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Print 1040ez federal tax form 15. Print 1040ez federal tax form   Selling Your Home Table of Contents Reminder Introduction Useful Items - You may want to see: Main Home Figuring Gain or LossSelling Price Amount Realized Adjusted Basis Amount of Gain or Loss Dispositions Other Than Sales Determining Basis Excluding the GainMaximum Exclusion Ownership and Use Tests Reduced Maximum Exclusion Business Use or Rental of Home Reporting the SaleSeller-financed mortgage. Print 1040ez federal tax form More information. Print 1040ez federal tax form Special SituationsException for sales to related persons. Print 1040ez federal tax form Recapturing (Paying Back) a Federal Mortgage Subsidy Reminder Home sold with undeducted points. Print 1040ez federal tax form  If you have not deducted all the points you paid to secure a mortgage on your old home, you may be able to deduct the remaining points in the year of the sale. Print 1040ez federal tax form See Mortgage ending early under Points in chapter 23. Print 1040ez federal tax form Introduction This chapter explains the tax rules that apply when you sell your main home. Print 1040ez federal tax form In most cases, your main home is the one in which you live most of the time. Print 1040ez federal tax form If you sold your main home in 2013, you may be able to exclude from income any gain up to a limit of $250,000 ($500,000 on a joint return in most cases). Print 1040ez federal tax form See Excluding the Gain , later. Print 1040ez federal tax form Generally, if you can exclude all the gain, you do not need to report the sale on your tax return. Print 1040ez federal tax form If you have gain that cannot be excluded, it is taxable. Print 1040ez federal tax form Report it on Form 8949, Sales and Other Dispositions of Capital Assets, and Schedule D (Form 1040). Print 1040ez federal tax form You may also have to complete Form 4797, Sales of Business Property. Print 1040ez federal tax form See Reporting the Sale , later. Print 1040ez federal tax form If you have a loss on the sale, you generally cannot deduct it on your return. Print 1040ez federal tax form However, you may need to report it. Print 1040ez federal tax form See Reporting the Sale , later. Print 1040ez federal tax form The following are main topics in this chapter. Print 1040ez federal tax form Figuring gain or loss. Print 1040ez federal tax form Basis. Print 1040ez federal tax form Excluding the gain. Print 1040ez federal tax form Ownership and use tests. Print 1040ez federal tax form Reporting the sale. Print 1040ez federal tax form Other topics include the following. Print 1040ez federal tax form Business use or rental of home. Print 1040ez federal tax form Recapturing a federal mortgage subsidy. Print 1040ez federal tax form Useful Items - You may want to see: Publication 523 Selling Your Home 530 Tax Information for Homeowners 547 Casualties, Disasters, and Thefts Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 982 Reduction of Tax Attributes Due to Discharge of Indebtedness 8828 Recapture of Federal Mortgage Subsidy 8949 Sales and Other Dispositions of Capital Assets Main Home This section explains the term “main home. Print 1040ez federal tax form ” Usually, the home you live in most of the time is your main home and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. Print 1040ez federal tax form To exclude gain under the rules of this chapter, you in most cases must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale. Print 1040ez federal tax form Land. Print 1040ez federal tax form   If you sell the land on which your main home is located, but not the house itself, you cannot exclude any gain you have from the sale of the land. Print 1040ez federal tax form However, if you sell vacant land used as part of your main home and that is adjacent to it, you may be able to exclude the gain from the sale under certain circumstances. Print 1040ez federal tax form See Vacant land under Main Home in Publication 523 for more information. Print 1040ez federal tax form Example. Print 1040ez federal tax form You buy a piece of land and move your main home to it. Print 1040ez federal tax form Then you sell the land on which your main home was located. Print 1040ez federal tax form This sale is not considered a sale of your main home, and you cannot exclude any gain on the sale of the land. Print 1040ez federal tax form More than one home. Print 1040ez federal tax form   If you have more than one home, you can exclude gain only from the sale of your main home. Print 1040ez federal tax form You must include in income gain from the sale of any other home. Print 1040ez federal tax form If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time during the year. Print 1040ez federal tax form Example 1. Print 1040ez federal tax form You own two homes, one in New York and one in Florida. Print 1040ez federal tax form From 2009 through 2013, you live in the New York home for 7 months and in the Florida residence for 5 months of each year. Print 1040ez federal tax form In the absence of facts and circumstances indicating otherwise, the New York home is your main home. Print 1040ez federal tax form You would be eligible to exclude the gain from the sale of the New York home but not of the Florida home in 2013. Print 1040ez federal tax form Example 2. Print 1040ez federal tax form You own a house, but you live in another house that you rent. Print 1040ez federal tax form The rented house is your main home. Print 1040ez federal tax form Example 3. Print 1040ez federal tax form You own two homes, one in Virginia and one in New Hampshire. Print 1040ez federal tax form In 2009 and 2010, you lived in the Virginia home. Print 1040ez federal tax form In 2011 and 2012, you lived in the New Hampshire home. Print 1040ez federal tax form In 2013, you lived again in the Virginia home. Print 1040ez federal tax form Your main home in 2009, 2010, and 2013 is the Virginia home. Print 1040ez federal tax form Your main home in 2011 and 2012 is the New Hampshire home. Print 1040ez federal tax form You would be eligible to exclude gain from the sale of either home (but not both) in 2013. Print 1040ez federal tax form Property used partly as your main home. Print 1040ez federal tax form   If you use only part of the property as your main home, the rules discussed in this publication apply only to the gain or loss on the sale of that part of the property. Print 1040ez federal tax form For details, see Business Use or Rental of Home , later. Print 1040ez federal tax form Figuring Gain or Loss To figure the gain or loss on the sale of your main home, you must know the selling price, the amount realized, and the adjusted basis. Print 1040ez federal tax form Subtract the adjusted basis from the amount realized to get your gain or loss. Print 1040ez federal tax form     Selling price     − Selling expenses       Amount realized       Amount realized     − Adjusted basis       Gain or loss   Selling Price The selling price is the total amount you receive for your home. Print 1040ez federal tax form It includes money and the fair market value of any other property or any other services you receive and all notes, mortgages or other debts assumed by the buyer as part of the sale. Print 1040ez federal tax form Payment by employer. Print 1040ez federal tax form   You may have to sell your home because of a job transfer. Print 1040ez federal tax form If your employer pays you for a loss on the sale or for your selling expenses, do not include the payment as part of the selling price. Print 1040ez federal tax form Your employer will include it as wages in box 1 of your Form W-2, and you will include it in your income on Form 1040, line 7. Print 1040ez federal tax form Option to buy. Print 1040ez federal tax form   If