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Irs Forms 1040ez 2012

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Irs Forms 1040ez 2012

Irs forms 1040ez 2012 Publication 584-B - Main Content Table of Contents How To Use This Workbook Comments and SuggestionsOrdering forms and publications. Irs forms 1040ez 2012 Tax questions. Irs forms 1040ez 2012 How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Irs forms 1040ez 2012 How To Use This Workbook You can use this workbook by following these five steps. Irs forms 1040ez 2012 Read Publication 547 to learn about the tax rules for casualties, disasters, and thefts. Irs forms 1040ez 2012 Know the definitions of adjusted basis and fair market value, discussed below. Irs forms 1040ez 2012 Fill out Schedules 1 through 6. Irs forms 1040ez 2012 Read the Instructions for Form 4684. Irs forms 1040ez 2012 Fill out Form 4684 using the information you entered in Schedules 1 through 6. Irs forms 1040ez 2012 Use the chart below to find out how to use Schedules 1 through 6 to fill out Form 4684. Irs forms 1040ez 2012 Take what's in each row of. Irs forms 1040ez 2012 . Irs forms 1040ez 2012 . Irs forms 1040ez 2012 And enter it on Form 4684. Irs forms 1040ez 2012 . Irs forms 1040ez 2012 . Irs forms 1040ez 2012 Column 1 Line 19 Column 2 Line 20 Column 3 Line 21 Column 4 Line 22 Column 5 Line 23 Column 6 Line 24 Column 7 Line 25 Column 8 Line 26 Column 9 Line 27 Adjusted basis. Irs forms 1040ez 2012   Adjusted basis usually means original cost plus improvements, minus depreciation allowed or allowable (including any section 179 expense deduction), amortization, depletion, etc. Irs forms 1040ez 2012 If you did not acquire the property by purchasing it, your basis is determined as discussed in Publication 551, Basis of Assets. Irs forms 1040ez 2012 If you inherited the property from someone who died in 2010 and the executor of the decedent's estate made the election to file Form 8939, Allocation of Increase in Basis for Property Received From a Decedent, refer to the information provided by the executor or see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010. Irs forms 1040ez 2012 Fair market value. Irs forms 1040ez 2012   Fair market value is the price for which you could sell your property to a willing buyer, when neither of you has to sell or buy and both of you know all the relevant facts. Irs forms 1040ez 2012 When filling out Schedules 1 through 6, you need to know the fair market value of the property immediately before and immediately after the disaster or casualty. Irs forms 1040ez 2012 Deduction limits. Irs forms 1040ez 2012   If your casualty or theft loss involved a home you used for business or rented out, your deductible loss may be limited. Irs forms 1040ez 2012 See the Instructions for Form 4684, Section B. Irs forms 1040ez 2012 If the casualty or theft loss involved property used in a passive activity, see Form 8582, Passive Activity Loss Limitations, and its instructions. Irs forms 1040ez 2012   The casualty and theft loss deduction for employee property, when added to your job expenses and most other miscellaneous itemized deductions on Schedule A (Form 1040), must be reduced by 2% of your adjusted gross income. Irs forms 1040ez 2012 Employee property is property used in performing services as an employee. Irs forms 1040ez 2012 Comments and Suggestions We welcome your comments about this publication and your suggestions for future editions. Irs forms 1040ez 2012 You can write to us at the following address: Internal Revenue Service Individual Forms and Publications Branch SE:W:CAR:MP:T:I 1111 Constitution Ave. Irs forms 1040ez 2012 NW, IR-6526 Washington, DC 20224 We respond to many letters by telephone. Irs forms 1040ez 2012 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Irs forms 1040ez 2012 You can email us at taxforms@irs. Irs forms 1040ez 2012 gov. Irs forms 1040ez 2012 Please put “Publications Comment” on the subject line. Irs forms 1040ez 2012 You can also send us comments from www. Irs forms 1040ez 2012 irs. Irs forms 1040ez 2012 gov/formspubs/. Irs forms 1040ez 2012 Select “Comment on Tax Forms and Publications” under “Information about. Irs forms 1040ez 2012 ” Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Irs forms 1040ez 2012 Ordering forms and publications. Irs forms 1040ez 2012   Visit www. Irs forms 1040ez 2012 irs. Irs forms 1040ez 2012 gov/formspubs/ to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. Irs forms 1040ez 2012 Internal Revenue Service 1201 N. Irs forms 1040ez 2012 