes late   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). How do i file my 2011 taxes late The consideration remaining after this reduction must be allocated among the various business assets in a certain order. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late Certificates of deposit, U. How do i file my 2011 taxes late S. How do i file my 2011 taxes late Government securities, foreign currency, and actively traded personal property, including stock and securities. How do i file my 2011 taxes late Accounts receivable, other debt instruments, and assets that you mark to market at least annually for federal income tax purposes. How do i file my 2011 taxes late However, see Regulations section 1. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late All other assets except section 197 intangibles. How do i file my 2011 taxes late Section 197 intangibles except goodwill and going concern value. How do i file my 2011 taxes late Goodwill and going concern value (whether or not they qualify as section 197 intangibles). How do i file my 2011 taxes late   If an asset described in (1) through (6) is includible in more than one category, include it in the lower number category. How do i file my 2011 taxes late For example, if an asset is described in both (4) and (6), include it in (4). How do i file my 2011 taxes late Agreement. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late This agreement is binding on both parties unless the IRS determines the amounts are not appropriate. How do i file my 2011 taxes late Reporting requirement. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late Use Form 8594, Asset Acquisition Statement Under Section 1060, to provide this information. How do i file my 2011 taxes late The buyer and seller should each attach Form 8594 to their federal income tax return for the year in which the sale occurred. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late The sale of a partnership interest is treated as the sale of a single capital asset. How do i file my 2011 taxes late The part of any gain or loss from unrealized receivables or inventory items will be treated as ordinary income. How do i file my 2011 taxes late (The term “unrealized receivables” includes depreciation recapture income, discussed earlier. How do i file my 2011 taxes late ) The gain allocated to the unrealized receivables and the inventory cannot be reported under the installment method. How do i file my 2011 taxes late The gain allocated to the other assets can be reported under the installment method. How do i file my 2011 taxes late For more information on the treatment of unrealized receivables and inventory, see Publication 541. How do i file my 2011 taxes late Example — Sale of a Business On June 4, 2013, you sold the machine shop you had operated since 2005. How do i file my 2011 taxes late You received a $100,000 down payment and the buyer's note for $120,000. How do i file my 2011 taxes late The note payments are $15,000 each, plus 10% interest, due every July 1 and January 1, beginning in 2014. How do i file my 2011 taxes late The total selling price is $220,000. How do i file my 2011 taxes late Your selling expenses are $11,000. How do i file my 2011 taxes late The selling expenses are divided among all the assets sold, including inventory. How do i file my 2011 taxes late Your selling expense for each asset is 5% of the asset's selling price ($11,000 selling expense ÷ $220,000 total selling price). How do i file my 2011 taxes late The FMV, adjusted basis, and depreciation claimed on each asset sold are as follows:     Depre- ciation Adj. How do i file my 2011 taxes late 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). How do i file my 2011 taxes late The remaining $18,500 ($220,000 - $201,500) is allocated to your section 197 intangible, goodwill. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late   Sale  Price Sale   Exp. How do i file my 2011 taxes late Adj. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late A 71,000 3,550 63,800 3,650 Mch. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late There is no depreciation recapture income because the building was depreciated using the straight line method. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Figure depreciation recapture in Part III of Form 4797. How do i file my 2011 taxes late The total depreciation recapture income reported in Part II of Form 4797 is $5,209. How do i file my 2011 taxes late 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). How do i file my 2011 taxes late These gains are reported in full in the year of sale and are not included in the installment sale computation. How do i file my 2011 taxes late Of the $220,000 total selling price, the $10,000 for inventory assets cannot be reported using the installment method. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late The selling price equals the contract price for the installment sale ($108,500). How do i file my 2011 taxes late The assets included in the installment sale, their selling price, and their installment sale bases are shown in the following chart. How do i file my 2011 taxes late   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). How do i file my 2011 taxes late The gross profit percentage for each asset is figured as follows: Percentage Land— $24,900 ÷ $108,500 22. How do i file my 2011 taxes late 95 Building— $9,600 ÷ $108,500 8. How do i file my 2011 taxes late 85 Goodwill— $17,575 ÷ $108,500 16. How do i file my 2011 taxes late 20 Total 48. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late The selling price for the installment sale is $108,500. How do i file my 2011 taxes late This is 49. How do i file my 2011 taxes late 3% of the total selling price of $220,000 ($108,500 ÷ $220,000). How do i file my 2011 taxes late The selling price of assets not reported on the installment method is $111,500. How do i file my 2011 taxes late This is 50. How do i file my 2011 taxes late 7% ($111,500 ÷ $220,000) of the total selling price. How do i file my 2011 taxes late Multiply principal payments by 49. How do i file my 2011 taxes late 3% to determine the part of the payment for the installment sale. How do i file my 2011 taxes late The balance, 50. How do i file my 2011 taxes late 7%, is for the part reported in the year of the sale. How do i file my 2011 taxes late The gain on the sale of the inventory, machines, and truck is reported in full in the year of sale. How do i file my 2011 taxes late When you receive principal payments in later years, no part of the payment for the sale of these assets is included in gross income. How do i file my 2011 taxes late Only the part for the installment sale (49. How do i file my 2011 taxes late 3%) is used in the installment sale computation. How do i file my 2011 taxes late The only payment received in 2013 is the down payment of $100,000. How do i file my 2011 taxes late The part of the payment for the installment sale is $49,300 ($100,000 × 49. How do i file my 2011 taxes late 3%). How do i file my 2011 taxes late This amount is used in the installment sale computation. How do i file my 2011 taxes late Installment income for 2013. How do i file my 2011 taxes late   Your installment income for each asset is the gross profit percentage for that asset times $49,300, the installment income received in 2013. How do i file my 2011 taxes late Income Land—22. How do i file my 2011 taxes late 95% of $49,300 $11,314 Building—8. How do i file my 2011 taxes late 85% of $49,300 4,363 Goodwill—16. How do i file my 2011 taxes late 2% of $49,300 7,987 Total installment income for 2013 $23,664 Installment income after 2013. How do i file my 2011 taxes late   You figure installment income for years after 2013 by applying the same gross profit percentages to 49. How do i file my 2011 taxes late 3% of the total payments you receive on the buyer's note during the year. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Interest provided in the contract is called stated interest. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late If section 483 applies to the contract, this interest is called unstated interest. How do i file my 2011 taxes late If section 1274 applies to the contract, this interest is called original issue discount (OID). How do i file my 2011 taxes late An installment sale contract does not provide for adequate stated interest if the stated interest rate is lower than the test rate (defined later). How do i file my 2011 taxes late Treatment of unstated interest and OID. How do i file my 2011 taxes late   Generally, if a buyer gives a debt in consideration for personal use property, the unstated interest rules do not apply. How do i file my 2011 taxes late As a result, the buyer cannot deduct the unstated interest. How do i file my 2011 taxes late The seller must report the unstated interest as income. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late Rules for the seller. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late If either section applies, you must reduce the stated selling price of the property and increase your interest income by this unstated interest. How do i file my 2011 taxes late   Include the unstated interest in income based on your regular method of accounting. How do i file my 2011 taxes late Include OID in income over the term of the contract. How do i file my 2011 taxes late   The OID includible in income each year is based on the constant yield method described in section 1272. How do i file my 2011 taxes late (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. How do i file my 2011 taxes late )   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. How do i file my 2011 taxes late Reduce the selling price by any stated principal treated as interest to determine the gain. How do i file my 2011 taxes late   Report unstated interest or OID on your tax return, in addition to stated interest. How do i file my 2011 taxes late Rules for the buyer. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late These rules do not apply to personal-use property (for example, property not used in a trade or business). How do i file my 2011 taxes late Adequate stated interest. How do i file my 2011 taxes late   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. How do i file my 2011 taxes late The present value of a payment is determined based on the test rate of interest, defined next. How do i file my 2011 taxes late (If section 483 applies to the contract, payments due within six months after the sale are taken into account at face value. How do i file my 2011 taxes late ) 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. How do i file my 2011 taxes late Test rate of interest. How do i file my 2011 taxes late   The test rate of interest for a contract is the 3-month rate. How do i file my 2011 taxes late The 3-month rate is the lower of the following applicable federal rates (AFRs). How do i file my 2011 taxes late 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. How do i file my 2011 taxes late 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. How do i file my 2011 taxes late Applicable federal rate (AFR). How do i file my 2011 taxes late   The AFR depends on the month the binding