you grant an option to buy your home and the option is exercised, add the amount you receive for the option to the selling price of your home. Print 1040ez federal tax form If the option is not exercised, you must report the amount as ordinary income in the year the option expires. Print 1040ez federal tax form Report this amount on Form 1040, line 21. Print 1040ez federal tax form Form 1099-S. Print 1040ez federal tax form   If you received Form 1099-S, Proceeds From Real Estate Transactions, box 2 (Gross proceeds) should show the total amount you received for your home. Print 1040ez federal tax form   However, box 2 will not include the fair market value of any services or property other than cash or notes you received or will receive. Print 1040ez federal tax form Instead, box 4 will be checked to indicate your receipt or expected receipt of these items. Print 1040ez federal tax form Amount Realized The amount realized is the selling price minus selling expenses. Print 1040ez federal tax form Selling expenses. Print 1040ez federal tax form   Selling expenses include: Commissions, Advertising fees, Legal fees, and Loan charges paid by the seller, such as loan placement fees or “points. Print 1040ez federal tax form ” Adjusted Basis While you owned your home, you may have made adjustments (increases or decreases) to the basis. Print 1040ez federal tax form This adjusted basis must be determined before you can figure gain or loss on the sale of your home. Print 1040ez federal tax form For information on how to figure your home's adjusted basis, see Determining Basis , later. Print 1040ez federal tax form Amount of Gain or Loss To figure the amount of gain or loss, compare the amount realized to the adjusted basis. Print 1040ez federal tax form Gain on sale. Print 1040ez federal tax form   If the amount realized is more than the adjusted basis, the difference is a gain and, except for any part you can exclude, in most cases is taxable. Print 1040ez federal tax form Loss on sale. Print 1040ez federal tax form   If the amount realized is less than the adjusted basis, the difference is a loss. Print 1040ez federal tax form A loss on the sale of your main home cannot be deducted. Print 1040ez federal tax form Jointly owned home. Print 1040ez federal tax form   If you and your spouse sell your jointly owned home and file a joint return, you figure your gain or loss as one taxpayer. Print 1040ez federal tax form Separate returns. Print 1040ez federal tax form   If you file separate returns, each of you must figure your own gain or loss according to your ownership interest in the home. Print 1040ez federal tax form Your ownership interest is generally determined by state law. Print 1040ez federal tax form Joint owners not married. Print 1040ez federal tax form   If you and a joint owner other than your spouse sell your jointly owned home, each of you must figure your own gain or loss according to your ownership interest in the home. Print 1040ez federal tax form Each of you applies the rules discussed in this chapter on an individual basis. Print 1040ez federal tax form Dispositions Other Than Sales Some special rules apply to other dispositions of your main home. Print 1040ez federal tax form Foreclosure or repossession. Print 1040ez federal tax form   If your home was foreclosed on or repossessed, you have a disposition. Print 1040ez federal tax form See Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments, to determine if you have ordinary income, gain, or loss. Print 1040ez federal tax form Abandonment. Print 1040ez federal tax form   If you abandon your home, see Publication 4681 to determine if you have ordinary income, gain, or loss. Print 1040ez federal tax form Trading (exchanging) homes. Print 1040ez federal tax form   If you trade your old home for another home, treat the trade as a sale and a purchase. Print 1040ez federal tax form Example. Print 1040ez federal tax form You owned and lived in a home with an adjusted basis of $41,000. Print 1040ez federal tax form A real estate dealer accepted your old home as a trade-in and allowed you $50,000 toward a new home priced at $80,000. Print 1040ez federal tax form This is treated as a sale of your old home for $50,000 with a gain of $9,000 ($50,000 – $41,000). Print 1040ez federal tax form If the dealer had allowed you $27,000 and assumed your unpaid mortgage of $23,000 on your old home, your sales price would still be $50,000 (the $27,000 trade-in allowed plus the $23,000 mortgage assumed). Print 1040ez federal tax form Transfer to spouse. Print 1040ez federal tax form   If you transfer your home to your spouse or you transfer it to your former spouse incident to your divorce, you in most cases have no gain or loss. Print 1040ez federal tax form This is true even if you receive cash or other consideration for the home. Print 1040ez federal tax form As a result, the rules in this chapter do not apply. Print 1040ez federal tax form More information. Print 1040ez federal tax form   If you need more information, see Transfer to spouse in Publication 523 and Property Settlements in Publication 504, Divorced or Separated Individuals. Print 1040ez federal tax form Involuntary conversion. Print 1040ez federal tax form   You have a disposition when your home is destroyed or condemned and you receive other property or money in payment, such as insurance or a condemnation award. Print 1040ez federal tax form This is treated as a sale and you may be able to exclude all or part of any gain from the destruction or condemnation of your home, as explained later under Special Situations . Print 1040ez federal tax form Determining Basis You need to know your basis in your home to figure any gain or loss when you sell it. Print 1040ez federal tax form Your basis in your home is determined by how you got the home. Print 1040ez federal tax form Generally, your basis is its cost if you bought it or built it. Print 1040ez federal tax form If you got it in some other way (inheritance, gift, etc. Print 1040ez federal tax form ), your basis is generally either its fair market value when you received it or the adjusted basis of the previous owner. Print 1040ez federal tax form While you owned your home, you may have made adjustments (increases or decreases) to your home's basis. Print 1040ez federal tax form The result of these adjustments is your home's adjusted basis, which is used to figure gain or loss on the sale of your home. Print 1040ez federal tax form See Adjusted Basis , later. Print 1040ez federal tax form You can find more information on basis and adjusted basis in chapter 13 of this publication and in Publication 523. Print 1040ez federal tax form Cost As Basis The cost of property is the amount you paid for it in cash, debt obligations, other property, or services. Print 1040ez federal tax form Purchase. Print 1040ez federal tax form   If you bought your home, your basis is its cost to you. Print 1040ez federal tax form This includes the purchase price and certain settlement or closing costs. Print 1040ez federal tax form In most cases, your purchase price includes your down payment and any debt, such as a first or second mortgage or notes you gave the seller in payment for the home. Print 1040ez federal tax form If you build, or contract to build, a new home, your purchase price can include costs of construction, as discussed in Publication 523. Print 1040ez federal tax form Settlement fees or closing costs. Print 1040ez federal tax form   When you bought your home, you may have paid settlement fees or closing costs in addition to the contract price of the property. Print 1040ez federal tax form You can include in your basis some of the settlement fees and closing costs you paid for buying the home, but not the fees and costs for getting a mortgage loan. Print 1040ez federal tax