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Organizations that Provide Services to Consumers with Disabilities

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The U.S. Department of Education's Office of Special Education and Rehabilitative Services (OSERS) provides training and information to parents of disabled children and to people who work with them.

The U.S. Department of Housing and Urban Development's (HUD) Office of Fair Housing and Equal Opportunity offers resources and answers questions about the housing rights of people with disabilities, and the responsibilities of housing providers and building and design professionals according to the federal law.

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The Irs 1040ez

Irs 1040ez 2. Irs 1040ez   Source of Income Table of Contents Introduction Topics - This chapter discusses: Resident Aliens Nonresident AliensInterest Income Dividends Guarantee of Indebtedness Personal Services Transportation Income Scholarships, Grants, Prizes, and Awards Pensions and Annuities Rents or Royalties Real Property Personal Property Community Income Introduction After you have determined your alien status, you must determine the source of your income. Irs 1040ez This chapter will help you determine the source of different types of income you may receive during the tax year. Irs 1040ez This chapter also discusses special rules for married individuals who are domiciled in a country with community property laws. Irs 1040ez Topics - This chapter discusses: Income source rules, and Community income. Irs 1040ez Resident Aliens A resident alien's income is generally subject to tax in the same manner as a U. Irs 1040ez S. Irs 1040ez citizen. Irs 1040ez If you are a resident alien, you must report all interest, dividends, wages, or other compensation for services, income from rental property or royalties, and other types of income on your U. Irs 1040ez S. Irs 1040ez tax return. Irs 1040ez You must report these amounts from sources within and outside the United States. Irs 1040ez Nonresident Aliens A nonresident alien usually is subject to U. Irs 1040ez S. Irs 1040ez income tax only on U. Irs 1040ez S. Irs 1040ez source income. Irs 1040ez Under limited circumstances, certain foreign source income is subject to U. Irs 1040ez S. Irs 1040ez tax. Irs 1040ez See Foreign Income in chapter 4. Irs 1040ez The general rules for determining U. Irs 1040ez S. Irs 1040ez source income that apply to most nonresident aliens are shown in Table 2-1. Irs 1040ez The following discussions cover the general rules as well as the exceptions to these rules. Irs 1040ez Not all items of U. Irs 1040ez S. Irs 1040ez source income are taxable. Irs 1040ez See chapter 3. Irs 1040ez Interest Income Generally, U. Irs 1040ez S. Irs 1040ez source interest income includes the following items. Irs 1040ez Interest on bonds, notes, or other interest-bearing obligations of U. Irs 1040ez S. Irs 1040ez residents or domestic corporations. Irs 1040ez Interest paid by a domestic or foreign partnership or foreign corporation engaged in a U. Irs 1040ez S. Irs 1040ez trade or business at any time during the tax year. Irs 1040ez Original issue discount. Irs 1040ez Interest from a state, the District of Columbia, or the U. Irs 1040ez S. Irs 1040ez Government. Irs 1040ez The place or manner of payment is immaterial in determining the source of the income. Irs 1040ez A substitute interest payment made to the transferor of a security in a securities lending transaction or a sale-repurchase transaction is sourced in the same manner as the interest on the transferred security. Irs 1040ez Exceptions. Irs 1040ez   U. Irs 1040ez S. Irs 1040ez source interest income does not include the following items. Irs 1040ez Interest paid by a resident alien or a domestic corporation on obligations issued before August 10, 2010, if for the 3-year period ending with the close of the payer's tax year preceding the interest payment, at least 80% of the payer's total gross income: Is from sources outside the United States, and Is attributable to the active conduct of a trade or business by the individual or corporation in a foreign country or a U. Irs 1040ez S. Irs 1040ez possession. Irs 1040ez However, the interest will be considered U. Irs 1040ez S. Irs 1040ez source interest income if either of the following apply. Irs 1040ez The recipient of the interest is related to the resident alien or domestic corporation. Irs 1040ez See section 954(d)(3) for the definition of related person. Irs 1040ez The terms of the obligation are significantly modified after August 9, 2010. Irs 1040ez Any extension of the term of the obligation is considered a significant modification. Irs 1040ez Interest paid by a foreign branch of a domestic corporation or a domestic partnership on deposits or withdrawable accounts with mutual savings banks, cooperative banks, credit unions, domestic building and loan associations, and other savings institutions chartered and supervised as savings and loan or similar associations under federal or state law if the interest paid or credited can be deducted by the association. Irs 1040ez Interest on deposits with a foreign branch of a domestic