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Hrblock com 11. Hrblock com   Beneficios del Seguro Social y Beneficios Equivalentes de la Jubilación para Empleados Ferroviarios Table of Contents Introduction Useful Items - You may want to see: ¿Está Sujeta a Impuestos Alguna Parte de los Beneficios? Cómo Declarar los Beneficios¿Cuánto Está Sujeto a Impuestos? Ejemplos Deducciones Relacionadas con los BeneficiosReintegros Superiores a los Beneficios Brutos Introduction Este capítulo explica las reglas del impuesto federal sobre el ingreso para los beneficios del Seguro Social y beneficios equivalentes de la jubilación para empleados ferroviarios de nivel 1. Hrblock com Explica los siguientes temas: Cómo determinar si los beneficios están sujetos a impuestos. Hrblock com Cómo usar la hoja de trabajo de beneficios del Seguro Social (con ejemplos). Hrblock com Cómo declarar los beneficios sujetos a impuestos. Hrblock com Cómo tratar reintegros superiores a los beneficios recibidos durante el año. Hrblock com Los beneficios del Seguro Social incluyen los beneficios mensuales de jubilación, para el sobreviviente y de incapacidad. Hrblock com Éstos no incluyen pagos del Supplemental Security Income (Ingreso de seguridad suplementario o SSI, por sus siglas en inglés), los cuales no están sujetos a impuestos. Hrblock com Los beneficios equivalentes de la jubilación de empleados ferroviarios de nivel 1 son la parte de los beneficios de nivel 1 que un empleado ferroviario o beneficiario habría tenido derecho a recibir conforme al sistema del Seguro Social. Hrblock com Éstos se conocen habitualmente como el Social Security equivalent benefit (beneficio equivalente al Seguro Social o SSEB, por sus siglas en inglés) de los beneficios de nivel 1. Hrblock com Si recibió estos beneficios durante el año 2013, debería haber recibido un Formulario SSA-1099, Social Security Benefit Statement (Declaración de beneficios del Seguro Social), en inglés, o un Formulario RRB-1099, Payments by the Railroad Retirement Board (Pagos efectuados por la Junta de Jubilación Ferroviaria), en inglés. Hrblock com Estos formularios muestran las cantidades recibidas y reintegradas y los impuestos retenidos durante el año. Hrblock com Tal vez reciba más de uno de estos formularios para el mismo año. Hrblock com Debe sumar las cantidades que aparezcan en todos los Formularios SSA-1099 y los Formularios RRB-1099 que reciba para el año para determinar las cantidades totales recibidas y reintegradas, y los impuestos retenidos durante ese año. Hrblock com Consulte el Appendix (Apéndice) al final de la Publicación 915, Social Security and Equivalent Railroad Retirement Benefits (Beneficios del Seguro Social y beneficios equivalentes de jubilación para empleados ferroviarios), en inglés, para más información. Hrblock com Nota: El uso del término “beneficios” en este capítulo corresponde tanto a los beneficios del Seguro Social como a la parte del SSEB de los beneficios de jubilación de empleados ferroviarios de nivel 1. Hrblock com Lo que no cubre este capítulo. Hrblock com   Este capítulo no cubre las reglas tributarias para los siguientes beneficios de jubilación de empleados ferroviarios: Parte de los beneficios no equivalentes al Seguro Social (NSSEB, por sus siglas en inglés) de los beneficios de nivel 1. Hrblock com Beneficios de nivel 2. Hrblock com Beneficios dobles adquiridos. Hrblock com Beneficios suplementarios de anualidad. Hrblock com Para obtener información acerca de estos beneficios, consulte la Publicación 575, Pension and Annuity Income (Ingresos de pensiones y anualidades), en inglés. Hrblock com   Este capítulo no cubre las reglas tributarias para los beneficios del Seguro Social declarados en el Formulario SSA-1042S, Social Security Benefit Statement (Declaración de beneficios del Seguro Social), o Formulario RRB-1042S, Statement for Nonresident Alien Recipients of: Payments by the Railroad Retirement Board (Declaración para destinatarios extranjeros no residentes de: Pagos efectuados por la Junta de Jubilación Ferroviaria), en inglés. Hrblock com Para información sobre estos beneficios, vea la Publicación 519, U. Hrblock com S. Hrblock com Tax Guide for Aliens (Guía sobre los impuestos estadounidenses para extranjeros), en inglés, y la Publicación 915, en inglés. Hrblock com   Este capítulo tampoco cubre las reglas tributarias sobre los beneficios extranjeros del Seguro Social. Hrblock com Estos beneficios están sujetos a impuestos como anualidades, a menos que estén exentos de impuestos estadounidenses o sean tratados como beneficios del Seguro Social estadounidense conforme a un tratado tributario. Hrblock com Useful Items - You may want to see: Publicación 505 Tax Withholding and Estimated Tax (Retención del impuesto e impuesto estimado), en inglés 575 Pension and Annuity Income (Ingresos de pensiones y anualidades), en inglés 590 Individual Retirement Arrangements (IRAs) (Arreglos de ahorros para la jubilación (Arreglos IRA)), en inglés 915 Social Security and Equivalent Railroad Retirement Benefits (Beneficios del Seguro Social y beneficios equivalentes de jubilación para empleados ferroviarios), en inglés Formularios (e Instrucciones) 1040-ES Estimated Tax for Individuals (Impuesto estimado para las personas físicas), en inglés SSA-1099 Social Security Benefit Statement (Declaración de beneficios del Seguro Social), en inglés RRB-1099 Payments by the Railroad Retirement Board (Pagos efectuados por la Junta de Jubilación Ferroviaria), en inglés W-4V Voluntary Withholding Request (Solicitud de retención voluntaria), en inglés ¿Está Sujeta a Impuestos Alguna Parte de los Beneficios? Para saber si alguna parte de los beneficios puede estar sujeta a impuestos, compare la cantidad base de su estado civil para efectos de la declaración con el total de: La mitad de los beneficios, más Todos los demás ingresos, incluidos los intereses exentos de impuestos. Hrblock com Al hacer esta comparación, no reste de los demás ingresos ninguna de las siguientes exclusiones: Intereses sobre bonos de ahorros estadounidenses calificados; Beneficios por adopción proporcionados por el empleador; Ingresos devengados en el extranjero o vivienda en el extranjero ni Ingresos devengados por residentes bona fide de la Samoa Estadounidense o Puerto Rico. Hrblock com Beneficios por hijos. Hrblock com   Las reglas en este capítulo corresponden a beneficios recibidos por hijos. Hrblock com Vea A quién se le cobran impuestos , más adelante. Hrblock com Cómo calcular el ingreso total. Hrblock com   Para calcular el total de la mitad de los beneficios más otros ingresos, use la Hoja de Trabajo 11-1 que aparece más adelante en este capítulo. Hrblock com Si el total es mayor que la cantidad base, es posible que parte de los beneficios esté sujeta a impuestos. Hrblock com    Si es casado y presenta una declaración conjunta para el año 2013, usted y su cónyuge tienen que sumar sus ingresos y beneficios para calcular si alguna parte de la suma de éstos está sujeta a impuestos. Hrblock com Aun si su cónyuge no recibió beneficios, tiene que sumar el ingreso de su cónyuge al suyo para calcular si alguna parte de los beneficios está sujeta a impuestos. Hrblock com    Si el único ingreso que recibió durante el año 2013 fue del Seguro Social o la parte del SSEB de los beneficios de jubilación para empleados ferroviarios de nivel 1, los beneficios no están, por lo general, sujetos a impuestos y probablemente no tenga que presentar una declaración. Hrblock com Si tiene ingresos además de beneficios, tal vez tenga que presentar una declaración aun si ninguna parte de los beneficios está sujeta a impuestos. Hrblock com Cantidad base. Hrblock com   La cantidad base es: $25,000 si es soltero, cabeza de familia o viudo que reúne los requisitos; $25,000 si es casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013; $32,000 si es casado que presenta una declaración conjunta o $-0- si es casado que presenta una declaración por separado y vivió con su cónyuge en algún momento durante el año 2013. Hrblock com Hoja de Trabajo 11-1. Hrblock com    Puede usar la Hoja de Trabajo 11-1 para calcular la cantidad de ingresos y compararla con la cantidad base. Hrblock com Ésta es una manera rápida de averiguar si alguna parte de sus beneficios está sujeta a impuestos. Hrblock com Hoja de Trabajo 11-1. Hrblock com Una Manera Rápida de Averiguar si sus Beneficios Podrían Estar Sujetos a Impuestos A. Hrblock com Anote la cantidad del recuadro 5 de todos los Formularios SSA-1099 y RRB-1099. Hrblock com Incluya la cantidad total de los pagos de beneficios en suma global recibidos en el año 2013, para el año 2013 y años anteriores. Hrblock com Si recibió más de un formulario, sume las cantidades del recuadro 5 y anote el total. Hrblock com A. Hrblock com   Nota: Si la cantidad de la línea A es cero o menos, deténgase aquí; ninguna parte de los beneficios está sujeta a impuestos este año. Hrblock com B. Hrblock com Anote la mitad de la cantidad de la línea A B. Hrblock com   C. Hrblock com Anote las pensiones, salarios, intereses, dividendos y otros ingresos sujetos a impuestos C. Hrblock com   D. Hrblock com Anote todos los ingresos de intereses exentos de impuestos (como intereses de bonos municipales) más toda exclusión de los ingresos (enumerados anteriormente) . Hrblock com D. Hrblock com   E. Hrblock com Sume las líneas B, C y D E. Hrblock com   Nota: Compare la cantidad de la línea E con la cantidad base correspondiente a su estado civil para efectos de la declaración. Hrblock com Si la cantidad de la línea E es igual o menor que la cantidad base correspondiente a su estado civil, ninguna parte de sus beneficios está sujeta a impuestos este año. Hrblock com Si la cantidad de la línea E es mayor que la cantidad base, alguna parte de sus beneficios podría estar sujeta a impuestos. Hrblock com Tiene que completar la Hoja de Trabajo 1 de la Publicación 915, en inglés (o la Social Security Benefits Worksheet (Hoja de trabajo para beneficios del Seguro Social) de las instrucciones del formulario para la declaración de impuestos que usted presenta). Hrblock com Si ninguna parte de los beneficios está sujeta a impuestos, pero igual tiene que presentar una declaración, vea más adelante Beneficios no sujetos a impuestos , bajo Cómo Declarar los Beneficios. Hrblock com Ejemplo. Hrblock com Usted y su cónyuge (ambos mayores de 65 años de edad) presentan una declaración conjunta para el año 2013 y ambos recibieron beneficios del Seguro Social durante el año. Hrblock com En enero del año 2014, usted recibió un Formulario SSA-1099 que muestra beneficios netos de $7,500 en el recuadro 5. Hrblock com Su cónyuge recibió un Formulario SSA-1099 que muestra beneficios netos de $3,500 en el recuadro 5. Hrblock com Además, usted recibió una pensión sujeta a impuestos de $22,800 e ingresos de intereses de $500. Hrblock com No tuvo ningún ingreso de intereses exentos de impuestos. Hrblock com Sus beneficios no están sujetos a impuestos para el año 2013 debido a que su ingreso, según lo calculado en la Hoja de Trabajo 11-1 completada, no es mayor que la cantidad base ($32,000) para una persona casada que presenta una declaración conjunta. Hrblock com Aunque ninguna cantidad de sus beneficios está sujeta a impuestos, usted tiene que presentar una declaración para el año 2013 debido a que su ingreso bruto sujeto a impuestos ($23,300) excede de la cantidad mínima requerida para la presentación de la declaración correspondiente a su estado civil para efectos de la declaración. Hrblock com Hoja de Trabajo 11-1 completada. Hrblock com Una Manera Rápida de Averiguar si sus Beneficios Podrían Estar Sujetos a Impuestos A. Hrblock com Anote la cantidad del recuadro 5 de todos los Formularios SSA-1099 y RRB-1099. Hrblock com Incluya la cantidad total de los pagos de beneficios en suma global recibidos en el año 2013, para el año 2013 y años anteriores. Hrblock com Si recibió más de un formulario, sume las cantidades del recuadro 5 y anote el total. Hrblock com A. Hrblock com $ 11,000 Nota: Si la cantidad de la línea A es cero o menos, deténgase aquí; ninguna parte de los beneficios está sujeta a impuestos este año. Hrblock com B. Hrblock com Anote la mitad de la cantidad de la línea A B. Hrblock com 5,500 C. Hrblock com Anote las pensiones, salarios, intereses, dividendos y otros ingresos sujetos a impuestos C. Hrblock com 23,300 D. Hrblock com Anote todos los ingresos de intereses exentos de impuestos (como intereses de bonos municipales) más toda exclusión de los ingresos (enumerados anteriormente). Hrblock com D. Hrblock com -0- E. Hrblock com Sume las líneas B, C y D E. Hrblock com $28,800 Nota: Compare la cantidad de la línea E con la cantidad base correspondiente a su estado civil para efectos de la declaración. Hrblock com Si la cantidad de la línea E es igual o menor que la cantidad base correspondiente a su estado civil, ninguna parte de sus beneficios está sujeta a impuestos este año. Hrblock com Si la cantidad de la línea E es mayor que la cantidad base, alguna parte de sus beneficios podría estar sujeta a impuestos. Hrblock com Tiene que completar la Hoja de Trabajo 1 de la Publicación 915, en inglés (o la Social Security Benefits Worksheet (Hoja de trabajo para beneficios del Seguro Social) de las instrucciones del formulario para la declaración de impuestos que usted presenta). Hrblock com Si ninguna parte de los beneficios está sujeta a impuestos, pero igual tiene que presentar una declaración, vea más adelante Beneficios no sujetos a impuestos , bajo Cómo Declarar los Beneficios. Hrblock com A quién se le cobran impuestos. Hrblock com   Los beneficios se incluyen en los ingresos sujetos a impuestos (según estén sujetos a impuestos) de la persona que tiene derecho legal a recibirlos. Hrblock com Por ejemplo, si usted y su hijo reciben beneficios, pero el cheque de su hijo está a nombre de usted, tiene que usar sólo la parte de los beneficios que le corresponde a usted para ver si alguna parte de los beneficios en su caso está sujeta a impuestos. Hrblock com La mitad de la parte correspondiente a su hijo tiene que sumarse a los demás ingresos de su hijo para saber si alguna parte de esos beneficios está sujeta a impuestos para su hijo. Hrblock com Reintegro de beneficios. Hrblock com   Todo