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Irs Tax Extension Forms

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Irs Tax Extension Forms

Irs tax extension forms 1. Irs tax extension forms   Nonresident Alien or Resident Alien? Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Nonresident Aliens Resident AliensGreen Card Test Substantial Presence Test Effect of Tax Treaties Dual-Status AliensFirst Year of Residency Choosing Resident Alien Status Last Year of Residency Nonresident Spouse Treated as a ResidentHow To Make the Choice Aliens From American Samoa or Puerto Rico Introduction You should first determine whether, for income tax purposes, you are a nonresident alien or a resident alien. Irs tax extension forms If you are both a nonresident and resident in the same year, you have a dual status. Irs tax extension forms Dual status is explained later. Irs tax extension forms Also explained later are a choice to treat your nonresident spouse as a resident and some other special situations. Irs tax extension forms Topics - This chapter discusses: How to determine if you are a nonresident, resident, or dual-status alien, and How to treat a nonresident spouse as a resident alien. Irs tax extension forms Useful Items - You may want to see: Form (and Instructions) 1040 U. Irs tax extension forms S. Irs tax extension forms Individual Income Tax Return 1040A U. Irs tax extension forms S. Irs tax extension forms Individual Income Tax Return 1040NR U. Irs tax extension forms S. Irs tax extension forms Nonresident Alien Income Tax Return 8833 Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) 8840 Closer Connection Exception Statement for Aliens 8843 Statement for Exempt Individuals and Individuals With a Medical Condition See chapter 12 for information about getting these forms. Irs tax extension forms Nonresident Aliens If you are an alien (not a U. Irs tax extension forms S. Irs tax extension forms citizen), you are considered a nonresident alien unless you meet one of the two tests described next under Resident Aliens. Irs tax extension forms Resident Aliens You are a resident alien of the United States for tax purposes if you meet either the green card test or the substantial presence test for calendar year 2013 (January 1–December 31). Irs tax extension forms Even if you do not meet either of these tests, you may be able to choose to be treated as a U. Irs tax extension forms S. Irs tax extension forms resident for part of the year. Irs tax extension forms See First-Year Choice under Dual-Status Aliens, later. Irs tax extension forms Green Card Test You are a resident for tax purposes if you are a lawful permanent resident of the United States at any time during calendar year 2013. Irs tax extension forms (However, see Dual-Status Aliens , later. Irs tax extension forms ) This is known as the “green card” test. Irs tax extension forms You are a lawful permanent resident of the United States at any time if you have been given the privilege, according to the immigration laws, of residing permanently in the United States as an immigrant. Irs tax extension forms You generally have this status if the U. Irs tax extension forms S. Irs tax extension forms Citizenship and Immigration Services (USCIS) (or its predecessor organization) has issued you an alien registration card, also known as a “green card. Irs tax extension forms ” You continue to have resident status under this test unless the status is taken away from you or is administratively or judicially determined to have been abandoned. Irs tax extension forms Resident status taken away. Irs tax extension forms   Resident status is considered to have been taken away from you if the U. Irs tax extension forms S. Irs tax extension forms government issues you a final administrative or judicial order of exclusion or deportation. Irs tax extension forms A final judicial order is an order that you may no longer appeal to a higher court of competent jurisdiction. Irs tax extension forms Resident status abandoned. Irs tax extension forms   An administrative or judicial determination of abandonment of resident status may be initiated by you, the USCIS, or a U. Irs tax extension forms S. Irs tax extension forms consular officer. Irs tax extension forms    If you initiate the determination, your resident status is considered to be abandoned when you file either of the following with the USCIS or U. Irs tax extension forms S. Irs tax extension forms consular officer. Irs tax extension forms Your application for abandonment. Irs tax extension forms Your Alien Registration Receipt Card attached to a letter stating your intent to abandon your resident status. Irs tax extension forms You must file the letter by certified mail, return receipt requested. Irs tax extension forms You must keep a copy of the letter and proof that it was mailed and received. Irs tax extension forms    Until you have proof your letter was received, you remain a resident alien for tax purposes even if the USCIS would not recognize the validity of your green card because it is more than ten years old or because you have been absent from the United States for a period of time. Irs tax extension forms   If the USCIS or U. Irs tax extension forms S. Irs tax extension forms consular officer initiates this determination, your resident status will be considered to be abandoned when the final administrative order of abandonment is issued. Irs tax extension forms If you are granted an appeal to a federal court of competent jurisdiction, a final judicial order is required. Irs tax extension forms   Under U. Irs tax extension forms S. Irs tax extension forms immigration law, a lawful permanent resident who is required to file a tax return as a resident and fails to do so may be regarded as having abandoned status and may lose permanent resident status. Irs tax extension forms    A long-term resident who ceases to be a lawful permanent resident may be subject to special reporting requirements and tax provisions. Irs tax extension forms See Expatriation Tax in chapter 4. Irs tax extension forms Termination of residency after June 3, 2004, and before June 17, 2008. Irs tax extension forms   If you terminated your residency after June 3, 2004, and before June 17, 2008, you will still be considered a U. Irs tax extension forms S. Irs tax extension forms resident for tax purposes until you notify the Secretary of Homeland Security and file Form 8854, Initial and Annual Expatriation Statement. Irs tax extension forms Termination of residency after June 16, 2008. Irs tax extension forms   For information on your residency termination date, see Former long-term resident under Expatriation After June 16, 2008, in chapter 4. Irs tax extension forms Substantial Presence Test You will be considered a U. Irs tax extension forms S. Irs tax extension forms resident for tax purposes if you meet the substantial presence test for calendar year 2013. Irs tax extension forms To meet this test, you must be physically present in the United States on at least: 31 days during 2013, and 183 days during the 3-year period that includes 2013, 2012, and 2011, counting: All the days you were present in 2013, and 1/3 of the days you were present in 2012, and 1/6 of the days you were present in 2011. Irs tax extension forms Example. Irs tax extension forms You were physically present in the United States on 120 days in each of the years 2011, 2012, and 2013. Irs tax extension forms To determine if you meet the substantial presence test for 2013, count the full 120 days of presence in 2013, 40 days in 2012 (1/3 of 120), and 20 days in 2011 (1/6 of 120). Irs tax extension forms Because the total for the 3-year period is 180 days, you are not considered a resident under the substantial presence test for 2013. Irs tax extension forms The term United States includes the following areas. Irs tax extension forms All 50 states and the District of Columbia. Irs tax extension forms The territorial waters of the United States. Irs tax extension forms The seabed and subsoil of those submarine areas that are adjacent to U. Irs tax extension forms S. Irs tax extension forms territorial waters and over which the United States has exclusive rights under international law to explore and exploit natural resources. Irs tax extension forms The term does not include U. Irs tax extension forms S. Irs tax extension forms possessions and territories or U. Irs tax extension forms S. Irs tax extension forms airspace. Irs tax extension forms Days of Presence in the United States You are treated as present in the United States on any day you are physically present in the country at any time during the day. Irs tax extension forms However, there are exceptions to this rule. Irs tax extension forms Do not count the following as days of presence in the United States for the substantial presence test. Irs tax extension forms Days you commute to work in the United States from a residence in Canada or Mexico if you regularly commute from Canada or Mexico. Irs tax extension forms Days you are in the United States for less than 24 hours when you are in transit between two places outside the United States. Irs tax extension forms Days you are in the United States as a crew member of a foreign vessel. Irs tax extension forms Days you are unable to leave the United States because of a medical condition that arose while you are in the United States. Irs tax extension forms Days you are an exempt individual. Irs tax extension forms The specific rules that apply to each of these categories are discussed next. Irs tax extension forms Regular commuters from Canada or Mexico. Irs tax extension forms   Do not count the days on which you commute to work in the United States from your residence in Canada or Mexico if you regularly commute from Canada or Mexico. Irs tax extension forms You are considered to commute regularly if you commute to work in the United States on more than 75% of the workdays during your working period. Irs tax extension forms   For this purpose, “commute” means to travel to work and return to your residence within a 24-hour period. Irs tax extension forms “Workdays” are the days on which you work in the United States or Canada or Mexico. Irs tax extension forms “Working period” means the period beginning with the first day in the current year on which you are physically present in the United States to work and ending on the last day in the current year on which you are physically present in the United States to work. Irs tax extension forms If your work requires you to be present in the United States only on a seasonal or cyclical basis, your working period begins on the first day of the season or cycle on which you are present in the United States to work and ends on the last day of the season or cycle on which you are present in the United States to work. Irs tax extension forms You can have more than one working period in a calendar year, and your working period can begin in one calendar year and end in the following calendar year. Irs tax extension forms Example. Irs tax extension forms Maria Perez lives in Mexico and works for Compañía ABC in its office in Mexico. Irs tax extension forms She was assigned to her firm's office in the United States from February 1 through June 1. Irs tax extension forms On June 2, she resumed her employment in Mexico. Irs tax extension forms On 69 days, Maria commuted each morning from her home in Mexico to work in Compañía ABC's U. Irs tax extension forms S. Irs tax extension forms office. Irs tax extension forms She returned to her home in Mexico on each of those evenings. Irs tax extension forms On 7 days, she worked in her firm's Mexico office. Irs tax extension forms For purposes of the substantial presence test, Maria does not count the days she commuted to work in the United States because those days equal more than 75% of the workdays during the working period (69 workdays in the United States divided by 76 workdays in the working period equals 90. Irs tax extension forms 8%). Irs tax extension forms Days in transit. Irs tax extension forms   Do not count the days you are in the United States for less than 24 hours and you are in transit between two places outside the United States. Irs tax extension forms You are considered to be in transit if you engage in activities that are substantially related to completing travel to your foreign destination. Irs tax extension forms For example, if you travel between airports in the United States to change planes en route to your foreign destination, you are considered to be in transit. Irs tax extension forms However, you are not considered to be in transit if you attend a business meeting while in the United States. Irs tax extension forms This is true even if the meeting is held at the airport. Irs tax extension forms Crew members. Irs tax extension forms   Do not count the days you are temporarily present in the United States as a regular crew member of a foreign vessel (boat or ship) engaged in transportation between the United States and a foreign country or a U. Irs tax extension forms S. Irs tax extension forms possession. Irs tax extension forms However, this exception does not apply if you otherwise engage in any trade or business in the United States on those days. Irs tax extension forms Medical condition. Irs tax extension forms   Do not count the days you intended to leave, but could not leave the United States because of a medical condition or problem that arose while you were in the United States. Irs tax extension forms Whether you intended to leave the United States on a particular day is determined based on all the facts and circumstances. Irs tax extension forms For example, you may be able to establish that you intended to leave if your purpose for visiting the United States could be accomplished during a period that is not long enough to qualify you for the substantial presence test. Irs tax extension forms However, if you need an extended period of time to accomplish the purpose of your visit and that period would qualify you for the substantial presence test, you would not be able to establish an intent to leave the United States before the end of that extended period. Irs tax extension forms   In the case of an individual who is judged mentally incompetent, proof of intent to leave the United States can be determined by analyzing the individual's pattern of behavior before he or she was judged mentally incompetent. Irs tax extension forms   If you qualify to exclude days of presence because of a medical condition, you must file a fully completed Form 8843 with the IRS. Irs tax extension forms See Form 8843 , later. Irs tax extension forms   You cannot exclude any days of presence in the United States under the following circumstances. Irs tax extension forms You were initially prevented from leaving, were then able to leave, but remained in the United States beyond a reasonable period for making arrangements to leave. Irs tax extension forms You returned to the United States for treatment of a medical condition that arose during a prior stay. Irs tax extension forms The condition existed before your arrival in the United States and you were aware of the condition. Irs tax extension forms It does not matter whether you needed treatment for the condition when you entered the United States. Irs tax extension forms Exempt individual. Irs tax extension forms   Do not count days for which you are an exempt individual. Irs tax extension forms The term “exempt individual” does not refer to someone exempt from U. Irs tax extension forms S. Irs tax extension forms tax, but to anyone in the following categories. Irs tax extension forms An individual temporarily present in the United States as a foreign government-related individual under an “A” or “G” visa. Irs tax extension forms A teacher or trainee temporarily present in the United States under a “J” or “Q” visa, who substantially complies with the requirements of the visa. Irs tax extension forms A student temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa, who substantially complies with the requirements of the visa. Irs tax extension forms A professional athlete temporarily in the United States to compete in a charitable sports event. Irs tax extension forms   The specific rules for each of these four categories (including any rules on the length of time you will be an exempt individual) are discussed next. Irs tax extension forms Foreign government-related individuals. Irs tax extension forms   A foreign government-related individual is an individual (or a member of the individual's immediate family) who is temporarily present in the United States: As a full-time employee of an international organization, By reason of diplomatic status, or By reason of a visa (other than a visa that grants lawful permanent residence) that the Secretary of the Treasury determines represents full-time diplomatic or consular status. Irs tax extension forms Note. Irs tax extension forms You are considered temporarily present in the United States regardless of the actual amount of time you are present in the United States. Irs tax extension forms    An international organization is any public international organization that the President of the United States has designated by Executive Order as being entitled to the privileges, exemptions, and immunities provided for in the International Organizations Act. Irs tax extension forms An individual is a full-time employee if his or her work schedule meets the organization's standard full-time work schedule. Irs tax extension forms   An individual is considered to have full-time diplomatic or consular status if he or she: Has been accredited by a foreign government that is recognized by the United States, Intends to engage primarily in official activities for that foreign government while in the United States, and Has been recognized by the President, Secretary of State, or a consular officer as being entitled to that status. Irs tax extension forms Note. Irs tax extension forms If you are present in the United States under an “A” or “G” visa you are considered a foreign government-related individual (with full-time diplomatic or consular status). Irs tax extension forms None of your days count for purposes of the substantial presence test. Irs tax extension forms   Members of the immediate family include the individual's spouse and unmarried children (whether by blood or adoption) but only if the spouse's or unmarried children's visa statuses are derived from and dependent on the exempt individual's visa classification. Irs tax extension forms Unmarried children are included only if they: Are under 21 years of age, Reside regularly in the exempt individual's household, and Are not members of another household. Irs tax extension forms Teachers and trainees. Irs tax extension forms   A teacher or trainee is an individual, other than a student, who is temporarily in the United States under a “J” or “Q” visa and substantially complies with the requirements of that visa. Irs tax extension forms You are considered to have substantially complied with the visa requirements if you have not engaged in activities that are prohibited by U. Irs tax extension forms S. Irs tax extension forms immigration laws and could result in the loss of your visa status. Irs tax extension forms   Also included are immediate family members of exempt teachers and trainees. Irs tax extension forms See the definition of immediate family, earlier, under Foreign government-related individuals . Irs tax extension forms   You will not be an exempt individual as a teacher or trainee in 2013 if you were exempt as a teacher, trainee, or student for any part of 2 of the 6 preceding calendar years. Irs tax extension forms However, you will be an exempt individual if all of the following conditions are met. Irs tax extension forms You were exempt as a teacher, trainee, or student for any part of 3 (or fewer) of the 6 preceding calendar years, A foreign employer paid all of your compensation during 2013, and A foreign employer paid all of your compensation during each of the preceding 6 years you were present in the United States as a teacher or trainee. Irs tax extension forms A foreign employer includes an office or place of business of an American entity in a foreign country or a U. Irs tax extension forms S. Irs tax extension forms possession. Irs tax extension forms   If you qualify to exclude days of presence as a teacher or trainee, you must file a fully completed Form 8843 with the IRS. Irs tax extension forms See Form 8843 , later. Irs tax extension forms Example. Irs tax extension forms Carla was temporarily in the United States during the year as a teacher on a “J” visa. Irs tax extension forms Her compensation for the year was paid by a foreign employer. Irs tax extension forms Carla was treated as an exempt teacher for the previous 2 years but her compensation was not paid by a foreign employer. Irs tax extension forms She will not be considered an exempt individual for the current year because she was exempt as a teacher for at least 2 of the past 6 years. Irs tax extension forms If her compensation for the past 2 years had been paid by a foreign employer, she would be an exempt individual for the current year. Irs tax extension forms Students. Irs tax extension forms   A student is any individual who is temporarily in the United States on an “F,” “J,” “M,” or “Q” visa and who substantially complies with the requirements of that visa. Irs tax extension forms You are considered to have substantially complied with the visa requirements if you have not engaged in activities that are prohibited by U. Irs tax extension forms S. Irs tax extension forms immigration laws