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Irs forms 1040ez 2012   If you have a tax question, check the information available on IRS. Irs forms 1040ez 2012 gov or call 1-800-829-1040. Irs forms 1040ez 2012 We cannot answer tax questions sent to either of the above addresses. Irs forms 1040ez 2012 How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Irs forms 1040ez 2012 By selecting the method that is best for you, you will have quick and easy access to tax help. Irs forms 1040ez 2012 Free help with your return. Irs forms 1040ez 2012   Free help in preparing your return is available nationwide from IRS-certified volunteers. Irs forms 1040ez 2012 The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Irs forms 1040ez 2012 Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Irs forms 1040ez 2012 To find the nearest VITA or TCE site, visit IRS. Irs forms 1040ez 2012 gov or call 1-800-906-9887 or 1-800-829-1040. Irs forms 1040ez 2012   As part of the TCE program, AARP offers the Tax-Aide counseling program. Irs forms 1040ez 2012 To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. Irs forms 1040ez 2012 aarp. Irs forms 1040ez 2012 org/money/taxaide. Irs forms 1040ez 2012   For more information on these programs, go to IRS. Irs forms 1040ez 2012 gov and enter keyword “VITA” in the upper right-hand corner. Irs forms 1040ez 2012 Internet. Irs forms 1040ez 2012 You can access the IRS website at IRS. Irs forms 1040ez 2012 gov 24 hours a day, 7 days a week to: Check the status of your 2011 refund. Irs forms 1040ez 2012 Go to IRS. Irs forms 1040ez 2012 gov and click on Where's My Refund. Irs forms 1040ez 2012 Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Irs forms 1040ez 2012 If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Irs forms 1040ez 2012 Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Irs forms 1040ez 2012 E-file your return. Irs forms 1040ez 2012 Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Irs forms 1040ez 2012 Download forms, including talking tax forms, instructions, and publications. Irs forms 1040ez 2012 Order IRS products online. Irs forms 1040ez 2012 Research your tax questions online. Irs forms 1040ez 2012 Search publications online by topic or keyword. Irs forms 1040ez 2012 Use the online Internal Revenue Code, regulations, or other official guidance. Irs forms 1040ez 2012 View Internal Revenue Bulletins (IRBs) published in the last few years. Irs forms 1040ez 2012 Figure your withholding allowances using the withholding calculator online at www. Irs forms 1040ez 2012 irs. Irs forms 1040ez 2012 gov/individuals. Irs forms 1040ez 2012 Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at www. Irs forms 1040ez 2012 irs. Irs forms 1040ez 2012 gov/individuals. Irs forms 1040ez 2012 Sign up to receive local and national tax news by email. Irs forms 1040ez 2012 Get information on starting and operating a small business. Irs forms 1040ez 2012 Phone. Irs forms 1040ez 2012 Many services are available by phone. Irs forms 1040ez 2012   Ordering forms, instructions, and publications. Irs forms 1040ez 2012 Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Irs forms 1040ez 2012 You should receive your order within 10 days. Irs forms 1040ez 2012 Asking tax questions. Irs forms 1040ez 2012 Call the IRS with your tax questions at 1-800-829-1040. Irs forms 1040ez 2012 Solving problems. Irs forms 1040ez 2012 You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Irs forms 1040ez 2012 An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Irs forms 1040ez 2012 Call your local Taxpayer Assistance Center for an appointment. Irs forms 1040ez 2012 To find the number, go to www. Irs forms 1040ez 2012 irs. Irs forms 1040ez 2012 gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Irs forms 1040ez 2012 TTY/TDD equipment. Irs forms 1040ez 2012 If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Irs forms 1040ez 2012 TeleTax topics. Irs forms 1040ez 2012 Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Irs forms 1040ez 2012 Refund information. Irs forms 1040ez 2012 You can check the status of your refund on the new IRS phone app. Irs forms 1040ez 2012 Download the free IRS2Go app by visiting the iTunes app store or the Android Marketplace. Irs forms 1040ez 2012 IRS2Go is a new way to provide you with information and tools. Irs forms 1040ez 2012 To check the status of your refund by phone, call 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Irs forms 1040ez 2012 Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Irs forms 1040ez 2012 If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Irs