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1040x 2011 Free File

Irs Income Tax Forms 2010File 2012 And 2013 TaxesH And R Block Free File OnlineTurbotax 2010 DownloadIrs Tax AmendmentIrs Forms Amended ReturnAmend Your Taxes1040 Ez Form 2010Amending 2011 TaxesTurbotax 2013State Tax Form 20142013 State Income Tax FormsHow To File An Extension For 2012 TaxesHow Do I Ammend My Tax ReturnCollege Students TaxesTax Amendment FormTax Planning Us Back TaxesTax Forms 2011 FederalFree H&r Block Tax Software 2011Free File State TaxH R Block Home 20122012 Federal Income Tax Forms1040 State Tax Form1040zFiling An Amended Tax Return1040ez Irs InstructionsH And R Block Free MilitaryHow To File A Amended Tax ReturnFile State Taxes Only Online FreeFiling 2012 TaxesFiling 2010 Taxes Online FreeHow To File A Late Tax Return 2011State Tax Online FilingFree Prior Tax Years FilingFree State Tax Forms2011 1040ezH&r Block Free FilingMail 1040ez2013 Tax Amendment FormTaxact Login Tax Return

1040x 2011 Free File

1040x 2011 free file Index A Assistance (see Tax help) C Carryback period, When To Use an NOL Carryback, waiving, Waiving the Carryback Period Carryforward period, When To Use an NOL Carryover from 2012 to 2013 Estates and trusts, Estates and trusts. 1040x 2011 free file Worksheet instructions, Worksheet Instructions Claiming an NOL deduction, How To Claim an NOL Deduction D Deducting a carryback, Deducting a Carryback Deducting a carryforward, Deducting a Carryforward Domestic production activities deduction, Domestic production activities deduction (line 23). 1040x 2011 free file , Modified taxable income. 1040x 2011 free file E Eligible loss, Eligible loss. 1040x 2011 free file F Farming business, Farming business. 1040x 2011 free file Farming loss, Farming loss. 1040x 2011 free file Figuring an NOL Capital losses, Adjustments for capital losses (lines 19–22). 1040x 2011 free file Carryover, How To Figure an NOL Carryover Form 1045, Schedule A, Form 1045, Schedule A. 1040x 2011 free file NOL deduction, NOLs from other years (line 24). 1040x 2011 free file Nonbusiness deductions, Nonbusiness deductions (line 6). 1040x 2011 free file Nonbusiness income, Nonbusiness income (line 7). 1040x 2011 free file Filing status, change in, Change in Filing Status Form 1045, Schedule A, Form 1045, Schedule A. 1040x 2011 free file Form 1045, Schedule B, Form 1045, Schedule B. 1040x 2011 free file Forms and schedules Form 1040X, Form 1040X. 1040x 2011 free file Form 1045, Form 1045. 1040x 2011 free file Form 1045, Schedule A, Form 1045, Schedule A. 1040x 2011 free file Form 1045, Schedule B, Form 1045, Schedule B. 1040x 2011 free file Free tax services, Free help with your tax return. 1040x 2011 free file Future developments, Reminders H Help (see Tax help) How to carry an NOL back or forward, How To Carry an NOL Back or Forward How to figure an NOL, How To Figure an NOL I Illustrated forms and schedules Form 1045, Illustrated Form 1045 Form 1045, Schedule A, Illustrated Form 1045, Schedule A Form 1045, Schedule B, Form 1045, Schedule B. 1040x 2011 free file M Marital status, change in, Change in Marital Status Missing children, photographs of, Reminders Modified taxable income, Modified taxable income. 1040x 2011 free file N NOL resulting in no taxable income, NOL resulting in no taxable income. 1040x 2011 free file NOL year, Introduction, NOL year. 1040x 2011 free file P Publications (see Tax help) Q Qualified disaster loss, Qualified disaster loss. 1040x 2011 free file Qualified small business, Qualified small business. 1040x 2011 free file R Refiguring tax, Refiguring your tax. 1040x 2011 free file S Specified liability loss, Specified liability loss. 1040x 2011 free file Steps in figuring NOL, NOL Steps T Tax help, How To Get Tax Help W Waiving the 10-year carryback, Waiving the 10-year carryback. 1040x 2011 free file Waiving the 5-year carryback, Waiving the 5-year carryback. 1040x 2011 free file Waiving the carryback period, Waiving the Carryback Period When to use an NOL, When To Use an NOL Worksheet (Continued), Carryover from 2012 to 2013, Prev  Up     Home   More Online Publications
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Contact My Local Office in Oregon

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City  Street Address  Days/Hours of Service  Telephone* 
Bend 

250 NW Franklin Ave.
Bend, OR  97701

Monday-Friday 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

Services Provided

(541) 706-5732
Eugene 211 E 7th           
Eugene, OR 97401

Monday-Friday 8:30 a.m.- 4:30 p.m.