and could result in the loss of your visa status. Irs tax extension forms   Also included are immediate family members of exempt students. Irs tax extension forms See the definition of immediate family, earlier, under Foreign government-related individuals . Irs tax extension forms   You will not be an exempt individual as a student in 2013 if you have been exempt as a teacher, trainee, or student for any part of more than 5 calendar years unless you meet both of the following requirements. Irs tax extension forms You establish that you do not intend to reside permanently in the United States. Irs tax extension forms You have substantially complied with the requirements of your visa. Irs tax extension forms The facts and circumstances to be considered in determining if you have demonstrated an intent to reside permanently in the United States include, but are not limited to, the following. Irs tax extension forms Whether you have maintained a closer connection to a foreign country (discussed later). Irs tax extension forms Whether you have taken affirmative steps to change your status from nonimmigrant to lawful permanent resident as discussed later under Closer Connection to a Foreign Country . Irs tax extension forms   If you qualify to exclude days of presence as a student, you must file a fully completed Form 8843 with the IRS. Irs tax extension forms See Form 8843 , later. Irs tax extension forms Professional athletes. Irs tax extension forms   A professional athlete who is temporarily in the United States to compete in a charitable sports event is an exempt individual. Irs tax extension forms A charitable sports event is one that meets the following conditions. Irs tax extension forms The main purpose is to benefit a qualified charitable organization. Irs tax extension forms The entire net proceeds go to charity. Irs tax extension forms Volunteers perform substantially all the work. Irs tax extension forms   In figuring the days of presence in the United States, you can exclude only the days on which you actually competed in a sports event. Irs tax extension forms You cannot exclude the days on which you were in the United States to practice for the event, to perform promotional or other activities related to the event, or to travel between events. Irs tax extension forms   If you qualify to exclude days of presence as a professional athlete, you must file a fully completed Form 8843 with the IRS. Irs tax extension forms See Form 8843 , next. Irs tax extension forms Form 8843. Irs tax extension forms   If you exclude days of presence in the United States because you fall into any of the following categories, you must file a fully completed Form 8843. Irs tax extension forms You were unable to leave the United States as planned because of a medical condition or problem. Irs tax extension forms You were temporarily in the United States as a teacher or trainee on a “J” or “Q” visa. Irs tax extension forms You were temporarily in the United States as a student on an “F,” “J,” “M,” or “Q” visa. Irs tax extension forms You were a professional athlete competing in a charitable sports event. Irs tax extension forms Attach Form 8843 to your 2013 income tax return. Irs tax extension forms If you do not have to file a return, send Form 8843 to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, by the due date for filing Form 1040NR or Form 1040NR-EZ. Irs tax extension forms The due date for filing is discussed in chapter 7. Irs tax extension forms If you do not timely file Form 8843, you cannot exclude the days you were present in the United States as a professional athlete or because of a medical condition that arose while you were in the United States. Irs tax extension forms This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing requirements and significant steps to comply with those requirements. Irs tax extension forms Closer Connection to a Foreign Country Even if you meet the substantial presence test, you can be treated as a nonresident alien if you: Are present in the United States for less than 183 days during the year, Maintain a tax home in a foreign country during the year, and Have a closer connection during the year to one foreign country in which you have a tax home than to the United States (unless you have a closer connection to two foreign countries, discussed next). Irs tax extension forms Closer connection to two foreign countries. Irs tax extension forms   You can demonstrate that you have a closer connection to two foreign countries (but not more than two) if you meet all of the following conditions. Irs tax extension forms You maintained a tax home beginning on the first day of the year in one foreign country. Irs tax extension forms You changed your tax home during the year to a second foreign country. Irs tax extension forms You continued to maintain your tax home in the second foreign country for the rest of the year. Irs tax extension forms You had a closer connection to each foreign country than to the United States for the period during which you maintained a tax home in that foreign country. Irs tax extension forms You are subject to tax as a resident under the tax laws of either foreign country for the entire year or subject to tax as a resident in both foreign countries for the period during which you maintained a tax home in each foreign country. Irs tax extension forms Tax home. Irs tax extension forms   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 tax extension forms Your tax home is the place where you permanently or indefinitely work as an employee or a self-employed individual. Irs tax extension forms 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 tax extension forms If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. Irs tax extension forms   For determining whether you have a closer connection to a foreign country, your tax home must also be in existence for the entire current year, and must be located in the same foreign country to which you are claiming to have a closer connection. Irs tax extension forms Foreign country. Irs tax extension forms   In determining whether you have a closer connection to a foreign country, the term “foreign country” means: Any territory under the sovereignty of the United Nations or a government other than that of the United States, The territorial waters of the foreign country (determined under U. Irs tax extension forms S. Irs tax extension forms law), The seabed and subsoil of those submarine areas which are adjacent to the territorial waters of the foreign country and over which the foreign country has exclusive rights under international law to explore and exploit natural resources, and Possessions and territories of the United States. Irs tax extension forms Establishing a closer connection. Irs tax extension forms   You will be considered to have a closer connection to a foreign country than the United States if you or the IRS establishes that you have maintained more significant contacts with the foreign country than with the United States. Irs tax extension forms In determining whether you have maintained more significant contacts with the foreign country than with the United States, the facts and circumstances to be considered include, but are not limited to, the following. Irs tax extension forms The country of residence you designate on forms and documents. Irs tax extension forms The types of official forms and documents you file, such as Form W-9, Form W-8BEN, or Form W-8ECI. Irs tax extension forms The location of: Your permanent home, Your family, Your personal belongings, such as cars, furniture, clothing, and jewelry, Your current social, political, cultural, professional, or religious affiliations, Your business activities (other than those that constitute your tax home), The jurisdiction in which you hold a driver's license, The jurisdiction in which you vote, and Charitable organizations to which you contribute. Irs tax extension forms It does not matter whether your permanent home is a house, an apartment, or a furnished room. Irs tax extension forms It also does not matter whether you rent or own it. Irs tax extension forms It is important, however, that your home be available at all times, continuously, and not solely for short stays. Irs tax extension forms When you cannot have a closer connection. Irs tax extension forms   You cannot claim you have a closer connection to a foreign country if either of the following applies: You personally applied, or took other steps during the year, to change your status to that of a permanent resident, or You had an application pending for adjustment of status during the current year. Irs tax extension forms Steps to change your status to that of a permanent resident include, but are not limited to, the filing of the following forms. Irs tax extension forms Form I-508, Waiver of Rights, Privileges, Exemptions and Immunities Form I-485, Application to Register Permanent Residence or Adjust Status Form I-130, Petition for Alien Relative, on your behalf Form I-140, Immigrant Petition for Alien Worker, on your behalf Form ETA-750, Application for Alien Employment Certification, on your behalf Form DS-230, Application for Immigrant Visa and Alien Registration Form 8840. Irs tax extension forms   You must attach a fully completed Form 8840 to your income tax return to claim you have a closer connection to a foreign country or countries. Irs tax extension forms   If you do not have to file a return, send the form to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, by the due date for filing Form 1040NR or Form 1040NR-EZ. Irs tax extension forms The due date for filing is discussed later in chapter 7. Irs tax extension forms   If you do not timely file Form 8840, you cannot claim a closer connection to a foreign country or countries. Irs tax extension forms This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing requirements and significant steps to comply with those requirements. Irs tax extension forms Effect of Tax Treaties The rules given here to determine if you are a U. Irs tax extension forms S. Irs tax extension forms resident do not override tax treaty definitions of residency. Irs tax extension forms If you are a dual-resident taxpayer, you can still claim the benefits under an income tax treaty. Irs tax extension forms A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. Irs tax extension forms The income tax treaty between the two countries must contain a provision that provides for resolution of conflicting claims of residence (tie-breaker rule). Irs tax extension forms If you are treated as a resident of a foreign country under a tax treaty, you are treated as a nonresident alien in figuring your U. Irs tax extension forms S. Irs tax extension forms income tax. Irs tax extension forms For purposes other than figuring your tax, you will be treated as a U. Irs tax extension forms S. Irs tax extension forms resident. Irs tax extension forms For example, the rules discussed here do not affect your residency time periods as discussed later under Dual-Status Aliens . Irs tax extension forms Information to be reported. Irs tax extension forms   If you are a dual-resident taxpayer and you claim treaty benefits, you must file a return by the due date (including extensions) using Form 1040NR or Form 1040NR-EZ, and compute your tax as a nonresident alien. Irs tax extension forms You must also attach a fully completed Form 8833 if you determine your residency under a tax treaty and receive payments or income items totaling more than $100,000. Irs tax extension forms You may also have to attach Form 8938 (discussed in chapter 7). Irs tax extension forms See Reporting Treaty Benefits Claimed in chapter 9 for more information on reporting treaty benefits. Irs tax extension forms Dual-Status Aliens You can be both a nonresident alien and a resident alien during the same tax year. Irs tax extension forms This usually occurs in the year you arrive in or depart from the United States. Irs tax extension forms Aliens who have dual status should see chapter 6 for information on filing a return for a dual-status tax year. Irs tax extension forms First Year of Residency If you are a U. Irs tax extension forms S. Irs tax extension forms resident for the calendar year, but you were not a U. Irs tax extension forms S. Irs tax extension forms resident at any time during the preceding calendar year, you are a U. Irs tax extension forms S. Irs tax extension forms resident only for the part of the calendar year that begins on the residency starting date. Irs tax extension forms You are a nonresident alien for the part of the year before that date. Irs tax extension forms Residency starting date under substantial presence test. Irs tax extension forms   If you meet the substantial presence test for a calendar year, your residency starting date is generally the first day you are present in the United States during that calendar year. Irs tax extension forms However, you do not have to count up to 10 days of actual presence in the United States if on those days you establish that: You had a closer connection to a foreign country than to the United States, and Your tax home was in that foreign country. Irs tax extension forms See Closer Connection to a Foreign Country , earlier. Irs tax extension forms   In determining whether you can exclude up to 10 days, the following rules apply. Irs tax extension forms You can exclude days from more than one period of presence as long as the total days in all periods are not more than 10. Irs tax extension forms You cannot exclude any days in a period of consecutive days of presence if all the days in that period cannot be excluded. Irs tax extension forms Although you can exclude up to 10 days of presence in determining your residency starting date, you must include those days when determining whether you meet the substantial presence test. Irs tax extension forms Example. Irs tax extension forms Ivan Ivanovich is a citizen of Russia. Irs tax extension forms He came to the United States for the first time on January 6, 2013, to attend a business meeting and returned to Russia on January 10, 2013. Irs tax extension forms His tax home remained in Russia. Irs tax extension forms On March 1, 2013, he moved to the United States and resided here for the rest of the year. Irs tax extension forms Ivan is able to establish a closer connection to Russia for the period January 6–10. Irs tax extension forms Thus, his residency starting date is March 1. Irs tax extension forms Statement required to exclude up to 10 days of presence. Irs tax extension forms   You must file a statement with the IRS if you are excluding up to 10 days of presence in the United States for purposes of your residency starting date. Irs tax extension forms You must sign and date this statement and include a declaration that it is made under penalties of perjury. Irs tax extension forms The statement must contain the following information (as applicable). Irs tax extension forms Your name, address, U. Irs tax extension forms S. Irs tax extension forms taxpayer identification number (if any), and U. Irs tax extension forms S. Irs tax extension forms visa number (if any). Irs tax extension forms Your passport number and the name of the country that issued your passport. Irs tax extension forms The tax year for which the statement applies. Irs tax extension forms The first day that you were present in the United States during the year. Irs tax extension forms The dates of the days you are excluding in figuring your first day of residency. Irs tax extension forms Sufficient facts to establish that you have maintained your tax home in and a closer connection to a foreign country during the period you are excluding. Irs tax extension forms   Attach the required statement to your income tax return. Irs tax extension forms If you are not required to file a return, send the statement to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, on or before the due date for filing Form 1040NR or Form 1040NR-EZ. Irs tax extension forms The due date for filing is discussed in chapter 7. Irs tax extension forms   If you do not file the required statement as explained above, you cannot claim that you have a closer connection to a foreign country or countries. Irs tax extension forms Therefore, your first day of residency will be the first day you are present in the United States. Irs tax extension forms This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the requirements for filing the statement and significant steps to comply with those requirements. Irs tax extension forms Residency starting date under green card test. Irs tax extension forms   If you meet the green card test at any time during a calendar year, but do not meet the substantial presence test for that year, your residency starting date is the first day in the calendar year on which you are present in the United States as a lawful permanent resident. Irs tax extension forms   If you meet both the substantial presence test and the green card test, your residency starting date is the earlier of the first day during the year you are present in the United States under the substantial presence test or as a lawful permanent resident. Irs tax extension forms Residency during the preceding year. Irs tax extension forms   If you were a U. Irs tax extension forms S. Irs tax extension forms resident during any part of the preceding calendar year and you are a U. Irs tax extension forms S. Irs tax extension forms resident for any part of the current year, you will be considered a U. Irs tax extension forms S. Irs tax extension forms resident at the beginning of the current year. Irs tax extension forms This applies whether you are a resident under the substantial presence test or green card test. Irs tax extension forms Example. Irs tax extension forms Robert Bach is a citizen of Switzerland. Irs tax extension forms He came to the United States as a U. Irs tax extension forms S. Irs tax extension forms resident for the first time on May 1, 2012, and remained until November 5, 2012, when he returned to Switzerland. Irs tax extension forms Robert came back to the United States on March 5, 2013, as a lawful permanent resident and still resides here. Irs tax extension forms In calendar year 2013, Robert's U. Irs tax extension forms S. Irs tax extension forms residency is deemed to begin on January 1, 2013, because he qualified as a resident in calendar year 2012. Irs tax extension forms First-Year Choice If you do not meet either the green card test or the substantial presence test for 2012 or 2013 and you did not choose to be treated as a resident for part of 2012, but you meet the substantial presence test for 2014, you can choose to be treated as a U. Irs tax extension forms S. Irs tax extension forms resident for part of 2013. Irs tax extension forms To make this choice, you must: Be present in the United States for at least 31 days in a row in 2013, and Be present in the United States for at least 75% of the number of days beginning with the first day of the 31-day period and ending with the last day of 2013. Irs tax extension forms For purposes of this 75% requirement, you can treat up to 5 days of absence from the United States as days of presence in the United States. Irs tax extension forms When counting the days of presence in (1) and (2) above, do not count the days you were in the United States under any of the exceptions discussed earlier under Days of Presence in the United States. Irs tax extension forms If you make the first-year choice, your residency starting date for 2013 is the first day of the earliest 31-day period (described in (1) above) that you use to qualify for the choice. Irs tax extension forms You are treated as a U. Irs tax extension forms S. Irs tax extension forms resident for the rest of the year. Irs tax extension forms If you are present for more than one 31-day period and you satisfy condition (2) above for each of those periods, your residency starting date is the first day of the first 31-day period. Irs tax extension forms If you are present for more than one 31-day period but you satisfy condition (2) above only for a later 31-day period, your residency starting date is the first day of the later 31-day period. Irs tax extension forms Note. Irs tax extension forms You do not have to be married to make this choice. Irs tax extension forms Example 1. Irs tax extension forms Juan DaSilva is a citizen of the Philippines. Irs tax extension forms He came to the United States for the first time on November 1, 2013, and was here on 31 consecutive days (from November 1 through December 1, 2013). Irs tax extension forms Juan returned to the Philippines on December 1 and came back to the United States on December 17, 2013. Irs tax extension forms He stayed in the United States for the rest of the year. Irs tax extension forms During 2014, Juan was a resident of the United States under the substantial presence test. Irs tax extension forms Juan can make the first-year choice for 2013 because he was in the United States in 2013 for a period of 31 days in a row (November 1 through December 1) and for at least 75% of the days following (and including) the first day of his 31-day period (46 total days of presence in the United States divided by 61 days in the period from November 1 through December 31 equals 75. Irs tax extension forms 4%). Irs tax extension forms If Juan makes the first-year choice, his residency starting date will be November 1, 2013. Irs tax extension forms Example 2. Irs tax extension forms The facts are the same as in Example 1, except that Juan was also absent from the United States on December 24, 25, 29, 30, and 31. Irs tax extension forms He can make the