corporation or domestic partnership, but only if the branch is in the commercial banking business. Irs 1040ez Dividends In most cases, dividend income received from domestic corporations is U. Irs 1040ez S. Irs 1040ez source income. Irs 1040ez Dividend income from foreign corporations is usually foreign source income. Irs 1040ez Exceptions to both of these rules are discussed below. Irs 1040ez A substitute dividend payment made to the transferor of a security in a securities lending transaction or a sale-repurchase transaction is sourced in the same manner as a distribution on the transferred security. Irs 1040ez Dividend equivalent payments. Irs 1040ez   U. Irs 1040ez S. Irs 1040ez source dividends also include all dividend equivalent payments. Irs 1040ez Dividend equivalent payments include substitute dividends, payments made pursuant to a specified notional principal contract, and all similar payments that, directly or indirectly, are contingent on or determined by reference to, the payment of a dividend from U. Irs 1040ez S. Irs 1040ez sources. Irs 1040ez    The Internal Revenue Service has issued final regulations that would affect the treatment of dividend equivalent payments and specified notional principal contracts. Irs 1040ez You can view this regulation at www. Irs 1040ez irs. Irs 1040ez gov/irb/2013-52_IRB/ar08. Irs 1040ez html. Irs 1040ez First exception. Irs 1040ez   Dividends received from a domestic corporation are not U. Irs 1040ez S. Irs 1040ez source income if the corporation elects to take the American Samoa economic development credit. Irs 1040ez Second exception. Irs 1040ez   Part of the dividends received from a foreign corporation is U. Irs 1040ez S. Irs 1040ez source income if 25% or more of its total gross income for the 3-year period ending with the close of its tax year preceding the declaration of dividends was effectively connected with a trade or business in the United States. Irs 1040ez If the corporation was formed less than 3 years before the declaration, use its total gross income from the time it was formed. Irs 1040ez Determine the part that is U. Irs 1040ez S. Irs 1040ez source income by multiplying the dividend by the following fraction. Irs 1040ez   Foreign corporation's gross income connected with a U. Irs 1040ez S. Irs 1040ez trade or business for the 3-year period     Foreign corporation's gross income from all sources for that period   Guarantee of Indebtedness Certain amounts received directly or indirectly, for the provision of a guarantee of indebtedness issued after September 27, 2010, are U. Irs 1040ez S. Irs 1040ez source income. Irs 1040ez They must be paid by a noncorporate resident or U. Irs 1040ez S. Irs 1040ez corporation or by any foreign person if the amounts are effectively connected with the conduct of a U. Irs 1040ez S. Irs 1040ez trade or business. Irs 1040ez For more information, see Internal Revenue Code sections 861(a)(9) and 862(a)(9). Irs 1040ez Personal Services All wages and any other compensation for services performed in the United States are considered to be from sources in the United States. Irs 1040ez The only exceptions to this rule are discussed in chapter 3 under Employees of foreign persons, organizations, or offices, and under Crew members. Irs 1040ez If you are an employee and receive compensation for labor or personal services performed both inside and outside the United States, special rules apply in determining the source of the compensation. Irs 1040ez Compensation (other than certain fringe benefits) is sourced on a time basis. Irs 1040ez Certain fringe benefits (such as housing and education) are sourced on a geographical basis. Irs 1040ez Or, you may be permitted to use an alternative basis to determine the source of compensation. Irs 1040ez See Alternative Basis , later. Irs 1040ez Multi-level marketing. Irs 1040ez   Certain companies sell products through a multi-level marketing arrangement, such that an upper-tier distributor, who has sponsored a lower-tier distributor, is entitled to a payment from the company based on certain activities of that lower-tier distributor. Irs 1040ez Generally, depending on the facts, payments from such multi-level marketing companies to independent (non-employee) distributors (upper-tier distributors) that are based on the sales or purchases of persons whom they have sponsored (lower-tier distributors) constitute income for the performance of personal services in recruiting, training, and supporting the lower-tier distributors. Irs 1040ez The source of such income is generally based on where the services of the upper-tier distributor are performed, and may, depending on the facts, be considered multi-year compensation, with the source of income determined over the period to which such compensation is attributable. Irs 1040ez Self-employed individuals. Irs 1040ez   If you are self-employed, you determine the source of compensation for labor or personal services from self-employment on the basis that most correctly reflects the proper source of that income under the facts and circumstances of your particular case. Irs 1040ez In many cases, the facts and circumstances will call for an apportionment on a time basis as