Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Www Freefilefillableforms Com Ffa Freefileforms Htm

Amend A Tax Return Online2012 Tax Return Online FreeHow To File Taxes From 2012H&rblockHow To File A Amended Tax Return1040 Easy FormTax Ez FormTaxes State2011 Tax Forms 1040aLate Tax FilingFiling Amended ReturnsWww Irs GovTax Forms 1040ezIrs Gov State Tax FormsEfile 1040ez10 40 Ez FormFree Efile Tax ReturnState Tax Extension1040ez H&r Block2012 Ez FormHow Do I File An Amended Tax Return2012 Ez Tax Form990 Ez Form1040ez For 2010H And R Block Free FederalTaxhow 1040xHow Do I Get 2011 Tax FormsTurbo Tax 2012Ny State Tax Forms 2011Amend Tax Return 20131040x Instructions For DummiesSchool Tax FormsBeware Amending Tax ReturnsFiling A 2012 Tax ReturnTaxact 1040ez2011 1040xCan You Still E File 2010 Tax ReturnsH & R Block Taxes For FreeNj 1040nr 2012How Do I Fill Out A 1040x Form

Www Freefilefillableforms Com Ffa Freefileforms Htm

Www freefilefillableforms com ffa freefileforms htm 3. Www freefilefillableforms com ffa freefileforms htm   Unrelated Trade or Business Table of Contents Selling of products of exempt functions. Www freefilefillableforms com ffa freefileforms htm Dual use of assets or facilities. Www freefilefillableforms com ffa freefileforms htm Exploitation of exempt functions. Www freefilefillableforms com ffa freefileforms htm ExamplesExceptions. Www freefilefillableforms com ffa freefileforms htm Excluded Trade or Business ActivitiesQualified sponsorship payment. Www freefilefillableforms com ffa freefileforms htm Advertising. Www freefilefillableforms com ffa freefileforms htm Exception for contingent payments. Www freefilefillableforms com ffa freefileforms htm Exception for periodicals. Www freefilefillableforms com ffa freefileforms htm Exception for conventions and trade shows. Www freefilefillableforms com ffa freefileforms htm Legal definition. Www freefilefillableforms com ffa freefileforms htm Legal where played. Www freefilefillableforms com ffa freefileforms htm No for-profit games where played. Www freefilefillableforms com ffa freefileforms htm Unrelated business income. Www freefilefillableforms com ffa freefileforms htm   Unrelated business income is the income from a trade or business regularly conducted by an exempt organization and not substantially related to the performance by the organization of its exempt purpose or function, except that the organization uses the profits derived from this activity. Www freefilefillableforms com ffa freefileforms htm   Certain trade or business activities are not treated as an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm See Excluded Trade or Business Activities, later. Www freefilefillableforms com ffa freefileforms htm Trade or business. Www freefilefillableforms com ffa freefileforms htm   The term “trade or business” generally includes any activity conducted for the production of income from selling goods or performing services. Www freefilefillableforms com ffa freefileforms htm An activity does not lose its identity as a trade or business merely because it is conducted within a larger group of similar activities that may or may not be related to the exempt purposes of the organization. Www freefilefillableforms com ffa freefileforms htm   For example, the regular sale of pharmaceutical supplies to the general public by a hospital pharmacy does not lose its identity as a trade or business, even though the pharmacy also furnishes supplies to the hospital and patients of the hospital in accordance with its exempt purpose. Www freefilefillableforms com ffa freefileforms htm Similarly, soliciting, selling, and publishing commercial advertising is a trade or business even though the advertising is published in an exempt organization's periodical that contains editorial matter related to the organization's exempt purpose. Www freefilefillableforms com ffa freefileforms htm Regularly conducted. Www freefilefillableforms com ffa freefileforms htm   Business activities of an exempt organization ordinarily are considered regularly conducted if they show a frequency and continuity, and are pursued in a manner similar to comparable commercial activities of nonexempt organizations. Www freefilefillableforms com ffa freefileforms htm   For example, a hospital auxiliary's operation of a sandwich stand for 2 weeks at a state fair would not be the regular conduct of a trade or business. Www freefilefillableforms com ffa freefileforms htm The stand would not compete with similar facilities that a nonexempt organization would ordinarily operate year-round. Www freefilefillableforms com ffa freefileforms htm However, operating a commercial parking lot every Saturday, year-round, would be the regular conduct of a trade or business. Www freefilefillableforms com ffa freefileforms htm Not substantially related. Www freefilefillableforms com ffa freefileforms htm    A business activity is not substantially related to an organization's exempt purpose if it does not contribute importantly to accomplishing that purpose (other than through the production of funds). Www freefilefillableforms com ffa freefileforms htm Whether an activity contributes importantly depends in each case on the facts involved. Www freefilefillableforms com ffa freefileforms htm   In determining whether activities contribute importantly to the accomplishment of an exempt purpose, the size and extent of the activities involved must be considered in relation to the nature and extent of the exempt function that they intend to serve. Www freefilefillableforms com ffa freefileforms htm For example, to the extent an activity is conducted on a scale larger than is reasonably necessary to perform an exempt purpose, it does not contribute importantly to the accomplishment of the exempt purpose. Www freefilefillableforms com ffa freefileforms htm The part of the activity that is more than needed to accomplish the exempt purpose is an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm   Also in determining whether activities contribute importantly to the accomplishment of an exempt purpose, the following principles apply. Www freefilefillableforms com ffa freefileforms htm Selling of products of exempt functions. Www freefilefillableforms com ffa freefileforms htm   Ordinarily, selling products that result from the performance of exempt functions is not an unrelated trade or business if the product is sold in substantially the same state it is in when the exempt functions are completed. Www freefilefillableforms com ffa freefileforms htm Thus, for an exempt organization engaged in rehabilitating handicapped persons (its exempt function), selling articles made by these persons as part of their rehabilitation training is not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm   However, if a completed product resulting from an exempt function is used or exploited in further business activity beyond what is reasonably appropriate or necessary to dispose of it as is, the activity is an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm For example, if an exempt organization maintains an experimental dairy herd for scientific purposes, the sale of milk and cream produced in the ordinary course of operation of the project is not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm But if the organization uses the milk and cream in the further manufacture of food items such as ice cream, pastries, etc. Www freefilefillableforms com ffa freefileforms htm , the sale of these products is an unrelated trade or business unless the manufacturing activities themselves contribute importantly to the accomplishment of an exempt purpose of the organization. Www freefilefillableforms com ffa freefileforms htm Dual use of assets or facilities. Www freefilefillableforms com ffa freefileforms htm   If an asset or facility necessary to the conduct of exempt functions is also used in commercial activities, its use for exempt functions does not, by itself, make the commercial activities a related trade or business. Www freefilefillableforms com ffa freefileforms htm The test, as discussed earlier, is whether the activities contribute importantly to the accomplishment of exempt purposes. Www freefilefillableforms com ffa freefileforms htm   For example, a museum has a theater auditorium designed for showing educational films in connection with its program of public education in the arts and sciences. Www freefilefillableforms com ffa freefileforms htm The theater is a principal feature of the museum and operates continuously while the museum is open to the public. Www freefilefillableforms com ffa freefileforms htm If the organization also operates the theater as a motion picture theater for the public when the museum is closed, the activity is an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm   For information on allocating expenses for the dual use of assets or facilities, see Deductions in chapter 4. Www freefilefillableforms com ffa freefileforms htm Exploitation of exempt functions. Www freefilefillableforms com ffa freefileforms htm   Exempt activities sometimes create goodwill or other intangibles that can be exploited in a commercial way. Www freefilefillableforms com ffa freefileforms htm When an organization exploits such an intangible in commercial activities, the fact that the income depends in part upon an exempt function of the organization does not make the commercial activities a related trade or business. Www freefilefillableforms com ffa freefileforms htm Unless the commercial exploitation contributes importantly to the accomplishment of the exempt purpose, the commercial activities are an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm   For the treatment of expenses attributable to the exploitation of exempt activities, see Deductions in chapter 4. Www freefilefillableforms com ffa freefileforms htm Examples The following are examples of activities that were determined to be (or not to be) unrelated trades or businesses using the definitions and principles just discussed. Www freefilefillableforms com ffa freefileforms htm Sales commissions. Www freefilefillableforms com ffa freefileforms htm   An agricultural organization, whose exempt purposes are to promote better conditions for cattle breeders and to improve the breed generally, engages in an unrelated trade or business when it regularly sells cattle for its members on a commission basis. Www freefilefillableforms com ffa freefileforms htm Artists' facilities. Www freefilefillableforms com ffa freefileforms htm   An organization whose exempt purpose is to stimulate and foster public interest in the fine arts by promoting art exhibits, sponsoring cultural events, and furnishing information about fine arts leases studio apartments to artist tenants and operates a dining hall primarily for these tenants. Www freefilefillableforms com ffa freefileforms htm These two activities do not contribute importantly to accomplishing the organization's exempt purpose. Www freefilefillableforms com ffa freefileforms htm Therefore, they are unrelated trades or businesses. Www freefilefillableforms com ffa freefileforms htm Membership list sales. Www freefilefillableforms com ffa freefileforms htm   An exempt educational organization regularly sells membership mailing lists to business firms. Www freefilefillableforms com ffa freefileforms htm This activity does not contribute importantly to the accomplishment of the organization's exempt purpose and therefore is an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Also see Exchange or rental of member lists under Excluded Trade or Business Activities, later. Www freefilefillableforms com ffa freefileforms htm Hospital facilities. Www freefilefillableforms com ffa freefileforms htm   An exempt hospital leases its adjacent office building and furnishes certain office services to a hospital-based medical group for a fee. Www freefilefillableforms com ffa freefileforms htm The group provides all diagnostic and therapeutic procedures to the hospital's patients and operates the hospital's emergency room on a 24-hour basis. Www freefilefillableforms com ffa freefileforms htm The leasing activity is substantially related to the hospital's exempt purpose and is not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm   The hospital also operates a gift shop patronized by patients, visitors making purchases for patients, and employees; a cafeteria and coffee shop primarily for employees and medical staff; and a parking lot for patients and visitors only. Www freefilefillableforms com ffa freefileforms htm These activities are also substantially related to the hospital's exempt purpose and do not constitute unrelated trades or businesses. Www freefilefillableforms com ffa freefileforms htm Book publishing. Www freefilefillableforms com ffa freefileforms htm   An exempt organization engages primarily in activities that further its exempt purposes. Www freefilefillableforms com ffa freefileforms htm It also owns the publication rights to a book that does not relate to any of its exempt purposes. Www freefilefillableforms com ffa freefileforms htm The organization exploits the book in a commercial manner by arranging for printing, distribution, publicity, and advertising in connection with the sale of the book. Www freefilefillableforms com ffa freefileforms htm These activities constitute a trade or business regularly conducted. Www freefilefillableforms com ffa freefileforms htm Because exploiting the book is unrelated to the organization's exempt purposes (except for the use of the book's profits), the income is unrelated business income. Www freefilefillableforms com ffa freefileforms htm   However, if the organization transfers publication rights to a commercial publisher in return for royalties, the