first-year choice for 2013 because up to 5 days of absence are considered days of presence for purposes of the 75% requirement. Irs tax extension forms Statement required to make the first-year choice for 2013. Irs tax extension forms   You must attach a statement to Form 1040 to make the first-year choice for 2013. Irs tax extension forms The statement must contain your name and address and specify the following. Irs tax extension forms That you are making the first-year choice for 2013. Irs tax extension forms That you were not a resident in 2012. Irs tax extension forms That you are a resident under the substantial presence test in 2014. Irs tax extension forms The number of days of presence in the United States during 2014. Irs tax extension forms The date or dates of your 31-day period of presence and the period of continuous presence in the United States during 2013. Irs tax extension forms The date or dates of absence from the United States during 2013 that you are treating as days of presence. Irs tax extension forms You cannot file Form 1040 or the statement until you meet the substantial presence test for 2014. Irs tax extension forms If you have not met the test for 2014 as of April 15, 2014, you can request an extension of time for filing your 2013 Form 1040 until a reasonable period after you have met that test. Irs tax extension forms To request an extension to file until October 15, 2014, use Form 4868, Application for Automatic Extension of Time To File U. Irs tax extension forms S. Irs tax extension forms Individual Income Tax Return. Irs tax extension forms You can file the paper form or use one of the electronic filing options explained in the Form 4868 instructions. Irs tax extension forms You should pay with this extension the amount of tax you expect to owe for 2013 figured as if you were a nonresident alien the entire year. Irs tax extension forms You can use Form 1040NR or Form 1040NR-EZ to figure the tax. Irs tax extension forms Enter the tax on Form 4868. Irs tax extension forms If you do not pay the tax due, you will be charged interest on any tax not paid by the regular due date of your return, and you may be charged a penalty on the late payment. Irs tax extension forms   Once you make the first-year choice, you may not revoke it without the approval of the Internal Revenue Service. Irs tax extension forms   If you do not follow the procedures discussed here for making the first-year choice, you will be treated as a nonresident alien for all of 2013. Irs tax extension forms However, this does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing procedures and significant steps to comply with the procedures. Irs tax extension forms Choosing Resident Alien Status If you are a dual-status alien, you can choose to be treated as a U. Irs tax extension forms S. Irs tax extension forms resident for the entire year if all of the following apply. Irs tax extension forms You were a nonresident alien at the beginning of the year. Irs tax extension forms You are a resident alien or U. Irs tax extension forms S. Irs tax extension forms citizen at the end of the year. Irs tax extension forms You are married to a U. Irs tax extension forms S. Irs tax extension forms citizen or resident alien at the end of the year. Irs tax extension forms Your spouse joins you in making the choice. Irs tax extension forms This includes situations in which both you and your spouse were nonresident aliens at the beginning of the tax year and both of you are resident aliens at the end of the tax year. Irs tax extension forms Note. Irs tax extension forms If you are single at the end of the year, you cannot make this choice. Irs tax extension forms If you make this choice, the following rules apply. Irs tax extension forms You and your spouse are treated as U. Irs tax extension forms S. Irs tax extension forms residents for the entire year for income tax purposes. Irs tax extension forms You and your spouse are taxed on worldwide income. Irs tax extension forms You and your spouse must file a joint return for the year of the choice. Irs tax extension forms Neither you nor your spouse can make this choice for any later tax year, even if you are separated, divorced, or remarried. Irs tax extension forms The special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you. Irs tax extension forms Note. Irs tax extension forms A similar choice is available if, at the end of the tax year, one spouse is a nonresident alien and the other spouse is a U. Irs tax extension forms S. Irs tax extension forms citizen or resident. Irs tax extension forms See Nonresident Spouse Treated as a Resident , later. Irs tax extension forms If you previously made that choice and it is still in effect, you do not need to make the choice explained here. Irs tax extension forms Making the choice. Irs tax extension forms   You should attach a statement signed by both spouses to your joint return for the year of the choice. Irs tax extension forms The statement must contain the following information. Irs tax extension forms A declaration that you both qualify to make the choice and that you choose to be treated as U. Irs tax extension forms S. Irs tax extension forms residents for the entire tax year. Irs tax extension forms The name, address, and taxpayer identification number (SSN or ITIN) of each spouse. Irs tax extension forms (If one spouse died, include the name and address of the person who makes the choice for the deceased spouse. Irs tax extension forms )   You generally make this choice when you file your joint return. Irs tax extension forms However, you also can make the choice by filing Form 1040X, Amended U. Irs tax extension forms S. Irs tax extension forms Individual Income Tax Return. Irs tax extension forms Attach Form 1040, Form 1040A, or Form 1040EZ and print “Amended” across the top of the corrected return. Irs tax extension forms If you make the choice with an amended return, you and your spouse must also amend any returns that you may have filed after the year for which you made the choice. Irs tax extension forms   You generally must file the amended joint return within 3 years from the date you filed your original U. Irs tax extension forms S. Irs tax extension forms income tax return or 2 years from the date you paid your income tax for that year, whichever is later. Irs tax extension forms Last Year of Residency If you were a U. Irs tax extension forms S. Irs tax extension forms resident in 2013 but are not a U. Irs tax extension forms S. Irs tax extension forms resident during any part of 2014, you cease to be a U. Irs tax extension forms S. Irs tax extension forms resident on your residency termination date. Irs tax extension forms Your residency termination date is December 31, 2013, unless you qualify for an earlier date as discussed next. Irs tax extension forms Earlier residency termination date. Irs tax extension forms   You may qualify for a residency termination date that is earlier than December 31. Irs tax extension forms This date is: The last day in 2013 that you are physically present in the United States, if you met the substantial presence test, The first day in 2013 that you are no longer a lawful permanent resident of the United States, if you met the green card test, or The later of (1) or (2), if you met both tests. Irs tax extension forms You can use this date only if, for the remainder of 2013, your tax home was in a foreign country and you had a closer connection to that foreign country. Irs tax extension forms See Closer Connection to a Foreign Country , earlier. Irs tax extension forms    A long-term resident who ceases to be a lawful permanent resident may be subject to special reporting requirements and tax provisions. Irs tax extension forms See Expatriation Tax in chapter 4. Irs tax extension forms Termination of residency. Irs tax extension forms   For information on your residency termination date, see Former long-term resident under Expatriation After June 16, 2008, in chapter 4. Irs tax extension forms De minimis presence. Irs tax extension forms   If you are a U. Irs tax extension forms S. Irs tax extension forms resident because of the substantial presence test and you qualify to use the earlier residency termination date, you can exclude up to 10 days of actual presence in the United States in determining your residency termination date. Irs tax extension forms In determining whether you can exclude up to 10 days, the following rules apply. Irs tax extension forms You can exclude days from more than one period of presence as long as the total days in all periods are not more than 10. Irs tax extension forms You cannot exclude any days in a period of consecutive days of presence if all the days in that period cannot be excluded. Irs tax extension forms Although you can exclude up to 10 days of presence in determining your residency termination date, you must include those days when determining whether you meet the substantial presence test. Irs tax extension forms Example. Irs tax extension forms Lola Bovary is a citizen of Malta. Irs tax extension forms She came to the United States for the first time on March 1, 2013, and resided here until August 25, 2013. Irs tax extension forms On December 12, 2013, Lola came to the United States for vacation and stayed here until December 16, 2013, when she returned to Malta. Irs tax extension forms She is able to establish a closer connection to Malta for the period December 12–16. Irs tax extension forms Lola is not a U. Irs tax extension forms S. Irs tax extension forms resident for tax purposes during 2014 and can establish a closer connection to Malta for the rest of calendar year 2013. Irs tax extension forms Lola is a U. Irs tax extension forms S. Irs tax extension forms resident under the substantial presence test for 2013 because she was present in the United States for 183 days (178 days for the period March 1 to August 25 plus 5 days in December). Irs tax extension forms Lola's residency termination date is August 25, 2013. Irs tax extension forms Residency during the next year. Irs tax extension forms   If you are a U. Irs tax extension forms S. Irs tax extension forms resident during any part of 2014 and you are a resident during any part of 2013, you will be treated as a resident through the end of 2013. Irs tax extension forms This applies whether you have a closer connection to a foreign country than the United States during 2013, and whether you are a resident under the substantial presence test or green card test. Irs tax extension forms Statement required to establish your residency termination date. Irs tax extension forms   You must file a statement with the IRS to establish your residency termination date. Irs tax extension forms You must sign and date this statement and include a declaration that it is made under penalties of perjury. Irs tax extension forms The statement must contain the following information (as applicable). Irs tax extension forms Your name, address, U. Irs tax extension forms S. Irs tax extension forms taxpayer identification number (if any), and U. Irs tax extension forms S. Irs tax extension forms visa number (if any). Irs tax extension forms Your passport number and the name of the country that issued your passport. Irs tax extension forms The tax year for which the statement applies. Irs tax extension forms The last day that you were present in the United States during the year. Irs tax extension forms Sufficient facts to establish that you have maintained your tax home in, and that you have a closer connection to, a foreign country following your last day of presence in the United States during the year or following the abandonment or rescission of your status as a lawful permanent resident during the year. Irs tax extension forms The date that your status as a lawful permanent resident was abandoned or rescinded. Irs tax extension forms Sufficient facts (including copies of relevant documents) to establish that your status as a lawful permanent resident has been abandoned or rescinded. Irs tax extension forms If you can exclude days under the de minimis presence rule, discussed earlier, include the dates of the days you are excluding and sufficient facts to establish that you have maintained your tax home in and that you have a closer connection to a foreign country during the period you are excluding. Irs tax extension forms   Attach the required statement to your income tax return. Irs tax extension forms If you are not required to file a return, send the statement to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, on or before the due date for filing Form 1040NR or Form 1040NR-EZ. Irs tax extension forms The due date for filing is discussed in chapter 7. Irs tax extension forms   If you do not file the required statement as explained above, you cannot claim that you have a closer connection to a foreign country or countries. Irs tax extension forms This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the requirements for filing the statement and significant steps to comply with those requirements. Irs tax extension forms Nonresident Spouse Treated as a Resident If, at the end of your tax year, you are married and one spouse is a U. Irs tax extension forms S. Irs tax extension forms citizen or a resident alien and the other spouse is a nonresident alien, you can choose to treat the nonresident spouse as a U. Irs tax extension forms S. Irs tax extension forms resident. Irs tax extension forms This includes situations in which one spouse is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other spouse is a nonresident alien at the end of the year. Irs tax extension forms If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. Irs tax extension forms Neither you nor your spouse can claim under any tax treaty not to be a U. Irs tax extension forms S. Irs tax extension forms resident. Irs tax extension forms You are both taxed on worldwide income. Irs tax extension forms You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later years. Irs tax extension forms If you file a joint return under this provision, the special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you. Irs tax extension forms Example. Irs tax extension forms Bob and Sharon Williams are married and both are nonresident aliens at the beginning of the year. Irs tax extension forms In June, Bob became a resident alien and remained a resident for the rest of the year. Irs tax extension forms Bob and Sharon both choose to be treated as resident aliens by attaching a statement to their joint return. Irs tax extension forms Bob and Sharon must file a joint return for the year they make the choice, but they can file either joint or separate returns for later years. Irs tax extension forms How To Make the Choice Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. Irs tax extension forms It should contain the following information. Irs tax extension forms A declaration that one spouse was a nonresident alien and the other spouse a U. Irs tax extension forms S. Irs tax extension forms citizen or resident alien on the last day of your tax year, and that you choose to be treated as U. Irs tax extension forms S. Irs tax extension forms residents for the entire tax year. Irs tax extension forms The name, address, and identification number of each spouse. Irs tax extension forms (If one spouse died, include the name and address of the person making the choice for the deceased spouse. Irs tax extension forms ) Amended return. Irs tax extension forms   You generally make this choice when you file your joint return. Irs tax extension forms However, you can also make the choice by filing a joint amended return on Form 1040X. Irs tax extension forms Attach Form 1040, Form 1040A, or Form 1040EZ and print “Amended” across the top of the corrected return. Irs tax extension forms If you make the choice with an amended return, you and your spouse must also amend any returns that you may have filed after the year for which you made the choice. Irs tax extension forms   You generally must file the amended joint return within 3 years from the date you filed your original U. Irs tax extension forms S. Irs tax extension forms income tax return or 2 years from the date you paid your income tax for that year, whichever is later. Irs tax extension forms Suspending the Choice The choice to be treated as a resident alien is suspended for any tax year (after the tax year you made the choice) if neither spouse is a U. Irs tax extension forms S. Irs tax extension forms citizen or resident alien at any time during the tax year. Irs tax extension forms This means each spouse must file a separate return as a nonresident alien for that year if either meets the filing requirements for nonresident aliens discussed in chapter 7. Irs tax extension forms Example. Irs tax extension forms Dick Brown was a resident alien on December 31, 2010, and married to Judy, a nonresident alien. Irs tax extension forms They chose to treat Judy as a resident alien and filed joint 2010 and 2011 income tax returns. Irs tax extension forms On January 10, 2012, Dick became a nonresident alien. Irs tax extension forms Judy had remained a nonresident alien throughout the period. Irs tax extension forms Dick and Judy could have filed joint or separate returns for 2012 because Dick was a resident alien for part of that year. Irs tax extension forms However, because neither Dick nor Judy is a resident alien at any time during 2013, their choice is suspended for that year. Irs tax extension forms If either meets the filing requirements for nonresident aliens discussed in chapter 7, they must file separate returns as nonresident aliens for 2013. Irs tax extension forms If Dick becomes a resident alien again in 2014, their choice is no longer suspended. Irs tax extension forms Ending the Choice Once made, the choice to be treated as a resident applies to all later years unless suspended (as explained earlier under Suspending the Choice ) or ended in one of the following ways. Irs tax extension forms If the choice is ended in one of the following ways, neither spouse can make this choice in any later tax year. Irs tax extension forms Revocation. Irs tax extension forms Either spouse can revoke the choice for any tax year, provided he or she makes the revocation by the due date for filing the tax return for that tax year. Irs tax extension forms The spouse who revokes the choice must attach a signed statement declaring that the choice is being revoked. Irs tax extension forms The statement must include the name, address, and identification number of each spouse. Irs tax extension forms (If one spouse dies, include the name and address of the person who is revoking the choice for the deceased spouse. Irs tax extension forms ) The statement also must include a list of any states, foreign countries, and possessions that have community property laws in which either spouse is domiciled or where real property is located from which either spouse receives income. Irs tax extension forms File the statement as follows. Irs tax extension forms If the spouse revoking the choice must file a return, attach the statement to the return for the first year the revocation applies. Irs tax extension forms If the spouse revoking the choice does not have to file a return, but does file a return (for example, to obtain a refund), attach the statement to the return. Irs tax extension forms If the spouse revoking the choice does not have to file a return and does not file a claim for refund, send the statement to the Internal Revenue Service Center where you filed the last joint return. Irs tax extension forms Death. Irs tax extension forms The death of either spouse ends the choice, beginning with the first tax year following the year the spouse died. Irs tax extension forms However, if the surviving spouse is a U. Irs tax extension forms S. Irs tax extension forms citizen or resident and is entitled to the joint tax rates as a surviving spouse, the choice will not end until the close of the last year for which these joint rates may be used. Irs tax extension forms If both spouses die in the same tax year, the choice ends on the first day after the close of the tax year in which the spouses died. Irs tax extension forms Legal separation. Irs tax extension forms A legal separation under a decree of divorce or separate maintenance ends the choice as of the beginning of the tax year in which the legal separation occurs. Irs tax extension forms Inadequate records. Irs tax extension forms The Internal Revenue Service can end the choice for any tax year that either spouse has failed to keep adequate books, records, and other information necessary to determine the correct income tax liability, or to provide adequate access to those records. Irs tax extension forms Aliens From American Samoa or Puerto Rico If you are a nonresident alien in the United States and a bona fide resident of American Samoa or Puerto Rico during the entire tax year, you are taxed, with certain exceptions, according to the rules for resident aliens of the United States. Irs tax extension forms For more information, see Bona Fide Residents of American Samoa or Puerto Rico in chapter 5. Irs tax extension forms If you are a nonresident alien from American Samoa or Puerto Rico who does not qualify as a bona fide resident of American Samoa or Puerto Rico for the entire tax year, you are taxed as a nonresident alien. Irs tax extension forms Resident aliens who formerly were bona fide residents of American Samoa or Puerto Rico are taxed according to the rules for resident aliens. Irs tax extension forms Prev  Up  Next   Home   More Online Publications
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Problem Alerts

