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Amended Tax Return Form 2011

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Amended Tax Return Form 2011

Amended tax return form 2011 Index A Accidentes, Pérdidas deducibles. Amended tax return form 2011 , Pérdidas no deducibles. Amended tax return form 2011 Agencia Federal para el Manejo de Emergencias (FEMA) , cómo comunicarse con la, Cómo Comunicarse con la Agencia Federal para el Manejo de Emergencias (FEMA) Ajustes a la base, Ajuste a la base de los bienes de una sociedad anónima. Amended tax return form 2011 , Ajustes a la Base Aplazamiento de la declaración de una ganancia, Aplazamiento de la Declaración de una Ganancia Bienes de reposición adquiridos antes de presentar la declaración de impuestos, Bienes de reposición adquiridos antes de presentar la declaración de impuestos. Amended tax return form 2011 Bienes de reposición adquiridos después de haber presentado la declaración de impuestos, Bienes de reposición adquiridos después de haber presentado la declaración de impuestos. Amended tax return form 2011 Cambio de idea, Si cambia de idea. Amended tax return form 2011 Declaración enmendada, Declaración enmendada. Amended tax return form 2011 Documento escrito requerido, Documento escrito requerido. Amended tax return form 2011 Límite de 3 años, Límite de 3 años. Amended tax return form 2011 Sustitución de los bienes de reposición, Sustitución de los bienes de reposición. Amended tax return form 2011 Asistencia (see Ayuda con los impuestos) Automóviles Accidentes, Pérdidas deducibles. Amended tax return form 2011 Valor justo de mercado de, Valor de automóviles. Amended tax return form 2011 Ayuda (see Ayuda con los impuestos) Ayuda con los impuestos, Cómo Obtener Ayuda con los Impuestos B Base Ajustada, Base Ajustada Ajustes a, Ajuste a la base de los bienes de una sociedad anónima. Amended tax return form 2011 , Ajustes a la Base Propiedad de Reposición, Base de la propiedad de reposición. Amended tax return form 2011 Base ajustada, Base Ajustada Bienes de reposición, Bienes de Reposición Ajuste a la base de los bienes de una sociedad anónima, Ajuste a la base de los bienes de una sociedad anónima. Amended tax return form 2011 Aplazamiento de la declaración de una ganancia, Bienes de reposición adquiridos antes de presentar la declaración de impuestos. Amended tax return form 2011 Pago adelantado, Pago adelantado. Amended tax return form 2011 Vivienda principal Ubicada en zona de desastre, Vivienda principal en una zona de desastre. Amended tax return form 2011 Bienes de uso personal Cómo declarar pérdidas y ganancias, Bienes de uso personal. Amended tax return form 2011 Bienes extraviados o perdidos, Bienes extraviados o perdidos. Amended tax return form 2011 Bienes muebles Deducción de pérdidas, cálculo de, Bienes muebles. Amended tax return form 2011 Bienes raíces de uso personal, Excepción en el caso de bienes inmuebles de uso personal. Amended tax return form 2011 Bienes robados (see Pérdidas por robo) Bienes robados recuperados, Bienes robados recuperados. Amended tax return form 2011 C Comentarios sobre la publicación, Comentarios y sugerencias. Amended tax return form 2011 Cómo aplazar la declaración de una ganancia, Cómo Aplazar la Declaración de una Ganancia Cómo calcular una ganancia, Propiedad usada en parte para fines comerciales y en parte para fines personales. Amended tax return form 2011 Cómo calcular una pérdida, Comprobación de las pérdidas por robo. Amended tax return form 2011 Base ajustada, Base Ajustada Pérdidas en zonas de desastre, Cómo calcular la deducción de pérdidas. Amended tax return form 2011 Seguro y otros reembolsos, Seguro y Otros Reembolsos Cómo Calcular una Pérdida, Cómo Calcular la Deducción Cómo declarar pérdidas y ganancias, Declaración de una ganancia. Amended tax return form 2011 , Cómo Declarar Pérdidas y Ganancias Adquiridos antes o después de presentar la declaración de impuestos, Cuándo Declarar Pérdidas y Ganancias Base, ajustes a la, Ajustes a la Base Bienes de uso personal, Bienes de uso personal. Amended tax return form 2011 Deducciones mayores al ingreso, Si las Deducciones son Mayores que el Ingreso Depósitos monetarios, Cómo se declaran las pérdidas de depósitos monetarios. Amended tax return form 2011 Tabla 1, Tabla 1. Amended tax return form 2011 Cómo Declarar la Pérdida de Depósitos Monetarios Pérdidas en zonas de desastre, Cómo declarar la pérdida en el Formulario 1040X. Amended tax return form 2011 Propiedad comercial y de generación de ingresos, Bienes comerciales y de generación de ingresos. Amended tax return form 2011 Comprobación de las Pérdidas, Comprobación de las Pérdidas Contribuyentes casados Límites de la deducción, Contribuyentes casados. Amended tax return form 2011 , Contribuyentes casados. Amended tax return form 2011 Costos Fotografías tomadas después de la pérdida, Costos de fotografías y tasaciones. Amended tax return form 2011 Gastos imprevistos, Gastos afines. Amended tax return form 2011 Jardines, Jardines. Amended tax return form 2011 Limpieza, Costos de limpieza y reparaciones. Amended tax return form 2011 Protección, Costos de protección. Amended tax return form 2011 Reparaciones, Costos de limpieza y reparaciones. Amended tax return form 2011 Reposición, Costos de reposición. Amended tax return form 2011 Tasaciones, Costos de fotografías y tasaciones. Amended tax return form 2011 Costos de limpieza, Costos de limpieza y reparaciones. Amended tax return form 2011 Costos de protección, Costos de protección. Amended tax return form 2011 Costos de reparación, Costos de limpieza y reparaciones. Amended tax return form 2011 Costos de reposición, Costos de reposición. Amended tax return form 2011 D Declaración enmendada, Declaración enmendada. Amended tax return form 2011 Defensor del Contribuyente, El Servicio del Defensor del Contribuyente está aquí para ayudarlo a usted. Amended tax return form 2011 Desastres declarados por el gobierno federal, Propiedad comercial o de generación de ingresos ubicada en una zona de desastre declarada por el gobierno federal. Amended tax return form 2011 , Pérdidas en Zonas de Desastre Deudas incobrables, Deudas incobrables no relacionadas con los negocios. Amended tax return form 2011 Deudas incobrables no relacionadas con los negocios, Deudas incobrables no relacionadas con los negocios. Amended tax return form 2011 Documentación de la pérdida, Comprobación de las pérdidas por robo. Amended tax return form 2011 Donaciones en efectivo, Donaciones en efectivo. Amended tax return form 2011 E Entidad afín, compra de bienes de reposición de una, Compra de bienes de reposición de una entidad afín. Amended tax return form 2011 Esquemas de inversión de tipo Ponzi , Pérdidas provenientes de esquemas de inversión de tipo Ponzi (Ponzi-type schemes). Amended tax return form 2011 Expropiaciones forzosas, Expropiaciones forzosas. Amended tax return form 2011 F Fallecimiento de un contribuyente Aplazamiento de la declaración de una ganancia, Fallecimiento de un contribuyente. Amended tax return form 2011 Fines comerciales, propiedad usada en parte para, Propiedad usada en parte para fines comerciales y en parte para fines personales. Amended tax return form 2011 Fondo de emergencia del empleador en caso de desastre, Fondo de emergencia del empleador en caso de desastre. Amended tax return form 2011 Formulario 1040, Anexo A, Bienes de uso personal. Amended tax return form 2011 Formulario 1040, Anexo D, Bienes de uso personal. Amended tax return form 2011 Formulario 1040X Pérdidas en zonas de desastre, Cómo declarar la pérdida en el Formulario 1040X. Amended tax return form 2011 Formulario 4684 Cómo declarar pérdidas y ganancias en bienes de uso personal, Bienes de uso personal. Amended tax return form 2011 Fotografías Documentación de la pérdida, Costos de fotografías y tasaciones. Amended tax return form 2011 G Ganancias Aplazamiento de, Aplazamiento de la Declaración de una Ganancia, Cómo Aplazar la Declaración de una Ganancia Cómo calcular, Cómo Calcular una Ganancia Cómo declarar, Cómo Comunicarse con la Agencia Federal para el Manejo de Emergencias (FEMA) Cuándo declarar, Si cambia de idea. Amended tax return form 2011 Reembolsos, Ganancias por reembolsos. Amended tax return form 2011 Gastos afines, Gastos afines. Amended tax return form 2011 Gastos imprevistos, Gastos afines. Amended tax return form 2011 I Información adicional (see Ayuda con los impuestos) J Jardines, Jardines. Amended tax return form 2011 L Límites de la deducción, Límites de la Deducción Límites de la Deducción Regla de los $100, Regla de los $100 Regla del 10%, Regla del 10% Regla del 2%, Regla del 2% N Niños desaparecidos, fotografías de, Recordatorios P Pagos calificados para mitigación de desastres, Pagos calificados para mitigación de desastres. Amended tax return form 2011 Pagos del seguro por gastos de manutención, Pagos del seguro por gastos de manutención. Amended tax return form 2011 Paneles de Yeso (Drywall) Corrosivos, Procedimiento Especial Correspondiente a Daños Ocasionados por Paneles de Yeso (Drywall) Corrosivos Pérdida de inventario, Pérdida de inventario. Amended tax return form 2011 Pérdidas en zonas de desastre, Pérdida de inventario por desastre. Amended tax return form 2011 Pérdida de madera en pie, Pérdida de madera en pie. Amended tax return form 2011 Pérdidas Calcular la cantidad (see Cómo calcular una pérdida) Cómo declarar, Cómo Comunicarse con la Agencia Federal para el Manejo de Emergencias (FEMA) Comprobación de las, Recuperación de pérdida deducida. Amended tax return form 2011 Cuándo declarar, Si cambia de idea. Amended tax return form 2011 (Tabla 3), Tabla 3. Amended tax return form 2011 Cuándo deducir una pérdida por hecho fortuito o robo Depósitos monetarios (see Pérdidas de depósitos) Documentación de, Comprobación de las pérdidas por robo. Amended tax return form 2011 Hecho Fortuito (see Pérdidas por hecho fortuito) Robo (see Pérdidas por robo) Zonas de desastre (see Pérdidas en zonas de desastre) Pérdidas de Depósitos Declaración de (Tabla 1), Tabla 1. Amended tax return form 2011 Cómo Declarar la Pérdida de Depósitos Monetarios Pérdidas de depósitos monetarios, Bienes extraviados o perdidos. Amended tax return form 2011 , Tabla 3. Amended tax return form 2011 Cuándo deducir una pérdida por hecho fortuito o robo Cuándo declarar, Pérdidas de depósitos monetarios. Amended tax return form 2011 Pérdidas deducibles, Pérdidas deducibles. Amended tax return form 2011 Pérdidas en Zonas de Desastre Cómo calcular la deducción de pérdidas, Cómo calcular la deducción de pérdidas. Amended tax return form 2011 Cómo deducir la pérdida del año anterior, Cómo deducir la pérdida del año anterior. Amended tax return form 2011 Cuándo deducir, Cuándo deducir la pérdida. Amended tax return form 2011 Tabla 3, Tabla 3. Amended tax return form 2011 Cuándo deducir una pérdida por hecho fortuito o robo Declaración en una declaración enmendada, Declaración de pérdida por desastre en declaración de impuestos enmendada. Amended tax return form 2011 Desastre declarado por el gobierno federal, Propiedad comercial o de generación de ingresos ubicada en una zona de desastre declarada por el gobierno federal. Amended tax return form 2011 , Pérdidas en Zonas de Desastre Documentación, Documentación. Amended tax return form 2011 Formulario 1040X, Cómo declarar la pérdida en el Formulario 1040X. Amended tax return form 2011 Inventario, Pérdida de inventario por desastre. Amended tax return form 2011 Pagos calificados de asistencia en caso de desastre, Pagos calificados de asistencia en caso de desastre. Amended tax return form 2011 Pagos calificados para mitigación de desastres, Pagos calificados para mitigación de desastres. Amended tax return form 2011 Plazos Tributarios Aplazados, Zona de desastre con cobertura. Amended tax return form 2011 Préstamo federal cancelado, Préstamo federal cancelado. Amended tax return form 2011 Reglas para vivienda principal, Vivienda principal en zona de desastre. Amended tax return form 2011 , Ganancias. Amended tax return form 2011 Vivienda inhabitable, Vivienda inhabitable por desastre. Amended tax return form 2011 Pérdidas en zonas de desastre, Pérdida del inquilino. Amended tax return form 2011 Pérdidas no deducibles, Pérdidas no deducibles. Amended tax return form 2011 Pérdidas por hecho fortuito, Tabla 3. Amended tax return form 2011 Cuándo deducir una pérdida por hecho fortuito o robo Comprobación de las, Comprobación de las pérdidas por hecho fortuito. Amended tax return form 2011 Cuándo declarar, Pérdidas. Amended tax return form 2011 Definición, Hecho Fortuito Depósitos monetarios, pérdidas de, Pérdida ordinaria o por hechos fortuitos. Amended tax return form 2011 Deterioro progresivo, Deterioro progresivo. Amended tax return form 2011 Pérdidas deducibles, Pérdidas deducibles. Amended tax return form 2011 Pérdidas no deducibles, Pérdidas no deducibles. Amended tax return form 2011 Registros para el cálculo de, Registros para el cálculo de pérdidas por hecho fortuito y robo. Amended tax return form 2011 Pérdidas por robo, Robo Bienes extraviados o perdidos, Bienes extraviados o perdidos. Amended tax return form 2011 Comprobación de las, Comprobación de las pérdidas por robo. Amended tax return form 2011 Cuándo declarar, Pérdidas. Amended tax return form 2011 Cuándo Deducir una Pérdida por Hecho Fortuito (Tabla 3), Tabla 3. Amended tax return form 2011 Cuándo deducir una pérdida por hecho fortuito o robo Esquemas de inversión de tipo Ponzi , Pérdidas provenientes de esquemas de inversión de tipo Ponzi (Ponzi-type schemes). Amended tax return form 2011 Registros para el cálculo de, Registros para el cálculo de pérdidas por hecho fortuito y robo. Amended tax return form 2011 Valor justo de mercado de los bienes robados, Valor justo de mercado de los bienes robados. Amended tax return form 2011 Plazo de reposición, Plazo de Reposición Prórroga de, Prórroga. Amended tax return form 2011 Plazos Plazos Tributarios Aplazados, Plazos Tributarios Aplazados Plazos Tributarios Aplazados, Plazos Tributarios Aplazados Propiedad alquilada, Propiedad alquilada. Amended tax return form 2011 Cuándo declarar, Pérdida del inquilino. Amended tax return form 2011 Propiedad comercial o de generación de ingresos, Propiedad comercial o de generación de ingresos. Amended tax return form 2011 Propiedad de reposición Base de, Base de la propiedad de reposición. Amended tax return form 2011 Vivienda principal, Vivienda principal repuesta. Amended tax return form 2011 Publicaciones (see Ayuda con los impuestos) R Reducción de intereses, Reducción de intereses y multas. Amended tax return form 2011 Reducción de intereses y multas, Reducción de intereses y multas. Amended tax return form 2011 Reducción de multas, Reducción de intereses y multas. Amended tax return form 2011 Reembolsos Asistencia en caso de desastre, Asistencia en caso de desastre. Amended tax return form 2011 Donaciones en efectivo, Donaciones en efectivo. Amended tax return form 2011 Falta de presentación de una solicitud, Falta de presentación de una solicitud de reembolso. Amended tax return form 2011 Fondo de emergencia del empleador en caso de desastre, Fondo de emergencia del empleador en caso de desastre. Amended tax return form 2011 Recibido después de la deducción de una pérdida, Reembolso Recibido Después de la Deducción de una Pérdida Tipos de, Tipos de Reembolsos Registros para el cálculo de pérdidas por hecho fortuito y robo, Registros para el cálculo de pérdidas por hecho fortuito y robo. Amended tax return form 2011 S Seguros, Seguro y Otros Reembolsos Gastos de manutención, pagos del seguro por, Pagos del seguro por gastos de manutención. Amended tax return form 2011 Servicio del Defensor del Contribuyente, El Servicio del Defensor del Contribuyente está aquí para ayudarlo a usted. Amended tax return form 2011 Servicios gratuitos para los impuestos, Cómo Obtener Ayuda con los Impuestos Subsidios de asistencia en caso de desastre, Asistencia en caso de desastre. Amended tax return form 2011 Subsidios estales de asistencia por desastres para empresas, Subsidios estatales de asistencia por desastre para empresas. Amended tax return form 2011 Subsidios federales de asistencia en caso de desastre, Subsidios federales de asistencia en caso de desastre. Amended tax return form 2011 Sugerencias para la publicación, Comentarios y sugerencias. Amended tax return form 2011 T Tablas y figuras Cómo Declarar la Pérdida de Depósitos Monetarios (Tabla 1), Tabla 1. Amended tax return form 2011 Cómo Declarar la Pérdida de Depósitos Monetarios Cuándo Deducir una Pérdida por Hecho Fortuito (Tabla 3), Tabla 1. Amended tax return form 2011 Cómo Declarar la Pérdida de Depósitos Monetarios , Tabla 3. Amended tax return form 2011 Cuándo deducir una pérdida por hecho fortuito o robo Tasaciones, Tasaciones. Amended tax return form 2011 , Costos de fotografías y tasaciones. Amended tax return form 2011 V Valor justo de mercado Cálculo de la disminución de, Disminución del Valor Justo de Mercado Puntos a no tener en cuenta, Cómo Calcular la Disminución del Valor Justo de Mercado —Puntos a No Tener en Cuenta Puntos a tener en cuenta, Cómo Calcular la Disminución del Valor Justo de Mercado —Puntos a Tener en Cuenta Disminución del valor de mercado de la propiedad en la zona del hecho fortuito o en sus alrededores, Disminución del valor de mercado de la propiedad en la zona del hecho fortuito o en sus alrededores. Amended tax return form 2011 Valor sentimental, Valor sentimental. Amended tax return form 2011 Prev  Up     Home   More Online Publications
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2014 Refunds Ahead of Last Year