royalty income received will not be unrelated business income. Www freefilefillableforms com ffa freefileforms htm See Royalties under Exclusions in chapter 4. Www freefilefillableforms com ffa freefileforms htm School handicraft shop. Www freefilefillableforms com ffa freefileforms htm   An exempt vocational school operates a handicraft shop that sells articles made by students in their regular courses of instruction. Www freefilefillableforms com ffa freefileforms htm The students are paid a percentage of the sales price. Www freefilefillableforms com ffa freefileforms htm In addition, the shop sells products made by local residents who make articles at home according to the shop's specifications. Www freefilefillableforms com ffa freefileforms htm The shop manager periodically inspects the articles during their manufacture to ensure that they meet desired standards of style and quality. Www freefilefillableforms com ffa freefileforms htm Although many local participants are former students of the school, any qualified person may participate in the program. Www freefilefillableforms com ffa freefileforms htm The sale of articles made by students does not constitute an unrelated trade or business, but the sale of products made by local residents is an unrelated trade or business and is subject to unrelated business income tax. Www freefilefillableforms com ffa freefileforms htm School facilities. Www freefilefillableforms com ffa freefileforms htm   An exempt school has tennis courts and dressing rooms that it uses during the regular school year in its educational program. Www freefilefillableforms com ffa freefileforms htm During the summer, the school operates a tennis club open to the general public. Www freefilefillableforms com ffa freefileforms htm Employees of the school run the club, including collecting membership fees and scheduling court time. Www freefilefillableforms com ffa freefileforms htm   Another exempt school leases the same type of facilities to an unrelated individual who runs a tennis club for the summer. Www freefilefillableforms com ffa freefileforms htm The lease is for a fixed fee that does not depend on the income or profits derived from the leased property. Www freefilefillableforms com ffa freefileforms htm   In both situations, the exempt purpose is the advancement of education. Www freefilefillableforms com ffa freefileforms htm Furnishing tennis facilities in the manner described does not further that exempt purpose. Www freefilefillableforms com ffa freefileforms htm These activities are unrelated trades or businesses. Www freefilefillableforms com ffa freefileforms htm However, in the second situation the income derived from the leasing of the property is excluded from unrelated business taxable income as rent from real property. Www freefilefillableforms com ffa freefileforms htm See Rents under Exclusions in chapter 4. Www freefilefillableforms com ffa freefileforms htm Services provided with lease. Www freefilefillableforms com ffa freefileforms htm   An exempt university leases its football stadium during several months of the year to a professional football team for a fixed fee. Www freefilefillableforms com ffa freefileforms htm Under the lease agreement, the university furnishes heat, light, and water and is responsible for all ground maintenance. Www freefilefillableforms com ffa freefileforms htm It also provides dressing room, linen, and stadium security services for the professional team. Www freefilefillableforms com ffa freefileforms htm   Leasing of the stadium is an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm In addition, the substantial services furnished for the convenience of the lessee go beyond those usually provided with the rental of space for occupancy only. Www freefilefillableforms com ffa freefileforms htm Therefore, the income from this lease is rent from real property and unrelated business taxable income. Www freefilefillableforms com ffa freefileforms htm Broadcasting rights. Www freefilefillableforms com ffa freefileforms htm   An exempt collegiate athletic conference conducts an annual competitive athletic game between its conference champion and another collegiate team. Www freefilefillableforms com ffa freefileforms htm Income is derived from admission charges and the sale of exclusive broadcasting rights to a national radio and television network. Www freefilefillableforms com ffa freefileforms htm An athletic program is considered an integral part of the educational process of a university. Www freefilefillableforms com ffa freefileforms htm   The educational purposes served by intercollegiate athletics are identical whether conducted directly by individual universities or by their regional athletic conference. Www freefilefillableforms com ffa freefileforms htm Also, the educational purposes served by exhibiting a game before an audience that is physically present and exhibiting the game on television or radio before a much larger audience are substantially similar. Www freefilefillableforms com ffa freefileforms htm Therefore, the sale of the broadcasting rights contributes importantly to the accomplishment of the organization's exempt purpose and is not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm   In a similar situation, an exempt organization was created as a national governing body for amateur athletes to foster interest in amateur sports and to encourage widespread public participation. Www freefilefillableforms com ffa freefileforms htm The organization receives income each year from the sale of exclusive broadcasting rights to an independent producer, who contracts with a commercial network to broadcast many of the athletic events sponsored, supervised, and regulated by the organization. Www freefilefillableforms com ffa freefileforms htm   The broadcasting of these events promotes the various amateur sports, fosters widespread public interest in the benefits of the organization's nationwide amateur program, and encourages public participation. Www freefilefillableforms com ffa freefileforms htm The sale of the rights and the broadcasting of the events contribute importantly to the organization's exempt purpose. Www freefilefillableforms com ffa freefileforms htm Therefore, the sale of the exclusive broadcasting rights is not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Yearbook advertising. Www freefilefillableforms com ffa freefileforms htm   An exempt organization receives income from the sale of advertising in its annual yearbook. Www freefilefillableforms com ffa freefileforms htm The organization hires an independent commercial firm, under a contract covering a full calendar year, to conduct an intensive advertising solicitation campaign in the organization's name. Www freefilefillableforms com ffa freefileforms htm This firm is paid a percentage of the gross advertising receipts for selling the advertising, collecting from advertisers, and printing the yearbook. Www freefilefillableforms com ffa freefileforms htm This advertising activity is an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Pet boarding and grooming services. Www freefilefillableforms com ffa freefileforms htm   An exempt organization, organized and operated for the prevention of cruelty to animals, receives unrelated business income from providing pet boarding and grooming services for the general public. Www freefilefillableforms com ffa freefileforms htm These activities do not contribute importantly to its purpose of preventing cruelty to animals. Www freefilefillableforms com ffa freefileforms htm Museum eating facilities. Www freefilefillableforms com ffa freefileforms htm   An exempt art museum operates a dining room, a cafeteria, and a snack bar for use by the museum staff, employees, and visitors. Www freefilefillableforms com ffa freefileforms htm Eating facilities in the museum help to attract visitors and allow them to spend more time viewing the museum's exhibits without having to seek outside restaurants at mealtime. Www freefilefillableforms com ffa freefileforms htm The eating facilities also allow the museum staff and employees to remain in the museum throughout the day. Www freefilefillableforms com ffa freefileforms htm Thus, the museum's operation of the eating facilities contributes importantly to the accomplishment of its exempt purposes and is not unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Halfway house workshop. Www freefilefillableforms com ffa freefileforms htm   A halfway house organized to provide room, board, therapy, and counseling for persons discharged from alcoholic treatment centers also operates a furniture shop to provide full-time employment for its residents. Www freefilefillableforms com ffa freefileforms htm The profits are applied to the operating costs of the halfway house. Www freefilefillableforms com ffa freefileforms htm The income from this venture is not unrelated trade or business income because the furniture shop contributes importantly to the organization's purpose of aiding its residents' transition from treatment to a normal and productive life. Www freefilefillableforms com ffa freefileforms htm Travel tour programs. Www freefilefillableforms com ffa freefileforms htm   Travel tour activities that are a trade or business are an unrelated trade or business if the activities are not substantially related to the purpose for which tax exemption was granted to the organization. Www freefilefillableforms com ffa freefileforms htm Example 1. Www freefilefillableforms com ffa freefileforms htm A tax-exempt university alumni association provides a travel tour program for its members and their families. Www freefilefillableforms com ffa freefileforms htm The organization works with various travel agencies and schedules approximately ten tours a year to various places around the world. Www freefilefillableforms com ffa freefileforms htm It mails out promotional material and accepts reservations for fees paid by the travel agencies on a per-person basis. Www freefilefillableforms com ffa freefileforms htm The organization provides an employee for each tour as a tour leader. Www freefilefillableforms com ffa freefileforms htm There is no formal educational program conducted with these tours, and they do not differ from regular commercially operated tours. Www freefilefillableforms com ffa freefileforms htm By providing travel tours to its members, the organization is engaging in a regularly conducted trade or business. Www freefilefillableforms com ffa freefileforms htm Even if the tours it offers support the university, financially and otherwise, and encourage alumni to do the same, they do not contribute importantly to the organization's exempt purpose of promoting education. Www freefilefillableforms com ffa freefileforms htm Therefore, the sale of the travel tours is an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Example 2. Www freefilefillableforms com ffa freefileforms htm A tax-exempt organization formed for the purpose of educating individuals about the geography and the culture of the United States provides study tours to national parks and other locations within the United States. Www freefilefillableforms com ffa freefileforms htm These tours are conducted by teachers and others certified by the state board of education. Www freefilefillableforms com ffa freefileforms htm The tours are primarily designed for students enrolled in degree programs at state educational institutions but are open to all who agree to participate in the required study program associated with the tour taken. Www freefilefillableforms com ffa freefileforms htm A tour's study program consists of instruction on subjects related to the location being visited on the tour. Www freefilefillableforms com ffa freefileforms htm Each tour group brings along a library of material related to the subjects being studied on the tour. Www freefilefillableforms com ffa freefileforms htm During the tour, 5 or 6 hours per day are devoted to organized study, preparation of reports, lectures, instruction, and recitation by the students. Www freefilefillableforms com ffa freefileforms htm Examinations are given at the end of each tour. Www freefilefillableforms com ffa freefileforms htm The state board of education awards academic credit for tour participation. Www freefilefillableforms com ffa freefileforms htm Because these tours are substantially related to the organization's exempt purpose, they are not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Insurance programs. Www freefilefillableforms com ffa freefileforms htm   An organization that acts as a group insurance policyholder for its members and collects a fee for performing administrative services is normally carrying on an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Exceptions. Www freefilefillableforms com ffa freefileforms htm   Organizations whose exempt activities may include the provision of insurance benefits, such as fraternal beneficiary societies, voluntary employees beneficiary associations, and labor organizations, are generally exceptions to this rule. Www freefilefillableforms com ffa freefileforms htm Magazine publishing. Www freefilefillableforms com ffa freefileforms htm   An association of credit unions with tax-exempt status as a business league publishes a consumer-oriented magazine four times a year and makes it available to member credit unions for purchase. Www freefilefillableforms com ffa freefileforms htm   By selling a magazine to its members as a promotional device, the organization furnishes its members with a regular commercial service they can use in their own operations. Www freefilefillableforms com ffa freefileforms htm This service does not promote the improvement of business conditions of one or more lines