Consumer Alerts

Please note that the IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

  • ‪If you get an unsolicited email that appears to be from the IRS or a specific IRS component, such as EFTPS, please report it by sending it to phishing@irs.gov. ‪
  • If you find a suspicious website that claims to be the IRS, please send the site’s URL by email to phishing@irs.gov, using the subject line: suspicious website.

For more information on phishing scams, please see Protect Your Personal Information and  Suspicious e-Mails and Identity Theft.

October 2012
Don't Fall for Phony IRS Websites

The IRS warns consumers about a new tax scam that uses a website that mimics the IRS e-Services online registration page.

‪The actual IRS e-Services page offers web-based products for tax preparers, not the general public. The phony web page looks almost identical to the real one.

The IRS gets many reports of fake websites like this. Criminals use these sites to lure people into providing personal and financial information that may be used to steal the victim’s money or identity.

June 2012
Beware of Phony Email from DFAS

Taxpayers should be on the lookout for a new, email-based phishing scam circulating that targets Department of Defense military members, retirees and civilian employees. The email appears to come from Defense Finance and Accounting Services and displays a .mil email address. The email states that those receiving disability compensation from the Department of Veterans Affairs (VA) may be able to obtain additional funds from the IRS. Email recipients are then asked to send various VA and IRS documents containing their personal and financial information, such as copies of VA award letters or their income tax returns, to an address in Florida.

The information on these documents is then used by the scammers to commit identity theft. Typically, identity thieves use someone’s personal data to empty the victim’s financial accounts, run up charges on the victim’s existing credit cards or apply for new loans, credit cards, services or benefits in the victim’s name.

For more information on phishing scams, please see Suspicious e-Mails and Identity Theft.

November 2011
The IRS Warns of Scam Emails

Update Nov. 10, 2011 — A suspected phishing email on the Employer Identification Number (EIN), claiming to come from the IRS Office of Professional Responsibility, is currently circulating. This email was not sent by the IRS. For more information, see Latest News from Office of Professional Responsibility (OPR).

The IRS does not send unsolicited e-mail to taxpayers either about their tax accounts or requesting sensitive personal and financial information.       

Nevertheless, taxpayers do receive e-mails claiming to come from the IRS, sometimes containing a real or made-up employee name, address and similar information to make an e-mail seem credible.    

These e-mails usually are scams whose purpose is to obtain personal and financial information — such as name, Social Security number, bank account and credit card or even PIN numbers — from taxpayers which can be used by the scammers to commit identity theft. Identity thieves use the data to empty the victim’s financial accounts, run up charges on the victim’s existing credit cards, apply for new loans, credit cards, services or benefits in the victim’s name, file fraudulent tax returns and more.

Typically, IRS-impersonation scam e-mails state that the IRS needs certain personal and financial information to process a tax return, tax payment or refund. They may claim the e-mail recipient is being audited. They may mention specific monetary amounts or genuine programs, such as the Electronic Federal Tax Payment System (EFTPS), to add credible detail to the scam. The e-mails often contain links or attachments to what appears to be the IRS web site or an IRS form. However genuine in appearance, these phonies are designed to elicit the information the scammers are looking for.

Alternatively, a link in a scam e-mail may download malicious software onto the taxpayer's computer when clicked. The software is often designed to search out and send back to the scammer personal and financial information contained on the taxpayer's computer or obtained through keystrokes that the scammer can use to commit identity theft.             