reintegro de beneficios que usted haya hecho durante el año 2013 tiene que restarse de los beneficios brutos que recibió en el año 2013. Hrblock com No importa si el reintegro fue por beneficios recibidos en el año 2013 o en un año anterior. Hrblock com Si el reintegro fue mayor que los beneficios brutos recibidos en el año 2013, consulte Reintegros Superiores a los Beneficios Brutos , más adelante. Hrblock com   Los beneficios brutos aparecen en el recuadro 3 del Formulario SSA-1099 o RRB-1099. Hrblock com Los reintegros aparecen en el recuadro 4. Hrblock com La cantidad del recuadro 5 muestra los beneficios netos del año 2013 (recuadro 3 menos recuadro 4). Hrblock com Use la cantidad del recuadro 5 para calcular si alguna parte de sus beneficios está sujeta a impuestos. Hrblock com Retención de impuestos e impuesto estimado. Hrblock com   Puede optar por que se haga la retención del impuesto federal sobre el ingreso de sus beneficios del Seguro Social y/o de la parte del SSEB de sus beneficios de jubilación para empleados ferroviarios de nivel 1. Hrblock com Si opta por hacerlo, tiene que completar un Formulario W-4V. Hrblock com   Si opta por no hacer la retención del impuesto sobre el ingreso, tal vez tenga que solicitar la retención adicional de otros ingresos o pagar un impuesto estimado durante el año. Hrblock com Para más detalles, consulte la Publicación 505 o las instrucciones para el Formulario 1040-ES, ambas en inglés. Hrblock com Cómo Declarar los Beneficios Si parte de sus beneficios está sujeta a impuestos, tiene que usar el Formulario 1040 o el Formulario 1040A. Hrblock com No puede usar el Formulario 1040EZ. Hrblock com Cómo hacer la declaración en el Formulario 1040. Hrblock com   Declare los beneficios netos (la cantidad total del recuadro 5 de todos los Formularios SSA-1099 y de los Formularios RRB-1099) en la línea 20a y la parte sujeta a impuestos en la línea 20b. Hrblock com Si es casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013, anote también “D” a la derecha de la palabra “ benefits ” (beneficios) en la línea 20a. Hrblock com Cómo hacer la declaración en el Formulario 1040A. Hrblock com   Declare los beneficios netos (la cantidad total del recuadro 5 de todos los Formularios SSA-1099 y de los Formularios RRB-1099) en la línea 14a y la parte sujeta a impuestos en la línea 14b. Hrblock com Si es casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013, anote también “D” a la derecha de la palabra “ benefits ” (beneficios) en la línea 14a. Hrblock com Beneficios no sujetos a impuestos. Hrblock com   Si presenta el Formulario 1040EZ, no declare beneficios en su declaración de impuestos. Hrblock com Si presenta el Formulario 1040 o Formulario 1040A, declare sus beneficios netos (la cantidad total del recuadro 5 de todos sus Formularios SSA-1099 y Formularios RRB-1099) en la línea 20a del Formulario 1040 o en la línea 14a del Formulario 1040A. Hrblock com Anote “-0-” en la línea 20b del Formulario 1040 o en la línea 14b del Formulario 1040A. Hrblock com Si es casado que presenta la declaración por separado y vivió separado de su cónyuge durante todo el año 2013, anote también “D” a la derecha de la palabra “ benefits ” (beneficios) en la línea 20a del Formulario 1040 o en la línea 14a del Formulario 1040A. Hrblock com ¿Cuánto Está Sujeto a Impuestos? Si parte de sus beneficios está sujeta a impuestos, dicha cantidad depende de la cantidad total de los beneficios y otros ingresos. Hrblock com Normalmente, cuanto más alta sea esa cantidad total, mayor es la parte sujeta a impuestos de los beneficios. Hrblock com Máxima parte sujeta a impuestos. Hrblock com   Por lo general, hasta el 50% de los beneficios están sujetos a impuestos. Hrblock com Sin embargo, hasta el 85% de los beneficios pueden estar sujetos a impuestos si en su caso se da alguna de las siguientes situaciones: El total de la mitad de los beneficios más todos los demás ingresos es mayor de $34,000 ($44,000 si es casado que presenta una declaración conjunta). Hrblock com Es casado que presenta una declaración por separado y vivió con su cónyuge en algún momento durante el año 2013. Hrblock com Qué hoja de trabajo debe usar. Hrblock com   En las instrucciones del Formulario 1040 o del Formulario 1040A hay una hoja de trabajo para calcular los beneficios sujetos a impuestos. Hrblock com Puede usar esa hoja de trabajo o la Hoja de Trabajo 1 de la Publicación 915, en inglés, a menos que alguna de las siguientes situaciones corresponda a su caso: Hizo aportaciones a un arreglo de ahorros para la jubilación (IRA, por sus siglas en inglés) tradicional y usted o su cónyuge está cubierto por un plan de jubilación del trabajo. Hrblock com En esta situación, usted tiene que usar las hojas de trabajo especiales del Appendix (Apéndice) B de la Publicación 590, en inglés, para calcular la deducción por un arreglo IRA y los beneficios sujetos a impuestos. Hrblock com La situación (1) no le corresponde y usted declara una exclusión por intereses sobre los bonos de ahorros estadounidenses calificados (Formulario 8815), beneficios por adopción (Formulario 8839), ingresos devengados en el extranjero o vivienda en el extranjero (Formulario 2555 o Formulario 2555-EZ), o ingresos devengados en la Samoa Estadounidense (Formulario 4563) o Puerto Rico declarados por residentes bona fide. Hrblock com En esta situación, se tiene que usar la Hoja de Trabajo 1 de la Publicación 915, en inglés, para calcular los beneficios sujetos a impuestos. Hrblock com Recibió un pago de suma global por un año anterior. Hrblock com En esta situación, complete además la Hoja de Trabajo 2 ó 3 y la Hoja de Trabajo 4 de la Publicación 915, en inglés. Hrblock com Consulte Elección de suma global , tema que aparece a continuación. Hrblock com Elección de suma global. Hrblock com   Tiene que incluir la parte sujeta a impuestos de un pago de suma global (retroactivo) de beneficios recibidos en el año 2013 en los ingresos del año 2013, aun si el pago incluye beneficios de un año anterior. Hrblock com    Este pago global de beneficios no debe confundirse con el pago global de beneficios por fallecimiento que la SSA y la RRB pagan a muchos de sus beneficiarios. Hrblock com Ninguna parte del pago global de beneficios por fallecimiento está sujeta a impuestos. Hrblock com   Generalmente, se usa el ingreso del año 2013 para calcular la parte sujeta a impuestos del total de beneficios recibidos en el año 2013. Hrblock com Sin embargo, tal vez pueda calcular la parte sujeta a impuestos de un pago de suma global de un año anterior por separado, mediante el uso del ingreso del año anterior. Hrblock com Puede optar por este método si eso reduce los beneficios sujetos a impuestos. Hrblock com Cómo elegir su opción. Hrblock com   Si recibió un pago global de beneficios en el año 2013 que incluya beneficios de uno o más años anteriores, siga las instrucciones de la Publicación 915 bajo Lump-Sum Election (Elección de suma global) para saber si dicha elección reducirá sus beneficios sujetos a impuestos. Hrblock com Ese análisis también explica cómo elegir la opción que le sea de mayor beneficio. Hrblock com    Debido a que los beneficios sujetos a impuestos de ese año anterior se incluyen en el ingreso del año 2013, no es necesario realizar ningún ajuste en la declaración del año anterior. Hrblock com No presente una declaración enmendada del año anterior. Hrblock com Ejemplos Los siguientes son algunos ejemplos que puede usar como guía para calcular la parte sujeta a impuestos de sus beneficios. Hrblock com Ejemplo 1. Hrblock com Jorge Blanco es soltero y presenta el Formulario 1040 para el año 2013. Hrblock com Jorge recibió los siguientes ingresos en el año 2013: Pensión íntegramente sujeta a impuestos $18,600 Salario de trabajo a tiempo parcial 9,400 Ingreso de intereses sujeto a impuestos 990 Total $28,990 Además, Jorge recibió beneficios del Seguro Social durante el año 2013. Hrblock com El Formulario SSA-1099 que recibió en enero del año 2014 muestra $5,980 en el recuadro 5. Hrblock com Para calcular sus beneficios sujetos a impuestos, Jorge completa la hoja de trabajo que aparece aquí. Hrblock com Hoja de Trabajo 1 completada. Hrblock com Cómo Calcular los Beneficios Sujetos a Impuestos 1. Hrblock com Anote la cantidad total del recuadro 5 de TODOS los Formularios SSA-1099 y RRB-1099. Hrblock com Además, anote esta cantidad en la línea 20a del Formulario 1040 o en la línea 14a del Formulario 1040A. Hrblock com $5,980 2. Hrblock com Anote la mitad de la línea 1. Hrblock com 2,990 3. Hrblock com Sume el total de las cantidades del:     Formulario 1040: Líneas 7, 8a, 9a, 10 a 14, 15b, 16b, 17 a 19 y 21. Hrblock com     Formulario 1040A: Líneas 7, 8a, 9a, 10, 11b, 12b y 13 28,990 4. Hrblock com Anote la cantidad, si la hubiera, de la línea 8b del Formulario 1040 o del Formulario 1040A. Hrblock com -0- 5. Hrblock com Anote el total de toda exclusión/ajuste por:     • Beneficios por adopción (línea 28 del Formulario 8839),     • Ingresos devengados en el extranjero o vivienda en el extranjero (líneas 45 y 50 del Formulario 2555 o línea 18 del Formulario 2555-EZ) y     • Ciertos ingresos de residentes bona fide de la Samoa Estadounidense (línea 15 del Formulario 4563) o de Puerto Rico . Hrblock com . Hrblock com -0- 6. Hrblock com Sume las líneas 2, 3, 4 y 5 31,980 7. Hrblock com Declarantes que presentan el Formulario 1040: Anote la cantidad de las líneas 23 a 32 del Formulario 1040 y toda cantidad que se haya anotado en la línea de puntos directamente al lado de la línea 36 del Formulario 1040. Hrblock com     Declarantes que presentan el Formulario 1040A: Anote la cantidad de las líneas 16 y 17 del Formulario 1040A. Hrblock com -0- 8. Hrblock com ¿Es la cantidad de la línea 7 menor que la cantidad de la línea 6?     No. Hrblock com Ninguna parte de los beneficios del Seguro Social está sujeta a impuestos. Hrblock com Anote -0- en la línea 20b del Formulario 1040 o en la línea 14b del Formulario 1040A. Hrblock com   Sí. Hrblock com Reste la línea 7 de la línea 6 31,980 9. Hrblock com Si es: Casado que presenta una declaración conjunta, anote $32,000. Hrblock com Soltero, cabeza de familia, viudo que reúne los requisitos o casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013, anote $25,000. Hrblock com 25,000   Nota: Si es casado que presenta una declaración por separado y vivió con su cónyuge en algún momento del año 2013, omita las líneas 9 a 16; multiplique la línea 8 por 85% (0. Hrblock com 85) y anote el resultado en la línea 17. Hrblock com Luego, pase a la línea 18. Hrblock com   10. Hrblock com ¿Es la cantidad de la línea 9 menor que la cantidad de la línea 8?     No. Hrblock com Ninguna parte de los beneficios está sujeta a impuestos. Hrblock com Anote “-0-” en la línea 20b del Formulario 1040 o en la línea 14b del Formulario 1040A. Hrblock com Si es casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013, asegúrese de haber anotado “D” a la derecha de la palabra “ benefits ” (beneficios) en la línea 20a del Formulario 1040 o la línea 14a del Formulario 1040A. Hrblock com     Sí. Hrblock com Reste la línea 9 de la línea 8 6,980 11. Hrblock com Anote $12,000 si es casado que presenta una declaración conjunta; $9,000 si es soltero, cabeza de familia, viudo que reúne los requisitos o casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013. Hrblock com 9,000 12. Hrblock com Reste la línea 11 de la línea 10. Hrblock com Si el resultado es cero o menos, anote “-0-”. Hrblock com -0- 13. Hrblock com De las líneas 10 y 11, anote la que sea menor 6,980 14. Hrblock com Anote la mitad de la línea 13. Hrblock com 3,490 15. Hrblock com De las líneas 2 y 14, anote la que sea menor 2,990 16. Hrblock com Multiplique la línea 12 por 85% (0. Hrblock com 85). Hrblock com Si la línea 12 es cero, anote “-0-”. Hrblock com -0- 17. Hrblock com Sume las líneas 15 y 16. Hrblock com 2,990 18. Hrblock com Multiplique la línea 1 por 85% (0. Hrblock com 85). Hrblock com 5,083 19. Hrblock com Beneficios sujetos a impuestos. Hrblock com De las líneas 17 y 18, anote la que sea menor. Hrblock com Además, anote esta cantidad en la línea 20b del Formulario 1040 o la línea 14b del Formulario 1040A. Hrblock com $2,990       La cantidad de la línea 19 de la hoja de trabajo de Jorge muestra que $2,990 de sus beneficios del Seguro Social están sujetos a impuestos. Hrblock com En la línea 20a de su Formulario 1040, Jorge anota sus beneficios netos de $5,980. Hrblock com En la línea 20b, anota beneficios sujetos a impuestos de $2,990. Hrblock com   Ejemplo 2. Hrblock com Raimundo y Alicia García presentan una declaración conjunta en el Formulario 1040A para el año 2013. Hrblock com Raimundo está jubilado y recibió una pensión íntegramente sujeta a impuestos de $15,500. Hrblock com Además, recibió beneficios del Seguro Social y su Formulario SSA-1099 para el año 2013 muestra beneficios netos de $5,600 en el recuadro 5. Hrblock com Alicia trabajó durante el año y tuvo un salario de $14,000. Hrblock com Ella efectuó un pago deducible a su arreglo IRA de $1,000. Hrblock com Raimundo y Alicia tienen dos cuentas de ahorros con un total de $250 de ingresos de intereses sujetos a impuestos. Hrblock com Ellos completan la Hoja de Trabajo 1, anotando $29,750 ($15,500 + $14,000 + $250) en la línea 3. Hrblock com Ellos descubren que ninguna parte de los beneficios del Seguro Social de Raimundo está sujeta a impuestos. Hrblock com En el Formulario 1040A, anotan $5,600 en la línea 14a y “-0-” en la línea 14b. Hrblock com Hoja de Trabajo 1 completada. Hrblock com Cómo Calcular los Beneficios Sujetos a Impuestos 1. Hrblock com Anote la cantidad total del recuadro 5 de TODOS los Formularios SSA-1099 y RRB-1099. Hrblock com Además, anote esta cantidad en la línea 20a del Formulario 1040 o en la línea 14a del Formulario 1040A. Hrblock com $5,600 2. Hrblock com Anote la mitad de la línea 1. Hrblock com 2,800 3. Hrblock com Sume el total de las cantidades del:     Formulario 1040: Líneas 7, 8a, 9a, 10 a 14, 15b, 16b,17 a 19 y 21. Hrblock com     Formulario 1040A: Líneas 7, 8a, 9a, 10, 11b, 12b y 13 29,750 4. Hrblock com Anote la cantidad, si la hubiera, de la línea 8b del Formulario 1040 o del Formulario 1040A. Hrblock com -0- 5. Hrblock com Anote el total de toda exclusión/ajuste por:     • Beneficios por adopción (línea 28 del Formulario 8839),     • Ingresos devengados en el extranjero o vivienda en el extranjero (líneas 45 y 50 del Formulario 2555 o línea 18 del Formulario 2555-EZ) y     • Ciertos ingresos de residentes bona fide de la Samoa Estadounidense (línea 15 del Formulario 4563) o de Puerto Rico -0- 6. Hrblock com Sume las líneas 2, 3, 4 y 5 32,550 7. Hrblock com Declarantes que presentan el Formulario 1040: Anote la cantidad de las líneas 23 a 32 del Formulario 1040 y toda cantidad que se haya anotado en la línea de puntos directamente al lado de la línea 36 del Formulario 1040. Hrblock com     Declarantes que presentan el Formulario 1040A: Anote la cantidad de las líneas 16 y 17 del Formulario 1040A. Hrblock com 1,000 8. Hrblock com ¿Es la cantidad de la línea 7 menor que la cantidad de la línea 6?     