of business, which is the exempt purpose of a business league. Www freefilefillableforms com ffa freefileforms htm   Since the activity does not contribute importantly to the organization's exempt function, it is an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Directory of members. Www freefilefillableforms com ffa freefileforms htm   A business league publishes an annual directory that contains a list of all its members, their addresses, and their area of expertise. Www freefilefillableforms com ffa freefileforms htm Each member has the same amount of space in the directory, and its format does not emphasize the relative importance or reputation of any member. Www freefilefillableforms com ffa freefileforms htm The directory contains no commercial advertisement and is sold only to the organization's members. Www freefilefillableforms com ffa freefileforms htm   The directory facilitates communication among the members and encourages the exchange of ideas and expertise. Www freefilefillableforms com ffa freefileforms htm Because the directory lists the members in a similar noncommercial format without advertising and is not distributed to the public, its sale does not confer private commercial benefits on the members. Www freefilefillableforms com ffa freefileforms htm The sale of the directory does contribute importantly to the organization's exempt purpose and is not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm This directory differs from the publication discussed next because of its noncommercial characteristics. Www freefilefillableforms com ffa freefileforms htm Sales of advertising space. Www freefilefillableforms com ffa freefileforms htm   A national association of law enforcement officials publishes a monthly journal that contains articles and other editorial material of professional interest to its members. Www freefilefillableforms com ffa freefileforms htm The journal is distributed without charge, mainly to the organization's members. Www freefilefillableforms com ffa freefileforms htm   The organization sells advertising space in the journal either for conventional advertising or to merely identify the purchaser without a commercial message. Www freefilefillableforms com ffa freefileforms htm Some of the noncommercial advertising identifies the purchaser in a separate space, and some consists of listings of 60 or more purchasers per page. Www freefilefillableforms com ffa freefileforms htm A business firm identified in a separate space is further identified in an Index of Advertisers. Www freefilefillableforms com ffa freefileforms htm   The organization solicits advertising by personal contacts. Www freefilefillableforms com ffa freefileforms htm Advertising from large firms is solicited by contacting their chief executive officer or community relations officer rather than their advertising manager. Www freefilefillableforms com ffa freefileforms htm The organization also solicits advertising in form letters appealing for corporate and personal contributions. Www freefilefillableforms com ffa freefileforms htm   An exempt organization's sale of advertising placed for the purchaser's commercial benefit is a commercial activity. Www freefilefillableforms com ffa freefileforms htm Goodwill derived by the purchaser from being identified as a patron of the organization is usually considered a form of commercial benefit. Www freefilefillableforms com ffa freefileforms htm Therefore, advertising in an exempt organization's publication is generally presumed to be placed for the purchaser's commercial benefit, even if it has no commercial message. Www freefilefillableforms com ffa freefileforms htm However, this presumption is not conclusive if the purchaser's patronage would be difficult to justify commercially in view of the facts and circumstances. Www freefilefillableforms com ffa freefileforms htm In that case, other factors should also be considered in determining whether a commercial benefit can be expected. Www freefilefillableforms com ffa freefileforms htm Those other factors include: The normal manner in which the publication is circulated; The territorial scope of the circulation; The extent to which its readers, promoters, or the like could reasonably be expected to further, either directly or indirectly, the commercial interest of the advertisers; The eligibility of the publishing organization to receive tax-deductible contributions; and The commercial or noncommercial methods used to solicit the advertisers. Www freefilefillableforms com ffa freefileforms htm   In this situation, the purchaser of a separate advertising space without a commercial message can nevertheless expect a commercial benefit from the goodwill derived from being identified in that manner as a patron of the organization. Www freefilefillableforms com ffa freefileforms htm However, the purchaser of a listing cannot expect more than an inconsequential benefit. Www freefilefillableforms com ffa freefileforms htm Therefore, the sale of separate spaces, but not the listings, is an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Publishing legal notices. Www freefilefillableforms com ffa freefileforms htm   A bar association publishes a legal journal containing opinions of the county court, articles of professional interest to lawyers, advertisements for products and services used by the legal profession, and legal notices. Www freefilefillableforms com ffa freefileforms htm The legal notices are published to satisfy state laws requiring publication of notices in connection with legal proceedings, such as the administration of estates and actions to quiet title to real property. Www freefilefillableforms com ffa freefileforms htm The state designated the bar association's journal as the place to publish the required notices. Www freefilefillableforms com ffa freefileforms htm   The publication of ordinary commercial advertising does not advance the exempt purposes of the association even when published in a periodical that contains material related to exempt purposes. Www freefilefillableforms com ffa freefileforms htm Although the advertising is directed specifically to members of the legal profession, it is still commercial in nature and does not contribute importantly to the exempt purposes of the association. Www freefilefillableforms com ffa freefileforms htm Therefore, the advertising income is unrelated trade or business income. Www freefilefillableforms com ffa freefileforms htm   On the other hand, the publication of legal notices is distinguishable from ordinary commercial advertising in that its purpose is to inform the general public of significant legal events rather than to stimulate demand for the products or services of an advertiser. Www freefilefillableforms com ffa freefileforms htm This promotes the common interests of the legal profession and contributes importantly to the association's exempt purposes. Www freefilefillableforms com ffa freefileforms htm Therefore, the publishing of legal notices does not constitute an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Museum greeting card sales. Www freefilefillableforms com ffa freefileforms htm    An art museum that exhibits modern art sells greeting cards that display printed reproductions of selected works from other art collections. Www freefilefillableforms com ffa freefileforms htm Each card is imprinted with the name of the artist, the title or subject matter of the work, the date or period of its creation, if known, and the museum's name. Www freefilefillableforms com ffa freefileforms htm The cards contain appropriate greetings and are personalized on request. Www freefilefillableforms com ffa freefileforms htm   The organization sells the cards in the shop it operates in the museum and sells them at quantity discounts to retail stores. Www freefilefillableforms com ffa freefileforms htm It also sells them by mail order through a catalog that is advertised in magazines and other publications throughout the year. Www freefilefillableforms com ffa freefileforms htm As a result, a large number of cards are sold at a significant profit. Www freefilefillableforms com ffa freefileforms htm   The museum is exempt as an educational organization on the basis of its ownership, maintenance, and exhibition for public viewing of works of art. Www freefilefillableforms com ffa freefileforms htm The sale of greeting cards with printed reproductions of artworks contributes importantly to the achievement of the museum's exempt educational purposes by enhancing public awareness, interest, and appreciation of art. Www freefilefillableforms com ffa freefileforms htm The cards may encourage more people to visit the museum itself to share in its educational programs. Www freefilefillableforms com ffa freefileforms htm The fact that the cards are promoted and sold in a commercial manner at a profit and in competition with commercial greeting card publishers does not alter the fact that the activity is related to the museum's exempt purpose. Www freefilefillableforms com ffa freefileforms htm Therefore, these sales activities are not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Museum shop. Www freefilefillableforms com ffa freefileforms htm   An art museum maintained and operated for the exhibition of American folk art operates a shop in the museum that sells: Reproductions of works in the museum's own collection and reproductions of artistic works from the collections of other art museums (prints suitable for framing, postcards, greeting cards, and slides); Metal, wood, and ceramic copies of American folk art objects from its own collection and similar copies of art objects from other collections of artworks; Instructional literature and scientific books and souvenir items concerning the history and development of art and, in particular, of American folk art; and Scientific books and souvenir items of the city in which the museum is located. Www freefilefillableforms com ffa freefileforms htm   The shop also rents originals or reproductions of paintings contained in its collection. Www freefilefillableforms com ffa freefileforms htm All of its reproductions are imprinted with the name of the artist, the title or subject matter of the work from which it is reproduced, and the museum's name. Www freefilefillableforms com ffa freefileforms htm   Each line of merchandise must be considered separately to determine if sales are related to the exempt purpose. Www freefilefillableforms com ffa freefileforms htm   The sale and rental of reproductions and copies of works from the museum's own collection and reproductions of artistic works not owned by the museum contribute importantly to the achievement of the museum's exempt educational purpose by making works of art familiar to a broader segment of the public, thereby enhancing the public's understanding and appreciation of art. Www freefilefillableforms com ffa freefileforms htm The same is true for the sale of literature relating to art. Www freefilefillableforms com ffa freefileforms htm Therefore, these sales activities are not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm   On the other hand, the sale of scientific books and souvenir items of the city where the museum is located has no causal relationship to art or to artistic endeavor and, therefore, does not contribute importantly to the accomplishment of the museum's exempt educational purposes. Www freefilefillableforms com ffa freefileforms htm The fact that selling some of these items could, under different circumstances, be held related to the exempt educational purpose of some other exempt educational organization does not change this conclusion. Www freefilefillableforms com ffa freefileforms htm Additionally, the sale of these items does not lose its identity as a trade or business merely because the museum also sells articles which do contribute importantly to the accomplishment of its exempt function. Www freefilefillableforms com ffa freefileforms htm Therefore, these sales are an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Business league's parking and bus services. Www freefilefillableforms com ffa freefileforms htm   A business league, whose purpose is to retain and stimulate trade in a downtown area that has inadequate parking facilities, operates a fringe parking lot and shuttle bus service. Www freefilefillableforms com ffa freefileforms htm It also operates, as an insubstantial part of its activities, a park and shop plan. Www freefilefillableforms com ffa freefileforms htm   The fringe parking lot and shuttle bus service operate in a manner that does not favor any individual or group of downtown merchants. Www freefilefillableforms com ffa freefileforms htm The merchants cannot offer free or discount parking or bus fares to their customers. Www freefilefillableforms com ffa freefileforms htm   The park and shop plan allows customers of particular merchants to park free at certain parking lots in the area. Www freefilefillableforms com ffa freefileforms htm Merchants participating in this plan buy parking stamps, which they distribute to their customers to use to pay for parking. Www freefilefillableforms com ffa freefileforms htm   Operating the fringe parking lot and shuttle bus service provides easy and convenient access to the downtown area and, therefore, stimulates and improves business conditions in the downtown area generally. Www freefilefillableforms com ffa freefileforms htm That activity contributes importantly to the organization's accomplishing its exempt purpose and is not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm   The park and shop plan encourages customers to use a limited number of participating member merchants in order to obtain free parking. Www freefilefillableforms com ffa freefileforms