form A fee paid for buying the home is any fee you would have had to pay even if you paid cash for the home (that is, without the need for financing). Print 1040ez federal tax form    Chapter 13 lists some of the settlement fees and closing costs that you can include in the basis of property, including your home. Print 1040ez federal tax form It also lists some settlement costs that cannot be included in basis. Print 1040ez federal tax form   Also see Publication 523 for additional items and a discussion of basis other than cost. Print 1040ez federal tax form Adjusted Basis Adjusted basis is your cost or other basis increased or decreased by certain amounts. Print 1040ez federal tax form To figure your adjusted basis, you can use Worksheet 1 in Publication 523. Print 1040ez federal tax form Do not use Worksheet 1 if you acquired an interest in your home from a decedent who died in 2010 and whose executor filed Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent. Print 1040ez federal tax form Increases to basis. Print 1040ez federal tax form   These include the following. Print 1040ez federal tax form Additions and other improvements that have a useful life of more than 1 year. Print 1040ez federal tax form Special assessments for local improvements. Print 1040ez federal tax form Amounts you spent after a casualty to restore damaged property. Print 1040ez federal tax form Improvements. Print 1040ez federal tax form   These add to the value of your home, prolong its useful life, or adapt it to new uses. Print 1040ez federal tax form You add the cost of additions and other improvements to the basis of your property. Print 1040ez federal tax form   For example, putting a recreation room or another bathroom in your unfinished basement, putting up a new fence, putting in new plumbing or wiring, putting on a new roof, or paving your unpaved driveway are improvements. Print 1040ez federal tax form An addition to your house, such as a new deck, a sunroom, or a new garage, is also an improvement. Print 1040ez federal tax form Repairs. Print 1040ez federal tax form   These maintain your home in good condition but do not add to its value or prolong its life. Print 1040ez federal tax form You do not add their cost to the basis of your property. Print 1040ez federal tax form   Examples of repairs include repainting your house inside or outside, fixing your gutters or floors, repairing leaks or plastering, and replacing broken window panes. Print 1040ez federal tax form Decreases to basis. Print 1040ez federal tax form   These include the following. Print 1040ez federal tax form Discharge of qualified principal residence indebtedness that was excluded from income. Print 1040ez federal tax form Some or all of the cancellation of debt income that was excluded due to your bankruptcy or insolvency. Print 1040ez federal tax form For details, see Publication 4681. Print 1040ez federal tax form Gain you postponed from the sale of a previous home before May 7, 1997. Print 1040ez federal tax form Deductible casualty losses. Print 1040ez federal tax form Insurance payments you received or expect to receive for casualty losses. Print 1040ez federal tax form Payments you received for granting an easement or right-of-way. Print 1040ez federal tax form Depreciation allowed or allowable if you used your home for business or rental purposes. Print 1040ez federal tax form Energy-related credits allowed for expenditures made on the residence. Print 1040ez federal tax form (Reduce the increase in basis otherwise allowable for expenditures on the residence by the amount of credit allowed for those expenditures. Print 1040ez federal tax form ) Adoption credit you claimed for improvements added to the basis of your home. Print 1040ez federal tax form Nontaxable payments from an adoption assistance program of your employer you used for improvements you added to the basis of your home. Print 1040ez federal tax form Energy conservation subsidy excluded from your gross income because you received it (directly or indirectly) from a public utility after 1992 to buy or install any energy conservation measure. Print 1040ez federal tax form An energy conservation measure is an installation or modification primarily designed either to reduce consumption of electricity or natural gas or to improve the management of energy demand for a home. Print 1040ez federal tax form District of Columbia first-time homebuyer credit (allowed on the purchase of a principal residence in the District of Columbia beginning on August 5, 1997 and before January 1, 2012). Print 1040ez federal tax form General sales taxes (allowed beginning 2004 and ending before 2014) claimed as an itemized deduction on Schedule A (Form 1040) that were imposed on the purchase of personal property, such as a houseboat used as your home or a mobile home. Print 1040ez federal tax form Discharges of qualified principal residence indebtedness. Print 1040ez federal tax form   You may be able to exclude from gross income a discharge of qualified principal residence indebtedness. Print 1040ez federal tax form This exclusion applies to discharges made after 2006 and before 2014. Print 1040ez federal tax form If you choose to exclude this income, you must reduce (but not below zero) the basis of the principal residence by the amount excluded from your gross income. Print 1040ez federal tax form   File Form 982 with your tax return. Print 1040ez federal tax form See the form's instructions for detailed information. Print 1040ez federal tax form Recordkeeping. Print 1040ez federal tax form You should keep records to prove your home's adjusted basis. Print 1040ez federal tax form Ordinarily, you must keep records for 3 years after the due date for filing your return for the tax year in which you sold your home. Print 1040ez federal tax form But if you sold a home before May 7, 1997, and postponed tax on any gain, the basis of that home affects the basis of the new home you bought. Print 1040ez federal tax form Keep records proving the basis of both homes as long as they are needed for tax purposes. Print 1040ez federal tax form The records you should keep include: Proof of the home's purchase price and purchase expenses, Receipts and other records for all improvements, additions, and other items that affect the home's adjusted basis, Any worksheets or other computations you used to figure the adjusted basis of the home you sold, the gain or loss on the sale, the exclusion, and the taxable gain, Any Form 982 you filed to report any discharge of qualified principal residence indebtedness, Any Form 2119, Sale of Your Home, you filed to postpone gain from the sale of a previous home before May 7, 1997, and Any worksheets you used to prepare Form 2119, such as the Adjusted Basis of Home Sold Worksheet or the Capital Improvements Worksheet from the Form 2119 instructions, or other source of computations. Print 1040ez federal tax form Excluding the Gain You may qualify to exclude from your income all or part of any gain from the sale of your main home. Print 1040ez federal tax form This means that, if you qualify, you will not have to pay tax on the gain up to the limit described under Maximum Exclusion , next. Print 1040ez federal tax form To qualify, you must meet the ownership and use tests described later. Print 1040ez federal tax form You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. Print 1040ez federal tax form You can use Worksheet 2 in Publication 523 to figure the amount of your exclusion and your taxable gain, if any. Print 1040ez federal tax form If you have any taxable gain from the sale of your home, you may have to increase your withholding or make estimated tax payments. Print 1040ez federal tax form See Publication 505, Tax Withholding and Estimated Tax. Print 1040ez federal tax form Maximum Exclusion