 

IR-2014-23, March 6, 2014

WASHINGTON — By the end of February, more than 48 million tax refunds had been issued the IRS today announced – an increase of 5.6 percent compared to the same time last year. As of Feb. 28, the average refund this year is $3,034, up 3 percent compared to the average refund amount for the same time last year. Almost 88 percent of refunds to date have been directly deposited into the accounts of taxpayers, saving them time and a trip to the bank.

The number of returns filed electronically is up slightly from the same time last year however, the number of taxpayers filing from home computers is up 7.5 percent.

At the end of the fourth week of the filing season, the IRS had received almost 40 percent of the returns it expects to receive during 2014.

 

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2014 FILING SEASON STATISTICS

Cumulative statistics comparing 3/01/13 and 2/28/14

Individual Income Tax Returns:

2013

2014

% Change

Total Receipts

58,044,000

58,883,000

1.4

Total Processed

51,778,000

57,410,000

10.9

 

 

 

 

E-filing Receipts:

 

 

 

TOTAL           

53,612,000

54,942,000

2.5

Tax Professionals

30,466,000

30,053,000

-1.4

Self-prepared

23,146,000

24,889,000

7.5

 

 

 

 

Web Usage:

 

 

 

Visits to IRS.gov

180,140,998

165,204,642

-8.3

 

 

 

 

Total Refunds:

 

 

 

Number

45,862,000

48,429,000

5.6

Amount

$135.025

Billion

$146.918

Billion

8.8

Average refund

$2,944

$3,034

3.0

 

 

 

 

Direct Deposit Refunds:

 

 

 

Number

41,137,000

42,380,000

3.0

Amount

$126.032

Billion

$131.203

Billion

4.1

Average refund

$3,054

$3,096

1.1

 