forms 1040ez 2012 Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Irs forms 1040ez 2012 If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Irs forms 1040ez 2012 Other refund information. Irs forms 1040ez 2012 To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. Irs forms 1040ez 2012 Evaluating the quality of our telephone services. Irs forms 1040ez 2012 To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Irs forms 1040ez 2012 One method is for a second IRS representative to listen in on or record random telephone calls. Irs forms 1040ez 2012 Another is to ask some callers to complete a short survey at the end of the call. Irs forms 1040ez 2012 Walk-in. Irs forms 1040ez 2012 Many products and services are available on a walk-in basis. Irs forms 1040ez 2012   Products. Irs forms 1040ez 2012 You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Irs forms 1040ez 2012 Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Irs forms 1040ez 2012 Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Irs forms 1040ez 2012 Services. Irs forms 1040ez 2012 You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Irs forms 1040ez 2012 An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Irs forms 1040ez 2012 If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Irs forms 1040ez 2012 No appointment is necessary—just walk in. Irs forms 1040ez 2012 If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Irs forms 1040ez 2012 A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Irs forms 1040ez 2012 If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Irs forms 1040ez 2012 All other issues will be handled without an appointment. Irs forms 1040ez 2012 To find the number of your local office, go to  www. Irs forms 1040ez 2012 irs. Irs forms 1040ez 2012 gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Irs forms 1040ez 2012 Mail. Irs forms 1040ez 2012 You can send your order for forms, instructions, and publications to the address below. Irs forms 1040ez 2012 You should receive a response within 10 days after your request is received. Irs forms 1040ez 2012  Internal Revenue Service 1201 N. Irs forms 1040ez 2012 Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. Irs forms 1040ez 2012   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Irs forms 1040ez 2012 Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Irs forms 1040ez 2012 We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Irs forms 1040ez 2012 Remember, the worst thing you can do is nothing at all. Irs forms 1040ez 2012   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Irs forms 1040ez 2012 You face (or your business is facing) an immediate threat of adverse action. Irs forms 1040ez 2012 You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Irs forms 1040ez 2012   If you qualify for our help, we’ll do everything we can to get your problem resolved. Irs forms 1040ez 2012 You will be assigned to one advocate who will be with you at every turn. Irs forms 1040ez 2012 We have offices in every state, the District of Columbia, and Puerto Rico. Irs forms 1040ez 2012 Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. Irs forms 1040ez 2012 And our services are always free. Irs forms 1040ez 2012   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Irs forms 1040ez 2012 Our tax toolkit at www. Irs forms 1040ez 2012 TaxpayerAdvocate. Irs forms 1040ez 2012 irs. Irs forms 1040ez 2012 gov can help you understand these rights. Irs forms 1040ez 2012   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Irs forms 1040ez 2012 irs. Irs forms 1040ez 2012 gov/advocate. Irs forms 1040ez 2012 You can also call our toll-free number at 1-877-777-4778. Irs forms 1040ez 2012   TAS also handles large-scale or systemic problems that affect many taxpayers. Irs forms 1040ez 2012 If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Irs forms 1040ez 2012 irs. Irs forms 1040ez 2012 gov/advocate. Irs forms 1040ez 2012 Low Income Taxpayer Clinics (LITCs). Irs forms 1040ez 2012   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Irs forms 1040ez 2012 Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Irs forms 1040ez 2012 These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Irs forms 1040ez 2012 Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Irs forms 1040ez 2012 For more information and to find a clinic near you, see the LITC page at www. Irs forms 1040ez 2012 irs. Irs forms 1040ez 2012 gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Irs forms 1040ez 2012 This publication is also available by calling 