 

Services Provided

(541) 342-8766
Medford 960 Ellendale Dr.
Medford, OR 97504

Monday-Friday 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:00 noon - 1:30 p.m.)

 

Services Provided

(541) 282-1350
Portland 1220 SW Third Ave.
Portland, OR  97204
 

Monday-Friday 8:30 a.m.- 4:30 p.m.

 

Services Provided

(503) 265-3501
Salem

1660 Oak St. S.E.
Salem, OR  97301

Monday-Friday 8:30 a.m.- 4:30 p.m.

 

Services Provided

(503) 587-3101

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses). 

For information on where to file your tax return please see Where to File Addresses

The Taxpayer Advocate Service: Call (503) 265-3591 in the Portland area or 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see  Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
100 SW Main Street, MS 0180
Portland, OR 97204

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The 1040x 2011 Free File

1040x 2011 free file 2. 1040x 2011 free file   Possession Source Income Table of Contents Types of IncomeCompensation for Labor or Personal Services Investment Income Sales or Other Dispositions of Property Scholarships, Fellowships, Grants, Prizes, and Awards Effectively Connected Income In order to determine where to file your return and which form(s) you need to complete, you must determine the source of each item of income you received during the tax year. 1040x 2011 free file Income you received from sources within, or that was effectively connected with the conduct of a trade or business within, the relevant possession must be identified separately from U. 1040x 2011 free file S. 1040x 2011 free file or foreign source income. 1040x 2011 free file This chapter discusses the rules for determining if the source of your income is from: American Samoa, The Commonwealth of the Northern Mariana Islands (CNMI), The Commonwealth of Puerto Rico (Puerto Rico), Guam, or The U. 1040x 2011 free file S. 1040x 2011 free file Virgin Islands (USVI). 1040x 2011 free file Generally, the same rules that apply for determining U. 1040x 2011 free file S. 1040x 2011 free file source income also apply for determining possession source income. 1040x 2011 free file However, there are some important exceptions to these rules. 1040x 2011 free file Both the general rules and the exceptions are discussed in this chapter. 1040x 2011 free file U. 1040x 2011 free file S. 1040x 2011 free file income rule. 1040x 2011 free file   This rule states that income is not possession source income if, under the rules of Internal Revenue Code sections 861–865, it is treated as income: From sources within the United States, or Effectively connected with the conduct of a trade or business within the United States. 1040x 2011 free file Table 2-1 shows the general rules for determining whether income is from sources within the United States. 1040x 2011 free file Table 2-1. 1040x 2011 free file General Rules for Determining U. 1040x 2011 free file S. 1040x 2011 free file Source of Income Item of Income Factor Determining Source Salaries, wages, and other compensation for labor or personal services Where labor or services performed Pensions Contributions: Where services were performed that earned the pension Investment earnings: Where pension trust is located Interest Residence of payer Dividends Where corporation created or organized Rents Location of property Royalties:   Natural resources Location of property Patents, copyrights, etc. 1040x 2011 free file Where property is used Sale of business inventory—purchased Where sold Sale of business inventory—produced Allocation if produced and sold in different locations Sale of real property Location of property Sale of personal property Seller's tax home (but see Special Rules for Gains From Dispositions of Certain Property , later, for exceptions) Sale of natural resources Allocation based on fair market value of product at export terminal. 1040x 2011 free file For more information, see Regulations section 1. 1040x 2011 free file 863-1(b). 1040x 2011 free file Types of Income This section looks at the most common types of income received by individuals, and the rules for determining the source of the income. 1040x 2011 free file Generally, the same rules shown in Table 2-1 are used to determine if you have possession source income. 1040x 2011 free file Compensation for Labor or Personal Services Income from labor or personal services includes wages, salaries, commissions, fees, per diem allowances, employee allowances and bonuses, and fringe benefits. 1040x 2011 free file It also includes income earned by sole proprietors and general partners from providing personal services in the course of their trade or business. 1040x 2011 free file Services performed wholly within a relevant possession. 1040x 2011 free file   Generally, all pay you receive for services performed in a relevant possession is considered to be from sources within that possession. 1040x 2011 free file However, there is an exception for income earned as a member of the U. 1040x 2011 free file S. 1040x 2011 free file Armed Forces or a civilian spouse. 