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I need 2011 tax software Publication 51 - Introductory Material Table of Contents Future Developments What's New Reminders Calendar Introduction Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 51 (Circular A), such as legislation enacted after it was published, go to www. I need 2011 tax software irs. I need 2011 tax software gov/pub51. I need 2011 tax software What's New Social security and Medicare tax for 2014. I need 2011 tax software  The social security tax rate is 6. I need 2011 tax software 2% each for the employee and employer, unchanged from 2013. I need 2011 tax software The social security wage base limit is $117,000. I need 2011 tax software The Medicare tax rate is 1. I need 2011 tax software 45% each for the employee and employer, unchanged from 2013. I need 2011 tax software There is no wage base limit for Medicare tax. I need 2011 tax software Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation. I need 2011 tax software Withholding allowance. I need 2011 tax software  The 2014 amount for one withholding allowance on an annual basis is $3,950. I need 2011 tax software Change of responsible party. I need 2011 tax software  Beginning January 1, 2014, any entity with an employer identification number (EIN) must file Form 8822-B, Change of Address or Responsible Party—Business, to report the latest change to its responsible party. I need 2011 tax software Form 8822-B must be filed within 60 days of the change. I need 2011 tax software If the change in the identity of your responsible party occurred before 2014, and you have not previously notified the IRS of the change, file Form 8822-B before March 1, 2014, reporting only the most recent change. I need 2011 tax software For a definition of "responsible party", see the Form 8822-B instructions. I need 2011 tax software Same-sex marriage. I need 2011 tax software  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. I need 2011 tax software For more information, see Revenue Ruling 2013-17, 2013-38 I. I need 2011 tax software R. I need 2011 tax software B. I need 2011 tax software 201, available at www. I need 2011 tax software irs. I need 2011 tax software gov/irb/2013-38_IRB/ar07. I need 2011 tax software html. I need 2011 tax software Notice 2013-61 provides special administrative procedures for employers to make claims for refund or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. I need 2011 tax software Notice 2013-61, 2013-44 I. I need 2011 tax software R. I need 2011 tax software B. I need 2011 tax software 432, is available at www. I need 2011 tax software irs. I need 2011 tax software gov/irb/2013-44_IRB/ar10. I need 2011 tax software html. I need 2011 tax software Reminders Additional Medicare Tax withholding. I need 2011 tax software  In addition to withholding Medicare tax at 1. I need 2011 tax software 45%, you must withhold a 0. I need 2011 tax software 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. I need 2011 tax software You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. I need 2011 tax software Additional Medicare Tax is only imposed on the employee. I need 2011 tax software There is no employer share of Additional Medicare Tax. I need 2011 tax software All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. I need 2011 tax software For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E), Employer's Tax Guide. I need 2011 tax software For more information on Additional Medicare Tax, visit IRS. I need 2011 tax software gov and enter “Additional Medicare Tax” in the search box. I need 2011 tax software Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. I need 2011 tax software  The work opportunity tax credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before January 1, 2014. I need 2011 tax software Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. I need 2011 tax software For more information, visit IRS. I need 2011 tax software gov and enter “work opportunity tax credit” in the search box. I need 2011 tax software Outsourcing payroll duties. I need 2011 tax software  Employers are responsible to ensure that tax returns are filed and deposits and payments are made, even if the employer contracts with a third party to perform these acts. I need 2011 tax software The employer remains responsible if the third party fails to perform any required action. I need 2011 tax software If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer such as a payroll service provider or reporting agent, visit IRS. I need 2011 tax software gov and enter “outsourcing payroll duties” in the search box for helpful information on this topic. I need 2011 tax software COBRA premium assistance credit. I need 2011 tax software  The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008, and May 31, 2010, and to premiums paid for up to 15 months. I need 2011 tax software For more information, see COBRA premium assistance credit under Introduction. I need 2011 tax software Compensation paid to H-2A foreign agricultural workers. I need 2011 tax software  Report compensation of $600 or more paid to foreign agricultural workers who entered the country on H-2A visas in box 1 of Form W-2, Wage and Tax Statement. I need 2011 tax software Compensation paid to H-2A workers for agricultural labor performed in connection with this visa is not subject to social security and Medicare taxes, and therefore should not be reported as wages subject to social security tax (line 2), Medicare tax (line 4), or Additional Medicare Tax withholding (line 6) on Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, and should not be reported as social security wages (box 3) or Medicare wages (box 5) on Form W-2. I need 2011 tax software On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. I need 2011 tax software An employer is not required to withhold federal income tax from compensation it pays an H-2A worker for agricultural labor performed in connection with this visa unless the worker asks for withholding and the employer agrees. I need 2011 tax software In that case, the worker must give the employer a completed Form W-4, Employee's Withholding Allowance Certificate. I need 2011 tax software Federal income tax withheld should be reported on Form 943, line 8, and in box 2 of Form W-2. I need 2011 tax software These reporting rules apply when the H-2A worker provides his or her taxpayer identification number (TIN) to the employer. I need 2011 tax software For the rules relating to backup withholding and reporting when the H-2A worker does not provide a TIN, see the Instructions for Form 1099-MISC and the Instructions for Form 945. I need 2011 tax software Additional employment tax information. I need 2011 tax software  Visit the IRS website at www. I need 2011 tax software irs. I need 2011 tax software gov/businesses and click on Employment Taxes under Businesses Topics. I need 2011 tax software For employment tax information by telephone, call 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability) Monday–Friday from 7:00 a. I need 2011 tax software m. I need 2011 tax software –7:00 p. I need 2011 tax software m. I need 2011 tax software local time (Alaska and Hawaii follow Pacific time). I need 2011 tax software Additionally, you can call IRS TeleTax at 1-800-829-4477 for recorded information by topic. I need 2011 tax software Disregarded entities and qualified subchapter S subsidiaries (QSubs). I need 2011 tax software  Eligible single-owner disregarded entities and QSubs are treated as separate entities for employment tax purposes. I need 2011 tax software Eligible single-member entities that have not elected to be taxed as corporations must report and pay employment taxes on wages paid to their employees using the entities' own names and EINs. I need 2011 tax software See Regulations sections 1. I need 2011 tax software 1361-4(a)(7) and 301. I need 2011 tax software 7701-2(c)(2)(iv). I need 2011 tax software Differential wage payments. I need 2011 tax software  Qualified differential wage payments made by employers to individuals serving in the Armed Forces after 2008 are subject to income tax withholding but not social security, Medicare, or FUTA taxes. I need 2011 tax software For more information, see Publication 15 (Circular E). I need 2011 tax software Federal tax deposits must be made by electronic funds transfer. I need 2011 tax software  You must use electronic funds transfer to make all federal tax deposits. I need 2011 tax software Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). I need 2011 tax software If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. I need 2011 tax software Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. I need 2011 tax software EFTPS is a free service provided by the Department of Treasury. I need 2011 tax software Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. I need 2011 tax software For more information on making federal tax deposits, see How To Deposit in section 7. I need 2011 tax software To get more information about EFTPS or to enroll in EFTPS, visit www. I need 2011 tax software eftps. I need 2011 tax software gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). I need 2011 tax software Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. I need 2011 tax software Electronic filing and payment. I need 2011 tax software  Now, more than ever before, businesses can enjoy the benefits of filing tax returns and paying their taxes electronically. I need 2011 tax software Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make it easier. I need 2011 tax software Spend less time and worry on taxes and more time running your business. I need 2011 tax software Use e-file and the Electronic Federal Tax Payment System (EFTPS) to your benefit. I need 2011 tax software For e-file, visit the IRS website at www. I need 2011 tax software irs. I need 2011 tax software gov/efile for additional information. I need 2011 tax software For EFTPS, visit www. I need 2011 tax software eftps. I need 2011 tax software gov or call EFTPS Customer Service at 1-800-555-4477 (business), 1-800-316-6541 (individual), or 1-800-733-4829 (TDD) for additional information. I need 2011 tax software For electronic filing of Form W-2, visit www. I need 2011 tax software socialsecurity. I need 2011 tax software gov/employer. I need 2011 tax software If you are filing your tax return or paying your federal taxes electronically, a valid EIN is required. I need 2011 tax software If a valid EIN is not provided, the return or payment will not be processed. I need 2011 tax software This may result in penalties and delays in processing your return or payment. I need 2011 tax software Electronic funds withdrawal (EFW). I need 2011 tax software  If you file Form 943 electronically, you can e-file and e-pay (electronic funds withdrawal) the balance due in a single step using tax preparation software or through a tax professional. I need 2011 tax software However, do not use EFW to make federal tax deposits. I need 2011 tax software For more information on paying your taxes using EFW, visit the IRS website at www. I need 2011 tax software irs. I need 2011 tax software gov/e-pay. I need 2011 tax software A fee may be charged to file electronically. I need 2011 tax software Credit or debit card payments. I need 2011 tax software   Employers can pay the balance due shown on Form 943 by credit or debit card. I need 2011 tax software Do not use a credit or debit card to make federal tax deposits. I need 2011 tax software For more information on paying your taxes with a credit or debit card, visit the IRS website at www. I need 2011 tax software irs. I need 2011 tax software gov/e-pay. I need 2011 tax software When you hire a new employee. I need 2011 tax software  Ask each new employee to complete the 2014 Form W-4 or its Spanish version, Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado. I need 2011 tax software Also, ask the employee to show you his or her social security card so that you can record the employee's name and social security number accurately. I need 2011 tax software If the employee has lost the card or recently changed names, have the employee apply for a duplicate or corrected card. I need 2011 tax software If the employee does not have a card, have the employee apply for one on Form SS-5, Application for a Social Security Card. I need 2011 tax software See section 1 for more information. I need 2011 tax software Eligibility for employment. I need 2011 tax software  You must verify that each new employee is legally eligible to work in the United States. I need 2011 tax software This includes completing the U. I need 2011 tax software S. I need 2011 tax software Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. I need 2011 tax software You can get the form from USCIS offices or by calling 1-800-870-3676. I need 2011 tax software Contact the USCIS at 1-800-375-5283, or visit the USCIS website at www. I need 2011 tax software uscis. I need 2011 tax software gov for more information. I need 2011 tax software New hire reporting. I need 2011 tax software   You are required to report any new employee to a designated state new-hire registry. I need 2011 tax software A new employee is an employee who has not previously been employed by you or was previously employed by you but has been separated from such prior employment for at least 60 consecutive days. I need 2011 tax software Many states accept a copy of Form W-4 with employer information added. I need 2011 tax software Visit the Office of Child Support Enforcement's website at www. I need 2011 tax software acf. I need 2011 tax software hhs. I need 2011 tax software gov/programs/cse/newhire for more information. I need 2011 tax software Dishonored payments. I need 2011 