You can exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. Print 1040ez federal tax form You meet the ownership test. Print 1040ez federal tax form You meet the use test. Print 1040ez federal tax form During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. Print 1040ez federal tax form For details on gain allocated to periods of nonqualified use, see Periods of nonqualified use , later. Print 1040ez federal tax form You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . Print 1040ez federal tax form Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. Print 1040ez federal tax form This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). Print 1040ez federal tax form Exception. Print 1040ez federal tax form   If you owned and lived in the property as your main home for less than 2 years, you can still claim an exclusion in some cases. Print 1040ez federal tax form However, the maximum amount you may be able to exclude will be reduced. Print 1040ez federal tax form See Reduced Maximum Exclusion , later. Print 1040ez federal tax form Example 1—home owned and occupied for at least 2 years. Print 1040ez federal tax form Mya bought and moved into her main home in September 2011. Print 1040ez federal tax form She sold the home at a gain in October 2013. Print 1040ez federal tax form During the 5-year period ending on the date of sale in October 2013, she owned and lived in the home for more than 2 years. Print 1040ez federal tax form She meets the ownership and use tests. Print 1040ez federal tax form Example 2—ownership test met but use test not met. Print 1040ez federal tax form Ayden bought a home, lived in it for 6 months, moved out, and never occupied the home again. Print 1040ez federal tax form He later sold the home for a gain. Print 1040ez federal tax form He owned the home during the entire 5-year period ending on the date of sale. Print 1040ez federal tax form He meets the ownership test but not the use test. Print 1040ez federal tax form He cannot exclude any part of his gain on the sale unless he qualified for a reduced maximum exclusion (explained later). Print 1040ez federal tax form Period of Ownership and Use The required 2 years of ownership and use during the 5-year period ending on the date of the sale do not have to be continuous nor do they both have to occur at the same time. Print 1040ez federal tax form You meet the tests if you can show that you owned and lived in the property as your main home for either 24 full months or 730 days (365 × 2) during the 5-year period ending on the date of sale. Print 1040ez federal tax form Temporary absence. Print 1040ez federal tax form   Short temporary absences for vacations or other seasonal absences, even if you rent out the property during the absences, are counted as periods of use. Print 1040ez federal tax form The following examples assume that the reduced maximum exclusion (discussed later) does not apply to the sales. Print 1040ez federal tax form Example 1. Print 1040ez federal tax form David Johnson, who is single, bought and moved into his home on February 1, 2011. Print 1040ez federal tax form Each year during 2011 and 2012, David left his home for a 2-month summer vacation. Print 1040ez federal tax form David sold the house on March 1, 2013. Print 1040ez federal tax form Although the total time David used his home is less than 2 years (21 months), he meets the requirement and may exclude gain. Print 1040ez federal tax form The 2-month vacations are short temporary absences and are counted as periods of use in determining whether David used the home for the required 2 years. Print 1040ez federal tax form Example 2. Print 1040ez federal tax form Professor Paul Beard, who is single, bought and moved into a house on August 18, 2010. Print 1040ez federal tax form He lived in it as his main home continuously until January 5, 2012, when he went abroad for a 1-year sabbatical leave. Print 1040ez federal tax form On February 6, 2013, 1 month after returning from the leave, Paul sold the house at a gain. Print 1040ez federal tax form Because his leave was not a short temporary absence, he cannot include the period of leave to meet the 2-year use test. Print 1040ez federal tax form He cannot exclude any part of his gain, because he did not use the residence for the required 2 years. Print 1040ez federal tax form Ownership and use tests met at different times. Print 1040ez federal tax form   You can meet the ownership and use tests during different 2-year periods. Print 1040ez federal tax form However, you must meet both tests during the 5-year period ending on the date of the sale. Print 1040ez federal tax form Example. Print 1040ez federal tax form Beginning in 2002, Helen Jones lived in a rented apartment. Print 1040ez federal tax form The apartment building was later converted to condominiums, and she bought her same apartment on December 3, 2010. Print 1040ez federal tax form In 2011, Helen became ill and on April 14 of that year she moved to her daughter's home. Print 1040ez federal tax form On July 12, 2013, while still living in her daughter's home, she sold her condominium. Print 1040ez federal tax form Helen can exclude gain on the sale of her condominium because she met the ownership and use tests during the 5-year period from July 13, 2008, to July 12, 2013, the date she sold the condominium. Print 1040ez federal tax form She owned her condominium from December 3, 2010, to July 12, 2013 (more than 2 years). Print 1040ez federal tax form She lived in the property from July 13, 2008 (the beginning of the 5-year period), to April 14, 2011 (more than 2 years). Print 1040ez federal tax form The time Helen lived in her daughter's home during the 5-year period can be counted toward her period of ownership, and the time she lived in her rented apartment during the 5-year period can be counted toward her period of use. Print 1040ez federal tax form Cooperative apartment. Print 1040ez federal tax form   If you sold stock as a tenant-stockholder in a cooperative housing corporation, the ownership and use tests are met if, during the 5-year period ending on the date of sale, you: Owned the stock for at least 2 years, and Lived in the house or apartment that the stock entitles you to occupy as your main home for at least 2 years. Print 1040ez federal tax form Exceptions to Ownership and Use Tests The following sections contain exceptions to the ownership and use tests for certain taxpayers. Print 1040ez federal tax form Exception for individuals with a disability. Print 1040ez federal tax form   There is an exception to the use test if: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year during the 5-year period before the sale of your home. Print 1040ez federal tax form Under this exception, you are considered to live in your home during any time within the 5-year period that you own the home and live in a facility (including a nursing home) licensed by a state or political subdivision to care for persons in your condition. Print 1040ez federal tax form If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. Print 1040ez federal tax form Previous home destroyed or condemned. Print 1040ez federal tax form   For the ownership and use tests, you add the time you owned and lived in a previous home that was destroyed or condemned to the time you owned and lived in the replacement home on whose sale you wish to exclude gain. Print 1040ez federal tax form This rule applies if any part of the basis of the home you sold depended on the basis of the destroyed or condemned home. Print 1040ez federal tax form Otherwise, you must have owned and lived in the same home for 2 of the 5 years before the sale to qualify for the exclusion. Print 1040ez federal tax form Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps. Print 1040ez federal tax form   