htm This provides a particular service to individual members of the organization and does not further its exempt purpose. Www freefilefillableforms com ffa freefileforms htm Therefore, operating the park and shop plan is an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Youth residence. Www freefilefillableforms com ffa freefileforms htm   An exempt organization, whose purpose is to provide for the welfare of young people, rents rooms primarily to people under age 25. Www freefilefillableforms com ffa freefileforms htm The residence units are operated on, and as a part of, the premises in which the organization carries on the social, recreational, and guidance programs for which it was recognized as exempt. Www freefilefillableforms com ffa freefileforms htm The facilities are under the management and supervision of trained career professionals who provide residents with personal counseling, physical education programs, and group recreational activities. Www freefilefillableforms com ffa freefileforms htm The rentals are not an unrelated trade or business because renting the rooms is substantially related to the organization's exempt purpose. Www freefilefillableforms com ffa freefileforms htm Health club program. Www freefilefillableforms com ffa freefileforms htm   An exempt charitable organization's purpose is to provide for the welfare of young people. Www freefilefillableforms com ffa freefileforms htm The organization conducts charitable activities and maintains facilities that will contribute to the physical, social, mental, and spiritual health of young people at minimum or no cost to them. Www freefilefillableforms com ffa freefileforms htm Nominal annual dues are charged for membership in the organization and use of the facilities. Www freefilefillableforms com ffa freefileforms htm   In addition, the organization organized a health club program that its members could join for an annual fee in addition to the annual dues. Www freefilefillableforms com ffa freefileforms htm The annual fee is comparable to fees charged by similar local commercial health clubs and is sufficiently high to restrict participation in the program to a limited number of members of the community. Www freefilefillableforms com ffa freefileforms htm   The health club program is in addition to the general physical fitness program of the organization. Www freefilefillableforms com ffa freefileforms htm Operating this program does not contribute importantly to the organization's accomplishing its exempt purpose and, therefore, is an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Miniature golf course. Www freefilefillableforms com ffa freefileforms htm   An exempt youth welfare organization operates a miniature golf course that is open to the general public. Www freefilefillableforms com ffa freefileforms htm The course, which is managed by salaried employees, is substantially similar to commercial courses. Www freefilefillableforms com ffa freefileforms htm The admission fees charged are comparable to fees of commercial facilities and are designed to return a profit. Www freefilefillableforms com ffa freefileforms htm   The operation of the miniature golf course in a commercial manner does not contribute importantly to the accomplishment of the organization's exempt purpose and, therefore, is an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Sales of hearing aids. Www freefilefillableforms com ffa freefileforms htm   A tax-exempt hospital, whose primary activity is rehabilitation, sells hearing aids to patients. Www freefilefillableforms com ffa freefileforms htm This activity is an essential part of the hospital's program to test and evaluate patients with hearing deficiencies and contributes importantly to its exempt purpose. Www freefilefillableforms com ffa freefileforms htm It is not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Nonpatient laboratory testing. Www freefilefillableforms com ffa freefileforms htm   Nonpatient laboratory testing performed by a tax-exempt teaching hospital on specimens needed for the conduct of its teaching activities is not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm However, laboratory testing performed by a tax-exempt non-teaching hospital on referred specimens from private office patients of staff physicians is an unrelated trade or business if these services are otherwise available in the community. Www freefilefillableforms com ffa freefileforms htm Selling endorsements. Www freefilefillableforms com ffa freefileforms htm   An exempt scientific organization enjoys an excellent reputation in the field of biological research. Www freefilefillableforms com ffa freefileforms htm It exploits this reputation regularly by selling endorsements of laboratory equipment to manufacturers. Www freefilefillableforms com ffa freefileforms htm Endorsing laboratory equipment does not contribute importantly to the accomplishment of any purpose for which exemption is granted to the organization. Www freefilefillableforms com ffa freefileforms htm Accordingly, the sale of endorsements is an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Sponsoring entertainment events. Www freefilefillableforms com ffa freefileforms htm   An exempt university has a regular faculty and a regularly enrolled student body. Www freefilefillableforms com ffa freefileforms htm During the school year, the university sponsors the appearance of professional theater companies and symphony orchestras that present drama and musical performances for the students and faculty members. Www freefilefillableforms com ffa freefileforms htm Members of the general public also are admitted. Www freefilefillableforms com ffa freefileforms htm The university advertises these performances and supervises advance ticket sales at various places, including such university facilities as the cafeteria and the university bookstore. Www freefilefillableforms com ffa freefileforms htm Although the presentation of the performances makes use of an intangible generated by the university's exempt educational functions—the presence of the student body and faculty—such drama and music events contribute importantly to the overall educational and cultural functions of the university. Www freefilefillableforms com ffa freefileforms htm Therefore, the activity is not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Excluded Trade or Business Activities The following activities are specifically excluded from the definition of unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Volunteer workforce. Www freefilefillableforms com ffa freefileforms htm   Any trade or business in which substantially all the work is performed for the organization without compensation is not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Example 1. Www freefilefillableforms com ffa freefileforms htm A retail store operated by an exempt orphanage where unpaid volunteers perform substantially all the work in carrying on the business is not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Example 2. Www freefilefillableforms com ffa freefileforms htm A volunteer fire company conducts weekly public dances. Www freefilefillableforms com ffa freefileforms htm Holding public dances and charging admission on a regular basis may, given the facts and circumstances of a particular case, be considered an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm However, because the work at the dances is performed by unpaid volunteers, the activity is not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Convenience of members. Www freefilefillableforms com ffa freefileforms htm   A trade or business conducted by a 501(c)(3) organization or by a governmental college or university primarily for the convenience of its members, students, patients, officers, or employees is not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm For example, a laundry operated by a college for the purpose of laundering dormitory linens and students' clothing is not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Qualified sponsorship activities. Www freefilefillableforms com ffa freefileforms htm   Soliciting and receiving qualified sponsorship payments is not an unrelated trade or business, and the payments are not subject to unrelated business income tax. Www freefilefillableforms com ffa freefileforms htm Qualified sponsorship payment. Www freefilefillableforms com ffa freefileforms htm   This is any payment made by a person engaged in a trade or business for which the person will receive no substantial benefit other than the use or acknowledgment of the business name, logo, or product lines in connection with the organization's activities. Www freefilefillableforms com ffa freefileforms htm “Use or acknowledgment” does not include advertising the sponsor's products or services. Www freefilefillableforms com ffa freefileforms htm The organization's activities include all its activities, whether or not related to its exempt purposes. Www freefilefillableforms com ffa freefileforms htm   For example, if, in return for receiving a sponsorship payment, an organization promises to use the sponsor's name or logo in acknowledging the sponsor's support for an educational or fundraising event, the payment is a qualified sponsorship payment and is not subject to the unrelated business income tax. Www freefilefillableforms com ffa freefileforms htm   Providing facilities, services, or other privileges (for example, complimentary tickets, pro-am playing spots in golf tournaments, or receptions for major donors) to a sponsor or the sponsor's designees in connection with a sponsorship payment does not affect whether the payment is a qualified sponsorship payment. Www freefilefillableforms com ffa freefileforms htm Instead, providing these goods or services is treated as a separate transaction in determining whether the organization has unrelated business income from the event. Www freefilefillableforms com ffa freefileforms htm Generally, if the services or facilities are not a substantial benefit or if providing them is a related business activity, the payments will not be subject to the unrelated business income tax. Www freefilefillableforms com ffa freefileforms htm   Similarly, the sponsor's receipt of a license to use an intangible asset (for example, a trademark, logo, or designation) of the organization is treated as separate from the qualified sponsorship transaction in determining whether the organization has unrelated business taxable income. Www freefilefillableforms com ffa freefileforms htm   If part of a payment would be a qualified sponsorship payment if paid separately, that part is treated as a separate payment. Www freefilefillableforms com ffa freefileforms htm For example, if a sponsorship payment entitles the sponsor to both product advertising and the use or acknowledgment of the sponsor's name or logo by the organization, then the unrelated business income tax does not apply to the part of the payment that is more than the fair market value of the product advertising. Www freefilefillableforms com ffa freefileforms htm Advertising. Www freefilefillableforms com ffa freefileforms htm   A payment is not a qualified sponsorship payment if, in return, the organization advertises the sponsor's products or services. Www freefilefillableforms com ffa freefileforms htm For information on the treatment of payments for advertising, see Exploitation of Exempt Activity—Advertising Sales in chapter 4. Www freefilefillableforms com ffa freefileforms htm   Advertising includes: Messages containing qualitative or comparative language, price information, or other indications of savings or value; Endorsements; and Inducements to purchase, sell, or use the products or services. Www freefilefillableforms com ffa freefileforms htm   The use of promotional logos or slogans that are an established part of the sponsor's identity is not, by itself, advertising. Www freefilefillableforms com ffa freefileforms htm In addition, mere distribution or display of a sponsor's product by the organization to the public at a sponsored event, whether for free or for remuneration, is considered use or acknowledgment of the product rather than advertising. Www freefilefillableforms com ffa freefileforms htm Exception for contingent payments. Www freefilefillableforms com ffa freefileforms htm   A payment is not a qualified sponsorship payment if its amount is contingent, by contract or otherwise, upon the level of attendance at one or more events, broadcast ratings, or other factors indicating the degree of public exposure to one or more events. Www freefilefillableforms com ffa freefileforms htm However, the fact that a sponsorship payment is contingent upon an event actually taking place or being broadcast does not, by itself, affect whether a payment qualifies. Www freefilefillableforms com ffa freefileforms htm Exception for periodicals. Www freefilefillableforms com ffa freefileforms htm   A payment is not a qualified sponsorship payment if it entitles the payer to the use or acknowledgment of the business name, logo, or product lines in the organization's periodical. Www freefilefillableforms com ffa freefileforms htm For this purpose, a periodical is any regularly scheduled and printed material (for example, a monthly journal) published by or on behalf of the organization. Www freefilefillableforms com ffa freefileforms htm It does not include material that is related to and primarily distributed in connection with a specific event conducted by the organization (for example, a program or brochure distributed at a sponsored event). Www freefilefillableforms com ffa freefileforms htm   The treatment of payments that entitle the payer to the depiction of the payer's name, logo, or products lines in an