tax software  Any form of payment that is dishonored and returned from a financial institution is subject to a penalty. I need 2011 tax software The penalty is $25 or 2% of the payment, whichever is more. I need 2011 tax software However, the penalty on dishonored payments of $24. I need 2011 tax software 99 or less is an amount equal to the payment. I need 2011 tax software For example, a dishonored payment of $18 is charged a penalty of $18. I need 2011 tax software Forms in Spanish. I need 2011 tax software  You can provide Formulario W-4(SP) in place of Form W-4 to your Spanish-speaking employees. I need 2011 tax software For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). I need 2011 tax software For nonemployees, Formulario W-9(SP), Solicitud y Certificación del Número de Identificación del Contribuyente, may be used in place of Form W-9, Request for Taxpayer Identification Number and Certification. I need 2011 tax software References in this publication to Form W-4 or Form W-9 also apply to their equivalent Spanish translations—Formulario W-4(SP) or Formulario W-9(SP). I need 2011 tax software Information returns. I need 2011 tax software  You may be required to file information returns to report certain types of payments made during the year. I need 2011 tax software For example, you must file Form 1099-MISC, Miscellaneous Income, to report payments of $600 or more to persons not treated as employees (for example, independent contractors) for services performed for your trade or business. I need 2011 tax software For details about filing Forms 1099 and for information about required electronic filing, see the General Instructions for Certain Information Returns for general information and the separate, specific instructions for each information return that you file (for example, Instructions for Form 1099-MISC). I need 2011 tax software Generally, do not use Forms 1099 to report wages or other compensation that you paid to employees; report these amounts on Form W-2. I need 2011 tax software See the General Instructions for Forms W-2 and W-3 for details about filing Forms W-2 and for information about required electronic filing. I need 2011 tax software If you file 250 or more Forms W-2, you must file them electronically. I need 2011 tax software SSA will not accept Forms W-2 and W-3 filed on any magnetic media. I need 2011 tax software Information reporting customer service site. I need 2011 tax software  The IRS operates the Enterprise Computing Center—Martinsburg, a centralized customer service site, to answer questions about reporting on Forms W-2, W-3, 1099, and other information returns. I need 2011 tax software If you have questions related to reporting on information returns, you may call 1-866-455-7438 (toll free), 304-263-8700 (toll call), or 304-267-3367 (TDD/TTY for persons who are deaf, heard of hearing, or have a speech disability). I need 2011 tax software The call site can also be reached by email at mccirp@irs. I need 2011 tax software gov. I need 2011 tax software Do not include tax identification numbers (TINs) or attachments in email correspondence because electronic mail is not secure. I need 2011 tax software Web-based application for an employer identification number (EIN). I need 2011 tax software  You can apply for an employer identification number (EIN) online by visiting IRS. I need 2011 tax software gov and clicking on the Apply for an EIN Online link under Tools. I need 2011 tax software When a crew leader furnishes workers to you. I need 2011 tax software  Record the crew leader's name, address, and EIN. I need 2011 tax software See sections 2 and 10. I need 2011 tax software Change of address. I need 2011 tax software  Use Form 8822-B to notify the IRS of an address change. I need 2011 tax software Do not mail form 8822-B with your employment tax return. I need 2011 tax software Ordering forms and publications. I need 2011 tax software  You can order your 2013 and 2014 employment tax and information return forms, instructions, and publications online at www. I need 2011 tax software irs. I need 2011 tax software gov/businesses. I need 2011 tax software Click on the Online Ordering for Information Returns and Employer Returns. I need 2011 tax software You can also visit www. I need 2011 tax software irs. I need 2011 tax software gov/formspubs to download other forms and publications. I need 2011 tax software Instead of ordering paper Forms W-2 and W-3, consider filing them electronically using the Social Security Administration's (SSA) free e-file service. I need 2011 tax software Visit the SSA's Employer W-2 Filing Instructions & Information website at  www. I need 2011 tax software socialsecurity. I need 2011 tax software gov/employer, to register for Business Services Online. I need 2011 tax software You will be able to create and file “fill-in” versions of Forms W-2 with SSA and can print out completed copies of Forms W-2 for filing with state and local governments, distribution to your employees, and for your records. I need 2011 tax software Form W-3 will be created for you based on your Forms W-2. I need 2011 tax software Tax Questions. I need 2011 tax software   If you have a tax question, check the information available on IRS. I need 2011 tax software gov or call 1-800-829-4933 (businesses), 1-800-829-1040 (individuals), or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability) Monday–Friday from 7:00 a. I need 2011 tax software m. I need 2011 tax software –7:00 p. I need 2011 tax software m. I need 2011 tax software local time (Alaska and Hawaii follow Pacific time). I need 2011 tax software We cannot answer tax questions sent to the address provided later for comments and suggestions. I need 2011 tax software Recordkeeping. I need 2011 tax software  Keep all records of employment taxes for at least 4 years. I need 2011 tax software These should be available for IRS review. I need 2011 tax software Your records should include the following information. I need 2011 tax software Your employer identification number (EIN). I need 2011 tax software Amounts and dates of all wage, annuity, and pension payments. I need 2011 tax software Names, addresses, social security numbers, and occupations of employees and recipients. I need 2011 tax software Any employee copies of Forms W-2 and W-2c returned to you as undeliverable. I need 2011 tax software Dates of employment for each employee. I need 2011 tax software Periods for which employees and recipients were paid while absent due to sickness or injury and the amount and weekly rate of payments you or third-party payers made to them. I need 2011 tax software Copies of employees' and recipients' income tax withholding allowance certificates (Forms W-4, W-4(SP), W-4P, and W-4S). I need 2011 tax software Dates and amounts of tax deposits you made and acknowledgment numbers for deposits made by EFTPS. I need 2011 tax software Copies of returns filed and confirmation numbers. I need 2011 tax software Records of fringe benefits and expense reimbursements provided to your employees, including substantiation. I need 2011 tax software If a crew leader furnished you with farmworkers, you must keep a record of the name, permanent mailing address, and EIN of the crew leader. I need 2011 tax software If the crew leader has no permanent mailing address, record his or her present address. I need 2011 tax software Private delivery services. I need 2011 tax software  You can use certain private delivery services designated by the IRS to send tax returns and payments. I need 2011 tax software The list includes only the following. I need 2011 tax software DHL Express (DHL): DHL Same Day Service. I need 2011 tax software Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. I need 2011 tax software United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. I need 2011 tax software M. I need 2011 tax software , UPS Worldwide Express Plus, and UPS Worldwide Express. I need 2011 tax software For the IRS mailing address to use if you are using a private delivery service, go to IRS. I need 2011 tax software gov and enter "private delivery service" in the search box. I need 2011 tax software Your private delivery service can tell you how to get written proof of the mailing date. I need 2011 tax software Private delivery services cannot deliver items to P. I need 2011 tax software O. I need 2011 tax software boxes. I need 2011 tax software You must use the U. I need 2011 tax software S. I need 2011 tax software Postal Service to mail any item to an IRS P. I need 2011 tax software O. I need 2011 tax software box address. I need 2011 tax software Photographs of missing children. I need 2011 tax software  The IRS is a proud partner with the National Center for Missing and Exploited Children. I need 2011 tax software Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. I need 2011 tax software You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. I need 2011 tax software Calendar The following are important dates and responsibilities. I need 2011 tax software See section 7 for information about depositing taxes reported on Forms 941, 943, 944, and 945. I need 2011 tax software Also see Publication 509, Tax Calendars. I need 2011 tax software   If any date shown below for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. I need 2011 tax software A statewide legal holiday delays a filing due date only if the IRS office where you are required to file is located in that state. I need 2011 tax software However, a statewide legal holiday does not delay the due date of federal tax deposits. I need 2011 tax software See Deposits on Business Days Only in section 7. I need 2011 tax software For any filing due date, you will meet the “file” or “furnish” requirement if the envelope containing the return or form is properly addressed, contains sufficient postage, and is postmarked by the U. I need 2011 tax software S. I need 2011 tax software Postal Service on or before the due date, or sent by an IRS-designated delivery service on or before the due date. I need 2011 tax software See Private delivery services under Reminders. I need 2011 tax software By January 31 . I need 2011 tax software   File Form 943. I need 2011 tax software See section 8 for more information on Form 943. I need 2011 tax software If you deposited all Form 943 taxes when due, you have 10 additional calendar days to file. I need 2011 tax software Furnish each employee with a completed Form W-2. I need 2011 tax software Furnish each recipient to whom you paid $600 or more in nonemployee compensation with a completed Form 1099 (for example, Form 1099-MISC). I need 2011 tax software File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. I need 2011 tax software See section 10 for more information on FUTA. I need 2011 tax software If you deposited all the FUTA tax when due, you have 10 additional calendar days to file. I need 2011 tax software File Form 945, Annual Return of Withheld Federal Income Tax, to report any nonpayroll federal income tax withheld in 2013. I need 2011 tax software If you deposited all Form 945 taxes when due, you have 10 additional calendar days to file. I need 2011 tax software By February 15. I need 2011 tax software  Ask for a new Form W-4 or Formulario W-4(SP) from each employee who claimed exemption from federal income tax withholding last year. I need 2011 tax software On February 16. I need 2011 tax software  Any Form W-4 claiming exemption from withholding for the previous year has now expired. I need 2011 tax software Begin withholding for any employee who previously claimed exemption from withholding but has not given you a new Form W-4 for the current year. I need 2011 tax software If the employee does not give you a new Form W-4, withhold tax based on the last valid Form W-4 you have for the employee that does not claim exemption from withholding or, if one does not exist, as if he or she is single with zero withholding allowances. I need 2011 tax software See section 5 for more information. I need 2011 tax software If the employee furnishes a new Form W-4 claiming exemption from withholding after February 15, you may apply the exemption to future wages, but do not refund taxes withheld while the exempt status was not in place. I need 2011 tax software By February 28. I need 2011 tax software   File paper Forms 1099 and 1096. I need 2011 tax software File Copy A of all paper Forms 1099 with Form 1096, Annual Summary and Transmittal of U. I need 2011 tax software S. I need 2011 tax software Information Returns, with the IRS. I need 2011 tax software For electronically filed returns, see By March 31 below. I need 2011 tax software File paper Forms W-2 and W-3. I need 2011 tax software File Copy A of all paper Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, with the SSA. I need 2011 tax software For electronically filed returns, see By March 31 next. I need 2011 tax software By March 31. I need 2011 tax software   File electronic Forms W-2 and 1099. I need 2011 tax software File electronic Forms W-2 with the SSA and Forms 1099 with the IRS. I need 2011 tax software For more information on reporting Form W-2 information to the SSA electronically, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. I need 2011 tax software socialsecurity. I need 2011 tax software gov/employer. I need 2011 tax software For information on filing information returns electronically with the IRS, see Publication 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G. I need 2011 tax software By April 30, July 31, October 31, and January 31. I need 2011 tax software   Deposit FUTA taxes. I need 2011 tax software Deposit FUTA tax if the undeposited amount is over $500. I need 2011 tax software Before December 1. I need 2011 tax software  Remind