explained next. Irs 1040ez Time Basis Use a time basis to figure your U. Irs 1040ez S. Irs 1040ez source compensation (other than the fringe benefits discussed later). Irs 1040ez Do this by multiplying your total compensation (other than the fringe benefits discussed later) by the following fraction:   Number of days you performed services in the United States during the year     Total number of days you performed services during the year   You can use a unit of time less than a day in the above fraction, if appropriate. Irs 1040ez The time period for which the compensation is made does not have to be a year. Irs 1040ez Instead, you can use another distinct, separate, and continuous time period if you can establish to the satisfaction of the IRS that this other period is more appropriate. Irs 1040ez Example 1. Irs 1040ez Christina Brooks, a resident of the Netherlands, worked 240 days for a U. Irs 1040ez S. Irs 1040ez company during the tax year. Irs 1040ez She received $80,000 in compensation. Irs 1040ez None of it was for fringe benefits. Irs 1040ez Christina performed services in the United States for 60 days and performed services in the Netherlands for 180 days. Irs 1040ez Using the time basis for determining the source of compensation, $20,000 ($80,000 × 60/240) is her U. Irs 1040ez S. Irs 1040ez source income. Irs 1040ez Example 2. Irs 1040ez Rob Waters, a resident of South Africa, is employed by a corporation. Irs 1040ez His annual salary is $100,000. Irs 1040ez None of it is for fringe benefits. Irs 1040ez During the first quarter of the year he worked entirely within the United States. Irs 1040ez On April 1, Rob was transferred to Singapore for the remainder of the year. Irs 1040ez Rob is able to establish that the first quarter of the year and the last 3 quarters of the year are two separate, distinct, and continuous periods of time. Irs 1040ez Accordingly, $25,000 of Rob's annual salary is attributable to the first quarter of the year (. Irs 1040ez 25 × $100,000). Irs 1040ez All of it is U. Irs 1040ez S. Irs 1040ez source income because he worked entirely within the United States during that quarter. Irs 1040ez The remaining $75,000 is attributable to the last three quarters of the year. Irs 1040ez During those quarters, he worked 150 days in Singapore and 30 days in the United States. Irs 1040ez His periodic performance of services in the United States did not result in distinct, separate, and continuous periods of time. Irs 1040ez Of this $75,000, $12,500 ($75,000 × 30/180) is U. Irs 1040ez S. Irs 1040ez source income. Irs 1040ez Multi-year compensation. Irs 1040ez   The source of multi-year compensation is generally determined on a time basis over the period to which the compensation is attributable. Irs 1040ez Multi-year compensation is compensation that is included in your income in one tax year but that is attributable to a period that includes two or more tax years. Irs 1040ez   You determine the period to which the compensation is attributable based on the facts and circumstances of your case. Irs 1040ez For example, an amount of compensation that specifically relates to a period of time that includes several calendar years is attributable to the entire multi-year period. Irs 1040ez   The amount of compensation treated as from U. Irs 1040ez S. Irs 1040ez sources is figured by multiplying the total multi-year compensation by a fraction. Irs 1040ez The numerator of the fraction is the number of days (or unit of time less than a day, if appropriate) that you performed labor or personal services in the United States in connection with the project. Irs 1040ez The denominator of the fraction is the total number of days (or unit of time less than a day, if appropriate) that you performed labor or personal services in connection with the project. Irs 1040ez Geographical Basis Compensation you receive as an employee in the form of the following fringe benefits is sourced on a geographical basis. Irs 1040ez Housing. Irs 1040ez Education. Irs 1040ez Local transportation. Irs 1040ez Tax reimbursement. Irs 1040ez Hazardous or hardship duty pay as defined in Regulations section 1. Irs 1040ez 861-4(b)(2)(ii)(D)(5). Irs 1040ez Moving expense reimbursement. Irs 1040ez The amount of fringe benefits must be reasonable and you must substantiate them by adequate records or by sufficient evidence. Irs 1040ez Principal place of work. Irs 1040ez   The above fringe benefits, except for tax reimbursement and hazardous or hardship duty pay, are sourced based on your principal place of work. Irs 1040ez Your principal place of work is usually the place where you spend most of your working time. Irs 1040ez This could be your office, plant, store, shop, or other location. Irs 1040ez If there is no one place where you spend most of your working time, your main job location is the place where your work is centered, such as where you report for work or are otherwise required to “base” your work. Irs 1040ez   If you have more than one job at any time, your main job location depends on the facts in each case. Irs 1040ez The more important factors to be considered are: The total time you spend at each place, The amount of work you do at each