1040x 2011 free file U. 1040x 2011 free file S. 1040x 2011 free file Armed Forces. 1040x 2011 free file   If you are a bona fide resident of a relevant possession, your military service pay will be sourced in that possession even if you perform the services in the United States or another possession. 1040x 2011 free file However, if you are not a bona fide resident of a possession, your military service pay will be income from the  United States even if you perform services in a possession. 1040x 2011 free file Civilian spouse of active duty member of the U. 1040x 2011 free file S. 1040x 2011 free file Armed Forces. 1040x 2011 free file   If you are a bona fide resident of a U. 1040x 2011 free file S. 1040x 2011 free file possession and choose to keep that possession as your tax residence under MSRRA when relocating with your servicemember spouse under military orders, the source of income for your labor or personal services is considered to be that possession. 1040x 2011 free file Likewise, if your tax residence is in one of the 50 states or the District of Columbia before relocating and you choose to keep it as your tax residence, the source of income for services performed in any of the U. 1040x 2011 free file S. 1040x 2011 free file possessions is considered to be the United States and, specifically, your state of residence or the District of Columbia. 1040x 2011 free file Services performed partly inside and partly outside a relevant possession. 1040x 2011 free file   If you are an employee and receive compensation for labor or personal services performed both inside and outside the relevant possession, special rules apply in determining the source of the compensation. 1040x 2011 free file Compensation (other than certain fringe benefits) is sourced on a time basis. 1040x 2011 free file Certain fringe benefits (such as housing and education) are sourced on a geographical basis. 1040x 2011 free file   Or, you may be permitted to use an alternative basis to determine the source of compensation. 1040x 2011 free file See Alternative basis , later. 1040x 2011 free file   If you are self-employed, determine the source of your income for labor or personal services from self-employment on the basis that most correctly reflects the proper source of that income under the facts and circumstances of your particular case. 1040x 2011 free file In many cases, the facts and circumstances will call for an apportionment on a time basis as explained next. 1040x 2011 free file Time basis. 1040x 2011 free file   Use a time basis to figure your compensation for labor or personal services from the relevant possession (other than the fringe benefits discussed later). 1040x 2011 free file Do this by multiplying your total compensation (other than the fringe benefits discussed later) by the following fraction:   Number of days you performed  services in the relevant  possession during the year     Total number of days you  performed services during the year           You can use a unit of time less than a day in the above fraction, if appropriate. 1040x 2011 free file The time period for which the income is made does not have to be a year. 1040x 2011 free file Instead, you can use another distinct, separate, and continuous time period if you can establish to the satisfaction of the IRS that this other period is more appropriate. 1040x 2011 free file Example. 1040x 2011 free file In 2013, you worked in your employer's office in the United States for 60 days and in the Puerto Rico office for 180 days, earning a total of $80,000 for the year. 1040x 2011 free file Your Puerto Rico source income is $60,000, figured as follows. 1040x 2011 free file       180 days 240 days × $80,000 = $60,000                 Multi-year compensation. 1040x 2011 free file   The source of multi-year compensation is generally determined on a time basis over the period to which the compensation is attributable. 1040x 2011 free file Multi-year compensation is compensation that is included in your income in 1 tax year but is attributable to a period that includes 2 or more tax years. 1040x 2011 free file You determine the period to which the income is attributable based on the facts and circumstances of your case. 1040x 2011 free file For more information on multi-year compensation, see Treasury Decision (T. 1040x 2011 free file D. 1040x 2011 free file ) 9212 and Regulations section 1. 1040x 2011 free file 861-4, 2005-35 I. 1040x 2011 free file R. 1040x 2011 free file B. 1040x 2011 free file 429, available at www. 1040x 2011 free file irs. 1040x 2011 free file gov/irb/2005-35_IRB/ar14. 1040x 2011 free file html. 1040x 2011 free file Certain fringe benefits sourced on a geographical basis. 1040x 2011 free file   If you received any of the following fringe benefits as compensation for labor or services performed as an employee partly inside and partly outside a relevant possession, you must source that income on a geographical basis. 