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve on “qualified official extended duty” as a member of the uniformed services or Foreign Service of the United States, or as an employee of the intelligence community. Print 1040ez federal tax form You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve outside the United States either as an employee of the Peace Corps on "qualified official extended duty" or as an enrolled volunteer or volunteer leader of the Peace Corps. Print 1040ez federal tax form This means that you may be able to meet the 2-year use test even if, because of your service, you did not actually live in your home for at least the required 2 years during the 5-year period ending on the date of sale. Print 1040ez federal tax form   If this helps you qualify to exclude gain, you can choose to have the 5-year test period suspended by filing a return for the year of sale that does not include the gain. Print 1040ez federal tax form For more information about the suspension of the 5-year test period, see Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps in Publication 523. Print 1040ez federal tax form Married Persons If you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use tests, you can exclude up to $250,000 of the gain. Print 1040ez federal tax form (But see Special rules for joint returns , next. Print 1040ez federal tax form ) Special rules for joint returns. Print 1040ez federal tax form   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. Print 1040ez federal tax form You are married and file a joint return for the year. Print 1040ez federal tax form Either you or your spouse meets the ownership test. Print 1040ez federal tax form Both you and your spouse meet the use test. Print 1040ez federal tax form During the 2-year period ending on the date of the sale, neither you nor your spouse excluded gain from the sale of another home. Print 1040ez federal tax form If either spouse does not satisfy all these requirements, the maximum exclusion that can be claimed by the couple is the total of the maximum exclusions that each spouse would qualify for if not married and the amounts were figured separately. Print 1040ez federal tax form For this purpose, each spouse is treated as owning the property during the period that either spouse owned the property. Print 1040ez federal tax form Example 1—one spouse sells a home. Print 1040ez federal tax form Emily sells her home in June 2013 for a gain of $300,000. Print 1040ez federal tax form She marries Jamie later in the year. Print 1040ez federal tax form She meets the ownership and use tests, but Jamie does not. Print 1040ez federal tax form Emily can exclude up to $250,000 of gain on a separate or joint return for 2013. Print 1040ez federal tax form The $500,000 maximum exclusion for certain joint returns does not apply because Jamie does not meet the use test. Print 1040ez federal tax form Example 2—each spouse sells a home. Print 1040ez federal tax form The facts are the same as in Example 1 except that Jamie also sells a home in 2013 for a gain of $200,000 before he marries Emily. Print 1040ez federal tax form He meets the ownership and use tests on his home, but Emily does not. Print 1040ez federal tax form Emily can exclude $250,000 of gain and Jamie can exclude $200,000 of gain on the respective sales of their individual homes. Print 1040ez federal tax form However, Emily cannot use Jamie's unused exclusion to exclude more than $250,000 of gain. Print 1040ez federal tax form Therefore, Emily and Jamie must recognize $50,000 of gain on the sale of Emily's home. Print 1040ez federal tax form The $500,000 maximum exclusion for certain joint returns does not apply because Emily and Jamie do not both meet the use test for the same home. Print 1040ez federal tax form Sale of main home by surviving spouse. Print 1040ez federal tax form   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. Print 1040ez federal tax form   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home. Print 1040ez federal tax form The sale or exchange took place after 2008. Print 1040ez federal tax form The sale or exchange took place no more than 2 years after the date of death of your spouse. Print 1040ez federal tax form You have not remarried. Print 1040ez federal tax form You and your spouse met the use test at the time of your spouse's death. Print 1040ez federal tax form You or your spouse met the ownership test at the time of your spouse's death. Print 1040ez federal tax form Neither you nor your spouse excluded gain from the sale of another home during the last 2 years. Print 1040ez federal tax form Example. Print 1040ez federal tax form   Harry owned and used a house as his main home since 2009. Print 1040ez federal tax form Harry and Wilma married on July 1, 2013, and from that date they use Harry's house as their main home. Print 1040ez federal tax form Harry died on August 15, 2013, and Wilma inherited the property. Print 1040ez federal tax form Wilma sold the property on September 3, 2013, at which time she had not remarried. Print 1040ez federal tax form Although Wilma owned and used the house for less than 2 years, Wilma is considered to have satisfied the ownership and use tests because her period of ownership and use includes the period that Harry owned and used the property before death. Print 1040ez federal tax form Home transferred from spouse. Print 1040ez federal tax form   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. Print 1040ez federal tax form Use of home after divorce. Print 1040ez federal tax form   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. Print 1040ez federal tax form Reduced Maximum Exclusion If you fail to meet the requirements to qualify for the $250,000 or $500,000 exclusion, you may still qualify for a reduced exclusion. Print 1040ez federal tax form This applies to those who: Fail to meet the ownership and use tests, or Have used the exclusion within 2 years of selling their current home. Print 1040ez federal tax form In both cases, to qualify for a reduced exclusion, the sale of your main home must be due to one of the following reasons. Print 1040ez federal tax form A change in place of employment. Print 1040ez federal tax form Health. Print 1040ez federal tax form Unforeseen circumstances. Print 1040ez federal tax form Unforeseen circumstances. Print 1040ez federal tax form   The sale of your main home is because of an unforeseen circumstance if your primary reason for the sale is the occurrence of an event that you could not reasonably have anticipated before buying and occupying your main home. Print 1040ez federal tax form   See Publication 523 for more information and to use Worksheet 3 to figure your reduced maximum exclusion. Print 1040ez federal tax form Business Use or Rental of Home You may be able to exclude gain from the sale of a home you have used for business or to produce rental income. Print 1040ez federal tax form But you must meet the ownership and use tests. Print 1040ez federal tax form Periods of nonqualified use. Print 1040ez federal tax form   In most cases, gain from the sale or exchange of your main home will not qualify for the exclusion to the extent that the gains are allocated to periods of nonqualified use. Print 1040ez federal tax form Nonqualified use is any period after 2008 during which neither you nor your spouse (or your former spouse) used the property as a main home with the following exceptions. Print 1040ez federal tax form Exceptions. Print 1040ez federal tax form   A period of nonqualified use does not include: Any portion of the 5-year period ending on the date of the sale or exchange after the last date you (or your spouse) use the property as a main home; Any period (not to exceed an aggregate period of 10 years) during which you (or your spouse) are serving on qualified