place, and How much money you earn at each place. Irs 1040ez Housing. Irs 1040ez   The source of a housing fringe benefit is determined based on the location of your principal place of work. Irs 1040ez A housing fringe benefit includes payments to you or on your behalf (and your family's if your family resides with you) only for the following. Irs 1040ez Rent. Irs 1040ez Utilities (except telephone charges). Irs 1040ez Real and personal property insurance. Irs 1040ez Occupancy taxes not deductible under section 164 or 216(a). Irs 1040ez Nonrefundable fees for securing a leasehold. Irs 1040ez Rental of furniture and accessories. Irs 1040ez Household repairs. Irs 1040ez Residential parking. Irs 1040ez Fair rental value of housing provided in kind by your employer. Irs 1040ez   A housing fringe benefit does not include: Deductible interest and taxes (including deductible interest and taxes of a tenant-stockholder in a cooperative housing corporation), The cost of buying property, including principal payments on a mortgage, The cost of domestic labor (maids, gardeners, etc. Irs 1040ez ), Pay television subscriptions, Improvements and other expenses that increase the value or appreciably prolong the life of property, Purchased furniture or accessories, Depreciation or amortization of property or improvements, The value of meals or lodging that you exclude from gross income, or The value of meals or lodging that you deduct as moving expenses. Irs 1040ez Education. Irs 1040ez   The source of an education fringe benefit for the education expenses of your dependents is determined based on the location of your principal place of work. Irs 1040ez An education fringe benefit includes payments only for the following expenses for education at an elementary or secondary school. Irs 1040ez Tuition, fees, academic tutoring, special needs services for a special needs student, books, supplies, and other equipment. Irs 1040ez Room and board and uniforms that are required or provided by the school in connection with enrollment or attendance. Irs 1040ez Local transportation. Irs 1040ez   The source of a local transportation fringe benefit is determined based on the location of your principal place of work. Irs 1040ez Your local transportation fringe benefit is the amount that you receive as compensation for local transportation for you or your spouse or dependents at the location of your principal place of work. Irs 1040ez The amount treated as a local transportation fringe benefit is limited to actual expenses incurred for local transportation and the fair rental value of any employer-provided vehicle used predominantly by you, your spouse, or your dependents for local transportation. Irs 1040ez Actual expenses do not include the cost (including interest) of any vehicle purchased by you or on your behalf. Irs 1040ez Tax reimbursement. Irs 1040ez   The source of a tax reimbursement fringe benefit is determined based on the location of the jurisdiction that imposed the tax for which you are reimbursed. Irs 1040ez Moving expense reimbursement. Irs 1040ez   The source of a moving expense reimbursement is generally based on the location of your new principal place of work. Irs 1040ez However, the source is determined based on the location of your former principal place of work if you provide sufficient evidence that such determination of source is more appropriate under the facts and circumstances of your case. Irs 1040ez Sufficient evidence generally requires an agreement between you and your employer, or a written statement of company policy, which is reduced to writing before the move and which is entered into or established to induce you or other employees to move to another country. Irs 1040ez The written statement or agreement must state that your employer will reimburse you for moving expenses that you incur to return to your former principal place of work regardless of whether you continue to work for your employer after returning to that location. Irs 1040ez It may contain certain conditions upon which the right to reimbursement is determined as long as those conditions set forth standards that are definitely ascertainable and can only be fulfilled prior to, or through completion of, your return move to your former principal place of work. Irs 1040ez Alternative Basis If you are an employee, you can determine the source of your compensation under an alternative basis if you establish to the satisfaction of the IRS that, under the facts and circumstances of your case, the alternative basis more properly determines the source of your compensation than the time or geographical basis. Irs 1040ez If you use an alternative basis, you must keep (and have available for inspection) records to document why the alternative basis more properly determines the source of your compensation. Irs 1040ez Also, if your total compensation from all sources is $250,000 or more, check “Yes” to both questions on line K on page 5 of Form 1040NR, and attach a written statement to your tax return that sets forth all of the following. Irs 1040ez Your name and social security number (written across the top of the statement). Irs 1040ez The specific compensation income, or the specific