employees to submit a new Form W-4 if their marital status or withholding allowances have changed or will change for the next year. I need 2011 tax software Introduction This publication is for employers of agricultural workers (farmworkers). I need 2011 tax software It contains information that you may need to comply with the laws for agricultural labor (farmwork) relating to social security and Medicare taxes, FUTA tax, and withheld federal income tax (employment taxes). I need 2011 tax software Agricultural employers report social security and Medicare taxes and withheld federal income tax on Form 943 and report FUTA tax on Form 940. I need 2011 tax software If you have nonfarm employees, see Publication 15 (Circular E). I need 2011 tax software If you have employees in the U. I need 2011 tax software S. I need 2011 tax software Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands, see Publication 80 (Circular SS). I need 2011 tax software Publication 15-A, Employer's Supplemental Tax Guide, contains more employment-related information, including information about sick pay and pension income. I need 2011 tax software Publication 15-B, Employer's Tax Guide to Fringe Benefits, contains information about the employment tax treatment and valuation of various types of noncash compensation. I need 2011 tax software Comments and suggestions. I need 2011 tax software   We welcome your comments about this publication and your suggestions for future editions. I need 2011 tax software   You can write to us at the following address:  Internal Revenue Service Tax Forms and Publications Division  1111 Constitution Ave. I need 2011 tax software NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. I need 2011 tax software Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. I need 2011 tax software   You can also send us comments from www. I need 2011 tax software irs. I need 2011 tax software gov/formspubs. I need 2011 tax software Click on More Information and then click on Comment on Tax Forms and Publications. I need 2011 tax software   Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. I need 2011 tax software COBRA premium assistance credit. I need 2011 tax software   The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates. I need 2011 tax software COBRA generally covers multiemployer health plans and health plans maintained by private-sector employers (other than churches) with 20 or more full and part-time employees. I need 2011 tax software Parallel requirements apply to these plans under the Employee Retirement Income Security Act of 1974 (ERISA). I need 2011 tax software Under the Public Health Service Act, COBRA requirements apply also to health plans covering state or local government employees. I need 2011 tax software Similar requirements apply under the Federal Employees Health Benefits Program and under some state laws. I need 2011 tax software For the premium assistance (or subsidy) discussed below, these requirements are all referred to as COBRA requirements. I need 2011 tax software   Under the American Recovery and Reinvestment Act of 2009 (ARRA), employers are allowed a credit against “payroll taxes” (referred to in this publication as “employment taxes”) for providing COBRA premium assistance to assistance eligible individuals. I need 2011 tax software For periods of COBRA continuation coverage beginning after February 16, 2009, a group health plan must treat an assistance eligible individual as having paid the required COBRA continuation coverage premium if the individual elects COBRA coverage and pays 35% of the amount of the premium. I need 2011 tax software   An assistance eligible individual is a qualified beneficiary of an employer's group health plan who is eligible for COBRA continuation coverage during the period beginning September 1, 2008, and ending May 31, 2010, due to the involuntarily termination from employment of a covered employee during the period and elects continuation COBRA coverage. I need 2011 tax software The assistance for the coverage can last up to 15 months. I need 2011 tax software   Employees terminated during the period beginning September 1, 2008, and ending May 31, 2010, who received a severance package that delayed the start of the COBRA continuation coverage, may still be eligible for premium assistance for COBRA continuation coverage. I need 2011 tax software For more information, see Notice 2009-27, 2009-16 I. I need 2011 tax software R. I need 2011 tax software B. I need 2011 tax software 838, available at www. I need 2011 tax software irs. I need 2011 tax software gov/irb/2009-16_irb/ar09. I need 2011 tax software html. I need 2011 tax software   Administrators of the group health plans (or other entities) that provide or administer COBRA continuation coverage must provide notice to assistance eligible individuals of the COBRA premium assistance. I need 2011 tax software   The 65% of the premium not paid by the assistance eligible individual is reimbursed to the employer maintaining the group health plan. I need 2011 tax software The reimbursement is made through a credit against the employer's employment tax liabilities. I need 2011 tax software For information on how to claim the credit, see the Instructions for Form 943. I need 2011 tax software The credit is treated as a deposit made on the first day of the return period. I need 2011 tax software In the case of a multiemployer plan, the credit is claimed by the plan, rather than the employer. I need 2011 tax software In the case of an insured plan subject to state law continuation coverage requirements, the credit is claimed by the insurance company, rather than the employer. I need 2011 tax software   Anyone claiming the credit for COBRA premium assistance payments must maintain the following information to support their claim, including the following. I need 2011 tax software Information on the receipt of the assistance eligible individuals' 35% share of the premium including dates and amounts. I need 2011 tax software In the case of an insurance plan, a copy of invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier required under COBRA. I need 2011 tax software In the case of a self-insured plan, proof of the premium amount and proof of the coverage provided to the assistance eligible individuals. I need 2011 tax software Attestation of involuntary termination, including the date of the involuntary termination for each covered employee whose involuntary termination is the basis for eligibility for the subsidy. I need 2011 tax software Proof of each assistance eligible individual's eligibility for COBRA coverage and the election of COBRA coverage. I need 2011 tax software A record of the social security numbers (SSNs) of all covered employees, the amount of the subsidy reimbursed with respect to each covered employee, and whether the subsidy was for one individual or two or more individuals. I need 2011 tax software   For more information, visit IRS. I need 2011 tax software gov and enter “COBRA” in the search box. I need 2011 tax software Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits 225 Farmer's Tax Guide 535 Business Expenses 583 Starting a Business and Keeping Records 1635 Employer Identification Number: Understanding Your EIN Prev  Up  Next   Home   More Online Publications

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I need 2011 tax software Publication 551 - Main Content Table of Contents Cost BasisStocks and Bonds Real Property Business Assets Allocating the Basis Adjusted BasisIncreases to Basis Decreases to Basis Adjustments to Basis Example Basis Other Than CostProperty Received for Services Taxable Exchanges Nontaxable Exchanges Property Transferred From a Spouse Property Received as a Gift Inherited Property Property Changed to Business or Rental Use How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). I need 2011 tax software Cost Basis The basis of property you buy is usually its cost. I need 2011 tax software The cost is the amount you pay in cash, debt obligations, other property, or services. I need 2011 tax software Your cost also includes amounts you pay for the following items. I need 2011 tax software Sales tax, Freight, Installation and testing, Excise taxes, Legal and accounting fees (when they must be capitalized), Revenue stamps, Recording fees, and Real estate taxes (if assumed for the seller). I need 2011 tax software  You may also have to capitalize (add to basis) certain other costs related to buying or producing property. I need 2011 tax software Loans with low or no interest. I need 2011 tax software   If you buy property on a time-payment plan that charges little or no interest, the basis of your property is your stated purchase price, minus the amount considered to be unstated interest. I need 2011 tax software You generally have unstated interest if your interest rate is less than the applicable federal rate. I need 2011 tax software For more information, see Unstated Interest and Original Issue Discount in Publication 537. I need 2011 tax software Purchase of a business. I need 2011 tax software   When you purchase a trade or business, you generally purchase all assets used in the business operations, such as land, buildings, and machinery. I need 2011 tax software Allocate the price among the various assets, including any section 197 intangibles. I need 2011 tax software See Allocating the Basis, later. I need 2011 tax software Stocks and Bonds The basis of stocks or bonds you buy is generally the purchase price plus any costs of purchase, such as commissions and recording or transfer fees. I need 2011 tax software If you get stocks or bonds other than by purchase, your basis is usually determined by the fair market value (FMV) or the previous owner's adjusted basis of the stock. I need 2011 tax software You must adjust the basis of stocks for certain events that occur after purchase. I need 2011 tax software See Stocks and Bonds in chapter 4 of Publication 550 for more information on the basis of stock. I need 2011 tax software Identifying stock or bonds sold. I need 2011 tax software   If you can adequately identify the shares of stock or the bonds you sold, their basis is the cost or other basis of the particular shares of stock or bonds. I need 2011 tax software If you buy and sell securities at various times in varying quantities and you cannot adequately identify the shares you sell, the basis of the securities you sell is the basis of the securities you acquired first. I need 2011 tax software For more information about identifying securities you sell, see Stocks and Bonds under Basis of Investment Property in chapter 4 of Publication 550. I need 2011 tax software Mutual fund shares. I need 2011 tax software   If you sell mutual fund shares acquired at different times and prices, you can choose to use an average basis. I need 2011 tax software For more information, see Publication 550. I need 2011 tax software Real Property Real property, also called real estate, is land and generally anything built on or attached to it. I need 2011 tax software If you buy real property, certain fees and other expenses become part of your cost basis in the property. I need 2011 tax software Real estate taxes. I need 2011 tax software   If you pay real estate taxes the seller owed on real property you bought, and the seller did not reimburse you, treat those taxes as part of your basis. I need 2011 tax software You cannot deduct them as taxes. I need 2011 tax software   If you reimburse the seller for taxes the seller paid for you, you can usually deduct that amount as an expense in the year of purchase. I need 2011 tax software Do not include that amount in the basis of the property. I need 2011 tax software If you did not reimburse the seller, you must reduce your basis by the amount of those taxes. I need 2011 tax software Settlement costs. I need 2011 tax software   Your basis includes the settlement fees and closing costs for buying property. I need 2011 tax software You cannot include in your basis the fees and costs for getting a loan on property. I need 2011 tax software A fee for buying property is a cost that must be paid even if you bought the property for cash. I need 2011 tax software   The following items are some of the settlement fees or closing costs you can include in the basis of your property. I need 2011 tax software Abstract fees (abstract of title fees); Charges for installing utility services; Legal fees (including title search and preparation of the sales contract and deed); Recording fees; Surveys; Transfer taxes; Owner's title insurance; and Any amounts the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions. I need 2011 tax software   Settlement costs do not include amounts placed in escrow for the future payment of items such as taxes and insurance. I need 2011 tax software   The following items are some settlement fees and closing costs you cannot include in the basis of the property. I need 2011 tax software Casualty insurance premiums. I need 2011 tax software Rent for occupancy of the property before closing. I need 2011 tax software Charges for utilities or other services related to occupancy of the property before closing. I need 2011 tax software Charges connected with getting a loan. I need 2011 tax software The following are examples of these charges. I need 2011 tax software Points (discount points, loan origination fees). I need 2011 tax software Mortgage insurance premiums. I need 2011 tax software Loan assumption fees. I need 2011 tax software Cost of a credit report. I need 2011 tax software Fees for an appraisal required by a lender. I need 2011 tax software Fees for refinancing a mortgage. I need 2011 tax software If these costs relate to business property, items (1) through (3) are deductible as business expenses. I need 2011 tax software Items (4) and (5) must be capitalized as costs of getting a loan and can be deducted over the period of the loan. I need 2011 tax software Points. I need 2011 tax software   If you pay points to obtain a loan (including a mortgage, second mortgage, line of credit, or a home equity loan), do not add the points to the basis of the related property. I need 2011 tax software Generally, you deduct the points over the term of the loan. I need 2011 tax software For more information on how to deduct points, see Points in chapter 4 of Publication 535. I need 2011 tax software Points on home mortgage. I need 2011 tax software   Special rules may apply to points you and the seller pay when you obtain a mortgage to purchase your main home. I need 2011 tax software If certain requirements are met, you can deduct the points in full for the year in which they are paid. I need 2011 tax software Reduce the basis of your home by any seller-paid points. I need 2011 tax software For more information, see Points in Publication 936, Home Mortgage Interest Deduction. I need 2011 tax software Assumption of mortgage. I need 2011 tax software   If you buy property and assume (or buy subject to) an existing mortgage on the property, your basis includes the amount you pay for the property plus the amount to be paid on the mortgage. I need 2011 tax software Example. I need 2011 tax software If you buy a building for $20,000 cash and assume a mortgage of $80,000 on it, your basis is $100,000. I need 2011 tax software Constructing assets. I need 2011 tax software   If you build property or have assets built for you, your expenses for this construction are part of your basis. I need 2011 tax software Some of these expenses include the following costs. I need 2011 tax software Land, Labor and materials, Architect's fees, Building permit charges, Payments to contractors, Payments for rental equipment, and Inspection fees. I need 2011 tax software In addition, if you own a business and use your employees, material, and equipment to build an asset, do not deduct the following expenses. I need 2011 tax software You must include them in the asset's basis. I need 2011 tax software Employee wages paid for the construction work, reduced by any employment credits allowed; Depreciation on equipment you own while it is used in the construction; Operating and maintenance costs for equipment used in the construction; and The cost of business supplies and materials used in the construction. I need 2011 tax software    Do not include the value of your own labor, or any other labor you did not pay for, in the basis of any property you construct. I need 2011 tax software Business Assets If you purchase property to use in your business, your basis is usually its actual cost to you. I need 2011 tax software If you construct, create, or otherwise produce property, you must capitalize the costs as your basis. I need 2011 tax software In certain circumstances, you may be subject to the uniform capitalization rules, next. I need 2011 tax software Uniform Capitalization Rules The uniform capitalization rules specify the costs you add to basis in certain circumstances. I need 2011 tax software Activities subject to the rules. I need 2011 tax software   You must use the uniform capitalization rules if you do any of the following in your trade or business or activity carried on for profit. I need 2011 tax software Produce real or tangible personal property for use in the business or activity, Produce real or tangible personal property for sale to customers, or Acquire property for resale. I need 2011 tax software However, this rule does not apply to personal property if your average annual gross receipts for the 3 previous tax years are $10 million or less. I need 2011 tax software   You produce property if you construct, build, install, manufacture, develop, improve, create, raise, or grow the property. I need 2011 tax software Treat property produced for you under a contract as produced by you up to the amount you pay or costs you otherwise incur for the property. I need 2011 tax software Tangible personal property includes films, sound recordings, video tapes, books, or similar property. I need 2011 tax software    Under the uniform capitalization rules, you must capitalize all direct costs and an allocable part of most indirect costs you incur due to your production or resale activities. I need 2011 tax software To capitalize means to include certain expenses in the basis of property you produce or in your inventory costs rather than deduct them as a current expense. I need 2011 tax software You recover these costs through deductions for depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. I need 2011 tax software   Any cost you cannot use to figure your taxable income for any tax year is not subject to the uniform capitalization rules. I need 2011 tax software Example. I need 2011 tax software If you incur a business meal expense for which your deduction would be limited to 50% of the cost of the meal, that amount is subject to the uniform capitalization rules. I need 2011 tax software The nondeductible part of the cost is not subject to the uniform capitalization rules. I need 2011 tax software More information. I need 2011 tax software   For more information about these rules, see the regulations under section 263A of the Internal Revenue Code and Publication 538, Accounting Periods and Methods. I need 2011 tax software Exceptions. I need 2011 tax software   The following are not subject to the uniform capitalization rules. I need 2011 tax software Property you produce that you do not use in your trade, business, or activity conducted for profit; Qualified creative expenses you pay or incur as a free-lance (self-employed) writer, photographer, or artist that are otherwise deductible on your tax return; Property you produce under a long-term contract, except for certain home construction contracts; Research and experimental expenses deductible under section 174 of the Internal Revenue Code; and Costs for personal property acquired for resale if your (or your predecessor's) average annual gross receipts for the 3 previous tax years do not exceed $10 million. I need 2011 tax software For other exceptions to the uniform capitalization rules, see section 1. I need 2011 tax software 263A-1(b) of the regulations. I need 2011 tax software   For information on the special rules that apply to costs incurred in the business of farming, see chapter 6 of Publication 225, Farmer's Tax Guide. I need 2011 tax software Intangible Assets Intangible assets include goodwill, patents, copyrights, trademarks, trade names, and franchises. I need 2011 tax software The basis of an intangible asset is usually the cost to buy or create it. I need 2011 tax software If you acquire multiple assets, for example a going business for a lump sum, see Allocating the Basis below to figure the basis of the individual assets. I need 2011 tax software The basis of certain intangibles can be amortized. I need 2011 tax software See chapter 8 of Publication 535 for information on the amortization of these costs. I need 2011 tax software Patents. I need 2011 tax software   The basis of a patent you get for an invention is the cost of development, such as research and experimental expenditures, drawings, working models, and attorneys' and governmental fees. I need 2011 tax software If you deduct the research and experimental expenditures as current business expenses, you cannot include them in the basis of the patent. I need 2011 tax software The value of the inventor's time spent on an invention is not part of the basis. I need 2011 tax software Copyrights. I need 2011 tax software   If you are an author, the basis of a copyright will usually be the cost of getting the copyright plus copyright fees, attorneys' fees, clerical assistance, and the cost of plates that remain in your possession. I need 2011 tax software Do not include the value of your time as the author, or any other person's time you did not pay for. I need 2011 tax software Franchises, trademarks, and trade names. I need 2011 tax software   If you buy a franchise, trademark, or trade name, the basis is its cost, unless you can deduct your payments as a business expense. I need 2011 tax software Allocating the Basis If you buy multiple assets for a lump sum, allocate the amount you pay among the assets you receive. I need 2011 tax software You must make this allocation to figure your basis for depreciation and gain or loss on a later disposition of any of these assets. I need 2011 tax software See Trade or Business Acquired below. I need 2011 tax software Group of Assets Acquired If you buy multiple assets for a lump sum, you and the seller may agree to a specific allocation of the purchase price among the assets in the sales contract. I need 2011 tax software If this allocation is based on the value of each asset and you and the seller have adverse tax interests, the allocation generally will be accepted. I need 2011 tax software However, see Trade or Business Acquired, next. I need 2011 tax software Trade or Business Acquired If you acquire a trade or business, allocate the consideration paid to the various assets acquired. I need 2011 tax software Generally, reduce the consideration paid by any cash and general deposit accounts (including checking and savings accounts) received. I need 2011 tax software Allocate the remaining consideration to the other business assets received in proportion to (but not more than) their fair market value in the following order. I need 2011 tax software Certificates of deposit, U. I need 2011 tax software S. I need 2011 tax software Government securities, foreign currency, and actively traded personal property, including stock and securities. I need 2011 tax software Accounts receivable, other debt instruments, and assets you mark to market at least annually for federal income tax purposes. I need 2011 tax software Property of a kind that would properly be included in inventory if on hand at the end of the tax year or property held primarily for sale to customers in the ordinary course of business. I need 2011 tax software All other assets except section 197 intangibles, goodwill, and going concern value. I need 2011 tax software Section 197 intangibles except goodwill and going concern value. I need 2011 tax software Goodwill and going concern value (whether or not they qualify as section 197 intangibles). I need 2011 tax software Agreement. I need 2011 tax software   The buyer and seller may enter into a written agreement as to the allocation of any consideration or the fair market value (FMV) of any of the assets. I need 2011 tax software This agreement is binding on both parties unless the IRS determines the amounts are not appropriate. I need 2011 tax software Reporting requirement. I need 2011 tax software   Both the buyer and seller involved in the sale of business assets must report to the IRS the allocation of the sales price among section 197 intangibles and the other business assets. I need 2011 tax software Use Form 8594 to provide this information. I need 2011 tax software The buyer and seller should each attach Form 8594 to their federal income tax return for the year in which the sale occurred. I need 2011 tax software More information. I need 2011 tax software   See Sale of a Business in chapter 2 of Publication 544 for more information. I need 2011 tax software Land and Buildings If you buy buildings and the land on which they stand for a lump sum, allocate the basis of the property among the land and the buildings so you can figure the depreciation allowable on the buildings. I need 2011 tax software Figure the basis of each asset by multiplying the lump sum by a fraction. I need 2011 tax software The numerator is the FMV of that asset and the denominator is the FMV of the whole property at the time of purchase. I need 2011 tax software If you are not certain of the FMV of the land and buildings, you can allocate the basis based on their assessed values for real estate tax purposes. I need 2011 tax software Demolition of building. I need 2011 tax software   Add demolition costs and other losses incurred for the demolition of any building to the basis of the land on which the demolished building was located. I need 2011 tax software Do not claim the costs as a current deduction. I need 2011 tax software Modification of building. I need 2011 tax software   A modification of a building will not be treated as a demolition if the following conditions are satisfied. I need 2011 tax software 75 percent or more of the existing external walls of the building are retained in place as internal or external walls, and 75 percent or more of the existing internal structural framework of the building is retained in place. I need 2011 tax software   If the building is a certified historic structure, the modification must also be part of a certified rehabilitation. I need 2011 tax software   If these conditions are met, add the costs of the modifications to the basis of the building. I need 2011 tax software Subdivided lots. I need 2011 tax software   If you buy a tract of land and subdivide it, you must determine the basis of each lot. I need 2011 tax software This is necessary because you must figure the gain or loss on the sale of each individual lot. I need 2011 tax software As a result, you do not recover your entire cost in the tract until you have sold all of the lots. I need 2011 tax software   To determine the basis of an individual lot, multiply the total cost of the tract by a fraction. I need 2011 tax software The numerator is the FMV of the lot and the denominator is the FMV of the entire tract. I need 2011 