official extended duty: As a member of the uniformed services; As a member of the Foreign Service of the United States; or As an employee of the intelligence community; and Any other period of temporary absence (not to exceed an aggregate period of 2 years) due to change of employment, health conditions, or such other unforeseen circumstances as may be specified by the IRS. Print 1040ez federal tax form The gain resulting from the sale of the property is allocated between qualified and nonqualified use periods based on the amount of time the property was held for qualified and nonqualified use. Print 1040ez federal tax form Gain from the sale or exchange of a main home allocable to periods of qualified use will continue to qualify for the exclusion for the sale of your main home. Print 1040ez federal tax form Gain from the sale or exchange of property allocable to nonqualified use will not qualify for the exclusion. Print 1040ez federal tax form Calculation. Print 1040ez federal tax form   To figure the portion of the gain allocated to the period of nonqualified use, multiply the gain by the following fraction:   Total nonqualified use during the period of ownership after 2008      Total period of ownership     This calculation can be found in Worksheet 2, line 10, in Publication 523. Print 1040ez federal tax form Example 1. Print 1040ez federal tax form On May 23, 2007, Amy, who is unmarried for all years in this example, bought a house. Print 1040ez federal tax form She moved in on that date and lived in it until May 31, 2009, when she moved out of the house and put it up for rent. Print 1040ez federal tax form The house was rented from June 1, 2009, to March 31, 2011. Print 1040ez federal tax form Amy claimed depreciation deductions in 2009 through 2011 totaling $10,000. Print 1040ez federal tax form Amy moved back into the house on April 1, 2011, and lived there until she sold it on January 31, 2013, for a gain of $200,000. Print 1040ez federal tax form During the 5-year period ending on the date of the sale (January 31, 2008-January 31, 2013), Amy owned and lived in the house for more than 2 years as shown in the following table. Print 1040ez federal tax form Five Year Period Used as  Home Used as  Rental 1/31/08 – 5/31/09 16 months       6/1/09 – 3/31/11   22 months 4/1/11 – 1/31/13 22 months         38 months 22 months During the period Amy owned the house (2,080 days), her period of nonqualified use was 668 days. Print 1040ez federal tax form Amy divides 668 by 2,080 and obtains a decimal (rounded to at least three decimal places) of 0. Print 1040ez federal tax form 321. Print 1040ez federal tax form To figure her gain attributable to the period of nonqualified use, she multiplies $190,000 (the gain not attributable to the $10,000 depreciation deduction) by 0. Print 1040ez federal tax form 321. Print 1040ez federal tax form Because the gain attributable to periods of nonqualified use is $60,990, Amy can exclude $129,010 of her gain. Print 1040ez federal tax form Example 2. Print 1040ez federal tax form William owned and used a house as his main home from 2007 through 2010. Print 1040ez federal tax form On January 1, 2011, he moved to another state. Print 1040ez federal tax form He rented his house from that date until April 30, 2013, when he sold it. Print 1040ez federal tax form During the 5-year period ending on the date of sale (May 1, 2008-April 30, 2013), William owned and lived in the house for more than 2 years. Print 1040ez federal tax form He must report the sale on Form 4797 because it was rental property at the time of sale. Print 1040ez federal tax form Because the period of nonqualified use does not include any part of the 5-year period after the last date William lived in the house, he has no period of nonqualified use. Print 1040ez federal tax form Because he met the ownership and use tests, he can exclude gain up to $250,000. Print 1040ez federal tax form However, he cannot exclude the part of the gain equal to the depreciation he claimed or could have claimed for renting the house, as explained next. Print 1040ez federal tax form Depreciation after May 6, 1997. Print 1040ez federal tax form   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. Print 1040ez federal tax form If you can show by adequate records or other evidence that the depreciation allowed was less than the amount allowable, then you may limit the amount of gain recognized to the depreciation allowed. Print 1040ez federal tax form See Publication 544 for more information. Print 1040ez federal tax form Property used partly for business or rental. Print 1040ez federal tax form   If you used property partly as a home and partly for business or to produce rental income, see Publication 523. Print 1040ez federal tax form Reporting the Sale Do not report the 2013 sale of your main home on your tax return unless: You have a gain and do not qualify to exclude all of it, You have a gain and choose not to exclude it, or You received Form 1099-S. Print 1040ez federal tax form If any of these conditions apply, report the entire gain or loss. Print 1040ez federal tax form For details on how to report the gain or loss, see the Instructions for Schedule D (Form 1040) and the Instructions for Form 8949. Print 1040ez federal tax form If you used the home for business or to produce rental income, you may have to use Form 4797 to report the sale of the business or rental part (or the sale of the entire property if used entirely for business or rental). Print 1040ez federal tax form See Business Use or Rental of Home in Publication 523 and the Instructions for Form 4797. Print 1040ez federal tax form Installment sale. Print 1040ez federal tax form    Some sales are made under arrangements that provide for part or all of the selling price to be paid in a later year. Print 1040ez federal tax form These sales are called “installment sales. Print 1040ez federal tax form ” If you finance the buyer's purchase of your home yourself instead of having the buyer get a loan or mortgage from a bank, you probably have an installment sale. Print 1040ez federal tax form You may be able to report the part of the gain you cannot exclude on the installment basis. Print 1040ez federal tax form    Use Form 6252, Installment Sale Income, to report the sale. Print 1040ez federal tax form Enter your exclusion on line 15 of Form 6252. Print 1040ez federal tax form Seller-financed mortgage. Print 1040ez federal tax form   If you sell your home and hold a note, mortgage, or other financial agreement, the payments you receive in most cases consist of both interest and principal. Print 1040ez federal tax form You must separately report as interest income the interest you receive as part of each payment. Print 1040ez federal tax form If the buyer of your home uses the property as a main or second home, you must also report the name, address, and social security number (SSN) of the buyer on line 1 of Schedule B (Form 1040A or 1040). Print 1040ez federal tax form The buyer must give you his or her SSN, and you must give the buyer your SSN. Print 1040ez federal tax form Failure to meet these requirements may result in a $50 penalty for each failure. Print 1040ez federal tax form If either you or the buyer does not have and is not eligible to get an SSN, see Social Security Number in chapter 1. Print 1040ez federal tax form More information. Print 1040ez federal tax form   For more information on installment sales, see Publication 537, Installment Sales. Print 1040ez federal tax form Special Situations The situations that follow may affect your exclusion. Print 1040ez federal tax form Sale of home acquired in a like-kind exchange. Print 1040ez federal tax form   You cannot claim the exclusion if: You acquired your home in a like-kind exchange (also known as a section 1031 