1-800-829-3676 or at your local IRS office. Irs forms 1040ez 2012 Free tax services. Irs forms 1040ez 2012   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Irs forms 1040ez 2012 Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Irs forms 1040ez 2012 The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Irs forms 1040ez 2012 The majority of the information and services listed in this publication are available to you free of charge. Irs forms 1040ez 2012 If there is a fee associated with a resource or service, it is listed in the publication. Irs forms 1040ez 2012   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Irs forms 1040ez 2012 DVD for tax products. Irs forms 1040ez 2012 You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Irs forms 1040ez 2012 Prior-year forms, instructions, and publications. Irs forms 1040ez 2012 Tax Map: an electronic research tool and finding aid. Irs forms 1040ez 2012 Tax law frequently asked questions. Irs forms 1040ez 2012 Tax Topics from the IRS telephone response system. Irs forms 1040ez 2012 Internal Revenue Code—Title 26 of the U. Irs forms 1040ez 2012 S. Irs forms 1040ez 2012 Code. Irs forms 1040ez 2012 Links to other Internet based Tax Research Materials. Irs forms 1040ez 2012 Fill-in, print, and save features for most tax forms. Irs forms 1040ez 2012 Internal Revenue Bulletins. Irs forms 1040ez 2012 Toll-free and email technical support. Irs forms 1040ez 2012 Two releases during the year. Irs forms 1040ez 2012  – The first release will ship the beginning of January 2012. Irs forms 1040ez 2012  – The final release will ship the beginning of March 2012. Irs forms 1040ez 2012 Purchase the DVD from National Technical Information Service (NTIS) at www. Irs forms 1040ez 2012 irs. Irs forms 1040ez 2012 gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Irs forms 1040ez 2012 Prev  Up  Next   Home   More Online Publications
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The Irs Forms 1040ez 2012

Irs forms 1040ez 2012 2. Irs forms 1040ez 2012   Foreclosures and Repossessions Table of Contents Amount realized and ordinary income on a recourse debt. Irs forms 1040ez 2012 Amount realized on a nonrecourse debt. Irs forms 1040ez 2012 If you do not make payments you owe on a loan secured by property, the lender may foreclose on the loan or repossess the property. Irs forms 1040ez 2012 The foreclosure or repossession is treated as a sale from which you may realize gain or loss. Irs forms 1040ez 2012 This is true even if you voluntarily return the property to the lender. Irs forms 1040ez 2012 If the outstanding loan balance was more than the FMV of the property and the lender cancels all or part of the remaining loan balance, you also may realize ordinary income from the cancellation of debt. Irs forms 1040ez 2012 You must report this income on your return unless certain exceptions or exclusions apply. Irs forms 1040ez 2012 See chapter 1 for more details. Irs forms 1040ez 2012 Borrower's gain or loss. Irs forms 1040ez 2012    You figure and report gain or loss from a foreclosure or repossession in the same way as gain or loss from a sale. Irs forms 1040ez 2012 The gain is the difference between the amount realized and your adjusted basis in the transferred property (amount realized minus adjusted basis). Irs forms 1040ez 2012 The loss is the difference between your adjusted basis in the transferred property and the amount realized (adjusted basis minus amount realized). Irs forms 1040ez 2012 For more information on figuring gain or loss from the sale of property, see Gain or Loss From Sales and Exchanges in Publication 544. Irs forms 1040ez 2012 You can use Table 1-1 to figure your ordinary income from the cancellation of debt and your gain or loss from a foreclosure or repossession. Irs forms 1040ez 2012 Amount realized and ordinary income on a recourse debt. Irs forms 1040ez 2012    If you are personally liable for the debt, the amount realized on the foreclosure or repossession includes the smaller of: The outstanding debt immediately before the transfer reduced by any amount for which you remain personally liable immediately after the transfer, or The FMV of the transferred property. Irs forms 1040ez 2012 The amount realized also includes any proceeds you received from the foreclosure sale. Irs forms 1040ez 2012 If the FMV of the transferred property is less than the total outstanding debt immediately before the transfer reduced by any amount for which you remain personally liable immediately after the transfer, the difference is ordinary income from the