No. Hrblock com Ninguna parte de los beneficios del Seguro Social está sujeta a impuestos. Hrblock com Anote -0- en la línea 20b del Formulario 1040 o en la línea 14b del Formulario 1040A. Hrblock com   Sí. Hrblock com Reste la línea 7 de la línea 6 31,550 9. Hrblock com Si es: Casado que presenta una declaración conjunta, anote $32,000. Hrblock com Soltero, cabeza de familia, viudo que reúne los requisitos o casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013, anote $25,000. Hrblock com 32,000   Nota: Si es casado que presenta una declaración por separado y vivió con su cónyuge en algún momento del año 2013, omita las líneas 9 a 16; multiplique la línea 8 por 85% (0. Hrblock com 85) y anote el resultado en la línea 17. Hrblock com Luego, pase a la línea 18. Hrblock com   10. Hrblock com ¿Es la cantidad de la línea 9 menor que la cantidad de la línea 8?     No. Hrblock com Ninguna parte de los beneficios está sujeta a impuestos. Hrblock com Anote “-0-” en la línea 20b del Formulario 1040 o en la línea 14b del Formulario 1040A. Hrblock com Si es casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013, asegúrese de haber anotado “D” a la derecha de la palabra “ benefits ” (beneficios) en la línea 20a del Formulario 1040 o la línea 14a del Formulario 1040A. Hrblock com     Sí. Hrblock com Reste la línea 9 de la línea 8   11. Hrblock com Anote $12,000 si es casado que presenta una declaración conjunta; $9,000 si es soltero, cabeza de familia, viudo que reúne los requisitos o casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013. Hrblock com   12. Hrblock com Reste la línea 11 de la línea 10. Hrblock com Si el resultado es cero o menos, anote “-0-”. Hrblock com   13. Hrblock com De las líneas 10 y 11, anote la que sea menor   14. Hrblock com Anote la mitad de la línea 13. Hrblock com   15. Hrblock com De las líneas 2 y 14, anote la que sea menor   16. Hrblock com Multiplique la línea 12 por 85% (0. Hrblock com 85). Hrblock com Si la línea 12 es cero, anote “-0-”. Hrblock com   17. Hrblock com Sume las líneas 15 y 16. Hrblock com   18. Hrblock com Multiplique la línea 1 por 85% (0. Hrblock com 85). Hrblock com   19. Hrblock com Beneficios sujetos a impuestos. Hrblock com De las líneas 17 y 18, anote la que sea menor. Hrblock com Además, anote esta cantidad en la línea 20b del Formulario 1040 o la línea 14b del Formulario 1040A. Hrblock com   Ejemplo 3. Hrblock com José y Beatriz Pérez presentan una declaración conjunta en el Formulario 1040 del año 2013. Hrblock com José es empleado ferroviario jubilado y en el año 2013 recibió la parte de beneficios equivalentes del Seguro Social (SSEB, por sus siglas en inglés) de los beneficios de jubilación para empleados ferroviarios de nivel 1. Hrblock com El Formulario RRB-1099 de José muestra $10,000 en el recuadro 5. Hrblock com Beatriz es funcionaria del gobierno jubilada y recibe una pensión íntegramente sujeta a impuestos de $38,000. Hrblock com Ellos tuvieron $2,300 de ingresos de intereses sujetos a impuestos más $200 de intereses sobre bonos de ahorros estadounidenses calificados. Hrblock com Los intereses sobre bonos de ahorros cumplieron las condiciones de la exclusión. Hrblock com Calculan sus beneficios sujetos a impuestos completando la Hoja de Trabajo 1. Hrblock com Ya que han recibido intereses sobre bonos de ahorros estadounidenses calificados, siguen las instrucciones en la primera parte de la hoja de trabajo y, en la línea 3 de la misma, anotan la cantidad de la línea 2 del Anexo B (Formulario 1040A o del Formulario 1040) en vez de anotar la cantidad de la línea 8a del Formulario 1040. Hrblock com En la línea 3 de la hoja de trabajo, anotan $40,500 ($38,000 + $2,500). Hrblock com Hoja de Trabajo 1 completada. Hrblock com Cómo Calcular los Beneficios Sujetos a Impuestos Tenga en cuenta los siguientes puntos antes de completar esta hoja de trabajo: • Si es casado que presenta una declaración por separado y no vivió con su cónyuge durante todo el año 2013, anote “D” a la derecha de la palabra “benefits” (beneficios) en la línea 20a del Formulario 1040 o en la línea 14a del Formulario 1040A. Hrblock com • No utilice esta hoja de trabajo si reintegró beneficios en el año 2013 y el total de estos reintegros (el recuadro 4 de los Formularios SSA-1099 y RRB-1099) era mayor que los beneficios brutos que recibió para el año 2013 (el recuadro 3 de los Formularios SSA-1099 y RRB-1099). Hrblock com Ninguna parte de los beneficios está sujeta a impuestos para el año 2013. Hrblock com Para información adicional, vea Reintegros Superiores a los Beneficios Brutos . Hrblock com • Si presenta el Formulario 8815, Exclusion of Interest From Series EE and I U. Hrblock com S. Hrblock com Savings Bonds Issued After 1989 (Exclusión de los intereses provenientes de los bonos de ahorros estadounidenses calificados de las series EE e I emitidos después de 1989), no anote en la línea 3 de esta hoja de trabajo la cantidad de la línea 8a del Formulario 1040 o de la línea 3 del Formulario 1040A. Hrblock com En lugar de ello, anote la cantidad de la línea 2 del Anexo B del Formulario 1040A o Formulario 1040. Hrblock com       1. Hrblock com Anote la cantidad total del recuadro 5 de TODOS los Formularios SSA-1099 y RRB-1099. Hrblock com Además, anote esta cantidad en la línea 20a del Formulario 1040 o en la línea 14a del Formulario 1040A. Hrblock com $10,000 2. Hrblock com Anote la mitad de la línea 1. Hrblock com 5,000 3. Hrblock com Sume el total de las cantidades del:     Formulario 1040: Líneas 7, 8a, 9a, 10 a 14, 15b, 16b, 17 a 19 y 21. Hrblock com     Formulario 1040A: Líneas 7, 8a, 9a, 10, 11b, 12b y 13 40,500 4. Hrblock com Anote la cantidad, si la hubiera, de la línea 8b del Formulario 1040 o del Formulario 1040A. Hrblock com -0- 5. Hrblock com Anote el total de toda exclusión/ajuste por:     • Beneficios por adopción (línea 28 del Formulario 8839),     • Ingresos devengados en el extranjero o vivienda en el extranjero (líneas 45 y 50 del Formulario 2555 o línea 18 del Formulario 2555-EZ) y     • Ciertos ingresos de residentes bona fide de la Samoa Estadounidense (línea 15 del Formulario 4563) o de Puerto Rico . Hrblock com . Hrblock com -0- 6. Hrblock com Sume las líneas 2, 3, 4 y 5 45,500 7. Hrblock com Declarantes que presentan el Formulario 1040: Anote la cantidad de las líneas 23 a 32 del Formulario 1040, y toda cantidad que se haya anotado en la línea de puntos directamente al lado de la línea 36 del Formulario 1040. Hrblock com     Declarantes que presentan el Formulario 1040A: Anote la cantidad de las líneas 16 y 17 del Formulario 1040A. Hrblock com -0- 8. Hrblock com ¿Es la cantidad de la línea 7 menor que la cantidad de la línea 6?     No. Hrblock com Ninguna parte de los beneficios del Seguro Social está sujeta a impuestos. Hrblock com Anote “-0-” en la línea 20b del Formulario 1040 o en la línea 14b del Formulario 1040A. Hrblock com   Sí. Hrblock com Reste la línea 7 de la línea 6 45,500 9. Hrblock com Si es: Casado que presenta una declaración conjunta, anote $32,000. Hrblock com Soltero, cabeza de familia, viudo que reúne los requisitos o casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013, anote $25,000. Hrblock com 32,000   Nota: Si es casado que presenta una declaración por separado y vivió con su cónyuge en algún momento del año 2013, omita las líneas 9 a 16; multiplique la línea 8 por 85% (0. Hrblock com 85) y anote el resultado en la línea 17. Hrblock com Luego, pase a la línea 18. Hrblock com   10. Hrblock com ¿Es la cantidad de la línea 9 menor que la cantidad de la línea 8?     No. Hrblock com Ninguna parte de los beneficios está sujeta a impuestos. Hrblock com Anote “-0-” en la línea 20b del Formulario 1040 o en la línea 14b del Formulario 1040A. Hrblock com Si es casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013, asegúrese de haber anotado “D” a la derecha de la palabra “ benefits ” (beneficios) en la línea 20a del Formulario 1040 o la línea 14a del Formulario 1040A. Hrblock com     Sí. Hrblock com Reste la línea 9 de la línea 8 13,500 11. Hrblock com Anote $12,000 si es casado que presenta una declaración conjunta; $9,000 si es soltero, cabeza de familia, viudo que reúne los requisitos o casado que presenta una declaración por separado y vivió separado de su cónyuge durante todo el año 2013. Hrblock com 12,000 12. Hrblock com Reste la línea 11 de la línea 10. Hrblock com Si el resultado es cero o menos, anote “-0-”. Hrblock com 1,500 13. Hrblock com De las líneas 10 y 11, anote la que sea menor 12,000 14. Hrblock com Anote la mitad de la línea 13. Hrblock com 6,000 15. Hrblock com De las líneas 2 y 14, anote la que sea menor 5,000 16. Hrblock com Multiplique la línea 12 por 85% (0. Hrblock com 85). Hrblock com Si la línea 12 es cero, anote “-0-”. Hrblock com 1,275 17. Hrblock com Sume las líneas 15 y 16. Hrblock com 6,275 18. Hrblock com Multiplique la línea 1 por 85% (0. Hrblock com 85). Hrblock com 8,500 19. Hrblock com Beneficios sujetos a impuestos. Hrblock com De las líneas 17 y 18, anote la que sea menor. Hrblock com Además, anote esta cantidad en la línea 20b del Formulario 1040 o la línea 14b del Formulario 1040A. Hrblock com $6,275 Más del 50% de los beneficios netos de José están sujetos a impuestos debido a que el ingreso de la línea 8 de la hoja de trabajo ($45,500) es mayor que $44,000. Hrblock com José y Beatriz anotan $10,000 en la línea 20a del Formulario 1040 y $6,275 en la línea 20b del Formulario 1040. Hrblock com Deducciones Relacionadas con los Beneficios Tal vez tenga derecho a deducir ciertas cantidades relacionadas con los beneficios que reciba. Hrblock com Pagos por incapacidad. Hrblock com   Tal vez haya recibido pagos por incapacidad de su empleador o de una compañía de seguros que usted incluyó como ingresos en la declaración de impuestos de algún año anterior. Hrblock com Si recibió un pago de suma global de la SSA o de la RRB, y tuvo que reintegrar al empleador o compañía de seguros los pagos por incapacidad, puede declarar una deducción detallada por la parte de los pagos que incluyó en los ingresos brutos de ese año anterior. Hrblock com Si la cantidad que reintegra es más de $3,000, tal vez pueda reclamar un crédito tributario en su lugar. Hrblock com Declare la deducción o crédito de la misma manera que se explica bajo Reintegros Superiores a los Beneficios Brutos , más adelante. Hrblock com Gastos por asuntos legales. Hrblock com   Normalmente se pueden deducir gastos por asuntos legales pagados, o en los que haya incurrido, para producir o cobrar ingresos sujetos a impuestos o relacionados con la determinación, el cobro o el reembolso de algún impuesto. Hrblock com   Los gastos por asuntos legales por el cobro de la parte sujeta a impuestos de sus beneficios son deducibles como una deducción miscelánea detallada en la línea 23 del Anexo A (Formulario 1040). Hrblock com Reintegros Superiores a los Beneficios Brutos En algunas situaciones, el Formulario SSA-1099 o el Formulario RRB-1099 mostrará que el total de los beneficios reintegrados (recuadro 4) es superior a los beneficios brutos (recuadro 3) recibidos. Hrblock com Si esto ocurre, los beneficios netos del recuadro 5 serán una cifra negativa (una cifra entre paréntesis) y ninguna parte de los beneficios estará sujeta a impuestos. Hrblock com No use una hoja de trabajo en este caso. Hrblock com Si recibe más de un formulario, una cifra negativa en el recuadro 5 de un formulario compensa una cifra positiva en el recuadro 5 de otro formulario para ese mismo año. Hrblock com Si tiene alguna duda acerca de esta cifra negativa, comuníquese con la oficina local de la SSA o la oficina regional de la RRB. Hrblock com Declaración conjunta. Hrblock com   Si usted y su cónyuge presentan una declaración conjunta y su Formulario SSA-1099 o RRB-1099 tiene una cifra negativa en el recuadro 5, pero la de su cónyuge no, reste la cantidad del recuadro 5 de su formulario de la cantidad del recuadro 5 del formulario de su cónyuge. Hrblock com Esto se hace para obtener los beneficios netos al calcular si está sujeta a impuestos la suma de sus beneficios y los de su cónyuge. Hrblock com Ejemplo. Hrblock com Juan y María presentan una declaración conjunta para el año 2013. Hrblock com Juan recibió el Formulario SSA-1099 que muestra $3,000 en el recuadro 5. Hrblock com María también recibió el Formulario SSA-1099 y la cantidad en el recuadro 5 fue ($500). Hrblock com Juan y María anotarán $2,500 ($3,000 menos $500) en concepto de beneficios netos al calcular si alguna parte de la suma de sus beneficios está sujeta a impuestos. Hrblock com Reintegro de beneficios recibidos en un año anterior. Hrblock com   Si la cantidad total que aparece en el recuadro 5 de todos los Formularios SSA-1099 y RRB-1099 es una cifra negativa, puede declarar una deducción detallada por la parte de esta cifra negativa que representa los beneficios que usted incluyó en el ingreso bruto de un año anterior. Hrblock com Deducción de $3,000 o menos. Hrblock com   Si esta deducción es $3,000 o menos, está sujeta al límite del 2% del ingreso bruto ajustado que corresponde a ciertas deducciones misceláneas detalladas. Hrblock com Reclámela en la línea 23 del Anexo A (Formulario 1040). Hrblock com Deducción de más de $3,000. Hrblock com    Si esta deducción es superior a $3,000, usted debe calcular el impuesto de dos maneras: Calcule el impuesto para el año 2013 con la deducción detallada incluida en la línea 28 del Anexo A. Hrblock com Calcule el impuesto para el año 2013 en los pasos siguientes: Calcule el impuesto sin la deducción detallada incluida en la línea 28 del Anexo A. Hrblock com Para cada año después de 1983 para el cual una parte de la cifra negativa representa un reintegro de beneficios, vuelva a calcular los beneficios sujetos a impuestos como si el total de éstos para el año hubiera sido reducido por aquella parte de la cifra negativa. Hrblock com Luego, vuelva a calcular el impuesto para ese año. Hrblock com Reste el total de las cantidades de impuestos recalculadas en el apartado (b) del total de las cantidades de impuestos reales. Hrblock com Reste el resultado del apartado (c) del resultado del apartado (a). Hrblock com Compare el impuesto calculado con los métodos (1) y (2). Hrblock com Su impuesto para el año 2013 es la menor de las dos cantidades. Hrblock com Si el método (1) genera menos impuestos, declare la deducción detallada en la línea 28 del Anexo A (Formulario 1040). Hrblock com Si el método (2) genera menos impuestos, tome un crédito por la cantidad del paso 2(c), indicado anteriormente, en la línea 71 del Formulario 1040. Hrblock com Marque el recuadro d y escriba “ I. Hrblock com R. Hrblock com C. Hrblock com 1341 ” en el espacio al lado de ese recuadro. Hrblock com Si ambos métodos generan el mismo impuesto, deduzca el reintegro de la línea 28 del Anexo A (Formulario 1040). 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The Hrblock Com