organization's periodical is determined under the rules that apply to advertising activities. Www freefilefillableforms com ffa freefileforms htm See Sales of advertising space under Examples, earlier in this chapter. Www freefilefillableforms com ffa freefileforms htm Also see Exploitation of Exempt Activity—Advertising Sales in chapter 4. Www freefilefillableforms com ffa freefileforms htm Exception for conventions and trade shows. Www freefilefillableforms com ffa freefileforms htm   A payment is not a qualified sponsorship payment if it is made in connection with any qualified convention or trade show activity. Www freefilefillableforms com ffa freefileforms htm The exclusion of qualified convention or trade show activities from the definition of unrelated trade or business is explained later under Convention or trade show activity. Www freefilefillableforms com ffa freefileforms htm Selling donated merchandise. Www freefilefillableforms com ffa freefileforms htm   A trade or business that consists of selling merchandise, substantially all of which the organization received as gifts or contributions, is not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm For example, a thrift shop operated by a tax-exempt organization that sells donated clothes and books to the general public, with the proceeds going to the exempt organization, is not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Employee association sales. Www freefilefillableforms com ffa freefileforms htm   The sale of certain items by a local association of employees described in section 501(c)(4), organized before May 17, 1969, is not an unrelated trade or business if the items are sold for the convenience of the association's members at their usual place of employment. Www freefilefillableforms com ffa freefileforms htm This exclusion applies only to the sale of work-related clothes and equipment and items normally sold through vending machines, food dispensing facilities, or by snack bars. Www freefilefillableforms com ffa freefileforms htm Bingo games. Www freefilefillableforms com ffa freefileforms htm   Certain bingo games are not included in the term “unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm ” To qualify for this exclusion, the bingo game must meet the following requirements. Www freefilefillableforms com ffa freefileforms htm It meets the legal definition of bingo. Www freefilefillableforms com ffa freefileforms htm It is legal where it is played. Www freefilefillableforms com ffa freefileforms htm It is played in a jurisdiction where bingo games are not regularly conducted by for-profit organizations. Www freefilefillableforms com ffa freefileforms htm Legal definition. Www freefilefillableforms com ffa freefileforms htm   For a game to meet the legal definition of bingo, wagers must be placed, winners must be determined, and prizes or other property must be distributed in the presence of all persons placing wagers in that game. Www freefilefillableforms com ffa freefileforms htm   A wagering game that does not meet the legal definition of bingo does not qualify for the exclusion, regardless of its name. Www freefilefillableforms com ffa freefileforms htm For example, “instant bingo,” in which a player buys a pre-packaged bingo card with pull-tabs that the player removes to determine if he or she is a winner, does not qualify. Www freefilefillableforms com ffa freefileforms htm Legal where played. Www freefilefillableforms com ffa freefileforms htm   This exclusion applies only if bingo is legal under the laws of the jurisdiction where it is conducted. Www freefilefillableforms com ffa freefileforms htm The fact that a jurisdiction's law that prohibits bingo is rarely enforced or is widely disregarded does not make the conduct of bingo legal for this purpose. Www freefilefillableforms com ffa freefileforms htm No for-profit games where played. Www freefilefillableforms com ffa freefileforms htm   This exclusion applies only if for-profit organizations cannot regularly conduct bingo games in any part of the same jurisdiction. Www freefilefillableforms com ffa freefileforms htm Jurisdiction is normally the entire state; however, in certain situations, local jurisdiction will control. Www freefilefillableforms com ffa freefileforms htm Example. Www freefilefillableforms com ffa freefileforms htm Tax-exempt organizations X and Y are organized under the laws of state N, which has a law that permits exempt organizations to conduct bingo games. Www freefilefillableforms com ffa freefileforms htm In addition, for-profit organizations are permitted to conduct bingo games in city S, a resort community located in county R. Www freefilefillableforms com ffa freefileforms htm Several for-profit organizations conduct nightly games. Www freefilefillableforms com ffa freefileforms htm Y conducts weekly bingo games in city S, while X conducts weekly games in county R. Www freefilefillableforms com ffa freefileforms htm Since state law confines the for-profit organizations to city S, local jurisdiction controls. Www freefilefillableforms com ffa freefileforms htm Y's bingo games conducted in city S are an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm However, X's bingo games conducted in county R outside of city S are not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Gambling activities other than bingo. Www freefilefillableforms com ffa freefileforms htm   Any game of chance conducted by an exempt organization in North Dakota is not an unrelated trade or business if conducting the game does not violate any state or local law. Www freefilefillableforms com ffa freefileforms htm Pole rentals. Www freefilefillableforms com ffa freefileforms htm   The term unrelated trade or business does not include qualified pole rentals by a mutual or cooperative telephone or electric company described in section 501(c)(12). Www freefilefillableforms com ffa freefileforms htm A qualified pole rental is the rental of a pole (or other structure used to support wires) if the pole (or other structure) is used: By the telephone or electric company to support one or more wires that the company uses in providing telephone or electric services to its members, and According to the rental, to support one or more wires (in addition to the wires described in 1 ) for use in connection with the transmission by wire of electricity or of telephone or other communications. Www freefilefillableforms com ffa freefileforms htm For this purpose, the term rental includes any sale of the right to use the pole (or other structure). Www freefilefillableforms com ffa freefileforms htm Distribution of low cost articles. Www freefilefillableforms com ffa freefileforms htm   The term unrelated trade or business does not include activities relating to the distribution of low cost articles incidental to soliciting charitable contributions. Www freefilefillableforms com ffa freefileforms htm This applies to organizations described in section 501 that are eligible to receive charitable contributions. Www freefilefillableforms com ffa freefileforms htm   A distribution is considered incidental to the solicitation of a charitable contribution if: The recipient did not request the distribution, The distribution is made without the express consent of the recipient, and The article is accompanied by a request for a charitable contribution to the organization and a statement that the recipient may keep the low cost article regardless of whether a contribution is made. Www freefilefillableforms com ffa freefileforms htm   An article is considered low cost if the cost of an item (or the aggregate costs if more than one item) distributed to a single recipient in a tax year is not more than $5, indexed annually for inflation. Www freefilefillableforms com ffa freefileforms htm The maximum cost of a low cost article is $9. Www freefilefillableforms com ffa freefileforms htm 70 for 2011. Www freefilefillableforms com ffa freefileforms htm The cost of an article is the cost to the organization that distributes the item or on whose behalf it is distributed. Www freefilefillableforms com ffa freefileforms htm Exchange or rental of member lists. Www freefilefillableforms com ffa freefileforms htm   The exchange or rental of member or donor lists between organizations described in section 501 that are eligible to receive charitable contributions is not included in the term unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm Hospital services. Www freefilefillableforms com ffa freefileforms htm   The providing of certain services at or below cost by an exempt hospital to other exempt hospitals that have facilities for 100 or fewer inpatients is not an unrelated trade or business. Www freefilefillableforms com ffa freefileforms htm This exclusion applies only to services described in section 501(e)(1)(A). Www freefilefillableforms com ffa freefileforms htm Public entertainment activity. Www freefilefillableforms com ffa freefileforms htm   An unrelated trade or business does not include a qualified public entertainment activity. Www freefilefillableforms com ffa freefileforms htm A public entertainment activity is one traditionally conducted at a fair or exposition promoting agriculture and education, including any activity whose purpose is designed to attract the public to fairs or expositions or to promote the breeding of animals or the development of products or equipment. Www freefilefillableforms com ffa freefileforms htm   A qualified public entertainment activity is one conducted by a qualifying organization: In conjunction with an international, national, state, regional, or local fair or exposition; In accordance with state law that permits the activity to be operated or conducted solely by such an organization or by an agency, instrumentality, or political subdivision of the state; or In accordance with state law that permits an organization to be granted a license to conduct an activity for not more than 20 days on paying the state a lower percentage of the revenue from the activity than the state charges nonqualifying organizations that hold similar activities. Www freefilefillableforms com ffa freefileforms htm   For these purposes, a qualifying organization is an organization described in section 501(c)(3), 501(c)(4), or 501(c)(5) that regularly conducts an agricultural and educational fair or exposition as one of its substantial exempt purposes. Www freefilefillableforms com ffa freefileforms htm Its conducting qualified public entertainment activities will not affect determination of its exempt status. Www freefilefillableforms com ffa freefileforms htm Convention or trade show activity. Www freefilefillableforms com ffa freefileforms htm   An unrelated trade or business does not include qualified convention or trade show activities conducted at a convention, annual meeting, or trade show. Www freefilefillableforms com ffa freefileforms htm   A qualified convention or trade show activity is any activity of a kind traditionally conducted by a qualifying organization in conjunction with an international, national, state, regional, or local convention, annual meeting, or show if: One of the purposes of the organization in sponsoring the activity is promoting and stimulating interest in, and demand for, the products and services of that industry or educating the persons in attendance regarding new products and services or new rules and regulations affecting the industry; and The show is designed to achieve its purpose through the character of the exhibits and the extent of the industry products that are displayed. Www freefilefillableforms com ffa freefileforms htm   For these purposes, a qualifying organization is one described in section 501(c)(3), 501(c)(4), 501(c)(5), or 501(c)(6). Www freefilefillableforms com ffa freefileforms htm The organization must regularly conduct, as one of its substantial exempt purposes, a qualified convention or trade show activity. Www freefilefillableforms com ffa freefileforms htm   The rental of display space to exhibitors (including exhibitors who are suppliers) at a qualified convention or trade show is not an unrelated trade or business even if the exhibitors who rent the space are permitted to sell or solicit orders. Www freefilefillableforms com ffa freefileforms htm For this purpose, a supplier's exhibit is one in which the exhibitor displays goods or services that are supplied to, rather than by, members of the qualifying organization in the conduct of these members' own trades or businesses. Www freefilefillableforms com ffa freefileforms htm    Certain Internet activities conducted by a trade association described in section 501(c)(6) will be considered qualified convention and trade show activity if conducted on a special supplementary section of the association's website in conjunction with a trade show conducted by the association. Www freefilefillableforms com ffa freefileforms htm The trade show itself must be a qualified convention and trade show activity. Www freefilefillableforms com ffa freefileforms htm The supplementary section of the website must be ancillary to, and serve to augment and enhance, the trade show, as when it makes available the same information available at the trade show and is available only during a time period that coincides with the time period that the trade show is in operation. Www freefilefillableforms com ffa freefileforms htm Conversely, Internet activities that are not conducted in conjunction with a qualified convention and trade show activity and that do not augment and enhance the trade show cannot themselves be qualified convention and trade show activity. Www freefilefillableforms com ffa freefileforms htm Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Tax Relief in Disaster Situations