cancellation of debt. Irs forms 1040ez 2012 You must report this income on your return unless certain exceptions or exclusions apply. Irs forms 1040ez 2012 See chapter 1 for more details. Irs forms 1040ez 2012       Example 1. Irs forms 1040ez 2012 Tara bought a new car for $15,000. Irs forms 1040ez 2012 She made a $2,000 downpayment and borrowed the remaining $13,000 from the dealer's credit company. Irs forms 1040ez 2012 Tara is personally liable for the loan (recourse debt) and the car is pledged as security for the loan. Irs forms 1040ez 2012 On August 1, 2013, the credit company repossessed the car because Tara had stopped making loan payments. Irs forms 1040ez 2012 The balance due after taking into account the payments Tara made was $10,000. Irs forms 1040ez 2012 The FMV of the car when it was repossessed was $9,000. Irs forms 1040ez 2012 On November 15, 2013, the credit company forgave the remaining $1,000 balance on the loan due to insufficient assets. Irs forms 1040ez 2012 In this case, the amount Tara realizes is $9,000. Irs forms 1040ez 2012 This is the smaller of: The $10,000 outstanding debt immediately before the repossession reduced by the $1,000 for which she remains personally liable immediately after the repossession ($10,000 − $1,000 = $9,000), or The $9,000 FMV of the car. Irs forms 1040ez 2012 Tara figures her gain or loss on the repossession by comparing the $9,000 amount realized with her $15,000 adjusted basis. Irs forms 1040ez 2012 She has a $6,000 nondeductible loss. Irs forms 1040ez 2012 After the cancellation of the remaining balance on the loan in November, Tara also has ordinary income from cancellation of debt in the amount of $1,000 (the remaining balance on the $10,000 loan after the $9,000 amount satisfied by the FMV of the repossessed car). Irs forms 1040ez 2012 Tara must report this $1,000 on her return unless one of the exceptions or exclusions described in chapter 1 applies. Irs forms 1040ez 2012 Example 2. Irs forms 1040ez 2012 Lili paid $200,000 for her home. Irs forms 1040ez 2012 She made a $15,000 downpayment and borrowed the remaining $185,000 from a bank. Irs forms 1040ez 2012 Lili is personally liable for the mortgage loan and the house secures the loan. Irs forms 1040ez 2012 In 2013, the bank foreclosed on the mortgage because Lili stopped making payments. Irs forms 1040ez 2012 When the bank foreclosed the mortgage, the balance due was $180,000, the FMV of the house was $170,000, and Lili's adjusted basis was $175,000 due to a casualty loss she had deducted. Irs forms 1040ez 2012 At the time of the foreclosure, the bank forgave $2,000 of the $10,000 debt in excess of the FMV ($180,000 minus $170,000). Irs forms 1040ez 2012 She remained personally liable for the $8,000 balance. Irs forms 1040ez 2012 In this case, Lili has ordinary income from the cancellation of debt in the amount of $2,000. Irs forms 1040ez 2012 The $2,000 income from the cancellation of debt is figured by subtracting the $170,000 FMV of the house from the $172,000 difference between her total outstanding debt immediately before the transfer of property and the amount for which she remains personally liable immediately after the transfer ($180,000 minus $8,000). Irs forms 1040ez 2012 She is able to exclude the $2,000 of canceled debt from her income under the qualified principal residence indebtedness rules discussed earlier. Irs forms 1040ez 2012 Lili must also determine her gain or loss from the foreclosure. Irs forms 1040ez 2012 In this case, the amount that she realizes is $170,000. Irs forms 1040ez 2012 This is the smaller of: (a) the $180,000 outstanding debt immediately before the transfer reduced by the $8,000 for which she remains personally liable immediately after the transfer ($180,000 − $8,000 = $172,000) or (b) the $170,000 FMV of the house. Irs forms 1040ez 2012 Lili figures her gain or loss on the foreclosure by comparing the $170,000 amount realized with her $175,000 adjusted basis. Irs forms 1040ez 2012 She has a $5,000 nondeductible loss. Irs forms 1040ez 2012 Table 1-1. Irs forms 1040ez 2012 Worksheet for Foreclosures and Repossessions Part 1. Irs forms 1040ez 2012 Complete Part 1 only if you were personally liable for the debt (even if none of the debt was canceled). Irs forms 1040ez 2012 Otherwise, go to Part 2. Irs forms 1040ez 2012 1. Irs forms 1040ez 2012 Enter the amount of outstanding debt immediately before the transfer of property reduced by any amount for which you remain personally liable immediately after the transfer of property   2. Irs forms 1040ez 