Hrblock com Publication 523 - Main Content Table of Contents Main HomeVacant land. Hrblock com Factors used to determine main home. Hrblock com Figuring Gain or LossSelling Price Amount Realized Adjusted Basis Amount of Gain or Loss Dispositions Other Than Sales Determining BasisCost As Basis Basis Other Than Cost Adjusted Basis Excluding the GainMaximum Exclusion Ownership and Use Tests Reduced Maximum Exclusion Nonqualified Use Business Use or Rental of HomeUnrecaptured section 1250 gain. Hrblock com Property Used Partly for Business or Rental Reporting the SaleSeller-financed mortgage. Hrblock com Individual taxpayer identification number (ITIN). Hrblock com More information. Hrblock com Comprehensive Examples Special SituationsException for sales to related persons. Hrblock com Deducting Taxes in the Year of SaleForm 1099-S. Hrblock com More information. Hrblock com Recapturing (Paying Back) a Federal Mortgage Subsidy Recapture of First-Time Homebuyer CreditExample. Hrblock com Worksheets How To Get Tax HelpLow Income Taxpayer Clinics Main Home This section explains the term “main home. Hrblock com ” Usually, the home you live in most of the time is your main home and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. Hrblock com To exclude gain under the rules in this publication, you in most cases must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale. Hrblock com Land. Hrblock com   If you sell the land on which your main home is located, but not the house itself, you cannot exclude any gain you have from the sale of the land. Hrblock com Example. Hrblock com You buy a piece of land and move your main home to it. Hrblock com Then, you sell the land on which your main home was located. Hrblock com This sale is not considered a sale of your main home, and you cannot exclude any gain on the sale of the land. Hrblock com Vacant land. Hrblock com   The sale of vacant land is not a sale of your main home unless: The vacant land is adjacent to land containing your home, You owned and used the vacant land as part of your main home, The separate sale of your home satisfies the requirements for exclusion and occurs within 2 years before or 2 years after the date of the sale of the vacant land, and The other requirements for excluding gain from the sale of a main home have been satisfied with respect to the vacant land. Hrblock com If these requirements are met, the sale of the home and the sale of the vacant land are treated as one sale and only one maximum exclusion can be applied to any gain. Hrblock com See Excluding the Gain , later. Hrblock com The destruction of your home is treated as a sale of your home. Hrblock com As a result, you may be able to meet these requirements if you sell vacant land used as a part of your main home within 2 years from the date of the destruction of your main home. Hrblock com For information, see Publication 547. Hrblock com More than one home. Hrblock com   If you have more than one home, you can exclude gain only from the sale of your main home. Hrblock com You must include in income the gain from the sale of any other home. Hrblock com If you have two homes and live in each of them, your main home is ordinarily the one you live in most of the time during the year. Hrblock com Example 1. Hrblock com You own two homes, one in New York and one in Florida. Hrblock com From 2009 through 2013, you live in the New York home for 7 months and in the Florida residence for 5 months of each year. Hrblock com In the absence of facts and circumstances indicating otherwise, the New York home is your main home. Hrblock com You would be eligible to exclude the gain from the sale of the New York home but not of the Florida home in 2013. Hrblock com Example 2. Hrblock com You own a house, but you live in another house that you rent. Hrblock com The rented house is your main home. Hrblock com Example 3. Hrblock com You own two homes, one in Virginia and one in New Hampshire. Hrblock com In 2009 and 2010, you lived in the Virginia home. Hrblock com In 2011 and 2012, you lived in the New Hampshire home. Hrblock com In 2013, you lived again in the Virginia home. Hrblock com Your main home in 2009, 2010, and 2013 is the Virginia home. Hrblock com Your main home in 2011 and 2012 is the New Hampshire home. Hrblock com You would be eligible to exclude gain from the sale of either home (but not both) in 2013. Hrblock com Factors used to determine main home. Hrblock com   In addition to the amount of time you live in each home, other factors are relevant in determining which home is your main home. Hrblock com Those factors include the following. Hrblock com Your place of employment. Hrblock com The location of your family members' main home. Hrblock com Your mailing address for bills and correspondence. Hrblock com The address listed on your: Federal and state tax returns, Driver's license, Car registration, and Voter registration card. Hrblock com The location of the banks you use. Hrblock com The location of recreational clubs and religious organizations of which you are a member. Hrblock com Property used partly as your main home. Hrblock com   If you use only part of the property as your main home, the rules discussed in this publication apply only to the gain or loss on the sale of that part of the property. Hrblock com For details, see Business Use or Rental of Home , later. Hrblock com Figuring Gain or Loss To figure the gain or loss on the sale of your main home, you must know the selling price, the amount realized, and the adjusted basis. Hrblock com Subtract the adjusted basis from the amount realized to get your gain or loss. Hrblock com     Selling price     − Selling expenses       Amount realized     − Adjusted basis       Gain or loss   Gain. Hrblock com   Gain is the excess of the amount realized over the adjusted basis of the property. Hrblock com Loss. Hrblock com   Loss is the excess of the adjusted basis over the amount realized for the property. Hrblock com Selling Price The selling price is the total amount you receive for your home. Hrblock com It includes money and the fair market value of any other property or any other services you receive and all notes, mortgages or other debts assumed by the buyer as part of the sale. Hrblock com Personal property. Hrblock com   The selling price of your home does not include amounts you received for personal property sold with your home. Hrblock com Personal property is property that is not a permanent part of the home. Hrblock com Examples are furniture, draperies, rugs, a washer and dryer, and lawn equipment. Hrblock com Separately stated amounts you received for these items should not be shown on Form 1099-S (discussed later). Hrblock com Any gains from sales of personal property must be included in your income, but not as part of the sale of your home. Hrblock com Payment by employer. Hrblock com   You may have to sell your home because of a job transfer. Hrblock com If your employer pays you for a loss on the sale or for your selling expenses, do not include the payment as part of the selling price. Hrblock com Your employer will include it as wages in box 1 of your Form W-2 and you will include it in your income on Form 1040, line 7, or on Form 1040NR, line 8. Hrblock com Option to buy. Hrblock com   If you grant an option to buy your home and the option is exercised, add the amount you receive for the option to the selling price of your home. Hrblock com If the option is not exercised, you must report the amount as ordinary income in the year the option expires. Hrblock com Report this amount on Form 1040, line 21, or on Form 1040NR, line 21. Hrblock com Form 1099-S. Hrblock com   If you received Form 1099-S, box 2 (gross proceeds) should show the total amount you received for your home. Hrblock com   However, box 2 will not include the fair market value of any services or property other than cash or notes you received or will receive. Hrblock com Instead, box 4 will be checked to indicate your receipt or expected receipt of these items. Hrblock com Amount Realized The amount realized is the selling price minus selling expenses. Hrblock com Selling expenses. Hrblock com   Selling expenses include: Commissions, Advertising fees, Legal fees, and Loan charges paid by the seller, such as loan placement fees or “points. Hrblock com ” Adjusted Basis While you owned your home, you may have made adjustments (increases or decreases) to the basis. Hrblock com This adjusted basis must be determined before you can figure gain or loss on the sale of your home. Hrblock com For information on how to figure your home's adjusted basis, see Determining Basis , later. Hrblock com Amount of Gain or Loss To figure the amount of gain or loss, compare the amount realized to the adjusted basis. Hrblock com Gain on sale. Hrblock com   If the amount realized is more than the adjusted basis, the difference is a gain and, except for any part you can exclude, generally is taxable. Hrblock com Loss on sale. Hrblock com   If the amount realized is less than the adjusted basis, the difference is a loss. Hrblock com Generally, a loss on the sale of your main home cannot be deducted. Hrblock com Jointly owned home. Hrblock com   If you and your spouse sell your jointly owned home and file a joint return, you figure your gain or loss as one taxpayer. Hrblock com Separate returns. Hrblock com   If you file separate returns, each of you must figure your own gain or loss according to your ownership interest in the home. Hrblock com Your ownership interest is generally determined by state law. Hrblock com Joint owners not married. Hrblock com   If you and a joint owner other than your spouse sell your jointly owned home, each of you must figure your own gain or loss according to your ownership interest in the home. Hrblock com Each of you applies the rules discussed in this publication on an individual basis. Hrblock com Dispositions Other Than Sales Some special rules apply to other dispositions of your main home. Hrblock com Foreclosure or repossession. Hrblock com   If your home was foreclosed on or repossessed, you have a disposition. Hrblock com See Publication 4681 to determine if you have ordinary income, gain, or loss. Hrblock com More information. Hrblock com   If part of a home is used for business or rental purposes, see Foreclosures and Repossessions in chapter 1 of Publication 544 for more information. Hrblock com Publication 544 has examples of how to figure gain or loss on a foreclosure or repossession. Hrblock com Abandonment. Hrblock com   If you abandon your home, see Publication 4681 to determine if you have ordinary income, gain, or loss. Hrblock com Trading (exchanging) homes. Hrblock com   If you trade your home for another home, treat the trade as a sale and a purchase. Hrblock com Example. Hrblock com You owned and lived in a home with an adjusted basis of $41,000. Hrblock com A real estate dealer accepted your old home as a trade-in and allowed you $50,000 toward a new home priced at $80,000. Hrblock com This is treated as a sale of your old home for $50,000 with a gain of $9,000 ($50,000 − $41,000). Hrblock com If the dealer had allowed you $27,000 and assumed your unpaid mortgage of $23,000 on your old home, your sales price would still be $50,000 (the $27,000 trade-in allowed plus the $23,000 mortgage assumed). Hrblock com Transfer to spouse. Hrblock com   If you transfer your home to your spouse or you transfer it to your former spouse incident to your divorce, you in most cases have no gain or loss (unless the Exception, discussed next, applies). Hrblock com This is true even if you receive cash or other consideration for the home. Hrblock com As a result, the rules explained in this publication do not apply. Hrblock com   If you owned your home jointly with your spouse and transfer your interest in the home to your spouse, or to your former spouse incident to your divorce, the same rule applies. Hrblock com You have no gain or loss. Hrblock com Exception. Hrblock com   These transfer rules do not apply if your spouse or former spouse is a nonresident alien. Hrblock com In that case, you generally will have a gain or loss. Hrblock com More information. Hrblock com    See Property Settlements in Publication 504, Divorced or Separated Individuals, for more information. Hrblock com Involuntary conversion. Hrblock com   You have a disposition when your home is destroyed or condemned and you receive other property or money in payment, such as insurance or a condemnation award. Hrblock com This is treated as a sale and you may be able to exclude all or part of any gain from the destruction or condemnation of your home, as explained later under Special Situations (see Home destroyed or condemned ). Hrblock com Determining Basis You need to know your basis in your home to figure any gain or loss when