fringe benefit, for which you are using the alternative basis. Irs 1040ez For each item in (2), the alternative basis of allocation of source used. Irs 1040ez For each item in (2), a computation showing how the alternative allocation was computed. Irs 1040ez A comparison of the dollar amount of the U. Irs 1040ez S. Irs 1040ez compensation and foreign compensation sourced under both the alternative basis and the time or geographical basis discussed earlier. Irs 1040ez Transportation Income Transportation income is income from the use of a vessel or aircraft or for the performance of services directly related to the use of any vessel or aircraft. Irs 1040ez This is true whether the vessel or aircraft is owned, hired, or leased. Irs 1040ez The term “vessel or aircraft” includes any container used in connection with a vessel or aircraft. Irs 1040ez All income from transportation that begins and ends in the United States is treated as derived from sources in the United States. Irs 1040ez If the transportation begins or ends in the United States, 50% of the transportation income is treated as derived from sources in the United States. Irs 1040ez For transportation income from personal services, 50% of the income is U. Irs 1040ez S. Irs 1040ez source income if the transportation is between the United States and a U. Irs 1040ez S. Irs 1040ez possession. Irs 1040ez For nonresident aliens, this only applies to income derived from, or in connection with, an aircraft. Irs 1040ez For information on how U. Irs 1040ez S. Irs 1040ez source transportation income is taxed, see chapter 4. Irs 1040ez Scholarships, Grants, Prizes, and Awards Generally, the source of scholarships, fellowship grants, grants, prizes, and awards is the residence of the payer regardless of who actually disburses the funds. Irs 1040ez However, see Activities to be performed outside the United States , later. Irs 1040ez For example, payments for research or study in the United States made by the United States, a noncorporate U. Irs 1040ez S. Irs 1040ez resident, or a domestic corporation, are from U. Irs 1040ez S. Irs 1040ez sources. Irs 1040ez Similar payments from a foreign government or foreign corporation are foreign source payments even though the funds may be disbursed through a U. Irs 1040ez S. Irs 1040ez agent. Irs 1040ez Payments made by an entity designated as a public international organization under the International Organizations Immunities Act are from foreign sources. Irs 1040ez Activities to be performed outside the United States. Irs 1040ez   Scholarships, fellowship grants, targeted grants, and achievement awards received by nonresident aliens for activities performed, or to be performed, outside the United States are not U. Irs 1040ez S. Irs 1040ez source income. Irs 1040ez    These rules do not apply to amounts paid as salary or other compensation for services. Irs 1040ez See Personal Services, earlier, for the source rules that apply. Irs 1040ez Pensions and Annuities If you receive a pension from a domestic trust for services performed both in and outside the United States, part of the pension payment is from U. Irs 1040ez S. Irs 1040ez sources. Irs 1040ez That part is the amount attributable to earnings of the pension plan and the employer contributions made for services performed in the United States. Irs 1040ez This applies whether the distribution is made under a qualified or nonqualified stock bonus, pension, profit-sharing, or annuity plan (whether or not funded). Irs 1040ez If you performed services as an employee of the United States, you may receive a distribution from the U. Irs 1040ez S. Irs 1040ez Government under a plan, such as the Civil Service Retirement System, that is treated as a qualified pension plan. Irs 1040ez Your U. Irs 1040ez S. Irs 1040ez source income is the otherwise taxable amount of the distribution that is attributable to your total U. Irs 1040ez S. Irs 1040ez Government basic pay other than tax-exempt pay for services performed outside the United States. Irs 1040ez Rents or Royalties Your U. Irs 1040ez S. Irs 1040ez source income includes rent and royalty income received during the tax year from property located in the United States or from any interest in that property. Irs 1040ez U. Irs 1040ez S. Irs 1040ez source income also includes rents or royalties for the use of, or for the privilege of using, in the United States, intangible property such as patents, copyrights, secret processes and formulas, goodwill, trademarks, franchises, and similar property. Irs 1040ez Real Property Real property is land and buildings and generally anything built on, growing on, or attached to land. Irs 1040ez Gross income from sources in the United States includes gains, profits, and income from the sale or other disposition of real property located in the United States. Irs 1040ez Natural resources. Irs 1040ez   The income from the sale of products of any farm, mine, oil or gas well, other natural deposit, or timber located in the United States and sold in a foreign country, or located in a foreign country and sold in the United States, is partly from sources in the United States. Irs 1040ez For information on determining that part, see