Page Last Reviewed or Updated: 06-Mar-2014

The Amended Tax Return Form 2011

Amended tax return form 2011 Publication 551 - Main Content Table of Contents Cost BasisStocks and Bonds Real Property Business Assets Allocating the Basis Adjusted BasisIncreases to Basis Decreases to Basis Adjustments to Basis Example Basis Other Than CostProperty Received for Services Taxable Exchanges Nontaxable Exchanges Property Transferred From a Spouse Property Received as a Gift Inherited Property Property Changed to Business or Rental Use How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Amended tax return form 2011 Cost Basis The basis of property you buy is usually its cost. Amended tax return form 2011 The cost is the amount you pay in cash, debt obligations, other property, or services. Amended tax return form 2011 Your cost also includes amounts you pay for the following items. Amended tax return form 2011 Sales tax, Freight, Installation and testing, Excise taxes, Legal and accounting fees (when they must be capitalized), Revenue stamps, Recording fees, and Real estate taxes (if assumed for the seller). Amended tax return form 2011  You may also have to capitalize (add to basis) certain other costs related to buying or producing property. Amended tax return form 2011 Loans with low or no interest. Amended tax return form 2011   If you buy property on a time-payment plan that charges little or no interest, the basis of your property is your stated purchase price, minus the amount considered to be unstated interest. Amended tax return form 2011 You generally have unstated interest if your interest rate is less than the applicable federal rate. Amended tax return form 2011 For more information, see Unstated Interest and Original Issue Discount in Publication 537. Amended tax return form 2011 Purchase of a business. Amended tax return form 2011   When you purchase a trade or business, you generally purchase all assets used in the business operations, such as land, buildings, and machinery. Amended tax return form 2011 Allocate the price among the various assets, including any section 197 intangibles. Amended tax return form 2011 See Allocating the Basis, later. Amended tax return form 2011 Stocks and Bonds The basis of stocks or bonds you buy is generally the purchase price plus any costs of purchase, such as commissions and recording or transfer fees. Amended tax return form 2011 If you get stocks or bonds other than by purchase, your basis is usually determined by the fair market value (FMV) or the previous owner's adjusted basis of the stock. Amended tax return form 2011 You must adjust the basis of stocks for certain events that occur after purchase. Amended tax return form 2011 See Stocks and Bonds in chapter 4 of Publication 550 for more information on the basis of stock. Amended tax return form 2011 Identifying stock or bonds sold. Amended tax return form 2011   If you can adequately identify the shares of stock or the bonds you sold, their basis is the cost or other basis of the particular shares of stock or bonds. Amended tax return form 2011 If you buy and sell securities at various times in varying quantities and you cannot adequately identify the shares you sell, the basis of the securities you sell is the basis of the securities you acquired first. Amended tax return form 2011 For more information about identifying securities you sell, see Stocks and Bonds under Basis of Investment Property in chapter 4 of Publication 550. Amended tax return form 2011 Mutual fund shares. Amended tax return form 2011   If you sell mutual fund shares acquired at different times and prices, you can choose to use an average basis. Amended tax return form 2011 For more information, see Publication 550. Amended tax return form 2011 Real Property Real property, also called real estate, is land and generally anything built on or attached to it. Amended tax return form 2011 If you buy real property, certain fees and other expenses become part of your cost basis in the property. Amended tax return form 2011 Real estate taxes. Amended tax return form 2011   If you pay real estate taxes the seller owed on real property you bought, and the seller did not reimburse you, treat those taxes as part of your basis. Amended tax return form 2011 You cannot deduct them as taxes. Amended tax return form 2011   If you reimburse the seller for taxes the seller paid for you, you can usually deduct that amount as an expense in the year of purchase. Amended tax return form 2011 Do not include that amount in the basis of the property. Amended tax return form 2011 If you did not reimburse the seller, you must reduce your basis by the amount of those taxes. Amended tax return form 2011 Settlement costs. Amended tax return form 2011   Your basis includes the settlement fees and closing costs for buying property. Amended tax return form 2011 You cannot include in your basis the fees and costs for getting a loan on property. Amended tax return form 2011 A fee for buying property is a cost that must be paid even if you bought the property for cash. Amended tax return form 2011   The following items are some of the settlement fees or closing costs you can include in the basis of your property. Amended tax return form 2011 Abstract fees (abstract of title fees); Charges for installing utility services; Legal fees (including title search and preparation of the sales contract and deed); Recording fees; Surveys; Transfer taxes; Owner's title insurance; and Any amounts the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions. Amended tax return form 2011   Settlement costs do not include amounts placed in escrow for the future payment of items such as taxes and insurance. Amended tax return form 2011   The following items are some settlement fees and closing costs you cannot include in the basis of the property. Amended tax return form 2011 Casualty insurance premiums. Amended tax return form 2011 Rent for occupancy of the property before closing. Amended tax return form 2011 Charges for utilities or other services related to occupancy of the property before closing. Amended tax return form 2011 Charges connected with getting a loan. Amended tax return form 2011 The following are examples of these charges. Amended tax return form 2011 Points (discount points, loan origination fees). Amended tax return form 2011 Mortgage insurance premiums. Amended tax return form 2011 Loan assumption fees. Amended tax return form 2011 Cost of a credit report. Amended tax return form 2011 Fees for an appraisal required by a lender. Amended tax return form 2011 Fees for refinancing a mortgage. Amended tax return form 2011 If these costs relate to business property, items (1) through (3) are deductible as business expenses. Amended tax return form 2011 Items (4) and (5) must be capitalized as costs of getting a loan and can be deducted over the period of the loan. Amended tax return form 2011 Points. Amended tax return form 2011   If you pay points to obtain a loan (including a mortgage, second mortgage, line of credit, or a home equity loan), do not add the points to the basis of the related property. Amended tax return form 2011 Generally, you deduct the points over the term of the loan. Amended tax return form 2011 For more information on how to deduct points, see Points in chapter 4 of Publication 535. Amended tax return form 2011 Points on home mortgage. Amended tax return form 2011   Special rules may apply to points you and the seller pay when you obtain a mortgage to purchase your main home. Amended tax return form 2011 If certain requirements are met, you can deduct the points in full for the year in which they are paid. Amended tax return form 2011 Reduce the basis of your home by any seller-paid points. Amended tax return form 2011 For more information, see Points in Publication 936, Home Mortgage Interest Deduction. Amended tax return form 2011 Assumption of mortgage. Amended tax return form 2011   If you buy property and assume (or buy subject to) an existing mortgage on the property, your basis includes the amount you pay for the property plus the amount to be paid on the mortgage. Amended tax return form 2011 Example. Amended tax return form 2011 If you buy a building for $20,000 cash and assume a mortgage of $80,000 on it, your basis is $100,000. Amended tax return form 2011 Constructing assets. Amended tax return form 2011   If you build property or have assets built for you, your expenses for this construction are part of your basis. Amended tax return form 2011 Some of these expenses include the following costs. Amended tax return form 2011 Land, Labor and materials, Architect's fees, Building permit charges, Payments to contractors, Payments for rental equipment, and Inspection fees. Amended tax return form 2011 In addition, if you own a business and use your employees, material, and equipment to build an asset, do not deduct the following expenses. Amended tax return form 2011 You must include them in the asset's basis. Amended tax return form 2011 Employee wages paid for the construction work, reduced by any employment credits allowed; Depreciation on equipment you own while it is used in the construction; Operating and maintenance costs for equipment used in the construction; and The cost of business supplies and materials used in the construction. Amended tax return form 2011    Do not include the value of your own labor, or any other labor you did not pay for, in the basis of any property you construct. Amended tax return form 2011 Business Assets If you purchase property to use in your business, your basis is usually its actual cost to you. Amended tax return form 2011 If you construct, create, or otherwise produce property, you must capitalize the costs as your basis. Amended tax return form 2011 In certain circumstances, you may be subject to the uniform capitalization rules, next. Amended tax return form 2011 Uniform Capitalization Rules The uniform capitalization rules specify the costs you add to basis in certain circumstances. Amended tax return form 2011 Activities subject to the rules. Amended tax return form 2011   You must use the uniform capitalization rules if you do any of the following in your trade or business or activity carried on for profit. Amended tax return form 2011 Produce real or tangible personal property for use in the business or activity, Produce real or tangible personal property for sale to customers, or Acquire property for resale. Amended tax return form 2011 However, this rule does not apply to personal property if your average annual gross receipts for the 3 previous tax years are $10 million or less. Amended tax return form 2011   You produce property if you construct, build, install, manufacture, develop, improve, create, raise, or grow the property. Amended tax return form 2011 Treat property produced for you under a contract as produced by you up to the amount you pay or costs you otherwise incur for the property. Amended tax return form 2011 Tangible personal property includes films, sound recordings, video tapes, books, or similar property. Amended tax return form 2011    Under the uniform capitalization rules, you must capitalize all direct costs and an allocable part of most indirect costs you incur due to your production or resale activities. Amended tax return form 2011 To capitalize means to include certain expenses in the basis of property you produce or in your inventory costs rather than deduct them as a current expense. Amended tax return form 2011 You recover these costs through deductions for depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. Amended tax return form 2011   Any cost you cannot use to figure your taxable income for any tax year is not subject to the uniform capitalization rules. Amended tax return form 2011 Example. Amended tax return form 2011 If you incur a business meal expense for which your deduction would be limited to 50% of the cost of the meal, that amount is subject to the uniform capitalization rules. Amended tax return form 2011 The nondeductible part of the cost is not subject to the uniform capitalization rules. Amended tax return form 2011 More information. Amended tax return form 2011   For more information about these rules, see the regulations under section 263A of the Internal Revenue Code and Publication 538, Accounting Periods and Methods. Amended tax return form 2011 Exceptions. Amended tax return form 2011   The following are not subject to the uniform capitalization rules. Amended tax return form 2011 Property you produce that you do not use in your trade, business, or activity conducted for profit; Qualified creative expenses you pay or incur as a free-lance (self-employed) writer, photographer, or artist that are otherwise deductible on your tax return; Property you produce under a long-term contract, except for certain home construction contracts; Research and experimental expenses deductible under section 174 of the Internal Revenue Code; and Costs for personal property acquired for resale if your (or your predecessor's) average annual gross receipts for the 3 previous tax years do not exceed $10 million. Amended tax return form 2011 For other exceptions to the uniform capitalization rules, see section 1. Amended tax return form 2011 263A-1(b) of the regulations. Amended tax return form 2011   For information on the special rules that apply to costs incurred in the business of farming, see chapter 6 of Publication 225, Farmer's Tax Guide. Amended tax return form 2011 