1040x 2011 free file Housing. 1040x 2011 free file Education. 1040x 2011 free file Local transportation. 1040x 2011 free file Tax reimbursement. 1040x 2011 free file Hazardous or hardship duty pay. 1040x 2011 free file Moving expense reimbursement. 1040x 2011 free file For information on determining the source of the fringe benefits listed above, see Regulations section 1. 1040x 2011 free file 861-4. 1040x 2011 free file Alternative basis. 1040x 2011 free file   You can determine the source of your compensation under an alternative basis if you establish to the satisfaction of the IRS that, under the facts and circumstances of your case, the alternative basis more properly determines the source of your income than the time or geographical basis. 1040x 2011 free file If you use an alternative basis, you must keep (and have available for inspection) records to document why the alternative basis more properly determines the source of your income. 1040x 2011 free file De minimis exception. 1040x 2011 free file   There is an exception to the rule for determining the source of income earned in a possession. 1040x 2011 free file Generally, you will not have income from a possession if during a tax year you: Are a U. 1040x 2011 free file S. 1040x 2011 free file citizen or resident, Are not a bona fide resident of that possession, Are not employed by or under contract with an individual, partnership, or corporation that is engaged in a trade or business in that possession, Temporarily perform services in that possession for 90 days or less, and Earned $3,000 or less from such services. 1040x 2011 free file This exception began with income earned during your 2008 tax year. 1040x 2011 free file Pensions. 1040x 2011 free file   Generally, pension income has two components: contributions to the pension plan and the earnings accrued from investing those contributions. 1040x 2011 free file The contribution portion is sourced according to where services were performed that earned the pension. 1040x 2011 free file The investment earnings portion is sourced according to the location of the pension trust. 1040x 2011 free file Example. 1040x 2011 free file You are a U. 1040x 2011 free file S. 1040x 2011 free file citizen who worked in Puerto Rico for a U. 1040x 2011 free file S. 1040x 2011 free file company. 1040x 2011 free file All services were performed in Puerto Rico. 1040x 2011 free file Upon retirement you remained in Puerto Rico and began receiving your pension from the U. 1040x 2011 free file S. 1040x 2011 free file pension trust of your employer. 1040x 2011 free file Distributions from the U. 1040x 2011 free file S. 1040x 2011 free file pension trust must be allocated between (1) contributions, which are Puerto Rico source income, and (2) investment earnings, which are U. 1040x 2011 free file S. 1040x 2011 free file source income. 1040x 2011 free file Investment Income This category includes such income as interest, dividends, rents, and royalties. 1040x 2011 free file Interest income. 1040x 2011 free file   The source of interest income is generally determined by the residence of the payer. 1040x 2011 free file Interest paid by corporations created or organized in a relevant possession (possession corporation) or by individuals who are bona fide residents of a relevant possession is considered income from sources within that possession. 1040x 2011 free file   However, there is an exception to this rule if you are a bona fide resident of a relevant possession, receive interest from a corporation created or organized in that possession, and are a shareholder of that corporation who owns, directly or indirectly, at least 10% of the total voting stock of the corporation. 1040x 2011 free file See Regulations section 1. 1040x 2011 free file 937-2(i) for more information. 1040x 2011 free file Dividends. 1040x 2011 free file   Generally, dividends paid by a corporation created or organized in a relevant possession will be considered income from sources within that possession. 1040x 2011 free file There are additional rules for bona fide residents of a relevant possession who receive dividend income from possession corporations, and who own, directly or indirectly, at least 10% of the voting stock of the corporation. 1040x 2011 free file For more information, see Regulations section 1. 1040x 2011 free file 937-2(g). 1040x 2011 free file Rental income. 1040x 2011 free file   Rents from property located in a relevant possession are treated as income from sources within that possession. 1040x 2011 free file Royalties. 1040x 2011 free file   Royalties from natural resources located in a relevant possession are considered income from sources within that possession. 1040x 2011 free file   Also considered possession source income are royalties received for the use of, or for the privilege of using, in a relevant possession, patents, copyrights, secret processes and formulas, goodwill, trademarks, trade brands, franchises, and other like property. 