 



 

Page Last Reviewed or Updated: 27-Sep-2013

The Irs Tax Extension Forms

Irs tax extension forms 11. Irs tax extension forms   Casualties, Thefts, and Condemnations Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Casualties and TheftsDeductible losses. Irs tax extension forms Nondeductible losses. Irs tax extension forms Family pet. Irs tax extension forms Progressive deterioration. Irs tax extension forms Decline in market value of stock. Irs tax extension forms Mislaid or lost property. Irs tax extension forms Farming Losses How To Figure a Loss Deduction Limits on Losses of Personal-Use Property When Loss Is Deductible Proof of Loss Figuring a Gain Other Involuntary ConversionsCondemnation Irrigation Project Livestock Losses Tree Seedlings Postponing GainException. Irs tax extension forms Related persons. Irs tax extension forms Replacement Property Replacement Period How To Postpone Gain Disaster Area LossesWho is eligible. Irs tax extension forms Covered disaster area. Irs tax extension forms Reporting Gains and Losses Introduction This chapter explains the tax treatment of casualties, thefts, and condemnations. Irs tax extension forms A casualty occurs when property is damaged, destroyed, or lost due to a sudden, unexpected, or unusual event. Irs tax extension forms A theft occurs when property is stolen. Irs tax extension forms A condemnation occurs when private property is legally taken for public use without the owner's consent. Irs tax extension forms A casualty, theft, or condemnation may result in a deductible loss or taxable gain on your federal income tax return. Irs tax extension forms You may have a deductible loss or a taxable gain even if only a portion of your property was affected by a casualty, theft, or condemnation. Irs tax extension forms An involuntary conversion occurs when you receive money or other property as reimbursement for a casualty, theft, condemnation, disposition of property under threat of condemnation, or certain other events discussed in this chapter. Irs tax extension forms If an involuntary conversion results in a gain and you buy qualified replacement property within the specified replacement period, you can postpone reporting the gain on your income tax return. Irs tax extension forms For more information, see Postponing Gain , later. Irs tax extension forms Topics - This chapter discusses: Casualties and thefts How to figure a loss or gain Other involuntary conversions Postponing gain Disaster area losses Reporting gains and losses Drought involving property connected with a trade or business or a transaction entered into for profit Useful Items - You may want to see: Publication 523 Selling Your Home 525 Taxable and Nontaxable Income 536 Net Operating Losses (NOLs) for Individuals, Estates, and Trusts 544 Sales and Other Dispositions of Assets 547 Casualties, Disasters, and Thefts 584 Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property) 584-B Business Casualty, Disaster, and Theft Loss Workbook Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch D (Form 1040) Capital Gains and Losses Sch F (Form 1040) Profit or Loss From Farming 4684 Casualties and Thefts 4797 Sales of Business Property See chapter 16 for information about getting publications and forms. Irs tax extension forms Casualties and Thefts If your property is destroyed, damaged, or stolen, you may have a deductible loss. Irs tax extension forms If the insurance or other reimbursement is more than the adjusted basis of the destroyed, damaged, or stolen property, you may have a taxable gain. Irs tax extension forms Casualty. Irs tax extension forms   A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. Irs tax extension forms A sudden event is one that is swift, not gradual or progressive. Irs tax extension forms An unexpected event is one that is ordinarily unanticipated and unintended. Irs tax extension forms An unusual event is one that is not a day-to-day occurrence and that is not typical of the activity in which you were engaged. Irs tax extension forms Deductible losses. Irs tax extension forms   Deductible casualty losses can result from a number of different causes, including the following. Irs tax extension forms Airplane crashes. Irs tax extension forms Car, truck, or farm equipment accidents not resulting from your willful act or willful negligence. Irs tax extension forms Earthquakes. Irs tax extension forms Fires (but see Nondeductible losses next for exceptions). Irs tax extension forms Floods. Irs tax extension forms Freezing. Irs tax extension forms Government-ordered demolition or relocation of a home that is unsafe to use because of a disaster as discussed under Disaster Area Losses, in Publication 547. Irs tax extension forms Lightning. Irs tax extension forms Storms, including hurricanes and tornadoes. Irs tax extension forms Terrorist attacks. Irs tax extension forms Vandalism. Irs tax extension forms Volcanic eruptions. Irs tax extension forms Nondeductible losses. Irs tax extension forms   A casualty loss is not deductible if the damage or destruction is caused by the following. Irs tax extension forms Accidentally breaking articles such as glassware or china under normal conditions. Irs tax extension forms A family pet (explained below). Irs tax extension forms A fire if you willfully set it, or pay someone else to set it. Irs tax extension forms A car, truck, or farm equipment accident if your willful negligence or willful act caused it. Irs tax extension forms The same is true if the willful act or willful negligence of someone acting for you caused the accident. Irs tax extension forms Progressive deterioration (explained below). Irs tax extension forms Family pet. Irs tax extension forms   Loss of property due to damage by a family pet is not deductible as a casualty loss unless the requirements discussed above under Casualty are met. Irs tax extension forms Example. Irs tax extension forms You keep your horse in your yard. Irs tax extension forms The ornamental fruit trees in your yard were damaged when your horse stripped the bark from them. Irs tax extension forms Some of the trees were completely girdled and died. Irs tax extension forms Because the damage was not unexpected or unusual, the loss is not deductible. Irs tax extension forms Progressive deterioration. Irs tax extension forms   Loss of property due to progressive deterioration is not deductible as a casualty loss. Irs tax extension forms This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. Irs tax extension forms Examples of damage due to progressive deterioration include damage from rust, corrosion, or termites. Irs tax extension forms However, weather-related conditions or disease may cause another type of involuntary conversion. Irs tax extension forms See Other Involuntary Conversions , later. Irs tax extension forms Theft. Irs tax extension forms   A theft is the taking and removing of money or property with the intent to deprive the owner of it. Irs tax extension forms The taking of property must be illegal under the law of the state where it occurred and it must have been done with criminal intent. Irs tax extension forms You do not need to show a conviction for theft. Irs tax extension forms   Theft includes the taking of money or property by the following means: Blackmail, Burglary, Embezzlement, Extortion, Kidnapping for ransom, Larceny, Robbery, or Threats. Irs tax extension forms The taking of money or property through fraud or misrepresentation is theft if it is illegal under state or local law. Irs tax extension forms Decline in market value of stock. Irs tax extension forms   You cannot deduct as a theft loss the decline in market value of stock acquired on the open market for investment if the decline is caused by disclosure of accounting fraud or other illegal misconduct by the officers or directors of the corporation that issued the stock. Irs tax extension forms However, you can deduct as a capital loss the loss you sustain when you sell or exchange the stock or the stock becomes completely worthless. Irs tax extension forms You report a capital loss on Schedule D (Form 1040). Irs tax extension forms For more information about stock sales, worthless stock, and capital losses, see chapter 4 of Publication 550. Irs tax extension forms Mislaid or lost property. Irs tax extension forms   The simple disappearance of money or property is not a theft. Irs tax extension forms However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. Irs tax extension forms Example. Irs tax extension forms A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Irs tax extension forms The diamond falls from the ring and is never found. Irs tax extension forms The loss of the diamond is a casualty. Irs tax extension forms Farming Losses You can deduct certain casualty or theft losses that occur in the business of farming. Irs tax extension forms The following is a discussion of some losses you can deduct and some you cannot deduct. Irs tax extension forms Livestock or produce bought for resale. Irs tax extension forms   Casualty or theft losses of livestock or produce bought for resale are deductible if you report your income on the cash method. Irs tax extension forms If you report your income on an accrual method, take casualty and theft losses on property bought for resale by omitting the item from the closing inventory for the year of the loss. Irs tax extension forms You cannot take a separate deduction. Irs tax extension forms Livestock, plants, produce, and crops raised for sale. Irs tax extension forms   Losses of livestock, plants, produce, and crops raised for sale are generally not deductible if you report your income on the cash method. Irs tax extension forms You have already deducted the cost of raising these items as farm expenses, so their basis is equal to zero. Irs tax extension forms   For plants with a preproductive period of more than 2 years, you may have a deductible loss if you have a tax basis in the plants. Irs tax extension forms You usually have a tax basis if you capitalized the expenses associated with these plants under the uniform capitalization rules. Irs tax extension forms The uniform capitalization rules are discussed in chapter 6. Irs tax extension forms   If you report your income on an accrual method, casualty or theft losses are deductible only if you included the items in your inventory at the beginning of your tax year. Irs tax extension forms You get the deduction by omitting the item from your inventory at the close of your tax year. Irs tax extension forms You cannot take a separate casualty or theft deduction. Irs tax extension forms Income loss. Irs tax extension forms   A loss of future income is not deductible. Irs tax extension forms Example. Irs tax extension forms A severe flood destroyed your crops. Irs tax extension forms Because you are a cash method taxpayer and already deducted the cost of raising the crops as farm expenses, this loss is not deductible, as explained above under Livestock, plants, produce, and crops raised for sale . Irs tax extension forms You estimate that the crop loss will reduce your farm income by $25,000. Irs tax extension forms This loss of future income is also not deductible. Irs tax extension forms Loss of timber. Irs tax extension forms   If you sell timber downed as a result of a casualty, treat the proceeds from the sale as a reimbursement. Irs tax extension forms If you use the proceeds to buy qualified replacement property, you can postpone reporting the gain. Irs tax extension forms See Postponing Gain , later. Irs tax extension forms Property used in farming. Irs tax extension forms   Casualty and theft losses of property used in your farm business usually result in deductible losses. Irs tax extension forms If a fire or storm destroyed your barn, or you lose by casualty or theft an animal you bought for draft, breeding, dairy, or sport, you may have a deductible loss. Irs tax extension forms See How To Figure a Loss , later. Irs tax extension forms Raised draft, breeding, dairy, or sporting animals. Irs tax extension forms   Generally, losses of raised draft, breeding, dairy, or sporting animals do not result in deductible casualty or theft losses because you have no basis in the animals. Irs tax extension forms However, you may have a basis in the animal and therefore may be able to claim a deduction if either of the following situations applies to you. Irs tax extension forms You use inventories to determine your income and you included the animals in your inventory. Irs tax extension forms You capitalized the expenses associated with the animals under the uniform capitalization rules and therefore have a tax basis in the animals subject to a casualty or theft. Irs tax extension forms When you include livestock in inventory, its last inventory value is its basis. Irs tax extension forms When you lose an inventoried animal held for draft, breeding, dairy, or sport by casualty or theft during the year, decrease ending inventory by the amount you included in inventory for the animal. Irs tax extension forms You cannot take a separate deduction. Irs tax extension forms How To Figure a Loss How you figure a deductible casualty or theft loss depends on whether the loss was to farm or personal-use property and whether the property was stolen or partly or completely destroyed. Irs tax extension forms Farm property. Irs tax extension forms   Farm property is the property you use in your farming business. Irs tax extension forms If your farm property was completely destroyed or stolen, your loss is figured as follows:      Your adjusted basis in the property     MINUS     Any salvage value     MINUS     Any insurance or other reimbursement you  receive or expect to receive      You can use the schedules in Publication 584-B to list your stolen, damaged, or destroyed business property and to figure your loss. Irs tax extension forms   If your farm property was partially damaged, use the steps shown under Personal-use property next to figure your casualty loss. Irs tax extension forms However, the deduction limits, discussed later, do not apply to farm property. Irs tax extension forms Personal-use property. Irs tax extension forms   Personal-use property is property used by you or your family members for personal purposes and not used in your farm business or for income-producing purposes. Irs tax extension forms The following items are examples of personal-use property: Your main home. Irs tax extension forms Furniture and electronics used in your main home and not used in a home office or for business purposes. Irs tax extension forms Clothing and jewelry. Irs tax extension forms An automobile used for nonbusiness purposes. Irs tax extension forms You figure the casualty or theft loss on this property by taking the following steps. Irs tax extension forms Determine your adjusted basis in the property before the casualty or theft. Irs tax extension forms Determine the decrease in fair market value of the property as a result of the casualty or theft. Irs tax extension forms From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you receive or expect to receive. Irs tax extension forms You must apply the deduction limits, discussed later, to determine your deductible loss. Irs tax extension forms    You can use Publication 584 to list your stolen or damaged personal-use property and figure your loss. Irs tax extension forms It includes schedules to help you figure the loss on your home, its contents, and your motor vehicles. Irs tax extension forms Adjusted basis. Irs tax extension forms   Adjusted basis is your basis (usually cost) increased or decreased by various events, such as improvements and casualty losses. Irs tax extension forms For more information about adjusted basis, see chapter 6. Irs tax extension forms Decrease in fair market value (FMV). Irs tax extension forms   The decrease in FMV is the difference between the property's value immediately before the casualty or theft and its value immediately afterward. Irs tax extension forms FMV is defined in chapter 10 under Payments Received or Considered Received . Irs tax extension forms Appraisal. Irs tax extension forms   To figure the decrease in FMV because of a casualty or theft, you generally need a competent appraisal. Irs tax extension forms But other measures, such as the cost of cleaning up or making repairs (discussed next) can be used to establish decreases in FMV. Irs tax extension forms   An appraisal to determine the difference between the FMV of the property immediately before a casualty or theft and immediately afterward should be made by a competent appraiser. Irs tax extension forms The appraiser must recognize the effects of any general market decline that may occur along with the casualty. Irs tax extension forms This information is needed to limit any deduction to the actual loss resulting from damage to the property. Irs tax extension forms Cost of cleaning up or making repairs. Irs tax extension forms   The cost of cleaning up after a casualty is not part of a casualty loss. Irs tax extension forms Neither is the cost of repairing damaged property after a casualty. Irs tax extension forms But you can use the cost of cleaning up or making repairs after a casualty as a measure of the decrease in FMV if you meet all the following conditions. Irs tax extension forms The repairs are actually made. Irs tax extension forms The repairs are necessary to bring the property back to its condition before the casualty. Irs tax extension forms The amount spent for repairs is not excessive. Irs tax extension forms The repairs fix the damage only. Irs tax extension forms The value of the property after the repairs is not, due to the repairs, more than the value of the property before the casualty. Irs tax