exchange), or your basis in your home is determined by reference to the basis of the home in the hands of the person who acquired the property in a like-kind exchange (for example, you received the home from that person as a gift), and You sold the home during the 5-year period beginning with the date your home was acquired in the like-kind exchange. Print 1040ez federal tax form Gain from a like-kind exchange is not taxable at the time of the exchange. Print 1040ez federal tax form This means that gain will not be taxed until you sell or otherwise dispose of the property you receive. Print 1040ez federal tax form To defer gain from a like-kind exchange, you must have exchanged business or investment property for business or investment property of a like kind. Print 1040ez federal tax form For more information about like-kind exchanges, see Publication 544, Sales and Other Dispositions of Assets. Print 1040ez federal tax form Home relinquished in a like-kind exchange. Print 1040ez federal tax form   If you use your main home partly for business or rental purposes and then exchange the home for another property, see Publication 523. Print 1040ez federal tax form Expatriates. Print 1040ez federal tax form   You cannot claim the exclusion if the expatriation tax applies to you. Print 1040ez federal tax form The expatriation tax applies to certain U. Print 1040ez federal tax form S. Print 1040ez federal tax form citizens who have renounced their citizenship (and to certain long-term residents who have ended their residency). Print 1040ez federal tax form For more information about the expatriation tax, see Expatriation Tax in chapter 4 of Publication 519, U. Print 1040ez federal tax form S. Print 1040ez federal tax form Tax Guide for Aliens. Print 1040ez federal tax form Home destroyed or condemned. Print 1040ez federal tax form   If your home was destroyed or condemned, any gain (for example, because of insurance proceeds you received) qualifies for the exclusion. Print 1040ez federal tax form   Any part of the gain that cannot be excluded (because it is more than the maximum exclusion) can be postponed under the rules explained in: Publication 547, in the case of a home that was destroyed, or Publication 544, chapter 1, in the case of a home that was condemned. Print 1040ez federal tax form Sale of remainder interest. Print 1040ez federal tax form   Subject to the other rules in this chapter, you can choose to exclude gain from the sale of a remainder interest in your home. Print 1040ez federal tax form If you make this choice, you cannot choose to exclude gain from your sale of any other interest in the home that you sell separately. Print 1040ez federal tax form Exception for sales to related persons. Print 1040ez federal tax form   You cannot exclude gain from the sale of a remainder interest in your home to a related person. Print 1040ez federal tax form Related persons include your brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. Print 1040ez federal tax form ), and lineal descendants (children, grandchildren, etc. Print 1040ez federal tax form ). Print 1040ez federal tax form Related persons also include certain corporations, partnerships, trusts, and exempt organizations. Print 1040ez federal tax form Recapturing (Paying Back) a Federal Mortgage Subsidy If you financed your home under a federally subsidized program (loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates), you may have to recapture all or part of the benefit you received from that program when you sell or otherwise dispose of your home. Print 1040ez federal tax form You recapture the benefit by increasing your federal income tax for the year of the sale. Print 1040ez federal tax form You may have to pay this recapture tax even if you can exclude your gain from income under the rules discussed earlier; that exclusion does not affect the recapture tax. Print 1040ez federal tax form Loans subject to recapture rules. Print 1040ez federal tax form   The recapture applies to loans that: Came from the proceeds of qualified mortgage bonds, or Were based on mortgage credit certificates. Print 1040ez federal tax form The recapture also applies to assumptions of these loans. Print 1040ez federal tax form When recapture applies. Print 1040ez federal tax form   Recapture of the federal mortgage subsidy applies only if you meet both of the following conditions. Print 1040ez federal tax form You sell or otherwise dispose of your home at a gain within the first 9 years after the date you close your mortgage loan. Print 1040ez federal tax form Your income for the year of disposition is more than that year's adjusted qualifying income for your family size for that year (related to the income requirements a person must meet to qualify for the federally subsidized program). Print 1040ez federal tax form When recapture does not apply. Print 1040ez federal tax form   Recapture does not apply in any of the following situations. Print 1040ez federal tax form Your mortgage loan was a qualified home improvement loan (QHIL) of not more than $15,000 used for alterations, repairs, and improvements that protect or improve the basic livability or energy efficiency of your home. Print 1040ez federal tax form Your mortgage loan was a QHIL of not more than $150,000 in the case of a QHIL used to repair damage from Hurricane Katrina to homes in the hurricane disaster area; a QHIL funded by a qualified mortgage bond that is a qualified Gulf Opportunity Zone Bond; or a QHIL for an owner-occupied home in the Gulf Opportunity Zone (GO Zone), Rita GO Zone, or Wilma GO Zone. Print 1040ez federal tax form For more information, see Publication 4492, Information for Taxpayers Affected by Hurricanes Katrina, Rita, and Wilma. Print 1040ez federal tax form Also see Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas. Print 1040ez federal tax form The home is disposed of as a result of your death. Print 1040ez federal tax form You dispose of the home more than 9 years after the date you closed your mortgage loan. Print 1040ez federal tax form You transfer the home to your spouse, or to your former spouse incident to a divorce, where no gain is included in your income. Print 1040ez federal tax form You dispose of the home at a loss. Print 1040ez federal tax form Your home is destroyed by a casualty, and you replace it on its original site within 2 years after the end of the tax year when the destruction happened. Print 1040ez federal tax form The replacement period is extended for main homes destroyed in a federally declared disaster area, a Midwestern disaster area, the Kansas disaster area, and the Hurricane Katrina disaster area. Print 1040ez federal tax form For more information, see Replacement Period in Publication 547. Print 1040ez federal tax form You refinance your mortgage loan (unless you later meet the conditions listed previously under When recapture applies ). Print 1040ez federal tax form Notice of amounts. Print 1040ez federal tax form   At or near the time of settlement of your mortgage loan, you should receive a notice that provides the federally subsidized amount and other information you will need to figure your recapture tax. Print 1040ez federal tax form How to figure and report the recapture. Print 1040ez federal tax form    The recapture tax is figured on Form 8828. Print 1040ez federal tax form If you sell your home and your mortgage is subject to recapture rules, you must file Form 8828 even if you do not owe a recapture tax. Print 1040ez federal tax form Attach Form 8828 to your Form 1040. Print 1040ez federal tax form For more information, see Form 8828 and its instructions. Print 1040ez federal tax form Prev  Up  Next   Home   More Online Publications
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Tax Relief for Victims of Hurricane Irene in North Carolina