Intangible Assets Intangible assets include goodwill, patents, copyrights, trademarks, trade names, and franchises. Amended tax return form 2011 The basis of an intangible asset is usually the cost to buy or create it. Amended tax return form 2011 If you acquire multiple assets, for example a going business for a lump sum, see Allocating the Basis below to figure the basis of the individual assets. Amended tax return form 2011 The basis of certain intangibles can be amortized. Amended tax return form 2011 See chapter 8 of Publication 535 for information on the amortization of these costs. Amended tax return form 2011 Patents. Amended tax return form 2011   The basis of a patent you get for an invention is the cost of development, such as research and experimental expenditures, drawings, working models, and attorneys' and governmental fees. Amended tax return form 2011 If you deduct the research and experimental expenditures as current business expenses, you cannot include them in the basis of the patent. Amended tax return form 2011 The value of the inventor's time spent on an invention is not part of the basis. Amended tax return form 2011 Copyrights. Amended tax return form 2011   If you are an author, the basis of a copyright will usually be the cost of getting the copyright plus copyright fees, attorneys' fees, clerical assistance, and the cost of plates that remain in your possession. Amended tax return form 2011 Do not include the value of your time as the author, or any other person's time you did not pay for. Amended tax return form 2011 Franchises, trademarks, and trade names. Amended tax return form 2011   If you buy a franchise, trademark, or trade name, the basis is its cost, unless you can deduct your payments as a business expense. Amended tax return form 2011 Allocating the Basis If you buy multiple assets for a lump sum, allocate the amount you pay among the assets you receive. Amended tax return form 2011 You must make this allocation to figure your basis for depreciation and gain or loss on a later disposition of any of these assets. Amended tax return form 2011 See Trade or Business Acquired below. Amended tax return form 2011 Group of Assets Acquired If you buy multiple assets for a lump sum, you and the seller may agree to a specific allocation of the purchase price among the assets in the sales contract. Amended tax return form 2011 If this allocation is based on the value of each asset and you and the seller have adverse tax interests, the allocation generally will be accepted. Amended tax return form 2011 However, see Trade or Business Acquired, next. Amended tax return form 2011 Trade or Business Acquired If you acquire a trade or business, allocate the consideration paid to the various assets acquired. Amended tax return form 2011 Generally, reduce the consideration paid by any cash and general deposit accounts (including checking and savings accounts) received. Amended tax return form 2011 Allocate the remaining consideration to the other business assets received in proportion to (but not more than) their fair market value in the following order. Amended tax return form 2011 Certificates of deposit, U. Amended tax return form 2011 S. Amended tax return form 2011 Government securities, foreign currency, and actively traded personal property, including stock and securities. Amended tax return form 2011 Accounts receivable, other debt instruments, and assets you mark to market at least annually for federal income tax purposes. Amended tax return form 2011 Property of a kind that would properly 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. Amended tax return form 2011 All other assets except section 197 intangibles, goodwill, and going concern value. Amended tax return form 2011 Section 197 intangibles except goodwill and going concern value. Amended tax return form 2011 Goodwill and going concern value (whether or not they qualify as section 197 intangibles). Amended tax return form 2011 Agreement. Amended tax return form 2011   The buyer and seller may enter into a written agreement as to the allocation of any consideration or the fair market value (FMV) of any of the assets. Amended tax return form 2011 This agreement is binding on both parties unless the IRS determines the amounts are not appropriate. Amended tax return form 2011 Reporting requirement. Amended tax return form 2011   Both the buyer and seller involved in the sale of business assets must report to the IRS the allocation of the sales price among section 197 intangibles and the other business assets. Amended tax return form 2011 Use Form 8594 to provide this information. Amended tax return form 2011 The buyer and seller should each attach Form 8594 to their federal income tax return for the year in which the sale occurred. Amended tax return form 2011 More information. Amended tax return form 2011   See Sale of a Business in chapter 2 of Publication 544 for more information. Amended tax return form 2011 Land and Buildings If you buy buildings and the land on which they stand for a lump sum, allocate the basis of the property among the land and the buildings so you can figure the depreciation allowable on the buildings. Amended tax return form 2011 Figure the basis of each asset by multiplying the lump sum by a fraction. Amended tax return form 2011 The numerator is the FMV of that asset and the denominator is the FMV of the whole property at the time of purchase. Amended tax return form 2011 If you are not certain of the FMV of the land and buildings, you can allocate the basis based on their assessed values for real estate tax purposes. Amended tax return form 2011 Demolition of building. Amended tax return form 2011   Add demolition costs and other losses incurred for the demolition of any building to the basis of the land on which the demolished building was located. Amended tax return form 2011 Do not claim the costs as a current deduction. Amended tax return form 2011 Modification of building. Amended tax return form 2011   A modification of a building will not be treated as a demolition if the following conditions are satisfied. Amended tax return form 2011 75 percent or more of the existing external walls of the building are retained in place as internal or external walls, and 75 percent or more of the existing internal structural framework of the building is retained in place. Amended tax return form 2011   If the building is a certified historic structure, the modification must also be part of a certified rehabilitation. Amended tax return form 2011   If these conditions are met, add the costs of the modifications to the basis of the building. Amended tax return form 2011 Subdivided lots. Amended tax return form 2011   If you buy a tract of land and subdivide it, you must determine the basis of each lot. Amended tax return form 2011 This is necessary because you must figure the gain or loss on the sale of each individual lot. Amended tax return form 2011 As a result, you do not recover your entire cost in the tract until you have sold all of the lots. Amended tax return form 2011   To determine the basis of an individual lot, multiply the total cost of the tract by a fraction. Amended tax return form 2011 The numerator is the FMV of the lot and the denominator is the FMV of the entire tract. Amended tax return form 2011 Future improvement costs. Amended tax return form 2011   If you are a developer and sell subdivided lots before the development work is completed, you can (with IRS consent) include in the basis of the properties sold an allocation of the estimated future cost for common improvements. Amended tax return form 2011 See Revenue Procedure 92–29 for more information, including an explanation of the procedures for getting consent from the IRS. Amended tax return form 2011 Use of erroneous cost basis. Amended tax return form 2011   If you made a mistake in figuring the cost basis of subdivided lots sold in previous years, you cannot correct the mistake for years for which the statute of limitations (generally 3 tax years) has expired. Amended tax return form 2011 Figure the basis of any remaining lots by allocating the correct original cost basis of the entire tract among the original lots. Amended tax return form 2011 Example. Amended tax return form 2011 You bought a tract of land to which you assigned a cost of $15,000. Amended tax return form 2011 You subdivided the land into 15 building lots of equal size and equitably divided your basis so that each lot had a basis of $1,000. Amended tax return form 2011 You treated the sale of each lot as a separate transaction and figured gain or loss separately on each sale. Amended tax return form 2011 Several years later you determine that your original basis in the tract was $22,500 and not $15,000. Amended tax return form 2011 You sold eight lots using $8,000 of basis in years for which the statute of limitations has expired. Amended tax return form 2011 You now can take $1,500 of basis into account for figuring gain or loss only on the sale of each of the remaining seven lots ($22,500 basis divided among all 15 lots). Amended tax return form 2011 You cannot refigure the basis of the eight lots sold in tax years barred by the statute of limitations. Amended tax return form 2011 Adjusted Basis Before figuring gain or loss on a sale, exchange, or other disposition of property or figuring allowable depreciation, depletion, or amortization, you must usually make certain adjustments to the basis of the property. Amended tax return form 2011 The result of these adjustments to the basis is the adjusted basis. Amended tax return form 2011 Increases to Basis Increase the basis of any property by all items properly added to a capital account. Amended tax return form 2011 These include the cost of any improvements having a useful life of more than 1 year. Amended tax return form 2011 Rehabilitation expenses also increase basis. Amended tax return form 2011 However, you must subtract any rehabilitation credit allowed for these expenses before you add them to your basis. Amended tax return form 2011 If you have to recapture any of the credit, increase your basis by the recaptured amount. Amended tax return form 2011 If you make additions or improvements to business property, keep separate accounts for them. Amended tax return form 2011 Also, you must depreciate the basis of each according to the depreciation rules that would apply to the underlying property if you had placed it in service at the same time you placed the addition or improvement in service. Amended tax return form 2011 For more information, see Publication 946. Amended tax return form 2011 The following items increase the basis of property. Amended tax return form 2011 The cost of extending utility service lines to the property; Impact fees; Legal fees, such as the cost of defending and perfecting title; Legal fees for obtaining a decrease in an assessment levied against property to pay for local improvements; Zoning costs; and The capitalized value of a redeemable ground rent. Amended tax return form 2011 Assessments for Local Improvements Increase the basis of property by assessments for items such as paving roads and building ditches that increase the value of the property assessed. Amended tax return form 2011 Do not deduct them as taxes. Amended tax return form 2011 However, you can deduct as taxes charges for maintenance, repairs, or interest charges related to the improvements. Amended tax return form 2011 Example. Amended tax return form 2011 Your city changes the street in front of your store into an enclosed pedestrian mall and assesses you and other affected landowners for the cost of the conversion. Amended tax return form 2011 Add the assessment to your property's basis. Amended tax return form 2011 In this example, the assessment is a depreciable asset. Amended tax return form 2011 Deducting vs. Amended tax return form 2011 Capitalizing Costs Do not add to your basis costs you can deduct as current expenses. Amended tax return form 2011 For example, amounts paid for incidental repairs or maintenance that are deductible as business expenses cannot be added to basis. Amended tax return form 2011 However, you can choose either to deduct or to capitalize certain other costs. Amended tax return form 2011 If you capitalize these costs, include them in your basis. Amended tax return form 2011 If you deduct them, do not include them in your basis. Amended tax return form 2011 See Uniform Capitalization Rules earlier. Amended tax return form 2011 The costs you can choose to deduct or to capitalize include the following. Amended tax return form 2011 Carrying charges, such as interest and taxes, that you pay to own property, except carrying charges that must be capitalized under the uniform capitalization rules; Research and experimentation costs; Intangible drilling and development costs for oil, gas, and geothermal wells; Exploration costs for new mineral deposits; Mining development costs for a new mineral deposit; Costs of establishing, maintaining, or increasing the circulation of a newspaper or other periodical; and Costs of removing architectural and transportation barriers to people with disabilities and the elderly. Amended tax return form 2011 If you claim the disabled access credit, you must reduce the amount you deduct or capitalize by the amount of the credit. Amended tax return form 2011 For more information about deducting or capitalizing costs, see chapter 7 in Publication 535. Amended tax return form 