section 1. Irs 1040ez 863-1(b) of the regulations. Irs 1040ez Table 2-1. Irs 1040ez Summary of Source Rules for Income of Nonresident Aliens Item of income Factor determining source Salaries, wages, other compensation Where services performed Business income:   Personal services Where services performed Sale of inventory—purchased Where sold Sale of inventory—produced Allocation Interest Residence of payer Dividends Whether a U. Irs 1040ez S. Irs 1040ez or foreign corporation* Rents Location of property Royalties:   Natural resources Location of property Patents, copyrights, etc. Irs 1040ez Where property is used Sale of real property Location of property Sale of personal property Seller's tax home (but see Personal Property , later, for exceptions) Pension distributions attributable to contributions Where services were performed that earned the pension Investment earnings on pension contributions Location of pension trust Sale of natural resources Allocation based on fair market value of product at export terminal. Irs 1040ez For more information, see section 1. Irs 1040ez 863-1(b) of the regulations. Irs 1040ez *Exceptions include: a) Dividends paid by a U. Irs 1040ez S. Irs 1040ez corporation are foreign source if the corporation elects the  American Samoa economic development credit. Irs 1040ez  b) Part of a dividend paid by a foreign corporation is U. Irs 1040ez S. Irs 1040ez source if at least 25% of the  corporation's gross income is effectively connected with a U. Irs 1040ez S. Irs 1040ez trade or business for the  3 tax years before the year in which the dividends are declared. Irs 1040ez Personal Property Personal property is property, such as machinery, equipment, or furniture, that is not real property. Irs 1040ez Gain or loss from the sale or exchange of personal property generally has its source in the United States if you have a tax home in the United States. Irs 1040ez If you do not have a tax home in the United States, the gain or loss generally is considered to be from sources outside the United States. Irs 1040ez Tax home. Irs 1040ez   Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. Irs 1040ez Your tax home is the place where you permanently or indefinitely work as an employee or a self-employed individual. Irs 1040ez If you do not have a regular or main place of business because of the nature of your work, then your tax home is the place where you regularly live. Irs 1040ez If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. Irs 1040ez Inventory property. Irs 1040ez   Inventory property is personal property that is stock in trade or that is held primarily for sale to customers in the ordinary course of your trade or business. Irs 1040ez Income from the sale of inventory that you purchased is sourced where the property is sold. Irs 1040ez Generally, this is where title to the property passes to the buyer. Irs 1040ez For example, income from the sale of inventory in the United States is U. Irs 1040ez S. Irs 1040ez source income, whether you purchased it in the United States or in a foreign country. Irs 1040ez   Income from the sale of inventory property that you produced in the United States and sold outside the United States (or vice versa) is partly from sources in the United States and partly from sources outside the United States. Irs 1040ez For information on making this allocation, see section 1. Irs 1040ez 863-3 of the regulations. Irs 1040ez   These rules apply even if your tax home is not in the United States. Irs 1040ez Depreciable property. Irs 1040ez   To determine the source of any gain from the sale of depreciable personal property, you must first figure the part of the gain that is not more than the total depreciation adjustments on the property. Irs 1040ez You allocate this part of the gain to sources in the United States based on the ratio of U. Irs 1040ez S. Irs 1040ez depreciation adjustments to total depreciation adjustments. Irs 1040ez The rest of this part of the gain is considered to be from sources outside the United States. Irs 1040ez   For this purpose, “U. Irs 1040ez S. Irs 1040ez depreciation adjustments” are the depreciation adjustments to the basis of the property that are allowable in figuring taxable income from U. Irs 1040ez S. Irs 1040ez sources. Irs 1040ez However, if the property is used predominantly in the United States during a tax year, all depreciation deductions allowable for that year are treated as U. Irs 1040ez S. Irs 1040ez depreciation adjustments. Irs 1040ez But there are some exceptions for certain transportation, communications, and other property used internationally. Irs 1040ez   Gain from the sale of depreciable property that is more than the total depreciation adjustments on the property is sourced as if the property were inventory property, as discussed above. Irs 1040ez   A loss is sourced in the same way as the depreciation deductions were sourced. Irs 1040ez However, if the property was used predominantly in the United States, the entire loss reduces U. Irs 1040ez S. Irs 1040ez source income. Irs 1040ez   The basis of property usually means the cost (money plus the fair market value of other property or services) of property you acquire. Irs 