Recent Tax Relief

  • Colorado victims of September 2013 floods, see news release
  • Illinois victims of November 2013 storms and flooding, see news release
  • Colorado victims of September 2013 storms and flooding, see news release
  • Alaska victims of May 2013 flooding, see news release
  • Oklahoma victims of May 2013 tornado see news release
  • Illinois victims of April 16, 2013 storms, tornadoes and flooding, see news release
  • Mississippi victims of February 10, 2013 storms, tornadoes and flooding, see news release
  • West Virginia victims of June 2012 storms and straight-line winds, see news release
  • Oklahoma victims of Freedom Wildfire that began on Aug. 3, 2012, see news release
  • Florida victims of June 2012 Tropical Storm Debby, see news release 
  • West Virginia victims of March 2012 storms, see news release
  • Tennessee victims of February 2012 storms, see news release
  • West Virginia victims of February 2012 storms, see news release
  • Indiana victims of February 2012 storms, see news release
  • Kentucky victims of February 2012 storms, see news release
  • Alabama victims of January 2012 storms, see news release
  • Virginia victims of August 2011 earthquake, see news release
  • Puerto Rico victims of September 2011 Tropical Storm Maria, see news release
  • Iowa victims of May 2011 flooding, see news release
  • New York victims of September 2011 remnants of Tropical Storm Lee, see news release
  • Pennsylvania victims of September 2011 Tropical Storm Lee, see news release
  • Texas victims of August 2011 wildfires, see news release
  • Kentucky victims of June 2011 severe storms, see news release
  • South Dakota victims of March 2011 flooding, see news release
  • Missouri victims of June flooding, see news release
  • Nebraska victims of May flooding, see news release
  • Montana victims of April 2011 storms and flooding, see news release

Relief for Victims of Hurricane Sandy

The IRS is in the process of providing tax relief to victims of Hurricane Sandy in the Mid-Atlantic and Northeastern United States. So far, IRS filing and payment relief applies to the following localities:

  • Tax Relief in Connecticut: Fairfield, Middlesex, New Haven and New London counties and the Mashantucket Pequot Tribal Nation and Mohegan Tribal Nation located within New London County;
  • Tax Relief in Maryland: Somerset County;
  • Tax Relief in New Jersey: Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union and Warren counties;
  • Tax Relief in New York: Bronx, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Sullivan, Suffolk, Ulster and Westchester counties;
  • Tax Relief in Rhode Island: Newport and Washington counties.

The IRS also announced additional tax relief to certain affected individuals and businesses, further extending tax deadlines of that relief until April 1 for the following localities:

  • In New Jersey: Monmouth and Ocean counties.
  • In New York: Nassau, Queens, Richmond and Suffolk counties.

The IRS filing and payment relief will be updated based on FEMA's declarations of individual assistance. Visit the page Help for Victims of Hurricane Sandy for additional information on IRS relief for victims of Hurricane Sandy.
 


Relief for Victims of Hurricane Isaac

The IRS has provided tax relief to victims of Hurricane Isaac. Relief for taxpayers in various locations, including postponement of filing and payment deadlines, is listed here. 