2011 Table 1. Amended tax return form 2011 Examples of Increases and Decreases to Basis Increases to Basis Decreases to Basis Capital improvements:   Putting an addition on your home   Replacing an entire roof  Paving your driveway  Installing central air conditioning Rewiring your home Exclusion from income of subsidies for energy conservation measures  Casualty or theft loss deductions and insurance reimbursements  Vehicle credits Assessments for local improvements: Water connections Sidewalks Roads Section 179 deduction  Casualty losses: Restoring damaged property Depreciation  Nontaxable corporate distributions Legal fees:  Cost of defending and perfecting a title   Zoning costs   Decreases to Basis The following are some items that reduce the basis of property. Amended tax return form 2011 Section 179 deduction; Nontaxable corporate distributions; Deductions previously allowed (or allowable) for amortization, depreciation, and depletion; Exclusion of subsidies for energy conservation measures; Vehicle credits; Residential energy credits; Postponed gain from sale of home; Investment credit (part or all) taken; Casualty and theft losses and insurance reimbursement; Certain canceled debt excluded from income; Rebates from a manufacturer or seller; Easements; Gas-guzzler tax; Adoption tax benefits; and Credit for employer-provided child care. Amended tax return form 2011 Some of these items are discussed next. Amended tax return form 2011 Casualties and Thefts If you have a casualty or theft loss, decrease the basis in your property by any insurance or other reimbursement and by any deductible loss not covered by insurance. Amended tax return form 2011 You must increase your basis in the property by the amount you spend on repairs that substantially prolong the life of the property, increase its value, or adapt it to a different use. Amended tax return form 2011 To make this determination, compare the repaired property to the property before the casualty. Amended tax return form 2011 For more information on casualty and theft losses, see Publication 547, Casualties, Disasters, and Thefts. Amended tax return form 2011 Easements The amount you receive for granting an easement is generally considered to be a sale of an interest in real property. Amended tax return form 2011 It reduces the basis of the affected part of the property. Amended tax return form 2011 If the amount received is more than the basis of the part of the property affected by the easement, reduce your basis in that part to zero and treat the excess as a recognized gain. Amended tax return form 2011 Vehicle Credits Unless you elect not to claim the qualified plug-in electric vehicle credit, the alternative motor vehicle credit, or the qualified plug-in electric drive motor vehicle credit, you may have to reduce the basis of each qualified vehicle by certain amounts reported. Amended tax return form 2011 For more information, see Form 8834, Qualified Plug-in Electric and Electric Vehicle Credit; Form 8910, Alternative Motor Vehicle Credit; Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit;and the related instructions. Amended tax return form 2011 Gas-Guzzler Tax Decrease the basis in your car by the gas-guzzler (fuel economy) tax if you begin using the car within 1 year of the date of its first sale for ultimate use. Amended tax return form 2011 This rule also applies to someone who later buys the car and begins using it not more than 1 year after the original sale for ultimate use. Amended tax return form 2011 If the car is imported, the one-year period begins on the date of entry or withdrawal of the car from the warehouse if that date is later than the date of the first sale for ultimate use. Amended tax return form 2011 Section 179 Deduction If you take the section 179 deduction for all or part of the cost of qualifying business property, decrease the basis of the property by the deduction. Amended tax return form 2011 For more information about the section 179 deduction, see Publication 946. Amended tax return form 2011 Exclusion of Subsidies for Energy Conservation Measures You can exclude from gross income any subsidy you received from a public utility company for the purchase or installation of any energy conservation measure for a dwelling unit. Amended tax return form 2011 Reduce the basis of the property for which you received the subsidy by the excluded amount. Amended tax return form 2011 For more information on this subsidy, see Publication 525. Amended tax return form 2011 Depreciation Decrease the basis of property by the depreciation you deducted, or could have deducted, on your tax returns under the method of depreciation you chose. Amended tax return form 2011 If you took less depreciation than you could have under the method chosen, decrease the basis by the amount you could have taken under that method. Amended tax return form 2011 If you did not take a depreciation deduction, reduce the basis by the full amount of the depreciation you could have taken. Amended tax return form 2011 Unless a timely election is made not to deduct the special depreciation allowance for property placed in service after September 10, 2001, decrease the property's basis by the special depreciation allowance you deducted or could have deducted. Amended tax return form 2011 If you deducted more depreciation than you should have, decrease your basis by the amount equal to the depreciation you should have deducted plus the part of the excess depreciation you deducted that actually reduced your tax liability for the year. Amended tax return form 2011 In decreasing your basis for depreciation, take into account the amount deducted on your tax returns as depreciation and any depreciation capitalized under the uniform capitalization rules. Amended tax return form 2011 For information on figuring depreciation, see Publication 946. Amended tax return form 2011 If you are claiming depreciation on a business vehicle, see Publication 463. Amended tax return form 2011 If the car is not used more than 50% for business during the tax year, you may have to recapture excess depreciation. Amended tax return form 2011 Include the excess depreciation in your gross income and add it to your basis in the property. Amended tax return form 2011 For information on the computation of excess depreciation, see chapter 4 in Publication 463. Amended tax return form 2011 Canceled Debt Excluded From Income If a debt you owe is canceled or forgiven, other than as a gift or bequest, you generally must include the canceled amount in your gross income for tax purposes. Amended tax return form 2011 A debt includes any indebtedness for which you are liable or which attaches to property you hold. Amended tax return form 2011 You can exclude canceled debt from income in the following situations. Amended tax return form 2011 Debt canceled in a bankruptcy case or when you are insolvent, Qualified farm debt, and Qualified real property business debt (provided you are not a C corporation). Amended tax return form 2011 If you exclude from income canceled debt under situation (1) or (2), you may have to reduce the basis of your depreciable and nondepreciable property. Amended tax return form 2011 However, in situation (3), you must reduce the basis of your depreciable property by the excluded amount. Amended tax return form 2011 For more information about canceled debt in a bankruptcy case or during insolvency, see Publication 908, Bankruptcy Tax Guide. Amended tax return form 2011 For more information about canceled debt that is qualified farm debt, see chapter 3 in Publication 225. Amended tax return form 2011 For more information about qualified real property business debt, see chapter 5 in Publication 334, Tax Guide for Small Business. Amended tax return form 2011 Postponed Gain From Sale of Home If you postponed gain from the sale of your main home before May 7, 1997, you must reduce the basis of your new home by the postponed gain. Amended tax return form 2011 For more information on the rules for the sale of a home, see Publication 523. Amended tax return form 2011 Adoption Tax Benefits If you claim an adoption credit for the cost of improvements you added to the basis of your home, decrease the basis of your home by the credit allowed. Amended tax return form 2011 This also applies to amounts you received under an employer's adoption assistance program and excluded from income. Amended tax return form 2011 For more information Form 8839, Qualified Adoption Expenses. Amended tax return form 2011 Employer-Provided Child Care If you are an employer, you can claim the employer-provided child care credit on amounts you paid or incurred to acquire, construct, rehabilitate, or expand property used as part of your qualified child care facility. Amended tax return form 2011 You must reduce your basis in that property by the credit claimed. Amended tax return form 2011 For more information, see Form 8882, Credit for Employer-Provided Child Care Facilities and Services. Amended tax return form 2011 Adjustments to Basis Example In January 2005, you paid $80,000 for real property to be used as a factory. Amended tax return form 2011 You also paid commissions of $2,000 and title search and legal fees of $600. Amended tax return form 2011 You allocated the total cost of $82,600 between the land and the building—$10,325 for the land and $72,275 for the building. Amended tax return form 2011 Immediately you spent $20,000 in remodeling the building before you placed it in service. Amended tax return form 2011 You were allowed depreciation of $14,526 for the years 2005 through 2009. Amended tax return form 2011 In 2008 you had a $5,000 casualty loss from a that was not covered by insurance on the building. Amended tax return form 2011 You claimed a deduction for this loss. Amended tax return form 2011 You spent $5,500 to repair the damages and extend the useful life of the building. Amended tax return form 2011 The adjusted basis of the building on January 1, 2010, is figured as follows: Original cost of building including fees and commissions $72,275 Adjustments to basis:     Add:         Improvements 20,000   Repair of damages 5,500       $97,775 Subtract:       Depreciation $14,526     Deducted casualty loss 5,000 19,526 Adjusted basis on January 1, 2010 $78,249 The basis of the land, $10,325, remains unchanged. Amended tax return form 2011 It is not affected by any of the above adjustments. Amended tax return form 2011 Basis Other Than Cost There are many times when you cannot use cost as basis. Amended tax return form 2011 In these cases, the fair market value or the adjusted basis of property may be used. Amended tax return form 2011 Adjusted basis is discussed earlier. Amended tax return form 2011 Fair market value (FMV). Amended tax return form 2011   FMV is the price at which property would change hands between a buyer and a seller, neither having to buy or sell, and both having reasonable knowledge of all necessary facts. Amended tax return form 2011 Sales of similar property on or about the same date may be helpful in figuring the property's FMV. Amended tax return form 2011 Property Received for Services If you receive property for services, include the property's FMV in income. Amended tax return form 2011 The amount you include in income becomes your basis. Amended tax return form 2011 If the services were performed for a price agreed on beforehand, it will be accepted as the FMV of the property if there is no evidence to the contrary. Amended tax return form 2011 Bargain Purchases A bargain purchase is a purchase of an item for less than its FMV. Amended tax return form 2011 If, as compensation for services, you purchase goods or other property at less than FMV, include the difference between the purchase price and the property's FMV in your income. Amended tax return form 2011 Your basis in the property is its FMV (your purchase price plus the amount you include in income). Amended tax return form 2011 If the difference between your purchase price and the FMV represents a qualified employee discount, do not include the difference in income. Amended tax return form 2011 However, your basis in the property is still its FMV. Amended tax return form 2011 See Employee Discounts in Publication 15-B. Amended tax return form 2011 Restricted Property If you receive property for your services and the property is subject to certain restrictions, your basis in the property is its FMV when it becomes substantially vested unless you make the election discussed later. Amended tax return form 2011 Property becomes substantially vested when your rights in the property or the rights of any person to whom you transfer the property are not subject to a substantial risk of forfeiture. Amended tax return form 2011 There is substantial risk of forfeiture when the rights to full enjoyment of the property depend on the future performance of substantial services by any person. Amended tax return form 2011 When the property becomes substantially vested, include the FMV, less any amount you paid for the property, in income. Amended tax return form 2011 Example. Amended tax return form 2011 Your employer gives you stock for services performed under the condition that you will have to return the stock unless you complete 5 years of service. Amended tax return form 2011 The stock is under a substantial risk of forfeiture and is not substantially vested when you receive it. Amended tax return form 2011 You do not report any income until