extension forms Related expenses. Irs tax extension forms   The incidental expenses due to a casualty or theft, such as expenses for the treatment of personal injuries, temporary housing, or a rental car, are not part of your casualty or theft loss. Irs tax extension forms However, they may be deductible as farm business expenses if the damaged or stolen property is farm property. Irs tax extension forms Separate computations for more than one item of property. Irs tax extension forms   Generally, if a single casualty or theft involves more than one item of property, you must figure your loss separately for each item of property. Irs tax extension forms Then combine the losses to determine your total loss. Irs tax extension forms    There is an exception to this rule for personal-use real property. Irs tax extension forms See Exception for personal-use real property, later. Irs tax extension forms Example. Irs tax extension forms A fire on your farm damaged a tractor and the barn in which it was stored. Irs tax extension forms The tractor had an adjusted basis of $3,300. Irs tax extension forms Its FMV was $28,000 just before the fire and $10,000 immediately afterward. Irs tax extension forms The barn had an adjusted basis of $28,000. Irs tax extension forms Its FMV was $55,000 just before the fire and $25,000 immediately afterward. Irs tax extension forms You received insurance reimbursements of $2,100 on the tractor and $26,000 on the barn. Irs tax extension forms Figure your deductible casualty loss separately for the two items of property. Irs tax extension forms     Tractor Barn 1) Adjusted basis $3,300 $28,000 2) FMV before fire $28,000 $55,000 3) FMV after fire 10,000 25,000 4) Decrease in FMV  (line 2 − line 3) $18,000 $30,000 5) Loss (lesser of line 1 or line 4) $3,300 $28,000 6) Minus: Insurance 2,100 26,000 7) Deductible casualty loss $1,200 $2,000 8) Total deductible casualty loss $3,200 Exception for personal-use real property. Irs tax extension forms   In figuring a casualty loss on personal-use real property, the entire property (including any improvements, such as buildings, trees, and shrubs) is treated as one item. Irs tax extension forms Figure the loss using the smaller of the following. Irs tax extension forms The decrease in FMV of the entire property. Irs tax extension forms The adjusted basis of the entire property. Irs tax extension forms Example. Irs tax extension forms You bought a farm in 1990 for $160,000. Irs tax extension forms The adjusted basis of the residential part is now $128,000. Irs tax extension forms In 2013, a windstorm blew down shade trees and three ornamental trees planted at a cost of $7,500 on the residential part. Irs tax extension forms The adjusted basis of the residential part includes the $7,500. Irs tax extension forms The fair market value (FMV) of the residential part immediately before the storm was $400,000, and $385,000 immediately after the storm. Irs tax extension forms The trees were not covered by insurance. Irs tax extension forms 1) Adjusted basis $128,000 2) FMV before the storm $400,000 3) FMV after the storm 385,000 4) Decrease in FMV (line 2 − line 3) $15,000 5) Loss before insurance (lesser of line 1 or line 4) $15,000 6) Minus: Insurance -0- 7) Amount of loss $15,000 Insurance and other reimbursements. Irs tax extension forms   If you receive an insurance or other type of reimbursement, you must subtract the reimbursement when you figure your loss. Irs tax extension forms You do not have a casualty or theft loss to the extent you are reimbursed. Irs tax extension forms   If you expect to be reimbursed for part or all of your loss, you must subtract the expected reimbursement when you figure your loss. Irs tax extension forms You must reduce your loss even if you do not receive payment until a later tax year. Irs tax extension forms    Do not subtract from your loss any insurance payments you receive for living expenses if you lose the use of your main home or are denied access to it because of a casualty. Irs tax extension forms You may have to include a portion of these payments in your income. Irs tax extension forms See Insurance payments for living expenses in Publication 547 for details. Irs tax extension forms Disaster relief. Irs tax extension forms   Food, medical supplies, and other forms of assistance you receive do not reduce your casualty loss, unless they are replacements for lost or destroyed property. Irs tax extension forms Excludable cash gifts you receive also do not reduce your casualty loss if there are no limits on how you can use the money. Irs tax extension forms   Generally, disaster relief grants received under the Robert T. Irs tax extension forms Stafford Disaster Relief and Emergency Assistance Act are not included in your income. Irs tax extension forms See Federal disaster relief grants , later, under Disaster Area Losses . Irs tax extension forms   Qualified disaster relief payments for expenses you incurred as a result of a federally declared disaster are not taxable income to you. Irs tax extension forms See Qualified disaster relief payments , later, under Disaster Area Losses . Irs tax extension forms Reimbursement received after deducting loss. Irs tax extension forms   If you figure your casualty or theft loss using your expected reimbursement, you may have to adjust your tax return for the tax year in which you get your actual reimbursement. Irs tax extension forms Actual reimbursement less than expected. Irs tax extension forms   If you later receive less reimbursement than you expected, include that difference as a loss with your other losses (if any) on your return for the year in which you can reasonably expect no more reimbursement. Irs tax extension forms Actual reimbursement more than expected. Irs tax extension forms   If you later receive more reimbursement than you expected after you have claimed a deduction for the loss, you may have to include the extra reimbursement in your income for the year you receive it. Irs tax extension forms However, if any part of your original deduction did not reduce your tax for the earlier year, do not include that part of the reimbursement in your income. Irs tax extension forms Do not refigure your tax for the year you claimed the deduction. Irs tax extension forms See Recoveries in Publication 525 to find out how much extra reimbursement to include in income. Irs tax extension forms If the total of all the reimbursements you receive is more than your adjusted basis in the destroyed or stolen property, you will have a gain on the casualty or theft. Irs tax extension forms See Figuring a Gain in Publication 547 for information on how to treat a gain from the reimbursement you receive because of a casualty or theft. Irs tax extension forms Actual reimbursement same as expected. Irs tax extension forms   If you receive exactly the reimbursement you expected to receive, you do not have to include any of the reimbursement in your income and you cannot deduct any additional loss. Irs tax extension forms Lump-sum reimbursement. Irs tax extension forms   If you have a casualty or theft loss of several assets at the same time without an allocation of reimbursement to specific assets, divide the lump-sum reimbursement among the assets according to the fair market value of each asset at the time of the loss. Irs tax extension forms Figure the gain or loss separately for each asset that has a separate basis. Irs tax extension forms Adjustments to basis. Irs tax extension forms   If you have a casualty or theft loss, you must decrease your basis in the property by any insurance or other reimbursement you receive and by any deductible loss. Irs tax extension forms The result is your adjusted basis in the property. Irs tax extension forms Amounts you spend on repairs to restore your property to its pre-casualty condition increase your adjusted basis. Irs tax extension forms See Adjusted Basis in chapter 6 for more information. Irs tax extension forms Example. Irs tax extension forms You built a new silo for $25,000. Irs tax extension forms This is the basis in your silo because that is the total cost you incurred to build it. Irs tax extension forms During the year, a tornado damaged your silo and your allowable casualty loss deduction was $1,000. Irs tax extension forms In addition, your insurance company reimbursed you $4,000 for the damage and you spent $6,000 to restore the silo to its pre-casualty condition. Irs tax extension forms Your adjusted basis in the silo after the casualty is $26,000 ($25,000 - $1,000 - $4,000 + $6,000). Irs tax extension forms Deduction Limits on Losses of Personal-Use Property Casualty and theft losses of property held for personal use may be deductible if you itemize deductions on Schedule A (Form 1040). Irs tax extension forms There are two limits on the deduction for casualty or theft loss of personal-use property. Irs tax extension forms You figure these limits on Form 4684. Irs tax extension forms $100 rule. Irs tax extension forms   You must reduce each casualty or theft loss on personal-use property by $100. Irs tax extension forms This rule applies after you have subtracted any reimbursement. Irs tax extension forms 10% rule. Irs tax extension forms   You must further reduce the total of all your casualty or theft losses on personal-use property by 10% of your adjusted gross income. Irs tax extension forms Apply this rule after you reduce each loss by $100. Irs tax extension forms Adjusted gross income is on line 38 of Form 1040. Irs tax extension forms Example. Irs tax extension forms In June, you discovered that your house had been burglarized. Irs tax extension forms Your loss after insurance reimbursement was $2,000. Irs tax extension forms Your adjusted gross income for the year you discovered the burglary is $57,000. Irs tax extension forms Figure your theft loss deduction as follows: 1. Irs tax extension forms Loss after insurance $2,000 2. Irs tax extension forms Subtract $100 100 3. Irs tax extension forms Loss after $100 rule $1,900 4. Irs tax extension forms Subtract 10% (. Irs tax extension forms 10) × $57,000 AGI $5,700 5. Irs tax extension forms Theft loss deduction -0- You do not have a theft loss deduction because your loss ($1,900) is less than 10% of your adjusted gross income ($5,700). Irs tax extension forms    If you have a casualty or theft gain in addition to a loss, you will have to make a special computation before you figure your 10% limit. Irs tax extension forms See 10% Rule in Publication 547. Irs tax extension forms When Loss Is Deductible Generally, you can deduct casualty losses that are not reimbursable only in the tax year in which they occur. Irs tax extension forms You generally can deduct theft losses that are not reimbursable only in the year you discover your property was stolen. Irs tax extension forms However, losses in federally declared disaster areas are subject to different rules. Irs tax extension forms See Disaster Area Losses , later, for an exception. Irs tax extension forms If you are not sure whether part of your casualty or theft loss will be reimbursed, do not deduct that part until the tax year when you become reasonably certain that it will not be reimbursed. Irs tax extension forms Leased property. Irs tax extension forms   If you lease property from someone else, you can deduct a loss on the property in the year your liability for the loss is fixed. Irs tax extension forms This is true even if the loss occurred or the liability was paid in a different year. Irs tax extension forms You are not entitled to a deduction until your liability under the lease can be determined with reasonable accuracy. Irs tax extension forms Your liability can be determined when a claim for recovery is settled, adjudicated, or abandoned. Irs tax extension forms Example. Irs tax extension forms Robert leased a tractor from First Implement, Inc. Irs tax extension forms , for use in his farm business. Irs tax extension forms The tractor was destroyed by a tornado in June 2012. Irs tax extension forms The loss was not insured. Irs tax extension forms First Implement billed Robert for the fair market value of the tractor on the date of the loss. Irs tax extension forms Robert disagreed with the bill and refused to pay it. Irs tax extension forms First Implement later filed suit in court against Robert. Irs tax extension forms In 2013, Robert and First Implement agreed to settle the suit for $20,000, and the court entered a judgment in favor of First Implement. Irs tax extension forms Robert paid $20,000 in June 2013. Irs tax extension forms He can claim the $20,000 as a loss on his 2013 tax return. Irs tax extension forms Net operating loss (NOL). Irs tax extension forms   If your deductions, including casualty or theft loss deductions, are more than your income for the year, you may have an NOL. Irs tax extension forms An NOL can be carried back or carried forward and deducted from income in other years. Irs tax extension forms See Publication 536 for more information on NOLs. Irs tax extension forms Proof of Loss To deduct a casualty or theft loss, you must be able to prove that there was a casualty or theft. Irs tax extension forms You must have records to support the amount you claim for the loss. Irs tax extension forms Casualty loss proof. Irs tax extension forms   For a casualty loss, your records should show all the following information. Irs tax extension forms The type of casualty (car accident, fire, storm, etc. Irs tax extension forms ) and when it occurred. Irs tax extension forms That the loss was a direct result of the casualty. Irs tax extension forms That you were the owner of the property or, if you leased the property from someone else, that you were contractually liable to the owner for the damage. Irs tax extension forms Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. Irs tax extension forms Theft loss proof. Irs tax extension forms   For a theft loss, your records should show all the following information. Irs tax extension forms When you discovered your property was missing. Irs tax extension forms That your property was stolen. Irs tax extension forms That you were the owner of the property. Irs tax extension forms Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. Irs tax extension forms Figuring a Gain A casualty or theft may result in a taxable gain. Irs tax extension forms If you receive an insurance payment or other reimbursement that is more than your adjusted basis in the destroyed, damaged, or stolen property, you have a gain from the casualty or theft. Irs tax extension forms You generally report your gain as income in the year you receive the reimbursement. Irs tax extension forms However, depending on the type of property you receive, you may not have to report your gain. Irs tax extension forms See Postponing Gain , later. Irs tax extension forms Your gain is figured as follows: The amount you receive, minus Your adjusted basis in the property at the time of the casualty or theft. Irs tax extension forms Even if the decrease in FMV of your property is smaller than the adjusted basis of your property, use your adjusted basis to figure the gain. Irs tax extension forms Amount you receive. Irs tax extension forms   The amount you receive includes any money plus the value of any property you receive, minus any expenses you have in obtaining reimbursement. Irs tax extension forms It also includes any reimbursement used to pay off a mortgage or other lien on the damaged, destroyed, or stolen property. Irs tax extension forms Example. Irs tax extension forms A tornado severely damaged your barn. Irs tax extension forms The adjusted basis of the barn was $25,000. Irs tax extension forms Your insurance company reimbursed you $40,000 for the damaged barn. Irs tax extension forms However, you had legal expenses of $2,000 to collect that insurance. Irs tax extension forms Your insurance minus your expenses to collect the insurance is more than your adjusted basis in the barn, so you have a gain. Irs tax extension forms 1) Insurance reimbursement $40,000 2) Legal expenses 2,000 3) Amount received  (line 1 − line 2) $38,000 4) Adjusted basis 25,000 5) Gain on casualty (line 3 − line 4) $13,000 Other Involuntary Conversions In addition to casualties and thefts, other events cause involuntary conversions of property. Irs tax extension forms Some of these are discussed in the following paragraphs. Irs tax extension forms Gain or loss from an involuntary conversion of your property is usually recognized for tax purposes. Irs tax extension forms You report the gain or deduct the loss on your tax return for the year you realize it. Irs tax extension forms However, depending on the type of property you receive, you may not have to report your gain on the involuntary conversion. Irs tax extension forms See Postponing Gain , later. Irs tax extension forms Condemnation Condemnation is the process by which private property is legally taken for public use without the owner's consent. Irs tax extension forms The property may be taken by the federal government, a state government, a political subdivision, or a private organization that has the power to legally take property. Irs tax extension forms The owner receives a condemnation award (money or property) in exchange for the property taken. Irs tax extension forms A condemnation is a forced sale, the owner being the seller and the condemning authority being the buyer. Irs tax extension forms Threat of condemnation. Irs tax extension forms   Treat the sale of your property under threat of condemnation as a condemnation, provided you have reasonable grounds to believe that your property will be condemned. Irs tax extension forms Main home condemned. Irs tax extension forms   If you have a gain because your