1040x 2011 free file Sales or Other Dispositions of Property The source rules for sales or other dispositions of property are varied. 1040x 2011 free file The most common situations are discussed below. 1040x 2011 free file Real property. 1040x 2011 free file   Real property includes land and buildings, and generally anything built on, growing on, or attached to land. 1040x 2011 free file The location of the property generally determines the source of income from the sale. 1040x 2011 free file For example, if you are a bona fide resident of Guam and sell your home that is located in Guam, the gain on the sale is sourced in Guam. 1040x 2011 free file If, however, the home you sold was located in the United States, the gain is U. 1040x 2011 free file S. 1040x 2011 free file source income. 1040x 2011 free file Personal property. 1040x 2011 free file   The term “personal property” refers to property (such as machinery, equipment, or furniture) that is not real property. 1040x 2011 free file Generally, gain (or loss) from the sale or other disposition is sourced according to the seller's tax home. 1040x 2011 free file If personal property is sold by a bona fide resident of a relevant possession, the gain (or loss) from the sale is treated as sourced within that possession. 1040x 2011 free file   This rule does not apply to the sale of inventory, intangible property, depreciable personal property, or property sold through a foreign office or fixed place of business. 1040x 2011 free file The rules applying to sales of inventory are discussed below. 1040x 2011 free file For information on sales of the other types of property mentioned, see Internal Revenue Code section 865. 1040x 2011 free file Inventory. 1040x 2011 free file   Your inventory is personal property that is stock in trade or that is held primarily for sale to customers in the ordinary course of your trade or business. 1040x 2011 free file The source of income from the sale of inventory depends on whether the inventory was purchased or produced. 1040x 2011 free file Purchased. 1040x 2011 free file   Income from the sale of inventory that you purchased is sourced where you sell the property. 1040x 2011 free file Generally, this is where title to the property passes to the buyer. 1040x 2011 free file Produced. 1040x 2011 free file   Income from the sale of inventory that you produced in a relevant possession and sold outside that possession (or vice versa) is sourced based on an allocation. 1040x 2011 free file For information on making the allocation, see Regulations section 1. 1040x 2011 free file 863-3(f). 1040x 2011 free file Special Rules for Gains From Dispositions of Certain Property There are special rules for gains from dispositions of certain investment property (for example, stocks, bonds, debt instruments, diamonds, and gold) owned by a U. 1040x 2011 free file S. 1040x 2011 free file citizen or resident alien prior to becoming a bona fide resident of a possession. 1040x 2011 free file You are subject to these special rules if you meet both of the following conditions. 1040x 2011 free file For the tax year for which the source of the gain must be determined, you are a bona fide resident of the relevant possession. 1040x 2011 free file For any of the 10 years preceding that year, you were a citizen or resident alien of the United States (other than a bona fide resident of the relevant possession). 1040x 2011 free file If you meet these conditions, gains from the disposition of this property will not be treated as income from sources within the relevant possession for purposes of the Internal Revenue Code. 1040x 2011 free file Accordingly, bona fide residents of American Samoa and Puerto Rico, for example, may not exclude the gain on their U. 1040x 2011 free file S. 1040x 2011 free file tax return. 1040x 2011 free file (See chapter 3 for additional filing information. 1040x 2011 free file ) With respect to the CNMI, Guam, and the USVI, the gain from the disposition of this property will not meet the requirements for certain tax rules that may allow bona fide residents of those possessions to reduce or obtain a rebate of taxes on income from sources within the relevant possessions. 1040x 2011 free file These rules apply to dispositions after April 11, 2005. 1040x 2011 free file For details, see Regulations section 1. 1040x 2011 free file 937-2(f)(1) and Examples 1 and 2 of section 1. 1040x 2011 free file 937-2(k). 1040x 2011 free file Example 1. 1040x 2011 free file In 2007, Cheryl Jones, a U. 1040x 2011 free file S. 1040x 2011 free file citizen, lived in the United States and paid $1,000 for 100 shares of stock in the Rose Corporation, a U. 1040x 2011 free file S. 1040x 2011 free file corporation listed on the New York Stock Exchange. 1040x 2011 free file On March 1, 2010, she moved to Puerto Rico and changed her tax home to Puerto Rico on the same date. 1040x 2011 free file Cheryl satisfied the presence test in 2010 and, under the year-of-move exception, she was considered a bona fide resident of Puerto Rico for the rest of 2010. 