tax software Future improvement costs. I need 2011 tax software   If you are a developer and sell subdivided lots before the development work is completed, you can (with IRS consent) include in the basis of the properties sold an allocation of the estimated future cost for common improvements. I need 2011 tax software See Revenue Procedure 92–29 for more information, including an explanation of the procedures for getting consent from the IRS. I need 2011 tax software Use of erroneous cost basis. I need 2011 tax software   If you made a mistake in figuring the cost basis of subdivided lots sold in previous years, you cannot correct the mistake for years for which the statute of limitations (generally 3 tax years) has expired. I need 2011 tax software Figure the basis of any remaining lots by allocating the correct original cost basis of the entire tract among the original lots. I need 2011 tax software Example. I need 2011 tax software You bought a tract of land to which you assigned a cost of $15,000. I need 2011 tax software You subdivided the land into 15 building lots of equal size and equitably divided your basis so that each lot had a basis of $1,000. I need 2011 tax software You treated the sale of each lot as a separate transaction and figured gain or loss separately on each sale. I need 2011 tax software Several years later you determine that your original basis in the tract was $22,500 and not $15,000. I need 2011 tax software You sold eight lots using $8,000 of basis in years for which the statute of limitations has expired. I need 2011 tax software You now can take $1,500 of basis into account for figuring gain or loss only on the sale of each of the remaining seven lots ($22,500 basis divided among all 15 lots). I need 2011 tax software You cannot refigure the basis of the eight lots sold in tax years barred by the statute of limitations. I need 2011 tax software Adjusted Basis Before figuring gain or loss on a sale, exchange, or other disposition of property or figuring allowable depreciation, depletion, or amortization, you must usually make certain adjustments to the basis of the property. I need 2011 tax software The result of these adjustments to the basis is the adjusted basis. I need 2011 tax software Increases to Basis Increase the basis of any property by all items properly added to a capital account. I need 2011 tax software These include the cost of any improvements having a useful life of more than 1 year. I need 2011 tax software Rehabilitation expenses also increase basis. I need 2011 tax software However, you must subtract any rehabilitation credit allowed for these expenses before you add them to your basis. I need 2011 tax software If you have to recapture any of the credit, increase your basis by the recaptured amount. I need 2011 tax software If you make additions or improvements to business property, keep separate accounts for them. I need 2011 tax software Also, you must depreciate the basis of each according to the depreciation rules that would apply to the underlying property if you had placed it in service at the same time you placed the addition or improvement in service. I need 2011 tax software For more information, see Publication 946. I need 2011 tax software The following items increase the basis of property. I need 2011 tax software The cost of extending utility service lines to the property; Impact fees; Legal fees, such as the cost of defending and perfecting title; Legal fees for obtaining a decrease in an assessment levied against property to pay for local improvements; Zoning costs; and The capitalized value of a redeemable ground rent. I need 2011 tax software Assessments for Local Improvements Increase the basis of property by assessments for items such as paving roads and building ditches that increase the value of the property assessed. I need 2011 tax software Do not deduct them as taxes. I need 2011 tax software However, you can deduct as taxes charges for maintenance, repairs, or interest charges related to the improvements. I need 2011 tax software Example. I need 2011 tax software Your city changes the street in front of your store into an enclosed pedestrian mall and assesses you and other affected landowners for the cost of the conversion. I need 2011 tax software Add the assessment to your property's basis. I need 2011 tax software In this example, the assessment is a depreciable asset. I need 2011 tax software Deducting vs. I need 2011 tax software Capitalizing Costs Do not add to your basis costs you can deduct as current expenses. I need 2011 tax software For example, amounts paid for incidental repairs or maintenance that are deductible as business expenses cannot be added to basis. I need 2011 tax software However, you can choose either to deduct or to capitalize certain other costs. I need 2011 tax software If you capitalize these costs, include them in your basis. I need 2011 tax software If you deduct them, do not include them in your basis. I need 2011 tax software See Uniform Capitalization Rules earlier. I need 2011 tax software The costs you can choose to deduct or to capitalize include the following. I need 2011 tax software Carrying charges, such as interest and taxes, that you pay to own property, except carrying charges that must be capitalized under the uniform capitalization rules; Research and experimentation costs; Intangible drilling and development costs for oil, gas, and geothermal wells; Exploration costs for new mineral deposits; Mining development costs for a new mineral deposit; Costs of establishing, maintaining, or increasing the circulation of a newspaper or other periodical; and Costs of removing architectural and transportation barriers to people with disabilities and the elderly. I need 2011 tax software If you claim the disabled access credit, you must reduce the amount you deduct or capitalize by the amount of the credit. I need 2011 tax software For more information about deducting or capitalizing costs, see chapter 7 in Publication 535. I need 2011 tax software Table 1. I need 2011 tax software Examples of Increases and Decreases to Basis Increases to Basis Decreases to Basis Capital improvements:   Putting an addition on your home   Replacing an entire roof  Paving your driveway  Installing central air conditioning Rewiring your home Exclusion from income of subsidies for energy conservation measures  Casualty or theft loss deductions and insurance reimbursements  Vehicle credits Assessments for local improvements: Water connections Sidewalks Roads Section 179 deduction  Casualty losses: Restoring damaged property Depreciation  Nontaxable corporate distributions Legal fees:  Cost of defending and perfecting a title   Zoning costs   Decreases to Basis The following are some items that reduce the basis of property. I need 2011 tax software Section 179 deduction; Nontaxable corporate distributions; Deductions previously allowed (or allowable) for amortization, depreciation, and depletion; Exclusion of subsidies for energy conservation measures; Vehicle credits; Residential energy credits; Postponed gain from sale of home; Investment credit (part or all) taken; Casualty and theft losses and insurance reimbursement; Certain canceled debt excluded from income; Rebates from a manufacturer or seller; Easements; Gas-guzzler tax; Adoption tax benefits; and Credit for employer-provided child care. I need 2011 tax software Some of these items are discussed next. I need 2011 tax software Casualties and Thefts If you have a casualty or theft loss, decrease the basis in your property by any insurance or other reimbursement and by any deductible loss not covered by insurance. I need 2011 tax software You must increase your basis in the property by the amount you spend on repairs that substantially prolong the life of the property, increase its value, or adapt it to a different use. I need 2011 tax software To make this determination, compare the repaired property to the property before the casualty. I need 2011 tax software For more information on casualty and theft losses, see Publication 547, Casualties, Disasters, and Thefts. I need 2011 tax software Easements The amount you receive for granting an easement is generally considered to be a sale of an interest in real property. I need 2011 tax software It reduces the basis of the affected part of the property. I need 2011 tax software If the amount received is more than the basis of the part of the property affected by the easement, reduce your basis in that part to zero and treat the excess as a recognized gain. I need 2011 tax software Vehicle Credits Unless you elect not to claim the qualified plug-in electric vehicle credit, the alternative motor vehicle credit, or the qualified plug-in electric drive motor vehicle credit, you may have to reduce the basis of each qualified vehicle by certain amounts reported. I need 2011 tax software For more information, see Form 8834, Qualified Plug-in Electric and Electric Vehicle Credit; Form 8910, Alternative Motor Vehicle Credit; Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit;and the related instructions. I need 2011 tax software Gas-Guzzler Tax Decrease the basis in your car by the gas-guzzler (fuel economy) tax if you begin using the car within 1 year of the date of its first sale for ultimate use. I need 2011 tax software This rule also applies to someone who later buys the car and begins using it not more than 1 year after the original sale for ultimate use. I need 2011 tax software If the car is imported, the one-year period begins on the date of entry or withdrawal of the car from the warehouse if that date is later than the date of the first sale for ultimate use. I need 2011 tax software Section 179 Deduction If you take the section 179 deduction for all or part of the cost of qualifying business property, decrease the basis of the property by the deduction. I need 2011 tax software For more information about the section 179 deduction, see Publication 946. I need 2011 tax software Exclusion of Subsidies for Energy Conservation Measures You can exclude from gross income any subsidy you received from a public utility company for the purchase or installation of any energy conservation measure for a dwelling unit. I need 2011 tax software Reduce the basis of the property for which you received the subsidy by the excluded amount. I need 2011 tax software For more information on this subsidy, see Publication 525. I need 2011 tax software Depreciation Decrease the basis of property by the depreciation you deducted, or could have deducted, on your tax returns under the method of depreciation you chose. I need 2011 tax software If you took less depreciation than you could have under the method chosen, decrease the basis by the amount you could have taken under that method. I need 2011 tax software If you did not take a depreciation deduction, reduce the basis by the full amount of the depreciation you could have taken. I need 2011 tax software Unless a timely election is made not to deduct the special depreciation allowance for property placed in service after September 10, 2001, decrease the property's basis by the special depreciation allowance you deducted or could have deducted. I need 2011 tax software If you deducted more depreciation than you should have, decrease your basis by the amount equal to the depreciation you should have deducted plus the part of the excess depreciation you deducted that actually reduced your tax liability for the year. I need 2011 tax software In decreasing your basis for depreciation, take into account the amount deducted on your tax returns as depreciation and any depreciation capitalized under the uniform capitalization rules. I need 2011 tax software For information on figuring depreciation, see Publication 946. I need 2011 tax software If you are claiming depreciation on a business vehicle, see Publication 463. I need 2011 tax software If the car is not used more than 50% for business during the tax year, you may have to recapture excess depreciation. I need 2011 tax software Include the excess depreciation in your gross income and add it to your basis in the property. I need 2011 tax software For information on the computation of excess depreciation, see chapter 4 in Publication 463. I need 2011 tax software Canceled Debt Excluded From Income If a debt you owe is canceled or forgiven, other than as a gift or bequest, you generally must include the canceled amount in your gross income for tax purposes. I need 2011 tax software A debt includes any indebtedness for which you are liable or which attaches to property you hold. I need 2011 tax software You can exclude canceled debt from income in the following situations. I need 2011 tax software Debt canceled in a bankruptcy case or when you are insolvent, Qualified farm debt, and Qualified real property business debt (provided you are not a C corporation). I need 2011 tax software If you exclude from income canceled debt under situation (1) or (2), you may have to reduce the basis of your depreciable and nondepreciable property. I need 2011 tax software However, in situation (3), you must reduce the basis of your depreciable property by the excluded amount. I need 2011 tax software For more information about canceled debt in a bankruptcy case or during insolvency, see Publication 908, Bankruptcy Tax Guide. I need 2011 tax software For more information about canceled debt that is qualified farm debt, see chapter 3 in Publication 225. I need 2011 tax software For more information about qualified real property business debt, see chapter 5 in Publication 334, Tax Guide for Small Business. I need 2011 tax software Postponed Gain From Sale of Home If you postponed gain from the sale of your main home before May 7, 1997, you must reduce