main home is condemned, you generally can exclude the gain from your income as if you had sold or exchanged your home. Irs tax extension forms For information on this exclusion, see Publication 523. Irs tax extension forms If your gain is more than the amount you can exclude, but you buy replacement property, you may be able to postpone reporting the excess gain. Irs tax extension forms See Postponing Gain , later. Irs tax extension forms (You cannot deduct a loss from the condemnation of your main home. Irs tax extension forms ) More information. Irs tax extension forms   For information on how to figure the gain or loss on condemned property, see chapter 1 in Publication 544. Irs tax extension forms Also see Postponing Gain , later, to find out if you can postpone reporting the gain. Irs tax extension forms Irrigation Project The sale or other disposition of property located within an irrigation project to conform to the acreage limits of federal reclamation laws is an involuntary conversion. Irs tax extension forms Livestock Losses Diseased livestock. Irs tax extension forms   If your livestock die from disease, or are destroyed, sold, or exchanged because of disease, even though the disease is not of epidemic proportions, treat these occurrences as involuntary conversions. Irs tax extension forms If the livestock were raised or purchased for resale, follow the rules for livestock discussed earlier under Farming Losses . Irs tax extension forms Otherwise, figure the gain or loss from these conversions using the rules discussed under Determining Gain or Loss in chapter 8. Irs tax extension forms If you replace the livestock, you may be able to postpone reporting the gain. Irs tax extension forms See Postponing Gain below. Irs tax extension forms Reporting dispositions of diseased livestock. Irs tax extension forms   If you choose to postpone reporting gain on the disposition of diseased livestock, you must attach a statement to your return explaining that the livestock were disposed of because of disease. Irs tax extension forms You must also include other information on this statement. Irs tax extension forms See How To Postpone Gain , later, under Postponing Gain . Irs tax extension forms Weather-related sales of livestock. Irs tax extension forms   If you sell or exchange livestock (other than poultry) held for draft, breeding, or dairy purposes solely because of drought, flood, or other weather-related conditions, treat the sale or exchange as an involuntary conversion. Irs tax extension forms Only livestock sold in excess of the number you normally would sell under usual business practice, in the absence of weather-related conditions, are considered involuntary conversions. Irs tax extension forms Figure the gain or loss using the rules discussed under Determining Gain or Loss in chapter 8. Irs tax extension forms If you replace the livestock, you may be able to postpone reporting the gain. Irs tax extension forms See Postponing Gain below. Irs tax extension forms Example. Irs tax extension forms It is your usual business practice to sell five of your dairy animals during the year. Irs tax extension forms This year you sold 20 dairy animals because of drought. Irs tax extension forms The sale of 15 animals is treated as an involuntary conversion. Irs tax extension forms    If you do not replace the livestock, you may be able to report the gain in the following year's income. Irs tax extension forms This rule also applies to other livestock (including poultry). Irs tax extension forms See Sales Caused by Weather-Related Conditions in chapter 3. Irs tax extension forms Tree Seedlings If, because of an abnormal drought, the failure of planted tree seedlings is greater than normally anticipated, you may have a deductible loss. Irs tax extension forms Treat the loss as a loss from an involuntary conversion. Irs tax extension forms The loss equals the previously capitalized reforestation costs you had to duplicate on replanting. Irs tax extension forms You deduct the loss on the return for the year the seedlings died. Irs tax extension forms Postponing Gain Do not report a gain if you receive reimbursement in the form of property similar or related in service or use to the destroyed, stolen, or other involuntarily converted property. Irs tax extension forms Your basis in the new property is generally the same as your adjusted basis in the property it replaces. Irs tax extension forms You must ordinarily report the gain on your stolen, destroyed, or other involuntarily converted property if you receive money or unlike property as reimbursement. Irs tax extension forms However, you can choose to postpone reporting the gain if you purchase replacement property similar or related in service or use to your destroyed, stolen, or other involuntarily converted property within a specific replacement period. Irs tax extension forms If you have a gain on damaged property, you can postpone reporting the gain if you spend the reimbursement to restore the property. Irs tax extension forms To postpone reporting all the gain, the cost of your replacement property must be at least as much as the reimbursement you receive. Irs tax extension forms If the cost of the replacement property is less than the reimbursement, you must include the gain in your income up to the amount of the unspent reimbursement. Irs tax extension forms Example 1. Irs tax extension forms In 1985, you constructed a barn to store farm equipment at a cost of $20,000. Irs tax extension forms In 1987, you added a silo to the barn at a cost of $15,000 to store grain. Irs tax extension forms In May of this year, the property was worth $100,000. Irs tax extension forms In June the barn and silo were destroyed by a tornado. Irs tax extension forms At the time of the tornado, you had an adjusted basis of $0 in the property. Irs tax extension forms You received $85,000 from the insurance company. Irs tax extension forms You had a gain of $85,000 ($85,000 – $0). Irs tax extension forms You spent $80,000 to rebuild the barn and silo. Irs tax extension forms Since this is less than the insurance proceeds received, you must include $5,000 ($85,000 – $80,000) in your income. Irs tax extension forms Example 2. Irs tax extension forms In 1970, you bought a cabin in the mountains for your personal use at a cost of $18,000. Irs tax extension forms You made no further improvements or additions to it. Irs tax extension forms When a storm destroyed the cabin this January, the cabin was worth $250,000. Irs tax extension forms You received $146,000 from the insurance company in March. Irs tax extension forms You had a gain of $128,000 ($146,000 − $18,000). Irs tax extension forms You spent $144,000 to rebuild the cabin. Irs tax extension forms Since this is less than the insurance proceeds received, you must include $2,000 ($146,000 − $144,000) in your income. Irs tax extension forms Buying replacement property from a related person. Irs tax extension forms   You cannot postpone reporting a gain from a casualty, theft, or other involuntary conversion if you buy the replacement property from a related person (discussed later). Irs tax extension forms This rule applies to the following taxpayers. Irs tax extension forms C corporations. Irs tax extension forms Partnerships in which more than 50% of the capital or profits interest is owned by C corporations. Irs tax extension forms Individuals, partnerships (other than those in (2) above), and S corporations if the total realized gain for the tax year on all involuntarily converted properties on which there are realized gains is more than $100,000. Irs tax extension forms For involuntary conversions described in (3) above, gains cannot be offset by any losses when determining whether the total gain is more than $100,000. Irs tax extension forms If the property is owned by a partnership, the $100,000 limit applies to the partnership and each partner. Irs tax extension forms If the property is owned by an S corporation, the $100,000 limit applies to the S corporation and each shareholder. Irs tax extension forms Exception. Irs tax extension forms   This rule does not apply if the related person acquired the property from an unrelated person within the period of time allowed for replacing the involuntarily converted property. Irs tax extension forms Related persons. Irs tax extension forms   Under this rule, related persons include, for example, a parent and child, a brother and sister, a corporation and an individual who owns more than 50% of its outstanding stock, and two partnerships in which the same C corporations own more than 50% of the capital or profits interests. Irs tax extension forms For more information on related persons, see Nondeductible Loss under Sales and Exchanges Between Related Persons in chapter 2 of Publication 544. Irs tax extension forms Death of a taxpayer. Irs tax extension forms   If a taxpayer dies after having a gain, but before buying replacement property, the gain must be reported for the year in which the decedent realized the gain. Irs tax extension forms The executor of the estate or the person succeeding to the funds from the involuntary conversion cannot postpone reporting the gain by buying replacement property. Irs tax extension forms Replacement Property You must buy replacement property for the specific purpose of replacing your property. Irs tax extension forms Your replacement property must be similar or related in service or use to the property it replaces. Irs tax extension forms You do not have to use the same funds you receive as reimbursement for your old property to acquire the replacement property. Irs tax extension forms If you spend the money you receive for other purposes, and borrow money to buy replacement property, you can still choose to postpone reporting the gain if you meet the other requirements. Irs tax extension forms Property you acquire by gift or inheritance does not qualify as replacement property. Irs tax extension forms Owner-user. Irs tax extension forms   If you are an owner-user, similar or related in service or use means that replacement property must function in the same way as the property it replaces. Irs tax extension forms Examples of property that functions in the same way as the property it replaces are a home that replaces another home, a dairy cow that replaces another dairy cow, and farm land that replaces other farm land. Irs tax extension forms A grinding mill that replaces a tractor does not qualify. Irs tax extension forms Neither does a breeding or draft animal that replaces a dairy cow. Irs tax extension forms Soil or other environmental contamination. Irs tax extension forms   If, because of soil or other environmental contamination, it is not feasible for you to reinvest your insurance money or other proceeds from destroyed or damaged livestock in property similar or related in service or use to the livestock, you can treat other property (including real property) used for farming purposes, as property similar or related in service or use to the destroyed or damaged livestock. Irs tax extension forms Weather-related conditions. Irs tax extension forms   If, because of drought, flood, or other weather-related conditions, it is not feasible for you to reinvest the insurance money or other proceeds in property similar or related in service or use to the livestock, you can treat other property (excluding real property) used for farming purposes, as property similar or related in service or use to the livestock you disposed of. Irs tax extension forms Example. Irs tax extension forms Each year you normally sell 25 cows from your beef herd. Irs tax extension forms However, this year you had to sell 50 cows. Irs tax extension forms This is because a severe drought significantly reduced the amount of hay and pasture yield needed to feed your herd for the rest of the year. Irs tax extension forms Because, as a result of the severe drought, it is not feasible for you to use the proceeds from selling the extra cows to buy new cows, you can treat other property (excluding real property) used for farming purposes, as property similar or related in service or use to the cows you sold. Irs tax extension forms Standing crop destroyed by casualty. Irs tax extension forms   If a storm or other casualty destroyed your standing crop and you use the insurance money to acquire either another standing crop or a harvested crop, this purchase qualifies as replacement property. Irs tax extension forms The costs of planting and raising a new crop qualify as replacement costs for the destroyed crop only if you use the crop method of accounting (discussed in chapter 2). Irs tax extension forms In that case, the costs of bringing the new crop to the same level of maturity as the destroyed crop qualify as replacement costs to the extent they are incurred during the replacement period. Irs tax extension forms Timber loss. Irs tax extension forms   Standing timber you bought with the proceeds from the sale of timber downed as a result of a casualty, such as high winds, earthquakes, or volcanic eruptions, qualifies as replacement property. Irs tax extension forms If you bought the standing timber within the replacement period, you can postpone reporting the gain. Irs tax extension forms Business or income-producing property located in a federally declared disaster area. Irs tax extension forms   If your destroyed business or income-producing property was located in a federally declared disaster area, any tangible replacement property you acquire for use in any business is treated as similar or related in service or use to the destroyed property. Irs tax extension forms For more information, see Disaster Area Losses in Publication 547. Irs tax extension forms Substituting replacement property. Irs tax extension forms   Once you have acquired qualified replacement property that you designate as replacement property in a statement attached to your tax return, you cannot substitute other qualified replacement property. Irs tax extension forms This is true even if you acquire the other property within the replacement period. Irs tax extension forms However, if you discover that the original replacement property was not qualified replacement property, you can, within the replacement period, substitute the new qualified replacement property. Irs tax extension forms Basis of replacement property. Irs tax extension forms   You must reduce the basis of your replacement property (its cost) by the amount of postponed gain. Irs tax extension forms In this way, tax on the gain is postponed until you dispose of the replacement property. Irs tax extension forms Replacement Period To postpone reporting your gain, you must buy replacement property within a specified period of time. Irs tax extension forms This is the replacement period. Irs tax extension forms The replacement period begins on the date your property was damaged, destroyed, stolen, sold, or exchanged. Irs tax extension forms The replacement period generally ends 2 years after the close of the first tax year in which you realize any part of your gain from the involuntary conversion. Irs tax extension forms Example. Irs tax extension forms You are a calendar year taxpayer. Irs tax extension forms While you were on vacation, farm equipment that cost $2,200 was stolen from your farm. Irs tax extension forms You discovered the theft when you returned to your farm on November 11, 2012. Irs tax extension forms Your insurance company investigated the theft and did not settle your claim until January 5, 2013, when they paid you $3,000. Irs tax extension forms You first realized a gain from the reimbursement for the theft during 2013, so you have until December 31, 2015, to replace the property. Irs tax extension forms Main home in disaster area. Irs tax extension forms   For your main home (or its contents) located in a federally declared disaster area, the replacement period ends 4 years after the close of the first tax year in which you realize any part of your gain from the involuntary conversion. Irs tax extension forms See Disaster Area Losses , later. Irs tax extension forms Property in the Midwestern disaster areas. Irs tax extension forms   For property located in the Midwestern disaster areas (defined in Table 4 in the 2008 Publication 547) that was destroyed, damaged, stolen, or condemned, the replacement period ends 5 years after the close of the first tax year in which any part of your gain is realized. Irs tax extension forms This 5-year replacement period applies only if substantially all of the use of the replacement property is in the Midwestern disaster areas. Irs tax extension forms Property in the Kansas disaster area. Irs tax extension forms   For property located in the Kansas disaster area that was destroyed, damaged, stolen, or condemned after May 3, 2007, as a result of the Kansas storms and tornadoes, the replacement period ends 5 years after the close of the first tax year in which any part of your gain is realized. Irs tax extension forms This 5-year replacement period applies only if substantially all of the use of the replacement property is in the Kansas disaster area. Irs tax extension forms Property in the Hurricane Katrina disaster area. Irs tax extension forms   For property located in the Hurricane Katrina disaster area that was destroyed, damaged, stolen, or condemned after August 24, 2005, as a result of Hurricane Katrina, the replacement period ends 5 years after the close of the first tax year in which any part of your gain is realized. Irs tax extension forms This 5-year replacement period applies only if substantially all of the use of the replacement property is in the Hurricane Katrina disaster area. Irs tax extension forms Weather-related sales of livestock in an