1040x 2011 free file On March 1, 2010, the closing value of Cheryl's stock in the Rose Corporation was $2,000. 1040x 2011 free file On January 5, 2013, while still a bona fide resident of Puerto Rico, Cheryl sold all her Rose Corporation stock for $7,000. 1040x 2011 free file Under the earlier rules, none of Cheryl's $6,000 gain will be treated as income from sources within Puerto Rico. 1040x 2011 free file The source rules discussed in the preceding paragraphs supplement, and may apply in conjunction with, an existing special rule. 1040x 2011 free file This existing special rule applies if you are a U. 1040x 2011 free file S. 1040x 2011 free file citizen or resident alien who becomes a bona fide resident of American Samoa, the CNMI, or Guam, and who has gain from the disposition of certain U. 1040x 2011 free file S. 1040x 2011 free file assets during the 10-year period beginning when you became a bona fide resident. 1040x 2011 free file The gain is U. 1040x 2011 free file S. 1040x 2011 free file source income that generally is subject to U. 1040x 2011 free file S. 1040x 2011 free file tax if the property is either (1) located in the United States; (2) stock issued by a U. 1040x 2011 free file S. 1040x 2011 free file corporation or a debt obligation of a U. 1040x 2011 free file S. 1040x 2011 free file person or of the United States, a state (or political subdivision), or the District of Columbia; or (3) property that has a basis in whole or in part by reference to property described in (1) or (2). 1040x 2011 free file See chapter 3 for filing information. 1040x 2011 free file Special election. 1040x 2011 free file   For dispositions after April 11, 2005, you can choose to treat the part of gain (or loss) attributable to the time you held the property while a bona fide resident of the relevant possession (the possession holding period) as gain (or loss) from sources within that possession. 1040x 2011 free file Make the election by reporting the gain attributable to the possession holding period on your income tax return for the year of disposition. 1040x 2011 free file This election overrides both of the special rules discussed earlier. 1040x 2011 free file   There are two methods for figuring the gain for the possession holding period, one for marketable securities and another for other types of investment property. 1040x 2011 free file Marketable securities. 1040x 2011 free file   Marketable securities are those actively traded on an established financial market, such as stock in a publicly held corporation. 1040x 2011 free file Under the special election, allocate the gain (or loss) by figuring the appreciation separately for your possession and U. 1040x 2011 free file S. 1040x 2011 free file holding periods. 1040x 2011 free file   Your possession holding period begins on the first day you do not have a tax home outside the relevant possession. 1040x 2011 free file The gain (or loss) attributable to the possession holding period is the difference in fair market value of the security at the close of the market on the first and last days of this holding period. 1040x 2011 free file This is your gain (or loss) that is treated as being from sources within the relevant possession. 1040x 2011 free file If you were a bona fide resident of the relevant possession for more than one continuous period, combine the gains (or losses) from each possession holding period. 1040x 2011 free file Example 2. 1040x 2011 free file Assume the same facts as in Example 1, except that Cheryl makes the special election to allocate the gain between her U. 1040x 2011 free file S. 1040x 2011 free file and possession holding periods. 1040x 2011 free file Cheryl's possession holding period began March 1, 2010, the date her tax home changed to Puerto Rico. 1040x 2011 free file Therefore, the portion of gain attributable to her possession holding period is $5,000 ($7,000 sale price – $2,000 closing value on first day of the possession holding period). 1040x 2011 free file By reporting $5,000 of her $6,000 gain as Puerto Rico source income on her 2013 Puerto Rico tax return (and the remainder as non-Puerto Rico source income), Cheryl elects to treat that amount as Puerto Rico source income. 1040x 2011 free file Other personal property. 1040x 2011 free file   For personal property other than marketable securities, use a time-based allocation. 1040x 2011 free file Figure the gain (or loss) attributable to the possession holding period by multiplying your total gain (or loss) by the following fraction. 1040x 2011 free file      Number of days in the  possession holding period     Total number of days  in your holding period         The result is your gain (or loss) that is treated as being from sources within the relevant possession. 1040x 2011 free file Example 3. 1040x 2011 free file In addition to the stock in Rose Corporation, Cheryl acquired a 5% interest in the Alder Partnership on January 1, 2009. 