2012 Enter the fair market value of the transferred property   3. Irs forms 1040ez 2012 Ordinary income from the cancellation of debt upon foreclosure or repossession. Irs forms 1040ez 2012 * Subtract line 2 from line 1. Irs forms 1040ez 2012 If less than zero, enter zero. Irs forms 1040ez 2012 Next, go to Part 2   Part 2. Irs forms 1040ez 2012 Gain or loss from foreclosure or repossession. Irs forms 1040ez 2012   4. Irs forms 1040ez 2012 Enter the smaller of line 1 or line 2. Irs forms 1040ez 2012 If you did not complete Part 1 (because you were not personally liable for the debt), enter the amount of outstanding debt immediately before the transfer of property   5. Irs forms 1040ez 2012 Enter any proceeds you received from the foreclosure sale   6. Irs forms 1040ez 2012 Add line 4 and line 5   7. Irs forms 1040ez 2012 Enter the adjusted basis of the transferred property   8. Irs forms 1040ez 2012 Gain or loss from foreclosure or repossession. Irs forms 1040ez 2012 Subtract line 7 from line 6   * The income may not be taxable. Irs forms 1040ez 2012 See chapter 1 for more details. Irs forms 1040ez 2012 Amount realized on a nonrecourse debt. Irs forms 1040ez 2012    If you are not personally liable for repaying the debt secured by the transferred property, the amount you realize includes the full amount of the outstanding debt immediately before the transfer. Irs forms 1040ez 2012 This is true even if the FMV of the property is less than the outstanding debt immediately before the transfer. Irs forms 1040ez 2012 Example 1. Irs forms 1040ez 2012 Tara bought a new car for $15,000. Irs forms 1040ez 2012 She made a $2,000 downpayment and borrowed the remaining $13,000 from the dealer's credit company. Irs forms 1040ez 2012 Tara is not personally liable for the loan (nonrecourse), but pledged the new car as security for the loan. Irs forms 1040ez 2012 On August 1, 2013, the credit company repossessed the car because Tara had stopped making loan payments. Irs forms 1040ez 2012 The balance due after taking into account the payments Tara made was $10,000. Irs forms 1040ez 2012 The FMV of the car when it was repossessed was $9,000. Irs forms 1040ez 2012 The amount Tara realized on the repossession is $10,000. Irs forms 1040ez 2012 That is the outstanding amount of debt immediately before the repossession, even though the FMV of the car is less than $10,000. Irs forms 1040ez 2012 Tara figures her gain or loss on the repossession by comparing the $10,000 amount realized with her $15,000 adjusted basis. Irs forms 1040ez 2012 Tara has a $5,000 nondeductible loss. Irs forms 1040ez 2012 Example 2. Irs forms 1040ez 2012 Lili paid $200,000 for her home. Irs forms 1040ez 2012 She made a $15,000 downpayment and borrowed the remaining $185,000 from a bank. Irs forms 1040ez 2012 She is not personally liable for the loan, but grants the bank a mortgage. Irs forms 1040ez 2012 The bank foreclosed on the mortgage because Lili stopped making payments. Irs forms 1040ez 2012 When the bank foreclosed on the mortgage, the balance due was $180,000, the FMV of the house was $170,000, and Lili's adjusted basis was $175,000 due to a casualty loss she had deducted. Irs forms 1040ez 2012 The amount Lili realized on the foreclosure is $180,000, the outstanding debt immediately before the foreclosure. Irs forms 1040ez 2012 She figures her gain or loss by comparing the $180,000 amount realized with her $175,000 adjusted basis. Irs forms 1040ez 2012 Lili has a $5,000 realized gain. Irs forms 1040ez 2012 See Publication 523 to figure and report any taxable amount. Irs forms 1040ez 2012 Forms 1099-A and 1099-C. Irs forms 1040ez 2012    A lender who acquires an interest in your property in a foreclosure or repossession should send you Form 1099-A, Acquisition or Abandonment of Secured Property, showing information you need to figure your gain or loss. Irs forms 1040ez 2012 However, if the lender also cancels part of your debt and must file Form 1099-C, the lender can include the information about the foreclosure or repossession on that form instead of on Form 1099-A. Irs forms 1040ez 2012 The lender must file Form 1099-C and send you a copy if the amount of debt canceled is $600 or more and the lender is a financial institution, credit union, federal government agency, or any organization that has a significant trade or business of lending money. Irs forms 1040ez 2012 For foreclosures or repossessions occurring in 2013, these forms should be sent to you by January 31, 2014. Irs forms 1040ez 2012 Prev  Up  Next   Home   More Online Publications