the basis of your new home by the postponed gain. I need 2011 tax software For more information on the rules for the sale of a home, see Publication 523. I need 2011 tax software Adoption Tax Benefits If you claim an adoption credit for the cost of improvements you added to the basis of your home, decrease the basis of your home by the credit allowed. I need 2011 tax software This also applies to amounts you received under an employer's adoption assistance program and excluded from income. I need 2011 tax software For more information Form 8839, Qualified Adoption Expenses. I need 2011 tax software Employer-Provided Child Care If you are an employer, you can claim the employer-provided child care credit on amounts you paid or incurred to acquire, construct, rehabilitate, or expand property used as part of your qualified child care facility. I need 2011 tax software You must reduce your basis in that property by the credit claimed. I need 2011 tax software For more information, see Form 8882, Credit for Employer-Provided Child Care Facilities and Services. I need 2011 tax software Adjustments to Basis Example In January 2005, you paid $80,000 for real property to be used as a factory. I need 2011 tax software You also paid commissions of $2,000 and title search and legal fees of $600. I need 2011 tax software You allocated the total cost of $82,600 between the land and the building—$10,325 for the land and $72,275 for the building. I need 2011 tax software Immediately you spent $20,000 in remodeling the building before you placed it in service. I need 2011 tax software You were allowed depreciation of $14,526 for the years 2005 through 2009. I need 2011 tax software In 2008 you had a $5,000 casualty loss from a that was not covered by insurance on the building. I need 2011 tax software You claimed a deduction for this loss. I need 2011 tax software You spent $5,500 to repair the damages and extend the useful life of the building. I need 2011 tax software The adjusted basis of the building on January 1, 2010, is figured as follows: Original cost of building including fees and commissions $72,275 Adjustments to basis:     Add:         Improvements 20,000   Repair of damages 5,500       $97,775 Subtract:       Depreciation $14,526     Deducted casualty loss 5,000 19,526 Adjusted basis on January 1, 2010 $78,249 The basis of the land, $10,325, remains unchanged. I need 2011 tax software It is not affected by any of the above adjustments. I need 2011 tax software Basis Other Than Cost There are many times when you cannot use cost as basis. I need 2011 tax software In these cases, the fair market value or the adjusted basis of property may be used. I need 2011 tax software Adjusted basis is discussed earlier. I need 2011 tax software Fair market value (FMV). I need 2011 tax software   FMV is the price at which property would change hands between a buyer and a seller, neither having to buy or sell, and both having reasonable knowledge of all necessary facts. I need 2011 tax software Sales of similar property on or about the same date may be helpful in figuring the property's FMV. I need 2011 tax software Property Received for Services If you receive property for services, include the property's FMV in income. I need 2011 tax software The amount you include in income becomes your basis. I need 2011 tax software If the services were performed for a price agreed on beforehand, it will be accepted as the FMV of the property if there is no evidence to the contrary. I need 2011 tax software Bargain Purchases A bargain purchase is a purchase of an item for less than its FMV. I need 2011 tax software If, as compensation for services, you purchase goods or other property at less than FMV, include the difference between the purchase price and the property's FMV in your income. I need 2011 tax software Your basis in the property is its FMV (your purchase price plus the amount you include in income). I need 2011 tax software If the difference between your purchase price and the FMV represents a qualified employee discount, do not include the difference in income. I need 2011 tax software However, your basis in the property is still its FMV. I need 2011 tax software See Employee Discounts in Publication 15-B. I need 2011 tax software Restricted Property If you receive property for your services and the property is subject to certain restrictions, your basis in the property is its FMV when it becomes substantially vested unless you make the election discussed later. I need 2011 tax software Property becomes substantially vested when your rights in the property or the rights of any person to whom you transfer the property are not subject to a substantial risk of forfeiture. I need 2011 tax software There is substantial risk of forfeiture when the rights to full enjoyment of the property depend on the future performance of substantial services by any person. I need 2011 tax software When the property becomes substantially vested, include the FMV, less any amount you paid for the property, in income. I need 2011 tax software Example. I need 2011 tax software Your employer gives you stock for services performed under the condition that you will have to return the stock unless you complete 5 years of service. I need 2011 tax software The stock is under a substantial risk of forfeiture and is not substantially vested when you receive it. I need 2011 tax software You do not report any income until you have completed the 5 years of service that satisfy the condition. I need 2011 tax software Fair market value. I need 2011 tax software   Figure the FMV of property you received without considering any restriction except one that by its terms will never end. I need 2011 tax software Example. I need 2011 tax software You received stock from your employer for services you performed. I need 2011 tax software If you want to sell the stock while you are still employed, you must sell the stock to your employer at book value. I need 2011 tax software At your retirement or death, you or your estate must offer to sell the stock to your employer at its book value. I need 2011 tax software This is a restriction that by its terms will never end and you must consider it when you figure the FMV. I need 2011 tax software Election. I need 2011 tax software   You can choose to include in your gross income the FMV of the property at the time of transfer, less any amount you paid for it. I need 2011 tax software If you make this choice, the substantially vested rules do not apply. I need 2011 tax software Your basis is the amount you paid plus the amount you included in income. I need 2011 tax software   See the discussion of Restricted Property in Publication 525 for more information. I need 2011 tax software Taxable Exchanges A taxable exchange is one in which the gain is taxable or the loss is deductible. I need 2011 tax software A taxable gain or deductible loss is also known as a recognized gain or loss. I need 2011 tax software If you receive property in exchange for other property in a taxable exchange, the basis of property you receive is usually its FMV at the time of the exchange. I need 2011 tax software A taxable exchange occurs when you receive cash or property not similar or related in use to the property exchanged. I need 2011 tax software Example. I need 2011 tax software You trade a tract of farm land with an adjusted basis of $3,000 for a tractor that has an FMV of $6,000. I need 2011 tax software You must report a taxable gain of $3,000 for the land. I need 2011 tax software The tractor has a basis of $6,000. I need 2011 tax software Involuntary Conversions If you receive property as a result of an involuntary conversion, such as a casualty, theft, or condemnation, you can figure the basis of the replacement property you receive using the basis of the converted property. I need 2011 tax software Similar or related property. I need 2011 tax software   If you receive replacement property similar or related in service or use to the converted property, the replacement property's basis is the old property's basis on the date of the conversion. I need 2011 tax software However, make the following adjustments. I need 2011 tax software Decrease the basis by the following. I need 2011 tax software Any loss you recognize on the conversion, and Any money you receive that you do not spend on similar property. I need 2011 tax software Increase the basis by the following. I need 2011 tax software Any gain you recognize on the conversion, and Any cost of acquiring the replacement property. I need 2011 tax software Money or property not similar or related. I need 2011 tax software   If you receive money or property not similar or related in service or use to the converted property, and you buy replacement property similar or related in service or use to the converted property, the basis of the new property is its cost decreased by the gain not recognized on the conversion. I need 2011 tax software Example. I need 2011 tax software The state condemned your property. I need 2011 tax software The property had an adjusted basis of $26,000 and the state paid you $31,000 for it. I need 2011 tax software You realized a gain of $5,000 ($31,000 − $26,000). I need 2011 tax software You bought replacement property similar in use to the converted property for $29,000. I need 2011 tax software You recognize a gain of $2,000 ($31,000 − $29,000), the unspent part of the payment from the state. I need 2011 tax software Your gain not recognized is $3,000, the difference between the $5,000 realized gain and the $2,000 recognized gain. I need 2011 tax software The basis of the new property is figured as follows: Cost of replacement property $29,000 Minus: Gain not recognized 3,000 Basis of the replacement property $26,000 Allocating the basis. I need 2011 tax software   If you buy more than one piece of replacement property, allocate your basis among the properties based on their respective costs. I need 2011 tax software Example. I need 2011 tax software The state in the previous example condemned your unimproved real property and the replacement property you bought was improved real property with both land and buildings. I need 2011 tax software Allocate the replacement property's $26,000 basis between land and buildings based on their respective costs. I need 2011 tax software More information. I need 2011 tax software   For more information about condemnations, see Involuntary Conversions in Publication 544. I need 2011 tax software For more information about casualty and theft losses, see Publication 547. I need 2011 tax software Nontaxable Exchanges A nontaxable exchange is an exchange in which you are not taxed on any gain and you cannot deduct any loss. I need 2011 tax software If you receive property in a nontaxable exchange, its basis is usually the same as the basis of the property you transferred. I need 2011 tax software A nontaxable gain or loss is also known as an unrecognized gain or loss. I need 2011 tax software Like-Kind Exchanges The exchange of property for the same kind of property is the most common type of nontaxable exchange. I need 2011 tax software To qualify as a like-kind exchange, you must hold for business or investment purposes both the property you transfer and the property you receive. I need 2011 tax software There must also be an exchange of like-kind property. I need 2011 tax software For more information, see Like-Kind Exchanges in Publication 544. I need 2011 tax software The basis of the property you receive is the same as the basis of the property you gave up. I need 2011 tax software Example. I need 2011 tax software You exchange real estate (adjusted basis $50,000, FMV $80,000) held for investment for other real estate (FMV $80,000) held for investment. I need 2011 tax software Your basis in the new property is the same as the basis of the old ($50,000). I need 2011 tax software Exchange expenses. I need 2011 tax software   Exchange expenses are generally the closing costs you pay. I need 2011 tax software They include such items as brokerage commissions, attorney fees, deed preparation fees, etc. I need 2011 tax software Add them to the basis of the like-kind property received. I need 2011 tax software Property plus cash. I need 2011 tax software   If you trade property in a like-kind exchange and also pay money, the basis of the property received is the basis of the property you gave up increased by the money you paid. I need 2011 tax software Example. I need 2011 tax software You trade in a truck (adjusted basis $3,000) for another truck (FMV $7,500) and pay $4,000. I need 2011 tax software Your basis in the new truck is $7,000 (the $3,000 basis of the old truck plus the $4,000 paid). I need 2011 tax software Special rules for related persons. I need 2011 tax software   If a like-kind exchange takes place directly or indirectly between related persons and either party disposes of the property within 2 years after the exchange, the exchange no longer qualifies for like-kind exchange treatment. I need 2011 tax software Each person must report any gain or loss not recognized on the original exchange. I need 2011 tax software Each person reports it on the tax return filed for the year in which the later disposition occurs. I need 2011 tax software If this rule applies, the basis of the property received in the original exchange will be its fair market value. I need 2011 tax software   These rules generally do not apply to the following kinds of property dispositions. I need 2011 tax software Dispositions due to the death of either related person, Involuntary conversions, and Dispositions in which neither the original exchange nor the subsequent disposition had as a main purpose the avoidance of federal income tax. I need 