you sell it. Hrblock com Your basis in your home is determined by how you got the home. Hrblock com Generally, your basis is its cost if you bought it or built it. Hrblock com If you got it in some other way (inheritance, gift, etc. Hrblock com ), your basis is generally either its fair market value when you received it or the adjusted basis of the previous owner. Hrblock com While you owned your home, you may have made adjustments (increases or decreases) to your home's basis. Hrblock com The result of these adjustments is your home's adjusted basis, which is used to figure gain or loss on the sale of your home. Hrblock com To figure your adjusted basis, you can use Worksheet 1, near the end of this publication. Hrblock com Filled-in examples of that worksheet are included in the Comprehensive Examples , later. Hrblock com Cost As Basis The cost of property is the amount you paid for it in cash, debt obligations, other property, or services. Hrblock com Purchase. Hrblock com   If you bought your home, your basis is its cost to you. Hrblock com This includes the purchase price and certain settlement or closing costs. Hrblock com In most cases, your purchase price includes your down payment and any debt, such as a first or second mortgage or notes you gave the seller in payment for the home. Hrblock com If you build, or contract to build, a new home, your purchase price can include costs of construction, as discussed later. Hrblock com Seller-paid points. Hrblock com   If the person who sold you your home paid points on your loan, you may have to reduce your home's basis by the amount of the points, as shown in the following chart. Hrblock com    IF you bought your home. Hrblock com . Hrblock com . Hrblock com THEN reduce your home's basis by the seller-paid points. Hrblock com . Hrblock com . Hrblock com after 1990 but before April 4, 1994 only if you deducted them as home mortgage interest in the year paid. Hrblock com after April 3, 1994 even if you did not deduct them. Hrblock com Settlement fees or closing costs. Hrblock com   When you bought your home, you may have paid settlement fees or closing costs in addition to the contract price of the property. Hrblock com You can include in your basis some of the settlement fees and closing costs you paid for buying the home, but not the fees and costs for getting a mortgage loan. Hrblock com A fee paid for buying the home is any fee you would have had to pay even if you paid cash for the home (that is, without the need for financing). Hrblock com   Settlement fees do not include amounts placed in escrow for the future payment of items such as taxes and insurance. Hrblock com   Some of the settlement fees or closing costs that you can include in your basis are: Abstract fees (abstract of title fees), Charges for installing utility services, Legal fees (including fees for the title search and preparing the sales contract and deed), Recording fees, Survey fees, Transfer or stamp taxes, Owner's title insurance, and Any amounts the seller owes that you agree to pay, such as: Certain real estate taxes (discussed later), Back interest, Recording or mortgage fees, Charges for improvements or repairs, and Sales commissions. Hrblock com   Some settlement fees and closing costs you cannot include in your basis are: Fire insurance premiums, Rent for occupancy of the house before closing, Charges for utilities or other services related to occupancy of the house before closing, Any fee or cost that you deducted as a moving expense (allowed for certain fees and costs before 1994), Charges connected with getting a mortgage loan, such as: Mortgage insurance premiums (including funding fees connected with loans guaranteed by the Department of Veterans Affairs), Loan assumption fees, Cost of a credit report, Fee for an appraisal required by a lender, and Fees for refinancing a mortgage. Hrblock com Real estate taxes. Hrblock com   Real estate taxes for the year you bought your home may affect your basis, as shown in the following chart. Hrblock com    IF. Hrblock com . Hrblock com . Hrblock com AND. Hrblock com . Hrblock com . Hrblock com THEN the taxes. Hrblock com . Hrblock com . Hrblock com you pay taxes that the seller owed on the home up to the date of sale the seller does not reimburse you are added to the basis of your home. Hrblock com the seller reimburses you do not affect the basis of your home. Hrblock com the seller pays taxes for you (taxes owed beginning on the date of sale) you do not reimburse the seller are subtracted from the basis of your home. Hrblock com you reimburse the seller do not affect the basis of your home. Hrblock com Construction. Hrblock com   If you contracted to have your house built on land you own, your basis is: The cost of the land, plus The amount it cost you to complete the house, including: The cost of labor and materials, Any amounts paid to a contractor, Any architect's fees, Building permit charges, Utility meter and connection charges, and Legal fees directly connected with building the house. Hrblock com   Your cost includes your down payment and any debt such as a first or second mortgage or notes you gave the seller or builder. Hrblock com It also includes certain settlement or closing costs. Hrblock com You may have to reduce your basis by points the seller paid for you. Hrblock com For more information, see Seller-paid points and Settlement fees or closing costs , earlier. Hrblock com Built by you. Hrblock com   If you built all or part of your house yourself, its basis is the total amount it cost you to complete it. Hrblock com Do not include in the cost of the house: The value of your own labor, or The value of any other labor you did not pay for. Hrblock com Temporary housing. Hrblock com   If a builder gave you temporary housing while your home was being finished, you must reduce your basis by the part of the contract price that was for the temporary housing. Hrblock com To figure the amount of the reduction, multiply the contract price by a fraction. Hrblock com The numerator is the value of the temporary housing, and the denominator is the sum of the value of the temporary housing plus the value of the new home. Hrblock com Cooperative apartment. Hrblock com   If you are a tenant-stockholder in a cooperative housing corporation, your basis in the cooperative apartment used as your home is usually the cost of your stock in the corporation. Hrblock com This may include your share of a mortgage on the apartment building. Hrblock com Condominium. Hrblock com   To determine your basis in a condominium apartment used as your home, use the same rules as for any other home. Hrblock com Basis Other Than Cost You must use a basis other than cost, such as adjusted basis or fair market value, if you received your home as a gift, inheritance, a trade, or from your spouse. Hrblock com These situations are discussed in the following pages. Hrblock com Also, the instructions for Worksheet 1 (near the end of the publication) address each of these issues. Hrblock com Other special rules may apply in certain situations. Hrblock com If you converted the property, or some part of it, to business or rental use, see Property Changed to Business or Rental Use, in Publication 551. Hrblock com Home received as gift. Hrblock com   Use the following chart to find the basis of a home you received as a gift. Hrblock com IF the donor's adjusted basis at the time of the gift was. Hrblock com . Hrblock com . Hrblock com THEN your basis is. Hrblock com . Hrblock com . Hrblock com more than the fair market value of the home at that time the same as the donor's adjusted basis at the time of the gift. Hrblock com   Exception: If using the donor's adjusted basis results in a loss when you sell the home, you must use the fair market value of the home at the time of the gift as your basis. Hrblock com If using the fair market value results in a gain, you have neither gain nor loss. Hrblock com equal to or less than the fair market value at that time, and you received the gift before 1977 the smaller of the: • donor's adjusted basis, plus  any federal gift tax paid on  the gift, or • the home's fair market value  at the time of the gift. Hrblock com equal to or less than the fair market value at that time, and you received the gift after 1976 the same as the donor's adjusted basis, plus the part of any federal gift tax paid that is due to the net increase in value of the home (explained next). Hrblock com Fair market value. Hrblock com   The fair market value of property at the time of the gift is the value of the property as appraised for purposes of the federal gift tax. Hrblock com If the gift was not subject to the federal gift tax, the fair market value is the value as appraised for the purposes of a state gift tax. Hrblock com Part of federal gift tax due to net increase in value. Hrblock com   Figure the part of the federal gift tax paid that is due to the net increase in value of the home by multiplying the total federal gift tax paid by a fraction. Hrblock com The numerator of the fraction is the net increase in the value of the home, and the denominator is the value of the home for gift tax purposes after reduction by any annual exclusion and marital or charitable deduction that applies to the gift. Hrblock com The net increase in the value of the home is its fair market value minus the donor's adjusted basis immediately before the gift. Hrblock com Home acquired from a decedent who died before or after 2010. Hrblock com   If you inherited your home from a decedent who died before or after 2010, your basis is the fair market value of the property on the date of the decedent's death (or the later alternate valuation date chosen by the personal representative of the estate). Hrblock com If an estate tax return was filed or required to be filed, the value of the property listed on the estate tax return is your basis. Hrblock com If a federal estate tax return did not have to be filed, your basis in the home is the same as its appraised value at the date of death, for purposes of state inheritance or transmission taxes. Hrblock com Surviving spouse. Hrblock com   If you are a surviving spouse and you owned your home jointly, your basis in the home will change. Hrblock com The new basis for the interest your spouse owned will be its fair market value on the date of death (or alternate valuation date). Hrblock com The basis in your interest will remain the same. Hrblock com Your new basis in the home is the total of these two amounts. Hrblock com   If you and your spouse owned the home either as tenants by the entirety or as joint tenants with right of survivorship, you will each be considered to have owned one-half of the home. Hrblock com Example. Hrblock com Your jointly owned home (owned as joint tenants with right of survivorship) had an adjusted basis of $50,000 on the date of your spouse's death, and the fair market value on that date was $100,000. Hrblock com Your new basis in the home is $75,000 ($25,000 for one-half of the adjusted basis plus $50,000 for one-half of the fair market value). Hrblock com Community property. Hrblock com   In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), each spouse is usually considered to own half of the community property. Hrblock com When either spouse dies, the total fair market value of the community property becomes the basis of the entire property, including the part belonging to the surviving spouse. Hrblock com For this to apply, at least half the value of the community property interest must be includible in the decedent's gross estate, whether or not the estate must file a return. Hrblock com   For more information about community property, see Publication 555, Community Property. Hrblock com    If you are selling a home in which you acquired an interest from a decedent who died in 2010, see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, to determine your basis. Hrblock com Home received as trade. Hrblock com   If you acquired your home as a trade for other property, in most cases, the basis of your home is the fair market value (at the time of the trade) of the property you gave up. Hrblock com If you traded one home for another, you have made a sale and purchase. Hrblock com In that case, you may have a gain. Hrblock com See Trading (exchanging) homes under Dispositions Other Than Sales, earlier, for an example of figuring the gain. Hrblock com Home received from spouse. Hrblock com   If you received your home from your spouse or from your former spouse incident to your divorce, your basis in the home depends on the date of the transfer. Hrblock com Transfers after July 18, 1984. Hrblock com   If you received the home after July 18, 1984, there was no gain or loss on the transfer. Hrblock com In most cases, your basis in this home is the same as your spouse's (or former spouse's) adjusted basis just before you received it. Hrblock com This rule applies even if you received the home in exchange for cash, the release of marital rights, the assumption of liabilities, or other considerations. Hrblock com   If you owned a home jointly with your spouse and your spouse transferred his or her interest in the home to you, in most cases, your basis in the half interest received from your spouse is the same as your spouse's adjusted basis just before the transfer. Hrblock com This also applies if your former spouse transferred his or her interest in the home to you incident to your divorce. Hrblock com Your basis in the half interest you already owned does not change. Hrblock com Your new basis in the home is the total of these two amounts. Hrblock com Transfers before July 19, 1984. Hrblock com   If you received your home before July 19, 1984, in exchange for your release of marital rights, in most cases, your basis in the home is generally its fair market value at the time you received it. Hrblock com More information. Hrblock com   For more information on property received from a spouse or former spouse, see Property Settlements in Publication 504. Hrblock com Involuntary conversion. Hrblock com   If your home is destroyed or condemned, you may receive insurance proceeds or a condemnation award. Hrblock com If you acquired a replacement home with these proceeds, the basis is its