For information on disaster recovery, visit disasterassistance.gov.
 


Relief for Victims of Hurricane Irene

The IRS is in the process of providing tax relief to victims of Hurricane Irene. Relief for taxpayers in various locations, including postponement of filing and payment deadlines, will be listed here as it is announced. Watch this page for updates.

Update: IRS e-File, Free File to Remain Available to Victims of Irene, Lee and Texas Wildfires through Oct. 31.

 


Tax Relief for Hurricane Katrina, Rita and Wilma Victims

The Housing and Economic Recovery Act of 2008 offers a new option to homeowners who previously claimed a casualty loss deduction resulting from hurricanes Katrina, Rita and Wilma. See the news release, notice and questions and answers for further details.

The IRS offers tax assistance to victims of the 2005 Gulf Coast hurricanes.

 


Don't See What You're Looking For?

 

Page Last Reviewed or Updated: 25-Mar-2014

The Www Freefilefillableforms Com Ffa Freefileforms Htm

Www freefilefillableforms com ffa freefileforms htm Publication 584 - Additional Material Table of Contents This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Entrance Hall This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Living Room This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Dining Room This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Kitchen This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Den This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Bedrooms This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Bathrooms This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Recreation Room This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Laundry and Basement This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Garage This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Sporting Equipment This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Men's Clothing This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Women's Clothing This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Children's Clothing This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Jewelry This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Electrical Appliances This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Linens This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Miscellaneous This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Motor Vehicles Schedule 20. Www freefilefillableforms com ffa freefileforms htm Home (Excluding Contents) Note. Www freefilefillableforms com ffa freefileforms htm If you used the entire property as your home, fill out only column (a). Www freefilefillableforms com ffa freefileforms htm If you used part of the property as your home and part of it for business or to produce rental income, you must allocate the entries on lines 2-9 between the personal part (column (a)) and the business/rental part (column (b)). Www freefilefillableforms com ffa freefileforms htm 1. Www freefilefillableforms com ffa freefileforms htm Description of property (Show location and date acquired. Www freefilefillableforms com ffa freefileforms htm )     (a)  Personal Part (b)  Business/Rental Part 2. Www freefilefillableforms com ffa freefileforms htm Cost or other (adjusted) basis of property (from Worksheet A)     3. Www freefilefillableforms com ffa freefileforms htm Insurance or other reimbursement Note. Www freefilefillableforms com ffa freefileforms htm If line 2 is more than line 3, skip line 4. Www freefilefillableforms com ffa freefileforms htm If line 3 is more than line 2, you exclude gain, and the gain is more than you can exclude, see the instructions for line 3 in the Instructions for Form 4684 for the amount to enter. Www freefilefillableforms com ffa freefileforms htm     4. Www freefilefillableforms com ffa freefileforms htm Gain from casualty. Www freefilefillableforms com ffa freefileforms htm If line 3 is more than line 2, enter the difference here and skip lines 5 through 9. Www freefilefillableforms com ffa freefileforms htm But see Next below line 9. Www freefilefillableforms com ffa freefileforms htm     5. Www freefilefillableforms com ffa freefileforms htm Fair market value before casualty     6. Www freefilefillableforms com ffa freefileforms htm Fair market value after casualty     7. Www freefilefillableforms com ffa freefileforms htm Decrease in fair market value. Www freefilefillableforms com ffa freefileforms htm Subtract line 6 from line 5. Www freefilefillableforms com ffa freefileforms htm     8. Www freefilefillableforms com ffa freefileforms htm Enter the smaller of line 2 or line 7 Note for business/rental part. Www freefilefillableforms com ffa freefileforms htm If the property was totally destroyed by casualty, enter on line 8, column (b) the amount from line 2, column (b). Www freefilefillableforms com ffa freefileforms htm     9. Www freefilefillableforms com ffa freefileforms htm Subtract line 3 from line 8. Www freefilefillableforms com ffa freefileforms htm If zero or less, enter -0-. Www freefilefillableforms com ffa freefileforms htm     Next: Transfer the entries from line 1 and lines 2-9, column (a), above to the corresponding lines on Form 4684, Section A. Www freefilefillableforms com ffa freefileforms htm Transfer the entries from line 1 and lines 2-9, column (b), to the corresponding lines on Form 4684, Section B. Www freefilefillableforms com ffa freefileforms htm Worksheet A. Www freefilefillableforms com ffa freefileforms htm Cost or Other (Adjusted) Basis Caution. Www freefilefillableforms com ffa freefileforms htm See the Worksheet A Instructions before you use this worksheet. Www freefilefillableforms com ffa freefileforms htm         (a) Personal Part (b) Business/Rental Part 1. Www freefilefillableforms com ffa freefileforms htm   Enter the purchase price of the home damaged or destroyed. Www freefilefillableforms com ffa freefileforms htm (If you filed Form 2119 when you originally acquired that home to postpone gain on the sale of a previous home before May 7, 1997, enter the adjusted basis of the new home from that Form 2119. Www freefilefillableforms com ffa freefileforms htm ) 1. Www freefilefillableforms com ffa freefileforms htm     2. Www freefilefillableforms com ffa freefileforms htm   Seller paid points for home bought after 1990. Www freefilefillableforms com ffa freefileforms htm Do not include any seller-paid points you already subtracted to arrive at the amount entered on line 1 2. Www freefilefillableforms com ffa freefileforms htm     3. Www freefilefillableforms com ffa freefileforms htm   Subtract line 2 from line 1 3. Www freefilefillableforms com ffa freefileforms htm     4. Www freefilefillableforms com ffa freefileforms htm   Settlement fees or closing costs. Www freefilefillableforms com ffa freefileforms htm (See Settlement costs in Publication 551. Www freefilefillableforms com ffa freefileforms htm ) If line 1 includes the adjusted basis of the new home from Form 2119, skip lines 4a-4g and 5; go to line 6. Www freefilefillableforms com ffa freefileforms htm         a. Www freefilefillableforms com ffa freefileforms htm Abstract and recording fees 4a. Www freefilefillableforms com ffa freefileforms htm       b. Www freefilefillableforms com ffa freefileforms htm Legal fees (including fees for title search and preparing documents) 4b. Www freefilefillableforms com ffa freefileforms htm       c. Www freefilefillableforms com ffa freefileforms htm Survey fees 4c. Www freefilefillableforms com ffa freefileforms htm       d. Www freefilefillableforms com ffa freefileforms htm Title insurance 4d. Www freefilefillableforms com ffa freefileforms htm       e. Www freefilefillableforms com ffa freefileforms htm Transfer or stamp taxes 4e. Www freefilefillableforms com ffa freefileforms htm       f. Www freefilefillableforms com ffa freefileforms htm Amounts that the seller owed that you agreed to pay (back taxes or interest, recording or mortgage fees, and sales commissions) 4f. Www freefilefillableforms com ffa freefileforms htm       g. Www freefilefillableforms com ffa freefileforms htm Other 4g. Www freefilefillableforms com ffa freefileforms htm     5. Www freefilefillableforms com ffa freefileforms htm   Add lines 4a through 4g 5. Www freefilefillableforms com ffa freefileforms htm     6. Www freefilefillableforms com ffa freefileforms htm   Cost of additions and improvements. Www freefilefillableforms com ffa freefileforms htm (See Increases to Basis in Publication 551. Www freefilefillableforms com ffa freefileforms htm ) Do not include any additions and improvements included on line 1 6. Www freefilefillableforms com ffa freefileforms htm     7. Www freefilefillableforms com ffa freefileforms htm   Special tax assessments paid for local improvements, such as streets and sidewalks 7. Www freefilefillableforms com ffa freefileforms htm     8. Www freefilefillableforms com ffa freefileforms htm   Other increases to basis 8. Www freefilefillableforms com ffa freefileforms htm     9. Www freefilefillableforms com ffa freefileforms htm   Add lines 3, 5, 6, 7, and 8 9. Www freefilefillableforms com ffa freefileforms htm     10. Www freefilefillableforms com ffa freefileforms htm   Depreciation allowed or allowable, related to the business use or rental of the home 10. Www freefilefillableforms com ffa freefileforms htm 0   11. Www freefilefillableforms com ffa freefileforms htm   Other decreases to basis (See Decreases to Basis in Publication 551. Www freefilefillableforms com ffa freefileforms htm ) 11. Www freefilefillableforms com ffa freefileforms htm     12. Www freefilefillableforms com ffa freefileforms htm   Add lines 10 and 11 12. Www freefilefillableforms com ffa freefileforms htm     13. Www freefilefillableforms com ffa freefileforms htm   Cost or other (adjusted) basis of home damaged or destroyed. Www freefilefillableforms com ffa freefileforms htm Subtract line 12 from line 9. Www freefilefillableforms com ffa freefileforms htm Enter here and on Schedule 20, line 2 13. Www freefilefillableforms com ffa freefileforms htm     Worksheet A Instructions. Www freefilefillableforms com ffa freefileforms htm If you use Worksheet A to figure the cost or other (adjusted) basis of your home, follow these instructions. Www freefilefillableforms com ffa freefileforms htm DO NOT use this worksheet to determine your basis if you acquired an interest in your home from a decedent who died in 