you have completed the 5 years of service that satisfy the condition. Amended tax return form 2011 Fair market value. Amended tax return form 2011   Figure the FMV of property you received without considering any restriction except one that by its terms will never end. Amended tax return form 2011 Example. Amended tax return form 2011 You received stock from your employer for services you performed. Amended tax return form 2011 If you want to sell the stock while you are still employed, you must sell the stock to your employer at book value. Amended tax return form 2011 At your retirement or death, you or your estate must offer to sell the stock to your employer at its book value. Amended tax return form 2011 This is a restriction that by its terms will never end and you must consider it when you figure the FMV. Amended tax return form 2011 Election. Amended tax return form 2011   You can choose to include in your gross income the FMV of the property at the time of transfer, less any amount you paid for it. Amended tax return form 2011 If you make this choice, the substantially vested rules do not apply. Amended tax return form 2011 Your basis is the amount you paid plus the amount you included in income. Amended tax return form 2011   See the discussion of Restricted Property in Publication 525 for more information. Amended tax return form 2011 Taxable Exchanges A taxable exchange is one in which the gain is taxable or the loss is deductible. Amended tax return form 2011 A taxable gain or deductible loss is also known as a recognized gain or loss. Amended tax return form 2011 If you receive property in exchange for other property in a taxable exchange, the basis of property you receive is usually its FMV at the time of the exchange. Amended tax return form 2011 A taxable exchange occurs when you receive cash or property not similar or related in use to the property exchanged. Amended tax return form 2011 Example. Amended tax return form 2011 You trade a tract of farm land with an adjusted basis of $3,000 for a tractor that has an FMV of $6,000. Amended tax return form 2011 You must report a taxable gain of $3,000 for the land. Amended tax return form 2011 The tractor has a basis of $6,000. Amended tax return form 2011 Involuntary Conversions If you receive property as a result of an involuntary conversion, such as a casualty, theft, or condemnation, you can figure the basis of the replacement property you receive using the basis of the converted property. Amended tax return form 2011 Similar or related property. Amended tax return form 2011   If you receive replacement property similar or related in service or use to the converted property, the replacement property's basis is the old property's basis on the date of the conversion. Amended tax return form 2011 However, make the following adjustments. Amended tax return form 2011 Decrease the basis by the following. Amended tax return form 2011 Any loss you recognize on the conversion, and Any money you receive that you do not spend on similar property. Amended tax return form 2011 Increase the basis by the following. Amended tax return form 2011 Any gain you recognize on the conversion, and Any cost of acquiring the replacement property. Amended tax return form 2011 Money or property not similar or related. Amended tax return form 2011   If you receive money or property not similar or related in service or use to the converted property, and you buy replacement property similar or related in service or use to the converted property, the basis of the new property is its cost decreased by the gain not recognized on the conversion. Amended tax return form 2011 Example. Amended tax return form 2011 The state condemned your property. Amended tax return form 2011 The property had an adjusted basis of $26,000 and the state paid you $31,000 for it. Amended tax return form 2011 You realized a gain of $5,000 ($31,000 − $26,000). Amended tax return form 2011 You bought replacement property similar in use to the converted property for $29,000. Amended tax return form 2011 You recognize a gain of $2,000 ($31,000 − $29,000), the unspent part of the payment from the state. Amended tax return form 2011 Your gain not recognized is $3,000, the difference between the $5,000 realized gain and the $2,000 recognized gain. Amended tax return form 2011 The basis of the new property is figured as follows: Cost of replacement property $29,000 Minus: Gain not recognized 3,000 Basis of the replacement property $26,000 Allocating the basis. Amended tax return form 2011   If you buy more than one piece of replacement property, allocate your basis among the properties based on their respective costs. Amended tax return form 2011 Example. Amended tax return form 2011 The state in the previous example condemned your unimproved real property and the replacement property you bought was improved real property with both land and buildings. Amended tax return form 2011 Allocate the replacement property's $26,000 basis between land and buildings based on their respective costs. Amended tax return form 2011 More information. Amended tax return form 2011   For more information about condemnations, see Involuntary Conversions in Publication 544. Amended tax return form 2011 For more information about casualty and theft losses, see Publication 547. Amended tax return form 2011 Nontaxable Exchanges A nontaxable exchange is an exchange in which you are not taxed on any gain and you cannot deduct any loss. Amended tax return form 2011 If you receive property in a nontaxable exchange, its basis is usually the same as the basis of the property you transferred. Amended tax return form 2011 A nontaxable gain or loss is also known as an unrecognized gain or loss. Amended tax return form 2011 Like-Kind Exchanges The exchange of property for the same kind of property is the most common type of nontaxable exchange. Amended tax return form 2011 To qualify as a like-kind exchange, you must hold for business or investment purposes both the property you transfer and the property you receive. Amended tax return form 2011 There must also be an exchange of like-kind property. Amended tax return form 2011 For more information, see Like-Kind Exchanges in Publication 544. Amended tax return form 2011 The basis of the property you receive is the same as the basis of the property you gave up. Amended tax return form 2011 Example. Amended tax return form 2011 You exchange real estate (adjusted basis $50,000, FMV $80,000) held for investment for other real estate (FMV $80,000) held for investment. Amended tax return form 2011 Your basis in the new property is the same as the basis of the old ($50,000). Amended tax return form 2011 Exchange expenses. Amended tax return form 2011   Exchange expenses are generally the closing costs you pay. Amended tax return form 2011 They include such items as brokerage commissions, attorney fees, deed preparation fees, etc. Amended tax return form 2011 Add them to the basis of the like-kind property received. Amended tax return form 2011 Property plus cash. Amended tax return form 2011   If you trade property in a like-kind exchange and also pay money, the basis of the property received is the basis of the property you gave up increased by the money you paid. Amended tax return form 2011 Example. Amended tax return form 2011 You trade in a truck (adjusted basis $3,000) for another truck (FMV $7,500) and pay $4,000. Amended tax return form 2011 Your basis in the new truck is $7,000 (the $3,000 basis of the old truck plus the $4,000 paid). Amended tax return form 2011 Special rules for related persons. Amended tax return form 2011   If a like-kind exchange takes place directly or indirectly between related persons and either party disposes of the property within 2 years after the exchange, the exchange no longer qualifies for like-kind exchange treatment. Amended tax return form 2011 Each person must report any gain or loss not recognized on the original exchange. Amended tax return form 2011 Each person reports it on the tax return filed for the year in which the later disposition occurs. Amended tax return form 2011 If this rule applies, the basis of the property received in the original exchange will be its fair market value. Amended tax return form 2011   These rules generally do not apply to the following kinds of property dispositions. Amended tax return form 2011 Dispositions due to the death of either related person, Involuntary conversions, and Dispositions in which neither the original exchange nor the subsequent disposition had as a main purpose the avoidance of federal income tax. Amended tax return form 2011 Related persons. Amended tax return form 2011   Generally, related persons are ancestors, lineal descendants, brothers and sisters (whole or half), and a spouse. Amended tax return form 2011   For other related persons (for example, two corporations, an individual and a corporation, a grantor and fiduciary, etc. Amended tax return form 2011 ), see Nondeductible Loss in chapter 2 of Publication 544. Amended tax return form 2011 Exchange of business property. Amended tax return form 2011   Exchanging the assets of one business for the assets of another business is a multiple property exchange. Amended tax return form 2011 For information on figuring basis, see Multiple Property Exchanges in chapter 1 of Publication 544. Amended tax return form 2011 Partially Nontaxable Exchange A partially nontaxable exchange is an exchange in which you receive unlike property or money in addition to like property. Amended tax return form 2011 The basis of the property you receive is the same as the basis of the property you gave up, with the following adjustments. Amended tax return form 2011 Decrease the basis by the following amounts. Amended tax return form 2011 Any money you receive, and Any loss you recognize on the exchange. Amended tax return form 2011 Increase the basis by the following amounts. Amended tax return form 2011 Any additional costs you incur, and Any gain you recognize on the exchange. Amended tax return form 2011 If the other party to the exchange assumes your liabilities, treat the debt assumption as money you received in the exchange. Amended tax return form 2011 Example. Amended tax return form 2011 You traded a truck (adjusted basis $6,000) for a new truck (FMV $5,200) and $1,000 cash. Amended tax return form 2011 You realized a gain of $200 ($6,200 − $6,000). Amended tax return form 2011 This is the FMV of the truck received plus the cash minus the adjusted basis of the truck you traded ($5,200 + $1,000 – $6,000). Amended tax return form 2011 You include all the gain in income (recognized gain) because the gain is less than the cash received. Amended tax return form 2011 Your basis in the new truck is: Adjusted basis of old truck $6,000 Minus: Cash received (adjustment 1(a)) 1,000   $5,000 Plus: Gain recognized (adjustment 2(b)) 200 Basis of new truck $5,200 Allocation of basis. Amended tax return form 2011   Allocate the basis first to the unlike property, other than money, up to its FMV on the date of the exchange. Amended tax return form 2011 The rest is the basis of the like property. Amended tax return form 2011 Example. Amended tax return form 2011 You had an adjusted basis of $15,000 in real estate you held for investment. Amended tax return form 2011 You exchanged it for other real estate to be held for investment with an FMV of $12,500, a truck with an FMV of $3,000, and $1,000 cash. Amended tax return form 2011 The truck is unlike property. Amended tax return form 2011 You realized a gain of $1,500 ($16,500 − $15,000). Amended tax return form 2011 This is the FMV of the real estate received plus the FMV of the truck received plus the cash minus the adjusted basis of the real estate you traded ($12,500 + $3,000 + $1,000 – $15,000). Amended tax return form 2011 You include in income (recognize) all $1,500 of the gain because it is less than the FMV of the unlike property plus the cash received. Amended tax return form 2011 Your basis in the properties you received is figured as follows. Amended tax return form 2011 Adjusted basis of real estate transferred $15,000 Minus: Cash received (adjustment 1(a)) 1,000   $14,000 Plus: Gain recognized (adjustment 2(b)) 1,500 Total basis of properties received $15,500 Allocate the total basis of $15,500 first to the unlike property — the truck ($3,000). Amended tax return form 2011 This is the truck's FMV. Amended tax return form 2011 The rest ($12,500) is the basis of the real estate. Amended tax return form 2011 Sale and Purchase If you sell property and buy similar property in two mutually dependent transactions, you may have to treat the sale and purchase as a single nontaxable exchange. Amended tax return form 2011 Example. Amended tax return form 2011 You are a salesperson and you use one of your cars 100% for business. Amended tax return form 2011 You have used this car in your sales activities for 2 years and have depreciated it. Amended tax return form 2011 Your adjusted basis in the car is $22,600 and its FMV is $23,100. Amended tax return form 2011 You are interested in a new car, which sells for $28,000. Amended tax return form 2011 If you trade your old car and pay $4,900 for the new one, your basis for depreciation for the new car would be $27,500 ($4,900 plus the $22,600 basis of your old car). Amended tax return form 2011 However, you want a higher basis for depreciating the new car, so you agree to pay the dealer $28,000 for the