E-file to Remain Available for Irene Victims through Oct. 31

Updated 10/11/11 to include Bladen, Columbus and Sampson counties.

Updated 9/12/11 to include Pender and Wayne counties.

Updated 9/7/11 to include Bertie, Brunswick, Camden, Chowan, Duplin, Edgecombe, Gates, Greene, Hertford, Johnston, Jones, Martin, Nash, New Hanover, Northampton, Pasquotank, Perquimans, Vance, Warren and Wilson counties.

Updated 9/2/11 to include Halifax and Lenoir counties. Also added Currituck, Onslow, Pitt and Washington counties.

NC-2011-58, Sept. 1, 2011

GREENSBORO — Victims of Hurricane Irene that began on Aug. 25, 2011 in parts of North Carolina may qualify for tax relief from the Internal Revenue Service.

The President has declared the following counties a federal disaster area: Beaufort, Bertie, Bladen, Brunswick, Camden, Carteret, Chowan, Columbus, Craven, Currituck, Dare, Duplin, Edgecombe, Gates, Greene, Halifax, Hertford, Hyde, Johnston, Jones, Lenoir, Martin, Nash, New Hanover, Northampton, Onslow, Pamlico, Pasquotank, Pender, Perquimans, Pitt, Sampson, Tyrrell, Vance, Warren, Washington, Wayne and Wilson. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Aug. 25, and on or before Oct. 31, have been postponed to Oct. 31, 2011. This includes corporations and other businesses that previously obtained an extension until Sept. 15 to file their 2010 returns, and individuals and businesses that received a similar extension until Oct. 17. It also includes the estimated tax payment for the third quarter, normally due Sept. 15.  

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Aug. 25, and on or before Sept. 9, as long as the deposits are made by Sept. 9, 2011.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.

Covered Disaster Area

The counties listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until Oct. 31 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Aug. 25 and on or before Oct. 31.

The IRS also gives affected taxpayers until Oct. 31 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Aug. 25 and on or before Oct. 31.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Aug. 25 and on or before Sept. 9 provided the taxpayer makes these deposits by Sept. 9.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.
Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “North Carolina/Hurricane Irene” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.

Related Information

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The Print 1040ez Federal Tax Form

Print 1040ez federal tax form Publication 559 - Introductory Material Table of Contents Future Developments Reminders Introduction Useful Items - You may want to see: Future Developments For the latest information about developments affecting Publication 559, such as legislation enacted after we release it, go to www. Print 1040ez federal tax form irs. Print 1040ez federal tax form gov/pub559. Print 1040ez federal tax form Reminders Throughout this publication, section references are to the Internal Revenue Code unless otherwise noted. Print 1040ez federal tax form Consistent treatment of estate and trust items. Print 1040ez federal tax form  Beneficiaries must generally treat estate items the same way on their individual returns as they are treated on the estate's return. Print 1040ez federal tax form Photographs of missing children. Print 1040ez federal tax form  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Print 1040ez federal tax form Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Print 1040ez federal tax form You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Print 1040ez federal tax form Introduction This publication is designed to help those in charge (personal representatives) of the property (estate) of an individual who has died (decedent). Print 1040ez federal tax form It shows them how to complete and file federal income tax returns and explains their responsibility to pay any taxes due on behalf of the decedent. Print 1040ez federal tax form A comprehensive example of the decedent's final tax return, Form 1040, and estate's income tax return, Form 1041, are included in this publication. Print 1040ez federal tax form The publication also explains how much money or property a taxpayer can give away during their lifetime or leave to their heirs at their death before any tax will be owed. Print 1040ez federal tax form A discussion of Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, is included. Print 1040ez federal tax form Also included in this publication are the following items: A checklist of the forms you may need and their due dates. Print 1040ez federal tax form A worksheet to reconcile amounts reported in the decedent's name on information returns including Forms W-2, 1099-INT, 1099-DIV, etc. Print 1040ez federal tax form The worksheet will help you correctly determine the income to report on the decedent's final return and on the return for either the estate or a beneficiary. Print 1040ez federal tax form Comments and suggestions. Print 1040ez federal tax form   We welcome your comments about this publication and your suggestions for future editions. Print 1040ez federal tax form   You can send us comments from http://www. Print 1040ez federal tax form irs. Print 1040ez federal tax form gov/formspubs. Print 1040ez federal tax form Click on “More Information” and then on “Give us Feedback. Print 1040ez federal tax form ” Or you can also send your comments to the Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. Print 1040ez federal tax form NW, IR-6526, Washington, DC 20224. Print 1040ez federal tax form Useful Items - You may want to see: Publication 3 Armed Forces' Tax Guide Form (and Instructions) SS-4 Application for Employer Identification Number 56 Notice Concerning Fiduciary Relationship 1040 U. Print 1040ez federal tax form S. Print 1040ez federal tax form Individual Income Tax Return 1041 U. Print 1040ez federal tax form S. Print 1040ez federal tax form Income Tax Return for Estates and Trusts 706 United States Estate (and Generation-Skipping Transfer) Tax Return 709 United States Gift (and Generation-Skipping Transfer) Tax Return 1310 Statement of Person Claiming Refund Due a Deceased Taxpayer  See How To Get Tax Help near the end of this publication for information about getting publications and forms. Print 1040ez federal tax form Also near the end of this publication is Table A, a checklist of forms and their due dates for the executor, administrator, or personal representative. Print 1040ez federal tax form Prev  Up  Next   Home   More Online Publications