2011 tax software Related persons. I need 2011 tax software   Generally, related persons are ancestors, lineal descendants, brothers and sisters (whole or half), and a spouse. I need 2011 tax software   For other related persons (for example, two corporations, an individual and a corporation, a grantor and fiduciary, etc. I need 2011 tax software ), see Nondeductible Loss in chapter 2 of Publication 544. I need 2011 tax software Exchange of business property. I need 2011 tax software   Exchanging the assets of one business for the assets of another business is a multiple property exchange. I need 2011 tax software For information on figuring basis, see Multiple Property Exchanges in chapter 1 of Publication 544. I need 2011 tax software Partially Nontaxable Exchange A partially nontaxable exchange is an exchange in which you receive unlike property or money in addition to like property. I need 2011 tax software The basis of the property you receive is the same as the basis of the property you gave up, with the following adjustments. I need 2011 tax software Decrease the basis by the following amounts. I need 2011 tax software Any money you receive, and Any loss you recognize on the exchange. I need 2011 tax software Increase the basis by the following amounts. I need 2011 tax software Any additional costs you incur, and Any gain you recognize on the exchange. I need 2011 tax software If the other party to the exchange assumes your liabilities, treat the debt assumption as money you received in the exchange. I need 2011 tax software Example. I need 2011 tax software You traded a truck (adjusted basis $6,000) for a new truck (FMV $5,200) and $1,000 cash. I need 2011 tax software You realized a gain of $200 ($6,200 − $6,000). I need 2011 tax software This is the FMV of the truck received plus the cash minus the adjusted basis of the truck you traded ($5,200 + $1,000 – $6,000). I need 2011 tax software You include all the gain in income (recognized gain) because the gain is less than the cash received. I need 2011 tax software Your basis in the new truck is: Adjusted basis of old truck $6,000 Minus: Cash received (adjustment 1(a)) 1,000   $5,000 Plus: Gain recognized (adjustment 2(b)) 200 Basis of new truck $5,200 Allocation of basis. I need 2011 tax software   Allocate the basis first to the unlike property, other than money, up to its FMV on the date of the exchange. I need 2011 tax software The rest is the basis of the like property. I need 2011 tax software Example. I need 2011 tax software You had an adjusted basis of $15,000 in real estate you held for investment. I need 2011 tax software You exchanged it for other real estate to be held for investment with an FMV of $12,500, a truck with an FMV of $3,000, and $1,000 cash. I need 2011 tax software The truck is unlike property. I need 2011 tax software You realized a gain of $1,500 ($16,500 − $15,000). I need 2011 tax software This is the FMV of the real estate received plus the FMV of the truck received plus the cash minus the adjusted basis of the real estate you traded ($12,500 + $3,000 + $1,000 – $15,000). I need 2011 tax software You include in income (recognize) all $1,500 of the gain because it is less than the FMV of the unlike property plus the cash received. I need 2011 tax software Your basis in the properties you received is figured as follows. I need 2011 tax software Adjusted basis of real estate transferred $15,000 Minus: Cash received (adjustment 1(a)) 1,000   $14,000 Plus: Gain recognized (adjustment 2(b)) 1,500 Total basis of properties received $15,500 Allocate the total basis of $15,500 first to the unlike property — the truck ($3,000). I need 2011 tax software This is the truck's FMV. I need 2011 tax software The rest ($12,500) is the basis of the real estate. I need 2011 tax software Sale and Purchase If you sell property and buy similar property in two mutually dependent transactions, you may have to treat the sale and purchase as a single nontaxable exchange. I need 2011 tax software Example. I need 2011 tax software You are a salesperson and you use one of your cars 100% for business. I need 2011 tax software You have used this car in your sales activities for 2 years and have depreciated it. I need 2011 tax software Your adjusted basis in the car is $22,600 and its FMV is $23,100. I need 2011 tax software You are interested in a new car, which sells for $28,000. I need 2011 tax software If you trade your old car and pay $4,900 for the new one, your basis for depreciation for the new car would be $27,500 ($4,900 plus the $22,600 basis of your old car). I need 2011 tax software However, you want a higher basis for depreciating the new car, so you agree to pay the dealer $28,000 for the new car if he will pay you $23,100 for your old car. I need 2011 tax software Because the two transactions are dependent on each other, you are treated as having exchanged your old car for the new one and paid $4,900 ($28,000 − $23,100). I need 2011 tax software Your basis for depreciating the new car is $27,500, the same as if you traded the old car. I need 2011 tax software Partial Business Use of Property If you have property used partly for business and partly for personal use, and you exchange it in a nontaxable exchange for property to be used wholly or partly in your business, the basis of the property you receive is figured as if you had exchanged two properties. I need 2011 tax software The first is an exchange of like-kind property. I need 2011 tax software The second is personal-use property on which gain is recognized and loss is not recognized. I need 2011 tax software First, figure your adjusted basis in the property as if you transferred two separate properties. I need 2011 tax software Figure the adjusted basis of each part of the property by taking into account any adjustments to basis. I need 2011 tax software Deduct the depreciation you took or could have taken from the adjusted basis of the business part. I need 2011 tax software Then figure the amount realized for your property and allocate it to the business and nonbusiness parts of the property. I need 2011 tax software The business part of the property is permitted to be exchanged tax free. I need 2011 tax software However, you must recognize any gain from the exchange of the nonbusiness part. I need 2011 tax software You are deemed to have received, in exchange for the nonbusiness part, an amount equal to its FMV on the date of the exchange. I need 2011 tax software The basis of the property you acquired is the total basis of the property transferred (adjusted to the date of the exchange), increased by any gain recognized on the nonbusiness part. I need 2011 tax software If the nonbusiness part of the property transferred is your main home, you may qualify to exclude from income all or part of the gain on that part. I need 2011 tax software For more information, see Publication 523. I need 2011 tax software Trade of car used partly in business. I need 2011 tax software   If you trade in a car you used partly in your business for another car you will use in your business, your basis for depreciation of the new car is not the same as your basis for figuring a gain or loss on its sale. I need 2011 tax software   For information on figuring your basis for depreciation, see Publication 463. I need 2011 tax software Property Transferred From a Spouse The basis of property transferred to you or transferred in trust for your benefit by your spouse (or former spouse if the transfer is incident to divorce), is the same as your spouse's adjusted basis. I need 2011 tax software However, adjust your basis for any gain recognized by your spouse or former spouse on property transferred in trust. I need 2011 tax software This rule applies only to a transfer of property in trust in which the liabilities assumed, plus the liabilities to which the property is subject, are more than the adjusted basis of the property transferred. I need 2011 tax software If the property transferred to you is a series E, series EE, or series I United States savings bond, the transferor must include in income the interest accrued to the date of transfer. I need 2011 tax software Your basis in the bond immediately after the transfer is equal to the transferor's basis increased by the interest income includible in the transferor's income. I need 2011 tax software For more information on these bonds, see Publication 550. I need 2011 tax software At the time of the transfer, the transferor must give you the records necessary to determine the adjusted basis and holding period of the property as of the date of transfer. I need 2011 tax software For more information, see Publication 504, Divorced or Separated Individuals. I need 2011 tax software Property Received as a Gift To figure the basis of property you receive as a gift, you must know its adjusted basis (defined earlier) to the donor just before it was given to you, its FMV at the time it was given to you, and any gift tax paid on it. I need 2011 tax software FMV Less Than Donor's Adjusted Basis If the FMV of the property at the time of the gift is less than the donor's adjusted basis, your basis depends on whether you have a gain or a loss when you dispose of the property. I need 2011 tax software Your basis for figuring gain is the same as the donor's adjusted basis plus or minus any required adjustment to basis while you held the property. I need 2011 tax software Your basis for figuring loss is its FMV when you received the gift plus or minus any required adjustment to basis while you held the property (see Adjusted Basis earlier). I need 2011 tax software If you use the donor's adjusted basis for figuring a gain and get a loss, and then use the FMV for figuring a loss and have a gain, you have neither gain nor loss on the sale or disposition of the property. I need 2011 tax software Example. I need 2011 tax software You received an acre of land as a gift. I need 2011 tax software At the time of the gift, the land had an FMV of $8,000. I need 2011 tax software The donor's adjusted basis was $10,000. I need 2011 tax software After you received the land, no events occurred to increase or decrease your basis. I need 2011 tax software If you sell the land for $12,000, you will have a $2,000 gain because you must use the donor's adjusted basis ($10,000) at the time of the gift as your basis to figure gain. I need 2011 tax software If you sell the land for $7,000, you will have a $1,000 loss because you must use the FMV ($8,000) at the time of the gift as your basis to figure a loss. I need 2011 tax software If the sales price is between $8,000 and $10,000, you have neither gain nor loss. I need 2011 tax software For instance, if the sales price was $9,000 and you tried to figure a gain using the donor's adjusted basis ($10,000), you would get a $1,000 loss. I need 2011 tax software If you then tried to figure a loss using the FMV ($8,000), you would get a $1,000 gain. I need 2011 tax software Business property. I need 2011 tax software   If you hold the gift as business property, your basis for figuring any depreciation, depletion, or amortization deduction is the same as the donor's adjusted basis plus or minus any required adjustments to basis while you hold the property. I need 2011 tax software FMV Equal to or More Than Donor's Adjusted Basis If the FMV of the property is equal to or greater than the donor's adjusted basis, your basis is the donor's adjusted basis at the time you received the gift. I need 2011 tax software Increase your basis by all or part of any gift tax paid, depending on the date of the gift. I need 2011 tax software Also, for figuring gain or loss from a sale or other disposition of the property, or for figuring depreciation, depletion, or amortization deductions on business property, you must increase or decrease your basis by any required adjustments to basis while you held the property. I need 2011 tax software See Adjusted Basis earlier. I need 2011 tax software Gift received before 1977. I need 2011 tax software   If you received a gift before 1977, increase your basis in the gift (the donor's adjusted basis) by any gift tax paid on it. I need 2011 tax software However, do not increase your basis above the FMV of the gift at the time it was given to you. I need 2011 tax software Example 1. I need 2011 tax software You were given a house in 1976 with an FMV of $21,000. I need 2011 tax software The donor's adjusted basis was $20,000. I need 2011 tax software The donor paid a gift tax of $500. I need 2011 tax software Your basis is $20,500, the donor's adjusted basis plus the gift tax paid. I need 2011 tax software Example 2. I need 2011 tax software If, in Example 1, the gift tax paid had been $1,500, your basis would be $21,000. I need 2011 tax software This is the donor's adjusted basis plus the gift tax paid, limited to the FMV of the house at the time you received the gift. I need 2011 tax software Gift received after 1976. I need 2011 tax software   If you received a gift after 1976, increase your basis in the gift (the donor's adjusted basis) by the part of the gift tax paid on it that is due to the net increase in value of the gift. I need 2011 tax software Figure the increase by multiplying the gift tax paid by a fraction. I need 2011 tax software The numerator of the fraction is the net increase in value of the gift and the denominator is the amount of the gift. I need 2011 tax software   The net increase in value of the gift is the FMV of the gift less the donor's adjusted basis. I need 2011 tax software The amount of the gift is its value for gift tax purposes after reduction by any annual exclusion and marital or charitable deduction that applies to the gift. I need 2011 tax software For information on the gift tax, see