cost decreased by any gain not recognized on the conversion under the rules explained in: Publication 547, in the case of a home that was destroyed, or Chapter 1 of Publication 544, in the case of a home that was condemned. Hrblock com Example. Hrblock com A fire destroyed your home that you owned and used for only 6 months. Hrblock com The home had an adjusted basis of $80,000 and the insurance company paid you $130,000 for the loss. Hrblock com Your gain is $50,000 ($130,000 − $80,000). Hrblock com You bought a replacement home for $100,000. Hrblock com The part of your gain that is taxable is $30,000 ($130,000 − $100,000), the unspent part of the payment from the insurance company. Hrblock com The rest of the gain ($20,000) is not taxable, so that amount reduces your basis in the new home. Hrblock com The basis of the new home is figured as follows. Hrblock com Cost of replacement home $100,000 Minus: Gain not recognized 20,000 Basis of the replacement home $80,000 More information. Hrblock com   For more information about basis, see Publication 551. Hrblock com Adjusted Basis Adjusted basis is your cost or other basis increased or decreased by certain amounts. Hrblock com To figure your adjusted basis, you can use Worksheet 1, found toward the end of this publication. Hrblock com Filled-in examples of that worksheet are included in Comprehensive Examples , later. Hrblock com Recordkeeping. Hrblock com You should keep records to prove your home's adjusted basis. Hrblock com Ordinarily, you must keep records for 3 years after the due date for filing your return for the tax year in which you sold your home. Hrblock com But if you sold a home before May 7, 1997, and postponed tax on any gain, the basis of that home affects the basis of the new home you bought. Hrblock com Keep records proving the basis of both homes as long as they are needed for tax purposes. Hrblock com The records you should keep include: Proof of the home's purchase price and purchase expenses; Receipts and other records for all improvements, additions, and other items that affect the home's adjusted basis; Any worksheets or other computations you used to figure the adjusted basis of the home you sold, the gain or loss on the sale, the exclusion, and the taxable gain; Any Form 982 you filed to exclude any discharge of qualified principal residence indebtedness; Any Form 2119, Sale of Your Home, you filed to postpone gain from the sale of a previous home before May 7, 1997; and Any worksheets you used to prepare Form 2119, such as the Adjusted Basis of Home Sold Worksheet or the Capital Improvements Worksheet from the Form 2119 instructions, or other source of computations. Hrblock com Increases to Basis These include the following. Hrblock com Additions and other improvements that have a useful life of more than 1 year. Hrblock com Special assessments for local improvements. Hrblock com Amounts you spent after a casualty to restore damaged property. Hrblock com Improvements. Hrblock com   These add to the value of your home, prolong its useful life, or adapt it to new uses. Hrblock com You add the cost of additions and other improvements to the basis of your property. Hrblock com   The following chart lists some other examples of improvements. Hrblock com Examples of Improvements That Increase Basis Additions Bedroom Bathroom Deck Garage Porch Patio Heating & Air Conditioning Heating system Central air conditioning Furnace Duct work Central humidifier Filtration system Lawn & Grounds Landscaping Driveway Walkway Fence  Retaining wall Sprinkler system Swimming pool  Miscellaneous Storm windows, doors New roof Central vacuum Wiring upgrades Satellite dish Security system  Plumbing Septic system Water heater Soft water system Filtration system  Interior Improvements Built-in appliances  Kitchen modernization  Flooring Wall-to-wall carpeting  Insulation Attic Walls Floors Pipes and duct work Improvements no longer part of home. Hrblock com   Your home's adjusted basis does not include the cost of any improvements that are replaced and are no longer part of the home. Hrblock com Example. Hrblock com You put wall-to-wall carpeting in your home 15 years ago. Hrblock com Later, you replaced that carpeting with new wall-to-wall carpeting. Hrblock com The cost of the old carpeting you replaced is no longer part of your home's adjusted basis. Hrblock com Repairs. Hrblock com   These maintain your home in good condition but do not add to its value or prolong its life. Hrblock com You do not add their cost to the basis of your property. Hrblock com Examples. Hrblock com Repainting your house inside or outside, fixing your gutters or floors, repairing leaks or plastering, and replacing broken window panes are examples of repairs. Hrblock com Exception. Hrblock com   The entire job is considered an improvement if items that would otherwise be considered repairs are done as part of an extensive remodeling or restoration of your home. Hrblock com For example, if you have a casualty and your home is damaged, increase your basis by the amount you spend on repairs that restore the property to its pre-casualty condition. Hrblock com Decreases to Basis These include the following. Hrblock com Discharge of qualified principal residence indebtedness that was excluded from income (but not below zero). Hrblock com For details, see Publication 4681. Hrblock com Some or all of the cancellation of debt income that was excluded due to your bankruptcy or insolvency. Hrblock com For details, see Publication 4681. Hrblock com Gain you postponed from the sale of a previous home before May 7, 1997. Hrblock com Deductible casualty losses. Hrblock com Insurance payments you received or expect to receive for casualty losses. Hrblock com Payments you received for granting an easement or right-of-way. Hrblock com Depreciation allowed or allowable if you used your home for business or rental purposes. Hrblock com Energy-related credits allowed for expenditures made on the residence. Hrblock com (Reduce the increase in basis otherwise allowable for expenditures on the residence by the amount of credit allowed for those expenditures. Hrblock com ) Adoption credit you claimed for improvements added to the basis of your home. Hrblock com Nontaxable payments from an adoption assistance program of your employer you used for improvements you added to the basis of your home. Hrblock com Energy conservation subsidy excluded from your gross income because you received it (directly or indirectly) from a public utility after 1992 to buy or install any energy conservation measure. Hrblock com An energy conservation measure is an installation or modification primarily designed either to reduce consumption of electricity or natural gas or to improve the management of energy demand for a home. Hrblock com District of Columbia first-time homebuyer credit allowed on the purchase of a principal residence in the District of Columbia. Hrblock com General sales taxes claimed as an itemized deduction on Schedule A (Form 1040) that were imposed on the purchase of personal property, such as a houseboat used as your home or a mobile home. Hrblock com Discharges of qualified principal residence indebtedness. Hrblock com   You may be able to exclude from gross income a discharge of qualified principal residence indebtedness. Hrblock com This exclusion applies to discharges made after 2006 and before 2014. Hrblock com If you choose to exclude this income, you must reduce (but not below zero) the basis of your principal residence by the amount excluded from gross income. Hrblock com   File Form 982 with your tax return. Hrblock com See the form's instructions for detailed information. Hrblock com    A decrease in basis due to a discharge of qualified principal residence indebtedness that is excluded from income occurs only if you retain ownership of the principal residence after a discharge. Hrblock com In most cases, this would occur in a refinancing or a restructuring of the mortgage. Hrblock com Excluding the Gain You may qualify to exclude from your income all or part of any gain from the sale of your main home. Hrblock com This means that, if you qualify, you will not have to pay tax on the gain up to the limit described under Maximum Exclusion , next. Hrblock com To qualify, you must meet the ownership and use tests described later. Hrblock com You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. Hrblock com This choice can be made (or revoked) at any time before the expiration of a 3-year period beginning on the due date of your return (not including extensions) for the year of the sale. Hrblock com You can use Worksheet 2 (near the end of this publication) to figure the amount of your exclusion and your taxable gain, if any. Hrblock com If you have any taxable gain from the sale of your home, you may have to increase your withholding or make estimated tax payments. Hrblock com See Publication 505, Tax Withholding and Estimated Tax. Hrblock com Maximum Exclusion You can exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. Hrblock com You meet the ownership test. Hrblock com You meet the use test. Hrblock com During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. Hrblock com For details on gain allocated to periods of nonqualified use, see Nonqualified Use , later. Hrblock com If you and another person owned the home jointly but file separate returns, each of you can exclude up to $250,000 of gain from the sale of your interest in the home if each of you meets the three conditions just listed. Hrblock com You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . Hrblock com Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. Hrblock com This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). Hrblock com Exception. Hrblock com   If you owned and lived in the property as your main home for less than 2 years, you can still claim an exclusion in some cases. Hrblock com However, the maximum amount you may be able to exclude will be reduced. Hrblock com See Reduced Maximum Exclusion , later. Hrblock com Example 1—home owned and occupied for at least 2 years. Hrblock com Mya bought and moved into her main home in September 2011. Hrblock com She sold the home at a gain in October 2013. Hrblock com During the 5-year period ending on the date of sale in October 2013, she owned and lived in the home for more than 2 years. Hrblock com She meets the ownership and use tests. Hrblock com Example 2—ownership test met but use test not met. Hrblock com Ayden bought a home, lived in it for 6 months, moved out, and never occupied the home again. Hrblock com He later sold the home for a gain in June 2013. Hrblock com He owned the home during the entire 5-year period ending on the date of sale. Hrblock com He meets the ownership test but not the use test. Hrblock com He cannot exclude any part of his gain on the sale unless he qualified for a reduced maximum exclusion (explained later). Hrblock com Period of Ownership and Use The required 2 years of ownership and use during the 5-year period ending on the date of the sale do not have to be continuous nor do they both have to occur at the same time. Hrblock com You meet the tests if you can show that you owned and lived in the property as your main home for either 24 full months or 730 days (365 × 2) during the 5-year period ending on the date of sale. Hrblock com Example. Hrblock com Naomi bought and moved into a house in July 2009. Hrblock com She lived there for 13 months and then moved in with a friend. Hrblock com She later moved back into her house and lived there for 12 months until she sold it in August 2013. Hrblock com Naomi meets the ownership and use tests because, during the 5-year period ending on the date of sale, she owned the house for more than 2 years and lived in it for a total of 25 (13 + 12) months. Hrblock com Temporary absence. Hrblock com   Short temporary absences for vacations or other seasonal absences, even if you rent out the property during the absences, are counted as periods of use. Hrblock com The following examples assume that the reduced maximum exclusion (discussed later) does not apply to the sales. Hrblock com Example 1. Hrblock com David Johnson, who is single, bought and moved into his home on February 1, 2011. Hrblock com Each year during 2011 and 2012, David left his home for a 2-month summer vacation. Hrblock com David sold the house on March 1, 2013. Hrblock com Although the total time David lived in his home is less than 2 years (21 months), he meets the use requirement and may exclude gain. Hrblock com The 2-month vacations are short temporary absences and are counted as periods of use in determining whether David used the home for the required 2 years. Hrblock com Example 2. Hrblock com Professor Paul Beard, who is single, bought and moved into a house in December 2010, went abroad for a 1-year sabbatical leave in January 2012, returned to the house in January 2013, and sold it at a gain in February 2013. Hrblock com Because his leave was not a short temporary absence, he cannot include the period of leave to meet the 2-year use test. Hrblock com He cannot exclude any part of his gain because he did not use the residence for the required 2 years. Hrblock com Ownership and use tests met at different times. Hrblock com   You can meet the ownership and use tests during different 2-year periods. Hrblock com However, you must meet both tests during the 5-year period ending on the date of the sale. Hrblock com Example. Hrblock com Beginning in 2002, Helen Jones lived in a rented apartment. Hrblock com The apartment building was later converted to condominiums, and she bought her same apartment on December 3, 2010. Hrblock com In 2011, Helen became ill and on April 14 of that year she moved to her daughter's home. Hrblock com On July 12, 2013, while still living in her daughter's home, she sold her condominium. Hrblock com Helen can exclude gain on the sale of her condominium because she met the ownership and use tests during the 5-year period from July 13, 2008, to July 12, 2013, the date she sold the condominium. Hrblock com She owned her condominium from December 3, 2010, to July 12, 2013 (more than 2 years). Hrblock com She lived in the property from July 13, 2008 (the beginning of the 5-year