1040x 2011 free file On March 1, 2010, when she established bona fide residency in Puerto Rico, her partnership interest was not considered a marketable security. 1040x 2011 free file On September 16, 2013, while still a bona fide resident of Puerto Rico, Cheryl sold her interest in Alder Partnership for a $100,000 gain. 1040x 2011 free file She had owned the interest for a total of 1,720 days. 1040x 2011 free file Cheryl's possession holding period (from March 1, 2010, through September 16, 2013) is 1,296 days. 1040x 2011 free file The portion of her gain attributable to Puerto Rico is $75,349 ($100,000 x (1,296 Puerto Rico days ÷ 1,720 total days)). 1040x 2011 free file By reporting $75,349 of her $100,000 gain as Puerto Rico source income on her 2013 Puerto Rico tax return (and the remainder as non-Puerto Rico source income), Cheryl elects to treat that amount as Puerto Rico source income. 1040x 2011 free file Scholarships, Fellowships, Grants, Prizes, and Awards The source of these types of income is generally the residence of the payer, regardless of who actually disburses the funds. 1040x 2011 free file Therefore, in order to be possession source income, the payer must be a resident of the relevant possession, such as an individual who is a bona fide resident or a corporation created or organized in that possession. 1040x 2011 free file These rules do not apply to amounts paid as salary or other compensation for services. 1040x 2011 free file See Compensation for Labor or Personal Services, earlier in this chapter, for the source rules that apply. 1040x 2011 free file Effectively Connected Income In limited circumstances, some kinds of income from sources outside the relevant possession must be treated as effectively connected with a trade or business in that possession. 1040x 2011 free file These circumstances are listed below. 1040x 2011 free file You have an office or other fixed place of business in the relevant possession to which the income can be attributed. 1040x 2011 free file That office or place of business is a material factor in producing the income. 1040x 2011 free file The income is produced in the ordinary course of the trade or business carried on through that office or other fixed place of business. 1040x 2011 free file An office or other fixed place of business is a material factor if it significantly contributes to, and is an essential economic element in, the earning of the income. 1040x 2011 free file The three kinds of income from sources outside the relevant possession to which these rules apply are the following. 1040x 2011 free file Rents and royalties for the use of, or for the privilege of using, intangible personal property located outside the relevant possession or from any interest in such property. 1040x 2011 free file Included are rents or royalties for the use of, or for the privilege of using, outside the relevant possession, patents, copyrights, secret processes and formulas, goodwill, trademarks, trade brands, franchises, and similar properties if the rents or royalties are from the active conduct of a trade or business in the relevant possession. 1040x 2011 free file Dividends or interest from the active conduct of a banking, financing, or similar business in the relevant possession. 1040x 2011 free file Income, gain, or loss from the sale or exchange outside the relevant possession, through the office or other fixed place of business in the relevant possession, of: Stock in trade, Property that would be included in inventory if on hand at the end of the tax year, or Property held primarily for sale to customers in the ordinary course of business. 1040x 2011 free file Item (3) will not apply if you sold the property for use, consumption, or disposition outside the relevant possession and an office or other fixed place of business in a foreign country was a material factor in the sale. 1040x 2011 free file Example. 1040x 2011 free file Marcy Jackson is a bona fide resident of American Samoa. 1040x 2011 free file Her business, which she conducts from an office in American Samoa, is developing and selling specialized computer software. 1040x 2011 free file A software purchaser will frequently pay Marcy an additional amount to install the software on the purchaser's operating system and to ensure that the software is functioning properly. 1040x 2011 free file Marcy installs the software at the purchaser's place of business, which may be in American Samoa, in the United States, or in another country. 1040x 2011 free file The income from selling the software is effectively connected with the conduct of Marcy's business in American Samoa, even though the product's destination may be outside the possession. 1040x 2011 free file However, the compensation she receives for installing the software (personal services) outside of American Samoa is not effectively connected with the conduct of her business in the possession—the income is sourced where she performs the services. 1040x 2011 free file Prev  Up  Next   Home   More Online Publications