2010 and whose executor filed Form 8939. Www freefilefillableforms com ffa freefileforms htm IF. Www freefilefillableforms com ffa freefileforms htm . Www freefilefillableforms com ffa freefileforms htm . Www freefilefillableforms com ffa freefileforms htm   THEN. Www freefilefillableforms com ffa freefileforms htm . Www freefilefillableforms com ffa freefileforms htm . Www freefilefillableforms com ffa freefileforms htm you inherited your home from a decedent who died either before or after 2010 or from a decedent who died in 2010 and whose executor did not file Form 8939. Www freefilefillableforms com ffa freefileforms htm 1 skip lines 1–4 of the worksheet. Www freefilefillableforms com ffa freefileforms htm 2 find your basis using the rules under Inherited Property in Publication 551. Www freefilefillableforms com ffa freefileforms htm Enter this amount on line 5 of the worksheet. Www freefilefillableforms com ffa freefileforms htm 3 fill out lines 6–13 of the worksheet. Www freefilefillableforms com ffa freefileforms htm you received your home as a gift 1 read Property Received as a Gift in Publication 551 and enter on lines 1 and 3 of the worksheet either the donor's adjusted basis or the home's fair market value at the time of the gift, whichever is appropriate. Www freefilefillableforms com ffa freefileforms htm 2 if you can add any federal gift tax to your basis, enter that amount on line 5 of the worksheet. Www freefilefillableforms com ffa freefileforms htm 3 fill out the rest of the worksheet. Www freefilefillableforms com ffa freefileforms htm you received your home as a trade for other property 1 enter on line 1 of the worksheet the fair market value of the other property at the time of the trade. Www freefilefillableforms com ffa freefileforms htm (But if you received your home as a trade for your previous home before May 7, 1997, and had a gain on the trade that you postponed using Form 2119, enter on line 1 of the worksheet the adjusted basis of the new home from that Form 2119. Www freefilefillableforms com ffa freefileforms htm ) 2 fill out the rest of the worksheet. Www freefilefillableforms com ffa freefileforms htm you built your home 1 add the purchase price of the land and the cost of building the home. Www freefilefillableforms com ffa freefileforms htm Enter that total on line 1 of the worksheet. Www freefilefillableforms com ffa freefileforms htm (However, if you filed a Form 2119 to postpone gain on the sale of a previous home before May 7, 1997, enter on line 1 of the worksheet the adjusted basis of the new home from that Form 2119. Www freefilefillableforms com ffa freefileforms htm ) 2 fill out the rest of the worksheet. Www freefilefillableforms com ffa freefileforms htm you received your home from your spouse after July 18, 1984 1 skip lines 1–4 of the worksheet. Www freefilefillableforms com ffa freefileforms htm 2 enter on line 5 of the worksheet your spouse's cost or other (adjusted) basis in the home just before you received it. Www freefilefillableforms com ffa freefileforms htm 3 fill out lines 6–13 of the worksheet, making adjustments to basis only for events after the transfer. Www freefilefillableforms com ffa freefileforms htm you owned a home jointly with your spouse, who transferred his or her interest in the home to you after July 18, 1984     fill out one worksheet, making adjustments to basis for events both before and after the transfer. Www freefilefillableforms com ffa freefileforms htm   you received your home from your spouse before July 19, 1984 1 skip lines 1–4 of the worksheet. Www freefilefillableforms com ffa freefileforms htm 2 enter on line 5 of the worksheet the home's fair market value at the time you received it. Www freefilefillableforms com ffa freefileforms htm 3 fill out lines 6–13 of the worksheet, making adjustments to basis only for events after the transfer. Www freefilefillableforms com ffa freefileforms htm you owned a home jointly with your spouse, and your spouse transferred his or her interest in the home to you before July 19, 1984 1 fill out a worksheet, lines 1–13, making adjustments to basis only for events before the transfer. Www freefilefillableforms com ffa freefileforms htm 2 multiply the amount on line 13 of that worksheet by 50% (0. Www freefilefillableforms com ffa freefileforms htm 50) to get the adjusted basis of your half-interest at the time of the transfer. Www freefilefillableforms com ffa freefileforms htm 3 multiply the fair market value of the home at the time of the transfer by 50% (0. Www freefilefillableforms com ffa freefileforms htm 50). Www freefilefillableforms com ffa freefileforms htm Generally, this is the basis of the half-interest that your spouse owned. Www freefilefillableforms com ffa freefileforms htm 4 add the amounts from steps 2 and 3 and enter the total on line 5 of a second worksheet. Www freefilefillableforms com ffa freefileforms htm 5 complete lines 6–13 of the second worksheet, making adjustments to basis only for events after the transfer. Www freefilefillableforms com ffa freefileforms htm you owned your home jointly with a nonspouse 1 fill out lines 1–13 of the worksheet. Www freefilefillableforms com ffa freefileforms htm 2 multiply the amount on line 13 by your percentage of ownership to get the adjusted basis of your part-interest. Www freefilefillableforms com ffa freefileforms htm Worksheet A Instructions. Www freefilefillableforms com ffa freefileforms htm (Continued) IF. Www freefilefillableforms com ffa freefileforms htm . Www freefilefillableforms com ffa freefileforms htm . Www freefilefillableforms com ffa freefileforms htm   THEN. Www freefilefillableforms com ffa freefileforms htm . Www freefilefillableforms com ffa freefileforms htm . Www freefilefillableforms com ffa freefileforms htm you owned your home jointly with your spouse who died before 2010 and before the casualty 1 fill out a worksheet, lines 1–13, including adjustments to basis only for events before your spouse's death. Www freefilefillableforms com ffa freefileforms htm 2 multiply the amount on line 13 of that worksheet by 50% (0. Www freefilefillableforms com ffa freefileforms htm 50) to get the adjusted basis of your half-interest on the date of death. Www freefilefillableforms com ffa freefileforms htm 3 figure the basis for the half-interest owned by your spouse. Www freefilefillableforms com ffa freefileforms htm This is one-half of the fair market value on the date of death (or later alternate valuation used for estate or inheritance tax). Www freefilefillableforms com ffa freefileforms htm (The basis in your half will remain one-half of the adjusted basis determined in step 2. Www freefilefillableforms com ffa freefileforms htm ) 4 add the amounts from steps 2 and 3 and enter the total on line 5 of a second worksheet. Www freefilefillableforms com ffa freefileforms htm 5 complete lines 6–13 of the second worksheet, making adjustments to basis only for events after your spouse's death. Www freefilefillableforms com ffa freefileforms htm you owned your home jointly with your spouse who died before 2010 and before the casualty, and your permanent legal home is in a community property state 1 skip lines 1–4 of the worksheet. Www freefilefillableforms com ffa freefileforms htm 2 enter the amount of your basis on line 5 of the worksheet. Www freefilefillableforms com ffa freefileforms htm Generally, this is the fair market value of the home at the time of death. Www freefilefillableforms com ffa freefileforms htm (But see Community Property in Publication 551 for special rules. Www freefilefillableforms com ffa freefileforms htm ) 3 fill out lines 6–13 of the worksheet, making adjustments to basis only for events after your spouse's death. Www freefilefillableforms com ffa freefileforms htm you owned your home jointly with a nonspouse who died before 2010 and before the casualty 1 fill out lines 1–13 of the worksheet, including adjustments to basis only for events before the co-owner's death. Www freefilefillableforms com ffa freefileforms htm 2 multiply the amount on line 13 by your percentage of ownership to get the adjusted basis of your part-interest on the date of death. Www freefilefillableforms com ffa freefileforms htm 3 multiply the fair market value on the date of death (or later alternate valuation used for estate or inheritance tax) by the co-owner's percentage of ownership. Www freefilefillableforms com ffa freefileforms htm This is the basis for the co-owner's part-interest. Www freefilefillableforms com ffa freefileforms htm 4 add the amounts from steps 2 and 3 and enter the total on line 5 of a second worksheet. Www freefilefillableforms com ffa freefileforms htm 5 complete lines 6–13 of the second worksheet, including adjustments to basis only for events after the co-owner's death. Www freefilefillableforms com ffa freefileforms htm your home was ever damaged as a result of a prior casualty 1 on line 8 of the worksheet, enter any amounts you spent to restore the home to its condition before the prior casualty. Www freefilefillableforms com ffa freefileforms htm 2 on line 11 enter: any insurance reimbursements you received (or expect to receive) for the prior loss,  and any deductible casualty losses from prior years not covered by insurance. Www freefilefillableforms com ffa freefileforms htm the person who sold you your home paid points on your loan and you bought your home after 1990 but before April 4, 1994. Www freefilefillableforms com ffa freefileforms htm   on line 2 enter the seller-paid points only if you deducted them as home mortgage interest in the year paid (unless you used the seller-paid points to reduce the amount on line 1). Www freefilefillableforms com ffa freefileforms htm the person who sold you your home paid points on your loan and you bought your home after April 3, 1994   on line 2 enter the seller-paid points even if you did not deduct them (unless you used the seller-paid points to reduce the amount on line 1). Www freefilefillableforms com ffa freefileforms htm you used part of the property as your home and part of it for business or to produce rental income   you must allocate the entries on Worksheet A between the personal part (column (a)) and the business/rental part (column (b)). Www freefilefillableforms com ffa freefileforms htm none of these items apply   fill out the entire worksheet. Www freefilefillableforms com ffa freefileforms htm Prev  Up  Next   Home   More Online Publications