period), to April 14, 2011 (more than 2 years). Hrblock com The time Helen lived in her daughter's home during the 5-year period can be counted toward her period of ownership, and the time she lived in her rented apartment during the 5-year period can be counted toward her period of use. Hrblock com Cooperative apartment. Hrblock com   If you sold stock as a tenant-shareholder in a cooperative housing corporation, the ownership and use tests are met if, during the 5-year period ending on the date of sale, you: Owned the stock for at least 2 years, and Lived in the house or apartment that the stock entitled you to occupy as your main home for at least 2 years. Hrblock com Exceptions to Ownership and Use Tests The following sections contain exceptions to the ownership and use tests for certain taxpayers. Hrblock com Exception for individuals with a disability. Hrblock com   There is an exception to the use test if: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year during the 5-year period before the sale of your home. Hrblock com Under this exception, you are considered to live in your home during any time within the 5-year period that you own the home and live in a facility (including a nursing home) licensed by a state or political subdivision to care for persons in your condition. Hrblock com   If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. Hrblock com Previous home destroyed or condemned. Hrblock com   For the ownership and use tests, you add the time you owned and lived in a previous home that was destroyed or condemned to the time you owned and lived in the replacement home on whose sale you wish to exclude gain. Hrblock com This rule applies if any part of the basis of the home you sold depended on the basis of the destroyed or condemned home (see Involuntary Conversions in Publication 551). Hrblock com Otherwise, you must have owned and lived in the same home for 2 of the 5 years before the sale to qualify for the exclusion. Hrblock com Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps. Hrblock com   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve on qualified official extended duty (defined later) as a member of the uniformed services or Foreign Service of the United States, or as an employee of the intelligence community. Hrblock com You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve outside the United States either as an employee of the Peace Corps on qualified official extended duty (defined later) or as an enrolled volunteer or volunteer leader of the Peace Corps. Hrblock com This means that you may be able to meet the 2-year use test even if, because of your service, you did not actually live in your home for at least the required 2 years during the 5-year period ending on the date of sale. Hrblock com   If this helps you qualify to exclude gain, you can choose to have the 5-year test period suspended by filing a return for the year of sale that does not include the gain. Hrblock com Example. Hrblock com John bought and moved into a home in 2005. Hrblock com He lived in it as his main home for 2½ years. Hrblock com For the next 6 years, he did not live in it because he was on qualified official extended duty with the Army. Hrblock com He then sold the home at a gain in 2013. Hrblock com To meet the use test, John chooses to suspend the 5-year test period for the 6 years he was on qualified official extended duty. Hrblock com This means he can disregard those 6 years. Hrblock com Therefore, John's 5-year test period consists of the 5 years before he went on qualified official extended duty. Hrblock com He meets the ownership and use tests because he owned and lived in the home for 2½ years during this test period. Hrblock com Period of suspension. Hrblock com   The period of suspension cannot last more than 10 years. Hrblock com Together, the 10-year suspension period and the 5-year test period can be as long as, but no more than, 15 years. Hrblock com You cannot suspend the 5-year period for more than one property at a time. Hrblock com You can revoke your choice to suspend the 5-year period at any time. Hrblock com Example. Hrblock com Mary bought a home on April 1, 1997. Hrblock com She used it as her main home until August 31, 2000. Hrblock com On September 1, 2000, she went on qualified official extended duty with the Navy. Hrblock com She did not live in the house again before selling it on July 31, 2013. Hrblock com Mary chooses to use the entire 10-year suspension period. Hrblock com Therefore, the suspension period would extend back from July 31, 2013, to August 1, 2003, and the 5-year test period would extend back to August 1, 1998. Hrblock com During that period, Mary owned the house all 5 years and lived in it as her main home from August 1, 1998, until August 31, 2000, a period of more than 24 months. Hrblock com She meets the ownership and use tests because she owned and lived in the home for at least 2 years during this test period. Hrblock com Uniformed services. Hrblock com   The uniformed services are: The Armed Forces (the Army, Navy, Air Force, Marine Corps, and Coast Guard), The commissioned corps of the National Oceanic and Atmospheric Administration, and The commissioned corps of the Public Health Service. Hrblock com Foreign Service member. Hrblock com   For purposes of the choice to suspend the 5-year test period for ownership and use, you are a member of the Foreign Service if you are any of the following. Hrblock com A Chief of mission. Hrblock com An Ambassador at large. Hrblock com A member of the Senior Foreign Service. Hrblock com A Foreign Service officer. Hrblock com Part of the Foreign Service personnel. Hrblock com Employee of the intelligence community. Hrblock com   For purposes of the choice to suspend the 5-year test period for ownership and use, you are an employee of the intelligence community if you are an employee of any of the following. Hrblock com The Office of the Director of National Intelligence. Hrblock com The Central Intelligence Agency. Hrblock com The National Security Agency. Hrblock com The Defense Intelligence Agency. Hrblock com The National Geospatial-Intelligence Agency. Hrblock com The National Reconnaissance Office and any other office within the Department of Defense for the collection of specialized national intelligence through reconnaissance programs. Hrblock com Any of the intelligence elements of the Army, the Navy, the Air Force, the Marine Corps, the Federal Bureau of Investigation, the Department of Treasury, the Department of Energy, and the Coast Guard. Hrblock com The Bureau of Intelligence and Research of the Department of State. Hrblock com Any of the elements of the Department of Homeland Security concerned with the analyses of foreign intelligence information. Hrblock com Qualified official extended duty. Hrblock com   You are on qualified official extended duty if you are on extended duty while: Serving at a duty station at least 50 miles from your main home, or Living in Government quarters under Government orders. Hrblock com   You are on extended duty when you are called or ordered to active duty for a period of more than 90 days or for an indefinite period. Hrblock com Married Persons If you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use tests, you can exclude up to $250,000 of the gain. Hrblock com (But see Special rules for joint returns, next. Hrblock com ) Special rules for joint returns. Hrblock com   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. Hrblock com You are married and file a joint return for the year. Hrblock com Either you or your spouse meets the ownership test. Hrblock com Both you and your spouse meet the use test. Hrblock com During the 2-year period ending on the date of the sale, neither you nor your spouse excluded gain from the sale of another home. Hrblock com If either spouse does not satisfy all these requirements, the maximum exclusion that can be claimed by the couple is the total of the maximum exclusions that each spouse would qualify for if not married and the amounts were figured separately. Hrblock com For this purpose, each spouse is treated as owning the property during the period that either spouse owned the property. Hrblock com Example 1—one spouse sells a home. Hrblock com Emily sells her home in June 2013 for a gain of $300,000. Hrblock com She marries Jamie later in the year. Hrblock com She meets the ownership and use tests, but Jamie does not. Hrblock com Emily can exclude up to $250,000 of gain on a separate or joint return for 2013. Hrblock com The $500,000 maximum exclusion for certain joint returns does not apply because Jamie does not meet the use test. Hrblock com Example 2—each spouse sells a home. Hrblock com The facts are the same as in Example 1 except that Jamie also sells a home in 2013 for a gain of $200,000 before he marries Emily. Hrblock com He meets the ownership and use tests on his home, but Emily does not. Hrblock com Emily can exclude $250,000 of gain and Jamie can exclude $200,000 of gain on the respective sales of their individual homes. Hrblock com However, Emily cannot use Jamie's unused exclusion to exclude more than $250,000 of gain. Hrblock com Therefore, Emily and Jamie must recognize $50,000 of gain on the sale of Emily's home. Hrblock com The $500,000 maximum exclusion for certain joint returns does not apply because Emily and Jamie do not both meet the use test for the same home. Hrblock com Sale of main home by surviving spouse. Hrblock com   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. Hrblock com   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home. Hrblock com The sale or exchange took place after 2008. Hrblock com The sale or exchange took place no more than 2 years after the date of death of your spouse. Hrblock com You have not remarried. Hrblock com You and your spouse met the use test at the time of your spouse's death. Hrblock com You or your spouse met the ownership test at the time of your spouse's death. Hrblock com Neither you nor your spouse excluded gain from the sale of another home during the last 2 years before the date of death. Hrblock com The ownership and use tests were described earlier. Hrblock com Example. Hrblock com Harry owned and used a house as his main home since 2009. Hrblock com Harry and Wilma married on July 1, 2013, and from that date they used Harry's house as their main home. Hrblock com Harry died on August 15, 2013, and Wilma inherited the property. Hrblock com Wilma sold the property on September 1, 2013, at which time she had not remarried. Hrblock com Although Wilma owned and used the house for less than 2 years, Wilma is considered to have satisfied the ownership and use tests because her period of ownership and use includes the period that Harry owned and used the property before death. Hrblock com Home transferred from spouse. Hrblock com   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. Hrblock com Use of home after divorce. Hrblock com   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. Hrblock com Reduced Maximum Exclusion If you fail to meet the requirements to qualify for the $250,000 or $500,000 exclusion, you may still qualify for a reduced exclusion. Hrblock com This applies to those who: Fail to meet the ownership and use tests, or Have used the exclusion within 2 years of selling their current home. Hrblock com In both cases, to qualify for a reduced exclusion, the sale of your main home must be due to one of the following reasons. Hrblock com A change in place of employment. Hrblock com Health. Hrblock com Unforeseen circumstances. Hrblock com Qualified individual. Hrblock com   For purposes of the reduced maximum exclusion, a qualified individual is any of the following. Hrblock com You. Hrblock com Your spouse. Hrblock com A co-owner of the home. Hrblock com A person whose main home is the same as yours. Hrblock com Primary reason for sale. Hrblock com   One of the three reasons above will be considered to be the primary reason you sold your home if either (1) or (2) is true. Hrblock com You qualify under a “safe harbor. Hrblock com ” This is a specific set of facts and circumstances that, if applicable, qualifies you to claim a reduced maximum exclusion. Hrblock com Safe harbors corresponding to the reasons listed above are described later. Hrblock com A safe harbor does not apply, but you can establish, based on facts and circumstances, that the primary reason for the sale is a change in place of employment, health, or unforeseen circumstances. Hrblock com  Factors that may be relevant in determining your primary reason for sale include whether: Your sale and the circumstances causing it were close in time, The circumstances causing your sale occurred during the time you owned and used the property as your main home, The circumstances causing your sale were not reasonably foreseeable when you began using the property as your main home, Your financial ability to maintain the property became materially impaired, The suitability of the property as your main home materially changed, and During the time you owned the property, you used it as your home. Hrblock com Change in Place of Employment You may qualify for a reduced exclusion if the primary reason for the sale of your main home is a change in the location of employment of a qualified individual. Hrblock com Employment. Hrblock com   For this purpose, employment includes the start of work with a new employer or continuation of work with the same employer. Hrblock com It also includes the start or continuation of self-employment. Hrblock com Distance safe harbor. Hrblock com   A change in place of employment is considered to be the reason you sold your home if: The change occurred during the period you owned and used the property as your main home, and The new place of employment is at least 50 miles farther from the home you sold than was the former place of employment (or, if there was no former place of employment, the distance between your new place of employment and the home sold is at least 50 miles). Hrblock com Example. Hrblock com Justin was unemployed and living in a townhouse in Florida he had owned and used as his main home since 2012. Hrblock com He got a job in North Carolina and sold his townhouse in 2013. Hrblock