new car if he will pay you $23,100 for your old car. Amended tax return form 2011 Because the two transactions are dependent on each other, you are treated as having exchanged your old car for the new one and paid $4,900 ($28,000 − $23,100). Amended tax return form 2011 Your basis for depreciating the new car is $27,500, the same as if you traded the old car. Amended tax return form 2011 Partial Business Use of Property If you have property used partly for business and partly for personal use, and you exchange it in a nontaxable exchange for property to be used wholly or partly in your business, the basis of the property you receive is figured as if you had exchanged two properties. Amended tax return form 2011 The first is an exchange of like-kind property. Amended tax return form 2011 The second is personal-use property on which gain is recognized and loss is not recognized. Amended tax return form 2011 First, figure your adjusted basis in the property as if you transferred two separate properties. Amended tax return form 2011 Figure the adjusted basis of each part of the property by taking into account any adjustments to basis. Amended tax return form 2011 Deduct the depreciation you took or could have taken from the adjusted basis of the business part. Amended tax return form 2011 Then figure the amount realized for your property and allocate it to the business and nonbusiness parts of the property. Amended tax return form 2011 The business part of the property is permitted to be exchanged tax free. Amended tax return form 2011 However, you must recognize any gain from the exchange of the nonbusiness part. Amended tax return form 2011 You are deemed to have received, in exchange for the nonbusiness part, an amount equal to its FMV on the date of the exchange. Amended tax return form 2011 The basis of the property you acquired is the total basis of the property transferred (adjusted to the date of the exchange), increased by any gain recognized on the nonbusiness part. Amended tax return form 2011 If the nonbusiness part of the property transferred is your main home, you may qualify to exclude from income all or part of the gain on that part. Amended tax return form 2011 For more information, see Publication 523. Amended tax return form 2011 Trade of car used partly in business. Amended tax return form 2011   If you trade in a car you used partly in your business for another car you will use in your business, your basis for depreciation of the new car is not the same as your basis for figuring a gain or loss on its sale. Amended tax return form 2011   For information on figuring your basis for depreciation, see Publication 463. Amended tax return form 2011 Property Transferred From a Spouse The basis of property transferred to you or transferred in trust for your benefit by your spouse (or former spouse if the transfer is incident to divorce), is the same as your spouse's adjusted basis. Amended tax return form 2011 However, adjust your basis for any gain recognized by your spouse or former spouse on property transferred in trust. Amended tax return form 2011 This rule applies only to a transfer of property in trust in which the liabilities assumed, plus the liabilities to which the property is subject, are more than the adjusted basis of the property transferred. Amended tax return form 2011 If the property transferred to you is a series E, series EE, or series I United States savings bond, the transferor must include in income the interest accrued to the date of transfer. Amended tax return form 2011 Your basis in the bond immediately after the transfer is equal to the transferor's basis increased by the interest income includible in the transferor's income. Amended tax return form 2011 For more information on these bonds, see Publication 550. Amended tax return form 2011 At the time of the transfer, the transferor must give you the records necessary to determine the adjusted basis and holding period of the property as of the date of transfer. Amended tax return form 2011 For more information, see Publication 504, Divorced or Separated Individuals. Amended tax return form 2011 Property Received as a Gift To figure the basis of property you receive as a gift, you must know its adjusted basis (defined earlier) to the donor just before it was given to you, its FMV at the time it was given to you, and any gift tax paid on it. Amended tax return form 2011 FMV Less Than Donor's Adjusted Basis If the FMV of the property at the time of the gift is less than the donor's adjusted basis, your basis depends on whether you have a gain or a loss when you dispose of the property. Amended tax return form 2011 Your basis for figuring gain is the same as the donor's adjusted basis plus or minus any required adjustment to basis while you held the property. Amended tax return form 2011 Your basis for figuring loss is its FMV when you received the gift plus or minus any required adjustment to basis while you held the property (see Adjusted Basis earlier). Amended tax return form 2011 If you use the donor's adjusted basis for figuring a gain and get a loss, and then use the FMV for figuring a loss and have a gain, you have neither gain nor loss on the sale or disposition of the property. Amended tax return form 2011 Example. Amended tax return form 2011 You received an acre of land as a gift. Amended tax return form 2011 At the time of the gift, the land had an FMV of $8,000. Amended tax return form 2011 The donor's adjusted basis was $10,000. Amended tax return form 2011 After you received the land, no events occurred to increase or decrease your basis. Amended tax return form 2011 If you sell the land for $12,000, you will have a $2,000 gain because you must use the donor's adjusted basis ($10,000) at the time of the gift as your basis to figure gain. Amended tax return form 2011 If you sell the land for $7,000, you will have a $1,000 loss because you must use the FMV ($8,000) at the time of the gift as your basis to figure a loss. Amended tax return form 2011 If the sales price is between $8,000 and $10,000, you have neither gain nor loss. Amended tax return form 2011 For instance, if the sales price was $9,000 and you tried to figure a gain using the donor's adjusted basis ($10,000), you would get a $1,000 loss. Amended tax return form 2011 If you then tried to figure a loss using the FMV ($8,000), you would get a $1,000 gain. Amended tax return form 2011 Business property. Amended tax return form 2011   If you hold the gift as business property, your basis for figuring any depreciation, depletion, or amortization deduction is the same as the donor's adjusted basis plus or minus any required adjustments to basis while you hold the property. Amended tax return form 2011 FMV Equal to or More Than Donor's Adjusted Basis If the FMV of the property is equal to or greater than the donor's adjusted basis, your basis is the donor's adjusted basis at the time you received the gift. Amended tax return form 2011 Increase your basis by all or part of any gift tax paid, depending on the date of the gift. Amended tax return form 2011 Also, for figuring gain or loss from a sale or other disposition of the property, or for figuring depreciation, depletion, or amortization deductions on business property, you must increase or decrease your basis by any required adjustments to basis while you held the property. Amended tax return form 2011 See Adjusted Basis earlier. Amended tax return form 2011 Gift received before 1977. Amended tax return form 2011   If you received a gift before 1977, increase your basis in the gift (the donor's adjusted basis) by any gift tax paid on it. Amended tax return form 2011 However, do not increase your basis above the FMV of the gift at the time it was given to you. Amended tax return form 2011 Example 1. Amended tax return form 2011 You were given a house in 1976 with an FMV of $21,000. Amended tax return form 2011 The donor's adjusted basis was $20,000. Amended tax return form 2011 The donor paid a gift tax of $500. Amended tax return form 2011 Your basis is $20,500, the donor's adjusted basis plus the gift tax paid. Amended tax return form 2011 Example 2. Amended tax return form 2011 If, in Example 1, the gift tax paid had been $1,500, your basis would be $21,000. Amended tax return form 2011 This is the donor's adjusted basis plus the gift tax paid, limited to the FMV of the house at the time you received the gift. Amended tax return form 2011 Gift received after 1976. Amended tax return form 2011   If you received a gift after 1976, increase your basis in the gift (the donor's adjusted basis) by the part of the gift tax paid on it that is due to the net increase in value of the gift. Amended tax return form 2011 Figure the increase by multiplying the gift tax paid by a fraction. Amended tax return form 2011 The numerator of the fraction is the net increase in value of the gift and the denominator is the amount of the gift. Amended tax return form 2011   The net increase in value of the gift is the FMV of the gift less the donor's adjusted basis. Amended tax return form 2011 The amount of the gift is its value for gift tax purposes after reduction by any annual exclusion and marital or charitable deduction that applies to the gift. Amended tax return form 2011 For information on the gift tax, see Publication 950, Introduction to Estate and Gift Taxes. Amended tax return form 2011 Example. Amended tax return form 2011 In 2010, you received a gift of property from your mother that had an FMV of $50,000. Amended tax return form 2011 Her adjusted basis was $20,000. Amended tax return form 2011 The amount of the gift for gift tax purposes was $37,000 ($50,000 minus the $13,000 annual exclusion). Amended tax return form 2011 She paid a gift tax of $9,000. Amended tax return form 2011 Your basis, $27,290, is figured as follows: Fair market value $50,000 Minus: Adjusted basis 20,000 Net increase in value $30,000 Gift tax paid $9,000 Multiplied by ($30,000 ÷ $37,000) . Amended tax return form 2011 81 Gift tax due to net increase in value $7,290 Adjusted basis of property to your mother 20,000 Your basis in the property $27,290 Inherited Property Special rules apply to property acquired from a decedent who died in 2010. Amended tax return form 2011 See Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, for details. Amended tax return form 2011 If you inherited property from a decedent who died before 2010, your basis in property you inherit from a decedent is generally one of the following. Amended tax return form 2011 The FMV of the property at the date of the individual's death. Amended tax return form 2011 The FMV on the alternate valuation date if the personal representative for the estate chooses to use alternate valuation. Amended tax return form 2011 For information on the alternate valuation date, see the Instructions for Form 706. Amended tax return form 2011 The value under the special-use valuation method for real property used in farming or a closely held business if chosen for estate tax purposes. Amended tax return form 2011 This method is discussed later. Amended tax return form 2011 The decedent's adjusted basis in land to the extent of the value excluded from the decedent's taxable estate as a qualified conservation easement. Amended tax return form 2011 For information on a qualified conservation easement, see the Instructions for Form 706. Amended tax return form 2011 If a federal estate tax return does not have to be filed, your basis in the inherited property is its appraised value at the date of death for state inheritance or transmission taxes. Amended tax return form 2011 For more information, see the Instructions for Form 706. Amended tax return form 2011 Appreciated property. Amended tax return form 2011   The above rule does not apply to appreciated property you receive from a decedent if you or your spouse originally gave the property to the decedent within 1 year before the decedent's death. Amended tax return form 2011 Your basis in this property is the same as the decedent's adjusted basis in the property immediately before his or her death, rather than its FMV. Amended tax return form 2011 Appreciated property is any property whose FMV on the day it was given to the decedent is more than its adjusted basis. Amended tax return form 2011 Community Property In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), husband and wife are each usually considered to own half the community property. Amended tax return form 2011 When either spouse dies, the total value of the community property, even the part belonging to the surviving spouse, generally becomes the basis of the entire property. Amended tax return form 2011 For this rule to apply, at least half the value of the community property interest must be includable in the decedent's gross estate, whether or not the estate must file a return. Amended tax return form 2011 For example, you and your spouse owned community property that had a basis of $80,000. Amended tax return form 2011 When your spouse died, half the FMV of the community interest was includible in your spouse's estate. Amended tax return form 2011 The FMV of the community interest was $100,000. Amended tax return form 2011 The basis of your half of the property after the death of your spouse is $50,000 (half of the $100,000 FMV). Amended tax return form 2011 The basis of the other half to your spouse's heirs is also $50,000. Amended tax return form 2011 For more information on community