1040ez Depreciation is an amount deducted to recover the cost or other basis of a trade or business asset. Irs 1040ez The amount you can deduct depends on the property's cost, when you began using the property, how long it will take to recover your cost, and which depreciation method you use. Irs 1040ez A depreciation deduction is any deduction for depreciation or amortization or any other allowable deduction that treats a capital expenditure as a deductible expense. Irs 1040ez Intangible property. Irs 1040ez   Intangible property includes patents, copyrights, secret processes or formulas, goodwill, trademarks, trade names, or other like property. Irs 1040ez The gain from the sale of amortizable or depreciable intangible property, up to the previously allowable amortization or depreciation deductions, is sourced in the same way as the original deductions were sourced. Irs 1040ez This is the same as the source rule for gain from the sale of depreciable property. Irs 1040ez See Depreciable property , earlier, for details on how to apply this rule. Irs 1040ez   Gain in excess of the amortization or depreciation deductions is sourced in the country where the property is used if the income from the sale is contingent on the productivity, use, or disposition of that property. Irs 1040ez If the income is not contingent on the productivity, use, or disposition of the property, the income is sourced according to your tax home as discussed earlier. Irs 1040ez If payments for goodwill do not depend on its productivity, use, or disposition, their source is the country in which the goodwill was generated. Irs 1040ez Sales through offices or fixed places of business. Irs 1040ez   Despite any of the earlier rules, if you do not have a tax home in the United States, but you maintain an office or other fixed place of business in the United States, treat the income from any sale of personal property (including inventory property) that is attributable to that office or place of business as U. Irs 1040ez S. Irs 1040ez source income. Irs 1040ez However, this rule does not apply to sales of inventory property for use, disposition, or consumption outside the United States if your office or other fixed place of business outside the United States materially participated in the sale. Irs 1040ez   If you have a tax home in the United States but maintain an office or other fixed place of business outside the United States, income from sales of personal property, other than inventory, depreciable property, or intangibles, that is attributable to that foreign office or place of business may be treated as U. Irs 1040ez S. Irs 1040ez source income. Irs 1040ez The income is treated as U. Irs 1040ez S. Irs 1040ez source income if an income tax of less than 10% of the income from the sale is paid to a foreign country. Irs 1040ez This rule also applies to losses if the foreign country would have imposed an income tax of less than 10% had the sale resulted in a gain. Irs 1040ez Community Income If you are married and you or your spouse is subject to the community property laws of a foreign country, a U. Irs 1040ez S. Irs 1040ez state, or a U. Irs 1040ez S. Irs 1040ez possession, you generally must follow those laws to determine the income of yourself and your spouse for U. Irs 1040ez S. Irs 1040ez tax purposes. Irs 1040ez But you must disregard certain community property laws if: Both you and your spouse are nonresident aliens, or One of you is a nonresident alien and the other is a U. Irs 1040ez S. Irs 1040ez citizen or resident and you do not both choose to be treated as U. Irs 1040ez S. Irs 1040ez residents as explained in chapter 1. Irs 1040ez In these cases, you and your spouse must report community income as explained later. Irs 1040ez Earned income. Irs 1040ez   Earned income of a spouse, other than trade or business income and a partner's distributive share of partnership income, is treated as the income of the spouse whose services produced the income. Irs 1040ez That spouse must report all of it on his or her separate return. Irs 1040ez Trade or business income. Irs 1040ez   Trade or business income, other than a partner's distributive share of partnership income, is treated as the income of the spouse carrying on the trade or business. Irs 1040ez That spouse must report all of it on his or her separate return. Irs 1040ez Partnership income (or loss). Irs 1040ez   A partner's distributive share of partnership income (or loss) is treated as the income (or loss) of the partner. Irs 1040ez The partner must report all of it on his or her separate return. Irs 1040ez Separate property income. Irs 1040ez   Income derived from the separate property of one spouse (and which is not earned income, trade or business income, or partnership distributive share income) is treated as the income of that spouse. Irs 1040ez That spouse must report all of it on his or her separate return. Irs 1040ez Use the appropriate community property law to determine what is separate property. Irs 1040ez Other community income. Irs 1040ez   All other community income is treated as provided by the applicable community property laws. Irs 1040ez Prev  Up  Next   Home   More Online Publications