com Because the distance between Justin's new place of employment and the home he sold is at least 50 miles, the sale satisfies the conditions of the distance safe harbor. Hrblock com Justin's sale of his home is considered to be because of a change in place of employment, and he is entitled to claim a reduced maximum exclusion of gain from the sale. Hrblock com Health The sale of your main home is because of health if your primary reason for the sale is: To obtain, provide, or facilitate the diagnosis, cure, mitigation, or treatment of disease, illness, or injury of a qualified individual, or To obtain or provide medical or personal care for a qualified individual suffering from a disease, illness, or injury. Hrblock com The sale of your home is not because of health if the sale merely benefits a qualified individual's general health or well-being. Hrblock com For purposes of this reason, a qualified individual includes, in addition to the individuals listed earlier under Qualified individual , any of the following family members of these individuals. Hrblock com Parent, grandparent, stepmother, stepfather. Hrblock com Child, grandchild, stepchild, adopted child, eligible foster child. Hrblock com Brother, sister, stepbrother, stepsister, half-brother, half-sister. Hrblock com Mother-in-law, father-in-law, brother-in-law, sister-in-law, son-in-law, or daughter-in-law. Hrblock com Uncle, aunt, nephew, niece, or cousin. Hrblock com Example. Hrblock com In 2012, Chase and Lauren, spouses, bought a house that they used as their main home. Hrblock com Lauren's father has a chronic disease and is unable to care for himself. Hrblock com In 2013, Chase and Lauren sold their home in order to move into Lauren's father's house to provide care for him. Hrblock com Because the primary reason for the sale of their home was to provide care for Lauren's father, Chase and Lauren are entitled to a reduced maximum exclusion. Hrblock com Doctor's recommendation safe harbor. Hrblock com   Health is considered to be the reason you sold your home if, for one or more of the reasons listed at the beginning of this discussion, a doctor recommends a change of residence. Hrblock com Unforeseen Circumstances The sale of your main home is because of an unforeseen circumstance if your primary reason for the sale is the occurrence of an event that you could not reasonably have anticipated before buying and occupying that home. Hrblock com You are not considered to have an unforeseen circumstance if the primary reason you sold your home was that you preferred to get a different home or because your finances improved. Hrblock com Specific event safe harbors. Hrblock com   Unforeseen circumstances are considered to be the reason for selling your home if any of the following events occurred while you owned and used the property as your main home. Hrblock com An involuntary conversion of your home, such as when your home is destroyed or condemned. Hrblock com Natural or man-made disasters or acts of war or terrorism resulting in a casualty to your home, whether or not your loss is deductible. Hrblock com In the case of qualified individuals (listed earlier under Qualified individual ): Death, Unemployment (if the individual is eligible for unemployment compensation), A change in employment or self-employment status that results in the individual's inability to pay reasonable basic living expenses (listed under Reasonable basic living expenses , later) for his or her household, Divorce or legal separation under a decree of divorce or separate maintenance, or Multiple births resulting from the same pregnancy. Hrblock com An event the IRS determined to be an unforeseen circumstance in published guidance of general applicability. Hrblock com For example, the IRS determined the September 11, 2001, terrorist attacks to be an unforeseen circumstance. Hrblock com Reasonable basic living expenses. Hrblock com   Reasonable basic living expenses for your household include the following. Hrblock com Amounts spent for food. Hrblock com Amounts spent for clothing. Hrblock com Housing and related expenses. Hrblock com Medical expenses. Hrblock com Transportation expenses. Hrblock com Tax payments. Hrblock com Court-ordered payments. Hrblock com Expenses reasonably necessary to produce income. Hrblock com   Any of these amounts spent to maintain an affluent or luxurious standard of living are not reasonable basic living expenses. Hrblock com Nonqualified Use Gain from the sale or exchange of the main home is not excludable from income if it is allocable to periods of nonqualified use. Hrblock com Nonqualified use means any period after 2008 where neither you nor your spouse (or your former spouse) used the property as a main home, with certain exceptions (see next). Hrblock com Exceptions. Hrblock com   A period of nonqualified use does not include: Any portion of the 5-year period ending on the date of the sale or exchange after the last date you (or your spouse) use the property as a main home; Any period (not to exceed an aggregate period of 10 years) during which you (or your spouse) are serving on qualified official extended duty: As a member of the uniformed services; As a member of the Foreign Service of the United States; or As an employee of the intelligence community; and Any other period of temporary absence (not to exceed an aggregate period of 2 years) due to change of employment, health conditions, or such other unforeseen circumstances as may be specified by the IRS. Hrblock com Calculation. Hrblock com   To figure the portion of the gain allocated to the period of nonqualified use, multiply the gain (net of any depreciation allowed or allowable on the property for periods after May 6, 1997) by the following fraction:   Total nonqualified use during the period of ownership after 2008     Total period of ownership     This calculation can be found in Worksheet 2, line 10, later in this publication. Hrblock com   For examples of this calculation, see Business Use or Rental of Home , next. Hrblock com Business Use or Rental of Home You may be able to exclude gain from the sale of a home you have used for business or to produce rental income if you meet the ownership and use tests. Hrblock com Example 1. Hrblock com On May 23, 2007, Amy, who is unmarried for all years in this example, bought a house. Hrblock com She moved in on that date and lived in it until May 31, 2009, when she moved out of the house and put it up for rent. Hrblock com The house was rented from June 1, 2009, to March 31, 2011. Hrblock com Amy claimed depreciation deductions in 2009 through 2011 totaling $10,000. Hrblock com Amy moved back into the house on April 1, 2011, and lived there until she sold it on January 31, 2013, for a gain of $200,000. Hrblock com During the 5-year period ending on the date of the sale (January 31, 2008–January 31, 2013), Amy owned and lived in the house for more than 2 years as shown in the following table. Hrblock com Five-Year Period Used as Home Used as Rental 1/31/08 – 5/31/09 16 months   6/01/09 – 3/31/11   22 months 4/01/11 – 1/31/13 22 months     38 months 22 months       During the period Amy owned the house (2,080 days), her period of nonqualified use was 668 days. Hrblock com Because the gain attributable to periods of nonqualified use is $60,990, Amy can exclude $129,010 of her gain, as shown on Worksheet 2. Hrblock com Example 2. Hrblock com William owned and used a house as his main home from 2007 through 2010. Hrblock com On January 1, 2011, he moved to another state. Hrblock com He rented his house from that date until April 30, 2013, when he sold it. Hrblock com During the 5-year period ending on the date of sale (May 1, 2008-April 30, 2013), William owned and lived in the house for more than 2 years. Hrblock com Because it was rental property at the time of the sale, he must report the sale on Form 4797. Hrblock com Because the period of nonqualified use does not include any part of the 5-year period after the last date William lived in the house, he has no period of nonqualified use. Hrblock com Because he met the ownership and use tests, he can exclude gain up to $250,000. Hrblock com However, he cannot exclude the part of the gain equal to the depreciation he claimed or could have claimed for renting the house, as explained next. Hrblock com Depreciation after May 6, 1997. Hrblock com   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. Hrblock com If you can show by adequate records or other evidence that the depreciation allowed was less than the amount allowable, then you may limit the amount of gain recognized to the depreciation allowed. Hrblock com Unrecaptured section 1250 gain. Hrblock com   This is the part of any long-term capital gain from the sale of your home that is due to depreciation and cannot be excluded. Hrblock com To figure the amount of unrecaptured section 1250 gain to be reported on Schedule D (Form 1040), you must also take into account certain gains or losses from the sale of property other than your home. Hrblock com Use the Unrecaptured Section 1250 Gain Worksheet in the Schedule D instructions for this purpose. Hrblock com Worksheet 2. Hrblock com Taxable Gain on Sale of Home—Completed Example 1 for Amy Part 1. Hrblock com Gain or (Loss) on Sale       1. Hrblock com   Selling price of home 1. Hrblock com     2. Hrblock com   Selling expenses (including commissions, advertising and legal fees, and seller-paid loan charges) 2. Hrblock com     3. Hrblock com   Subtract line 2 from line 1. Hrblock com This is the amount realized 3. Hrblock com     4. Hrblock com   Adjusted basis of home sold (from Worksheet 1, line 13) 4. Hrblock com     5. Hrblock com   Gain or (loss) on the sale. Hrblock com Subtract line 4 from line 3. Hrblock com If this is a loss, stop here 5. Hrblock com 200,000   Part 2. Hrblock com Exclusion and Taxable Gain       6. Hrblock com   Enter any depreciation allowed or allowable on the property for periods after May 6, 1997. Hrblock com If none, enter -0- 6. Hrblock com 10,000   7. Hrblock com   Subtract line 6 from line 5. Hrblock com If the result is less than zero, enter -0- 7. Hrblock com 190,000   8. Hrblock com   Aggregate number of days of nonqualified use after 2008. Hrblock com If none, enter -0-. Hrblock com  If line 8 is equal to zero, skip to line 12 and enter the amount from line 7 on line 12 8. Hrblock com 668   9. Hrblock com   Number of days taxpayer owned the property 9. Hrblock com 2,080   10. Hrblock com   Divide the amount on line 8 by the amount on line 9. Hrblock com Enter the result as a decimal (rounded to at least 3 places). Hrblock com But do not enter an amount greater than 1. Hrblock com 00 10. Hrblock com 0. Hrblock com 321   11. Hrblock com   Gain allocated to nonqualified use. Hrblock com (Line 7 multiplied by line 10) 11. Hrblock com 60,990   12. Hrblock com   Gain eligible for exclusion. Hrblock com Subtract line 11 from line 7 12. Hrblock com 129,010   13. Hrblock com   If you qualify to exclude gain on the sale, enter your maximum exclusion (see Maximum Exclusion ). Hrblock com  If you qualify for a reduced maximum exclusion, enter the amount from Worksheet 3, line 7. Hrblock com If you do  not qualify to exclude gain, enter -0- 13. Hrblock com 250,000   14. Hrblock com   Exclusion. Hrblock com Enter the smaller of line 12 or line 13 14. Hrblock com 129,010   15. Hrblock com   Taxable gain. Hrblock com Subtract line 14 from line 5. Hrblock com Report your taxable gain as described under Reporting the Sale . Hrblock com If the amount on line 6 is more than zero, complete line 16 15. Hrblock com 70,990   16. Hrblock com   Enter the smaller of line 6 or line 15. Hrblock com Enter this amount on line 12 of the Unrecaptured Section 1250 Gain  Worksheet in the instructions for Schedule D (Form 1040) 16. Hrblock com 10,000 Property Used Partly for Business or Rental If you use property partly as a home and partly for business or to produce rental income, the treatment of any gain on the sale depends partly on whether the business or rental part of the property is part of your home or separate from it. Hrblock com Part of Home Used for Business or Rental If the part of your property used for business or to produce rental income is within your home, such as a room used as a home office for a business, you do not need to allocate gain on the sale of the property between the business part of the property and the part used as a home. Hrblock com In addition, you do not need to report the sale of the business or rental part on Form 4797. Hrblock com This is true whether or not you were entitled to claim any depreciation. Hrblock com However, you cannot exclude the part of any gain equal to any depreciation allowed or allowable after May 6, 1997. Hrblock com See Depreciation after May 6, 1997, earlier. Hrblock com Example 1. Hrblock com Ray sold his main home in 2013 at a $30,000 gain. Hrblock com He has no gains or losses from the sale of property other than the gain from the sale of his home. Hrblock com He meets the ownership and use tests to exclude the gain from his income. Hrblock com However, he used part of the home as a business office in 2012 and claimed $500 depreciation. Hrblock com Because the business office was part of his home (not separate from it), he does not have to allocate the gain on the sale between the business part of the property and the part used as a home. Hrblock com In addition, he does not have to report any part of the gain on Form 4797. Hrblock com Because Ray was entitled to take a depreciation deduction, he must recognize $500 of the gain as unrecaptured section 1250 gain. Hrblock com He reports his gain, exclusion, and the taxable gain of $500 on Form 8949 and Schedule D (Form 1040). Hrblock com Example 2. Hrblock com The facts are the same as in Example 1 except that Ray was not entitled to claim depreciation for the business use of his home. Hrblock com Since Ray did not claim any depreciation, he can exclude the entire $30,000 gain. Hrblock com Separate Part of Property Used for Business or Rental You may have used part of your property as your home and a separate part of it for business or to produce rental income. Hrblock com Examples are: A working farm on which your house was located, A duplex in w