property, see Publication 555, Community Property. Amended tax return form 2011 Property Held by Surviving Tenant The following example explains the rule for the basis of property held by a surviving tenant in joint tenancy or tenancy by the entirety. Amended tax return form 2011 Example. Amended tax return form 2011 John and Jim owned, as joint tenants with right of survivorship, business property they purchased for $30,000. Amended tax return form 2011 John furnished two-thirds of the purchase price and Jim furnished one-third. Amended tax return form 2011 Depreciation deductions allowed before John's death were $12,000. Amended tax return form 2011 Under local law, each had a half interest in the income from the property. Amended tax return form 2011 At the date of John's death, the property had an FMV of $60,000, two-thirds of which is includable in John's estate. Amended tax return form 2011 Jim figures his basis in the property at the date of John's death as follows: Interest Jim bought with his own funds—1/3 of $30,000 cost $10,000   Interest Jim received on John's death—2/3 of $60,000 FMV 40,000 $50,000 Minus: ½ of $12,000 depreciation before John's death 6,000 Jim's basis at the date of John's death $44,000 If Jim had not contributed any part of the purchase price, his basis at the date of John's death would be $54,000. Amended tax return form 2011 This is figured by subtracting from the $60,000 FMV, the $6,000 depreciation allocated to Jim's half interest before the date of death. Amended tax return form 2011 If under local law Jim had no interest in the income from the property and he contributed no part of the purchase price, his basis at John's death would be $60,000, the FMV of the property. Amended tax return form 2011 Qualified Joint Interest Include one-half of the value of a qualified joint interest in the decedent's gross estate. Amended tax return form 2011 It does not matter how much each spouse contributed to the purchase price. Amended tax return form 2011 Also, it does not matter which spouse dies first. Amended tax return form 2011 A qualified joint interest is any interest in property held by husband and wife as either of the following. Amended tax return form 2011 Tenants by the entirety, or Joint tenants with right of survivorship if husband and wife are the only joint tenants. Amended tax return form 2011 Basis. Amended tax return form 2011   As the surviving spouse, your basis in property you owned with your spouse as a qualified joint interest is the cost of your half of the property with certain adjustments. Amended tax return form 2011 Decrease the cost by any deductions allowed to you for depreciation and depletion. Amended tax return form 2011 Increase the reduced cost by your basis in the half you inherited. Amended tax return form 2011 Farm or Closely Held Business Under certain conditions, when a person dies the executor or personal representative of that person's estate can choose to value the qualified real property on other than its FMV. Amended tax return form 2011 If so, the executor or personal representative values the qualified real property based on its use as a farm or its use in a closely held business. Amended tax return form 2011 If the executor or personal representative chooses this method of valuation for estate tax purposes, that value is the basis of the property for the heirs. Amended tax return form 2011 Qualified heirs should be able to get the necessary value from the executor or personal representative of the estate. Amended tax return form 2011 Special-use valuation. Amended tax return form 2011   If you are a qualified heir who received special-use valuation property, your basis in the property is the estate's or trust's basis in that property immediately before the distribution. Amended tax return form 2011 Increase your basis by any gain recognized by the estate or trust because of post-death appreciation. Amended tax return form 2011 Post-death appreciation is the property's FMV on the date of distribution minus the property's FMV either on the date of the individual's death or the alternate valuation date. Amended tax return form 2011 Figure all FMVs without regard to the special-use valuation. Amended tax return form 2011   You can elect to increase your basis in special-use valuation property if it becomes subject to the additional estate tax. Amended tax return form 2011 This tax is assessed if, within 10 years after the death of the decedent, you transfer the property to a person who is not a member of your family or the property stops being used as a farm or in a closely held business. Amended tax return form 2011   To increase your basis in the property, you must make an irrevocable election and pay interest on the additional estate tax figured from the date 9 months after the decedent's death until the date of the payment of the additional estate tax. Amended tax return form 2011 If you meet these requirements, increase your basis in the property to its FMV on the date of the decedent's death or the alternate valuation date. Amended tax return form 2011 The increase in your basis is considered to have occurred immediately before the event that results in the additional estate tax. Amended tax return form 2011   You make the election by filing with Form 706-A a statement that does all of the following. Amended tax return form 2011 Contains your name, address, and taxpayer identification number and those of the estate; Identifies the election as an election under section 1016(c) of the Internal Revenue Code; Specifies the property for which the election is made; and Provides any additional information required by the Instructions for Form 706-A. Amended tax return form 2011   For more information, see the Instructions for Form 706 and the Instructions for Form 706-A. Amended tax return form 2011 Property Changed to Business or Rental Use If you hold property for personal use and then change it to business use or use it to produce rent, you must figure its basis for depreciation. Amended tax return form 2011 An example of changing property held for personal use to business use would be renting out your former main home. Amended tax return form 2011 Basis for depreciation. Amended tax return form 2011   The basis for depreciation is the lesser of the following amounts. Amended tax return form 2011 The FMV of the property on the date of the change, or Your adjusted basis on the date of the change. Amended tax return form 2011 Example. Amended tax return form 2011 Several years ago you paid $160,000 to have your home built on a lot that cost $25,000. Amended tax return form 2011 You paid $20,000 for permanent improvements to the house and claimed a $2,000 casualty loss deduction for damage to the house before changing the property to rental use last year. Amended tax return form 2011 Because land is not depreciable, you include only the cost of the house when figuring the basis for depreciation. Amended tax return form 2011 Your adjusted basis in the house when you changed its use was $178,000 ($160,000 + $20,000 − $2,000). Amended tax return form 2011 On the same date, your property had an FMV of $180,000, of which $15,000 was for the land and $165,000 was for the house. Amended tax return form 2011 The basis for figuring depreciation on the house is its FMV on the date of change ($165,000) because it is less than your adjusted basis ($178,000). Amended tax return form 2011 Sale of property. Amended tax return form 2011   If you later sell or dispose of property changed to business or rental use, the basis of the property you use will depend on whether you are figuring gain or loss. Amended tax return form 2011 Gain. Amended tax return form 2011   The basis for figuring a gain is your adjusted basis when you sell the property. Amended tax return form 2011 Example. Amended tax return form 2011 Assume the same facts as in the previous example except that you sell the property at a gain after being allowed depreciation deductions of $37,500. Amended tax return form 2011 Your adjusted basis for figuring gain is $165,500 ($178,000 + $25,000 (land) − $37,500). Amended tax return form 2011 Loss. Amended tax return form 2011   Figure the basis for a loss starting with the smaller of your adjusted basis or the FMV of the property at the time of the change to business or rental use. Amended tax return form 2011 Then adjust this amount for the period after the change in the property's use, as discussed earlier under Adjusted Basis, to arrive at a basis for loss. Amended tax return form 2011 Example. Amended tax return form 2011 Assume the same facts as in the previous example, except that you sell the property at a loss after being allowed depreciation deductions of $37,500. Amended tax return form 2011 In this case, you would start with the FMV on the date of the change to rental use ($180,000) because it is less than the adjusted basis of $203,000 ($178,000 + $25,000) on that date. Amended tax return form 2011 Reduce that amount ($180,000) by the depreciation deductions to arrive at a basis for loss of $142,500 ($180,000 − $37,500). Amended tax return form 2011 How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. Amended tax return form 2011 By selecting the method that is best for you, you will have quick and easy access to tax help. Amended tax return form 2011 Contacting your Taxpayer Advocate. Amended tax return form 2011   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS. Amended tax return form 2011 We help taxpayers who are experiencing economic harm, such as not being able to provide necessities like housing, transportation, or food; taxpayers who are seeking help in resolving tax problems with the IRS; and those who believe that an IRS system or procedure is not working as it should. Amended tax return form 2011 Here are seven things every taxpayer should know about TAS. Amended tax return form 2011 TAS is your voice at the IRS. Amended tax return form 2011 Our service is free, confidential, and tailored to meet your needs. Amended tax return form 2011 You may be eligible for our help if you have tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just isn't working as it should. Amended tax return form 2011 We help taxpayers whose problems are causing financial difficulty or significant cost, including the cost of professional representation. Amended tax return form 2011 This includes businesses as well as individuals. Amended tax return form 2011 Our employees know the IRS and how to navigate it. Amended tax return form 2011 If you qualify for our help, we'll assign your case to an advocate who will listen to your problem, help you understand what needs to be done to resolve it, and stay with you every step of the way until your problem is resolved. Amended tax return form 2011 We have at least one local taxpayer advocate in every state, the District of Columbia, and Puerto Rico. Amended tax return form 2011 You can call your local advocate, whose number is in your phone book, in Publication 1546, Taxpayer Advocate Service—Your Voice at the IRS, and on our website at www. Amended tax return form 2011 irs. Amended tax return form 2011 gov/advocate. Amended tax return form 2011 You can also call our toll-free line at 1-877-777-4778 or TTY/TDD 1-800-829-4059. Amended tax return form 2011 You can learn about your rights and responsibilities as a taxpayer by visiting our online tax toolkit at www. Amended tax return form 2011 taxtoolkit. Amended tax return form 2011 irs. Amended tax return form 2011 gov. Amended tax return form 2011 You can get updates on hot tax topics by visiting our YouTube channel at www. Amended tax return form 2011 youtube. Amended tax return form 2011 com/tasnta and our Facebook page at www. Amended tax return form 2011 facebook. Amended tax return form 2011 com/YourVoiceAtIRS, or by following our tweets at www. Amended tax return form 2011 twitter. Amended tax return form 2011 com/YourVoiceAtIRS. Amended tax return form 2011 Low Income Taxpayer Clinics (LITCs). Amended tax return form 2011   The Low Income Taxpayer Clinic program serves individuals who have a problem with the IRS and whose income is below a certain level. Amended tax return form 2011 LITCs are independent from the IRS. Amended tax return form 2011 Most LITCs can provide representation before the IRS or in court on audits, tax collection disputes, and other issues for free or a small fee. Amended tax return form 2011 If an individual's native language is not English, some clinics can provide multilingual information about taxpayer rights and responsibilities. Amended tax return form 2011 For more information, see Publication 4134, Low Income Taxpayer Clinic List. Amended tax return form 2011 This publication is available at IRS. Amended tax return form 2011 gov, by calling 1-800-TAX-FORM (1-800-829-3676), or at your local IRS office. Amended tax return form 2011 Free tax services. Amended tax return form 2011   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Amended tax return form 2011 Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Amended tax return form 2011 The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Amended tax return form 2011 The majority of the information and services listed in this publication are available to you free of charge. Amended tax return form 2011 If there is a fee associated with a resource or service, it is listed in the publication. Amended tax return form 2011   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with d