Publication 950, Introduction to Estate and Gift Taxes. I need 2011 tax software Example. I need 2011 tax software In 2010, you received a gift of property from your mother that had an FMV of $50,000. I need 2011 tax software Her adjusted basis was $20,000. I need 2011 tax software The amount of the gift for gift tax purposes was $37,000 ($50,000 minus the $13,000 annual exclusion). I need 2011 tax software She paid a gift tax of $9,000. I need 2011 tax software Your basis, $27,290, is figured as follows: Fair market value $50,000 Minus: Adjusted basis 20,000 Net increase in value $30,000 Gift tax paid $9,000 Multiplied by ($30,000 ÷ $37,000) . I need 2011 tax software 81 Gift tax due to net increase in value $7,290 Adjusted basis of property to your mother 20,000 Your basis in the property $27,290 Inherited Property Special rules apply to property acquired from a decedent who died in 2010. I need 2011 tax software See Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, for details. I need 2011 tax software If you inherited property from a decedent who died before 2010, your basis in property you inherit from a decedent is generally one of the following. I need 2011 tax software The FMV of the property at the date of the individual's death. I need 2011 tax software The FMV on the alternate valuation date if the personal representative for the estate chooses to use alternate valuation. I need 2011 tax software For information on the alternate valuation date, see the Instructions for Form 706. I need 2011 tax software The value under the special-use valuation method for real property used in farming or a closely held business if chosen for estate tax purposes. I need 2011 tax software This method is discussed later. I need 2011 tax software The decedent's adjusted basis in land to the extent of the value excluded from the decedent's taxable estate as a qualified conservation easement. I need 2011 tax software For information on a qualified conservation easement, see the Instructions for Form 706. I need 2011 tax software If a federal estate tax return does not have to be filed, your basis in the inherited property is its appraised value at the date of death for state inheritance or transmission taxes. I need 2011 tax software For more information, see the Instructions for Form 706. I need 2011 tax software Appreciated property. I need 2011 tax software   The above rule does not apply to appreciated property you receive from a decedent if you or your spouse originally gave the property to the decedent within 1 year before the decedent's death. I need 2011 tax software Your basis in this property is the same as the decedent's adjusted basis in the property immediately before his or her death, rather than its FMV. I need 2011 tax software Appreciated property is any property whose FMV on the day it was given to the decedent is more than its adjusted basis. I need 2011 tax software Community Property In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), husband and wife are each usually considered to own half the community property. I need 2011 tax software When either spouse dies, the total value of the community property, even the part belonging to the surviving spouse, generally becomes the basis of the entire property. I need 2011 tax software For this rule to apply, at least half the value of the community property interest must be includable in the decedent's gross estate, whether or not the estate must file a return. I need 2011 tax software For example, you and your spouse owned community property that had a basis of $80,000. I need 2011 tax software When your spouse died, half the FMV of the community interest was includible in your spouse's estate. I need 2011 tax software The FMV of the community interest was $100,000. I need 2011 tax software The basis of your half of the property after the death of your spouse is $50,000 (half of the $100,000 FMV). I need 2011 tax software The basis of the other half to your spouse's heirs is also $50,000. I need 2011 tax software For more information on community property, see Publication 555, Community Property. I need 2011 tax software Property Held by Surviving Tenant The following example explains the rule for the basis of property held by a surviving tenant in joint tenancy or tenancy by the entirety. I need 2011 tax software Example. I need 2011 tax software John and Jim owned, as joint tenants with right of survivorship, business property they purchased for $30,000. I need 2011 tax software John furnished two-thirds of the purchase price and Jim furnished one-third. I need 2011 tax software Depreciation deductions allowed before John's death were $12,000. I need 2011 tax software Under local law, each had a half interest in the income from the property. I need 2011 tax software At the date of John's death, the property had an FMV of $60,000, two-thirds of which is includable in John's estate. I need 2011 tax software Jim figures his basis in the property at the date of John's death as follows: Interest Jim bought with his own funds—1/3 of $30,000 cost $10,000   Interest Jim received on John's death—2/3 of $60,000 FMV 40,000 $50,000 Minus: ½ of $12,000 depreciation before John's death 6,000 Jim's basis at the date of John's death $44,000 If Jim had not contributed any part of the purchase price, his basis at the date of John's death would be $54,000. I need 2011 tax software This is figured by subtracting from the $60,000 FMV, the $6,000 depreciation allocated to Jim's half interest before the date of death. I need 2011 tax software If under local law Jim had no interest in the income from the property and he contributed no part of the purchase price, his basis at John's death would be $60,000, the FMV of the property. I need 2011 tax software Qualified Joint Interest Include one-half of the value of a qualified joint interest in the decedent's gross estate. I need 2011 tax software It does not matter how much each spouse contributed to the purchase price. I need 2011 tax software Also, it does not matter which spouse dies first. I need 2011 tax software A qualified joint interest is any interest in property held by husband and wife as either of the following. I need 2011 tax software Tenants by the entirety, or Joint tenants with right of survivorship if husband and wife are the only joint tenants. I need 2011 tax software Basis. I need 2011 tax software   As the surviving spouse, your basis in property you owned with your spouse as a qualified joint interest is the cost of your half of the property with certain adjustments. I need 2011 tax software Decrease the cost by any deductions allowed to you for depreciation and depletion. I need 2011 tax software Increase the reduced cost by your basis in the half you inherited. I need 2011 tax software Farm or Closely Held Business Under certain conditions, when a person dies the executor or personal representative of that person's estate can choose to value the qualified real property on other than its FMV. I need 2011 tax software If so, the executor or personal representative values the qualified real property based on its use as a farm or its use in a closely held business. I need 2011 tax software If the executor or personal representative chooses this method of valuation for estate tax purposes, that value is the basis of the property for the heirs. I need 2011 tax software Qualified heirs should be able to get the necessary value from the executor or personal representative of the estate. I need 2011 tax software Special-use valuation. I need 2011 tax software   If you are a qualified heir who received special-use valuation property, your basis in the property is the estate's or trust's basis in that property immediately before the distribution. I need 2011 tax software Increase your basis by any gain recognized by the estate or trust because of post-death appreciation. I need 2011 tax software Post-death appreciation is the property's FMV on the date of distribution minus the property's FMV either on the date of the individual's death or the alternate valuation date. I need 2011 tax software Figure all FMVs without regard to the special-use valuation. I need 2011 tax software   You can elect to increase your basis in special-use valuation property if it becomes subject to the additional estate tax. I need 2011 tax software This tax is assessed if, within 10 years after the death of the decedent, you transfer the property to a person who is not a member of your family or the property stops being used as a farm or in a closely held business. I need 2011 tax software   To increase your basis in the property, you must make an irrevocable election and pay interest on the additional estate tax figured from the date 9 months after the decedent's death until the date of the payment of the additional estate tax. I need 2011 tax software If you meet these requirements, increase your basis in the property to its FMV on the date of the decedent's death or the alternate valuation date. I need 2011 tax software The increase in your basis is considered to have occurred immediately before the event that results in the additional estate tax. I need 2011 tax software   You make the election by filing with Form 706-A a statement that does all of the following. I need 2011 tax software Contains your name, address, and taxpayer identification number and those of the estate; Identifies the election as an election under section 1016(c) of the Internal Revenue Code; Specifies the property for which the election is made; and Provides any additional information required by the Instructions for Form 706-A. I need 2011 tax software   For more information, see the Instructions for Form 706 and the Instructions for Form 706-A. I need 2011 tax software Property Changed to Business or Rental Use If you hold property for personal use and then change it to business use or use it to produce rent, you must figure its basis for depreciation. I need 2011 tax software An example of changing property held for personal use to business use would be renting out your former main home. I need 2011 tax software Basis for depreciation. I need 2011 tax software   The basis for depreciation is the lesser of the following amounts. I need 2011 tax software The FMV of the property on the date of the change, or Your adjusted basis on the date of the change. I need 2011 tax software Example. I need 2011 tax software Several years ago you paid $160,000 to have your home built on a lot that cost $25,000. I need 2011 tax software You paid $20,000 for permanent improvements to the house and claimed a $2,000 casualty loss deduction for damage to the house before changing the property to rental use last year. I need 2011 tax software Because land is not depreciable, you include only the cost of the house when figuring the basis for depreciation. I need 2011 tax software Your adjusted basis in the house when you changed its use was $178,000 ($160,000 + $20,000 − $2,000). I need 2011 tax software On the same date, your property had an FMV of $180,000, of which $15,000 was for the land and $165,000 was for the house. I need 2011 tax software The basis for figuring depreciation on the house is its FMV on the date of change ($165,000) because it is less than your adjusted basis ($178,000). I need 2011 tax software Sale of property. I need 2011 tax software   If you later sell or dispose of property changed to business or rental use, the basis of the property you use will depend on whether you are figuring gain or loss. I need 2011 tax software Gain. I need 2011 tax software   The basis for figuring a gain is your adjusted basis when you sell the property. I need 2011 tax software Example. I need 2011 tax software Assume the same facts as in the previous example except that you sell the property at a gain after being allowed depreciation deductions of $37,500. I need 2011 tax software Your adjusted basis for figuring gain is $165,500 ($178,000 + $25,000 (land) − $37,500). I need 2011 tax software Loss. I need 2011 tax software   Figure the basis for a loss starting with the smaller of your adjusted basis or the FMV of the property at the time of the change to business or rental use. I need 2011 tax software Then adjust this amount for the period after the change in the property's use, as discussed earlier under Adjusted Basis, to arrive at a basis for loss. I need 2011 tax software Example. I need 2011 tax software Assume the same facts as in the previous example, except that you sell the property at a loss after being allowed depreciation deductions of $37,500. I need 2011 tax software In this case, you would start with the FMV on the date of the change to rental use ($180,000) because it is less than the adjusted basis of $203,000 ($178,000 + $25,000) on that date. I need 2011 tax software Reduce that amount ($180,000) by the depreciation deductions to arrive at a basis for loss of $142,500 ($180,000 − $37,500). I need 2011 tax software How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. I need 2011 tax software By selecting the method that is best for you, you will have quick and easy access to tax help. I need 2011 tax software Contacting your Taxpayer Advocate. I need 2011 tax software   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS. I need 2011 tax software We help taxpayers who are experiencing economic harm, such as not being able to provide necessities like housing, transportation, or food; taxpayers who are seeking help in resolving tax problems with the IRS; and those who believe that an IRS system or procedure is not working as it should. I need 2011 tax software Here are seven things every taxpayer should know about TAS. I need 2011 tax software TAS is your voice at the IRS. 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