area eligible for federal assistance. Irs tax extension forms   For the sale or exchange of livestock due to drought, flood, or other weather-related conditions in an area eligible for federal assistance, the replacement period ends 4 years after the close of the first tax year in which you realize any part of your gain from the sale or exchange. Irs tax extension forms The IRS may extend the replacement period on a regional basis if the weather-related conditions continue for longer than 3 years. Irs tax extension forms   For information on extensions of the replacement period because of persistent drought, see Notice 2006-82, 2006-39 I. Irs tax extension forms R. Irs tax extension forms B. Irs tax extension forms 529, available at  www. Irs tax extension forms irs. Irs tax extension forms gov/irb/2006-39_IRB/ar11. Irs tax extension forms html. Irs tax extension forms For a list of counties for which exceptional, extreme, or severe drought was reported during the 12 months ending August 31, 2013, see Notice 2013-62, available at IRS. Irs tax extension forms gov. Irs tax extension forms Condemnation. Irs tax extension forms   The replacement period for a condemnation begins on the earlier of the following dates. Irs tax extension forms The date on which you disposed of the condemned property. Irs tax extension forms The date on which the threat of condemnation began. Irs tax extension forms The replacement period generally ends 2 years after the close of the first tax year in which any part of the gain on the condemnation is realized. Irs tax extension forms But see Main home in disaster area , Property in the Midwestern disaster areas , Property in the Kansas disaster area , and Property in the Hurricane Katrina disaster area , earlier, for exceptions. Irs tax extension forms Business or investment real property. Irs tax extension forms   If real property held for use in a trade or business or for investment (not including property held primarily for sale) is condemned, the replacement period ends 3 years after the close of the first tax year in which any part of the gain on the condemnation is realized. Irs tax extension forms Extension. Irs tax extension forms   You can apply for an extension of the replacement period. Irs tax extension forms Send your written application to the Internal Revenue Service Center where you file your tax return. Irs tax extension forms See your tax return instructions for the address. Irs tax extension forms Include all the details about your need for an extension. Irs tax extension forms Make your application before the end of the replacement period. Irs tax extension forms However, you can file an application within a reasonable time after the replacement period ends if you can show a good reason for the delay. Irs tax extension forms You will get an extension of the replacement period if you can show reasonable cause for not making the replacement within the regular period. Irs tax extension forms How To Postpone Gain You postpone reporting your gain by reporting your choice on your tax return for the year you have the gain. Irs tax extension forms You have the gain in the year you receive insurance proceeds or other reimbursements that result in a gain. Irs tax extension forms Required statement. Irs tax extension forms   You should attach a statement to your return for the year you have the gain. Irs tax extension forms This statement should include all the following information. Irs tax extension forms The date and details of the casualty, theft, or other involuntary conversion. Irs tax extension forms The insurance or other reimbursement you received. Irs tax extension forms How you figured the gain. Irs tax extension forms Replacement property acquired before return filed. Irs tax extension forms   If you acquire replacement property before you file your return for the year you have the gain, your statement should also include detailed information about all the following items. Irs tax extension forms The replacement property. Irs tax extension forms The postponed gain. Irs tax extension forms The basis adjustment that reflects the postponed gain. Irs tax extension forms Any gain you are reporting as income. Irs tax extension forms Replacement property acquired after return filed. Irs tax extension forms   If you intend to buy replacement property after you file your return for the year you realize gain, your statement should also say that you are choosing to replace the property within the required replacement period. Irs tax extension forms   You should then attach another statement to your return for the year in which you buy the replacement property. Irs tax extension forms This statement should contain detailed information on the replacement property. Irs tax extension forms If you acquire part of your replacement property in one year and part in another year, you must attach a statement to each year's return. Irs tax extension forms Include in the statement detailed information on the replacement property bought in that year. Irs tax extension forms Reporting weather-related sales of livestock. Irs tax extension forms   If you choose to postpone reporting the gain on weather-related sales or exchanges of livestock, show all the following information on a statement attached to your return for the tax year in which you first realize any of the gain. Irs tax extension forms Evidence of the weather-related conditions that forced the sale or exchange of the livestock. Irs tax extension forms The gain realized on the sale or exchange. Irs tax extension forms The number and kind of livestock sold or exchanged. Irs tax extension forms The number of livestock of each kind you would have sold or exchanged under your usual business practice. Irs tax extension forms   Show all the following information and the preceding information on the return for the year in which you replace the livestock. Irs tax extension forms The dates you bought the replacement property. Irs tax extension forms The cost of the replacement property. Irs tax extension forms Description of the replacement property (for example, the number and kind of the replacement livestock). Irs tax extension forms Amended return. Irs tax extension forms   You must file an amended return (Form 1040X) for the tax year of the gain in either of the following situations. Irs tax extension forms You do not acquire replacement property within the replacement period, plus extensions. Irs tax extension forms On this amended return, you must report the gain and pay any additional tax due. Irs tax extension forms You acquire replacement property within the required replacement period, plus extensions, but at a cost less than the amount you receive from the casualty, theft, or other involuntary conversion. Irs tax extension forms On this amended return, you must report the part of the gain that cannot be postponed and pay any additional tax due. Irs tax extension forms Disaster Area Losses Special rules apply to federally declared disaster area losses. Irs tax extension forms A federally declared disaster is a disaster that occurred in an area declared by the President to be eligible for federal assistance under the Robert T. Irs tax extension forms Stafford Disaster Relief and Emergency Assistance Act. Irs tax extension forms It includes a major disaster or emergency declaration under the act. Irs tax extension forms A list of the areas warranting public or individual assistance (or both) under the Act is available at the Federal Emergency Management Agency (FEMA) web site at www. Irs tax extension forms fema. Irs tax extension forms gov. Irs tax extension forms This part discusses the special rules for when to deduct a disaster area loss and what tax deadlines may be postponed. Irs tax extension forms For other special rules, see Disaster Area Losses in Publication 547. Irs tax extension forms When to deduct the loss. Irs tax extension forms   You generally must deduct a casualty loss in the year it occurred. Irs tax extension forms However, if you have a deductible loss from a disaster that occurred in an area warranting public or individual assistance (or both), you can choose to deduct that loss on your return or amended return for the tax year immediately preceding the tax year in which the disaster happened. Irs tax extension forms If you make this choice, the loss is treated as having occurred in the preceding year. Irs tax extension forms    Claiming a qualifying disaster loss on the previous year's return may result in a lower tax for that year, often producing or increasing a cash refund. Irs tax extension forms   You must make the choice to take your casualty loss for the disaster in the preceding year by the later of the following dates. Irs tax extension forms The due date (without extensions) for filing your tax return for the tax year in which the disaster actually occurred. Irs tax extension forms The due date (with extensions) for the return for the preceding tax year. Irs tax extension forms Federal disaster relief grants. Irs tax extension forms   Do not include post-disaster relief grants received under the Robert T. Irs tax extension forms Stafford Disaster Relief and Emergency Assistance Act in your income if the grant payments are made to help you meet necessary expenses or serious needs for medical, dental, housing, personal property, transportation, or funeral expenses. Irs tax extension forms Do not deduct casualty losses or medical expenses to the extent they are specifically reimbursed by these disaster relief grants. Irs tax extension forms If the casualty loss was specifically reimbursed by the grant and you received the grant after the year in which you deducted the casualty loss, see Reimbursement received after deducting loss , earlier. Irs tax extension forms Unemployment assistance payments under the Act are taxable unemployment compensation. Irs tax extension forms Qualified disaster relief payments. Irs tax extension forms   Qualified disaster relief payments are not included in the income of individuals to the extent any expenses compensated by these payments are not otherwise compensated for by insurance or other reimbursement. Irs tax extension forms These payments are not subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). Irs tax extension forms No withholding applies to these payments. Irs tax extension forms   Qualified disaster relief payments include payments you receive (regardless of the source) for the following expenses. Irs tax extension forms Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a federally declared disaster. Irs tax extension forms Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a federally declared disaster. Irs tax extension forms (A personal residence can be a rented residence or one you own. Irs tax extension forms ) Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a federally declared disaster. Irs tax extension forms   Qualified disaster relief payments include amounts paid by a federal, state, or local government in connection with a federally declared disaster to individuals affected by the disaster. Irs tax extension forms    Qualified disaster relief payments do not include: Payments for expenses otherwise paid for by insurance or other reimbursements, or Income replacement payments, such as payments of lost wages, lost business income, or unemployment compensation. Irs tax extension forms Qualified disaster mitigation payments. Irs tax extension forms   Qualified disaster mitigation payments made under the Robert T. Irs tax extension forms Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act (as in effect on April 15, 2005) are not included in income. Irs tax extension forms These are payments you, as a property owner, receive to reduce the risk of future damage to your property. Irs tax extension forms You cannot increase your basis in property, or take a deduction or credit, for expenditures made with respect to those payments. Irs tax extension forms Sale of property under hazard mitigation program. Irs tax extension forms   Generally, if you sell or otherwise transfer property, you must recognize any gain or loss for tax purposes unless the property is your main home. Irs tax extension forms You report the gain or deduct the loss on your tax return for the year you realize it. Irs tax extension forms (You cannot deduct a loss on personal-use property unless the loss resulted from a casualty, as discussed earlier. Irs tax extension forms ) However, if you sell or otherwise transfer property to the Federal Government, a state or local government, or an Indian tribal government under a hazard mitigation program, you can choose to postpone reporting the gain if you buy qualifying replacement property within a certain period of time. Irs tax extension forms See Postponing Gain , earlier, for the rules that apply. Irs tax extension forms Other federal assistance programs. Irs tax extension forms    For more information about other federal assistance programs, see Crop Insurance and Crop Disaster Payments and Feed Assistance and Payments in chapter 3 earlier. Irs tax extension forms Postponed tax deadlines. Irs tax extension forms   The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a federally declared disaster. Irs tax extension forms The tax deadlines the IRS may postpone include those for filing income, excise, and employment tax returns, paying income, excise, and employment taxes, and making contributions to a traditional IRA or Roth IRA. Irs tax extension forms   If any tax deadline is postponed, the IRS will publicize the postponement in your area and publish a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). Irs tax extension forms Go to http://www. Irs tax extension forms irs. Irs tax extension forms gov/uac/Tax-Relief-in-Disaster-Situations to find out if a tax deadline has been postponed for your area. Irs tax extension forms Who is eligible. Irs tax extension forms   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Irs tax extension forms Any individual whose main home is located in a covered disaster area (defined next). Irs tax extension forms Any business entity or sole proprietor whose principal place of business is located in a covered disaster area. Irs tax extension forms Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered disaster area. Irs tax extension forms Any individual, business entity, or sole proprietorship whose records are needed to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. Irs tax extension forms The main home or principal place of business does not have to be located in the covered disaster area. Irs tax extension forms Any estate or trust that has tax records necessary to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. Irs tax extension forms The spouse on a joint return with a taxpayer who is eligible for postponements. Irs tax extension forms Any individual, business entity, or sole proprietorship not located in a covered disaster area, but whose necessary records to meet a postponed tax deadline are located in the covered disaster area. Irs tax extension forms Any individual visiting the covered disaster area who was killed or injured as a result of the disaster. Irs tax extension forms Any other person determined by the IRS to be affected by a federally declared disaster. Irs tax extension forms Covered disaster area. Irs tax extension forms   This is an area of a federally declared disaster area in which the IRS has decided to postpone tax deadlines for up to 1 year. Irs tax extension forms Abatement of interest and penalties. Irs tax extension forms   The IRS may abate the interest and penalties on the underpaid income tax for the length of any postponement of tax deadlines. Irs tax extension forms Reporting Gains and Losses You will have to file one or more of the following forms to report your gains or losses from involuntary conversions. Irs tax extension forms Form 4684. Irs tax extension forms   Use this form to report your gains and losses from casualties and thefts. Irs tax extension forms Form 4797. Irs tax extension forms   Use this form to report involuntary conversions (other than from casualty or theft) of property used in your trade or business and capital assets held in connection with a trade or business or a transaction entered into for profit. Irs tax extension forms Also use this form if you have a gain from a casualty or theft on trade, business or income-producing property held for more than 1 year and you have to recapture some or all of your gain as ordinary income. Irs tax extension forms Form 8949. Irs tax extension forms   Use this form to report gain from an involuntary conversion (other than from casualty or theft) of personal-use property. Irs tax extension forms Schedule A (Form 1040). Irs tax extension forms   Use this form to deduct your losses from casualties and thefts of personal-use property and income-producing property, that you reported on Form 4684. Irs tax extension forms Schedule D (Form 1040). Irs tax extension forms   Use this form to carry over the following gains. Irs tax extension forms Net gain shown on Form 4797 from an involuntary conversion of business property held for more than 1 year. Irs tax extension forms Net gain shown on Form 4684 from the casualty or theft of personal-use property. Irs tax extension forms    Also use this form to figure the overall gain or loss from transactions reported on Form 8949. Irs tax extension forms Schedule F (Form 1040). Irs tax extension forms   Use this form to deduct your losses from casualty or theft of livestock or produce bought for sale under Other expenses in Part II, line 32, if you use the cash method of accounting and have not otherwise deducted these losses. Irs tax extension forms Prev  Up  Next   Home   More Online Publications