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Free downloadable irs tax forms 22. Free downloadable irs tax forms   Impuestos Table of Contents IntroductionGobierno tribal de indios estadounidenses. Free downloadable irs tax forms Useful Items - You may want to see: Requisitos para Deducir Todo Impuesto Impuestos sobre los IngresosImpuestos Estatales y Locales sobre los Ingresos Impuestos Extranjeros sobre los Ingresos Impuestos Generales sobre las VentasVehículos de motor. Free downloadable irs tax forms Impuestos sobre Bienes RaícesImpuestos sobre bienes raíces de años anteriores. Free downloadable irs tax forms Ejemplos. Free downloadable irs tax forms Formulario 1099-S. Free downloadable irs tax forms Cantidades Relacionadas con Bienes Raíces que no Puede Deducir Impuestos sobre Bienes Muebles Impuestos y Cargos que no Puede Deducir Dónde se Anotan las Deducciones Introduction Este capítulo trata de los impuestos que puede deducir si detalla sus deducciones en el Anexo A (Formulario 1040). Free downloadable irs tax forms También explica cuáles impuestos puede deducir en otros anexos o formularios y cuáles impuestos no puede deducir. Free downloadable irs tax forms Este capítulo trata sobre los siguientes temas: Impuestos sobre los ingresos (federales, estatales, locales, y extranjeros). Free downloadable irs tax forms Impuestos generales sobre ventas (estatales y locales). Free downloadable irs tax forms Impuestos sobre bienes raíces (estatales, locales, y extranjeros). Free downloadable irs tax forms Impuestos sobre bienes muebles (estatales y locales). Free downloadable irs tax forms Impuestos y cargos que usted no puede deducir. Free downloadable irs tax forms Use la Tabla 22-1 como guía para determinar cuáles impuestos se pueden deducir. Free downloadable irs tax forms Hay una sección al final del capítulo que le explica cuál formulario debe usar para deducir diferentes tipos de impuestos. Free downloadable irs tax forms Impuestos de negocio. Free downloadable irs tax forms   Puede deducir ciertos impuestos solamente si son gastos ordinarios y necesarios de su ocupación o negocio o si los incurre para generar ingresos. Free downloadable irs tax forms Para información sobre estos impuestos, vea la Publicación 535, Business Expenses (Gastos de negocio), en inglés. Free downloadable irs tax forms Impuestos estatales o locales. Free downloadable irs tax forms   Éstos son impuestos gravados por los 50 estados, posesiones (territorios no autónomos) de los EE. Free downloadable irs tax forms UU. Free downloadable irs tax forms o cualquiera de sus subdivisiones políticas (tal como un condado o una ciudad) o por el Distrito de Columbia. Free downloadable irs tax forms Gobierno tribal de indios estadounidenses. Free downloadable irs tax forms   Un gobierno tribal de indios estadounidenses, al que el Secretario del Tesoro reconoce que desempeña funciones gubernamentales sustanciales, se considera un estado para el propósito de reclamar una deducción tributaria. Free downloadable irs tax forms Los impuestos sobre los ingresos, impuestos sobre bienes raíces e impuestos sobre bienes muebles gravados por dicho gobierno tribal de indios estadounidenses (o por cualquiera de sus subdivisiones tratadas como si fueran subdivisiones políticas de un estado) son deducibles. Free downloadable irs tax forms Impuestos generales sobre las ventas. Free downloadable irs tax forms   Estos son impuestos que se gravan a tasa fija sobre ventas al por menor. Free downloadable irs tax forms Dichos impuestos corresponden a una amplia gama de diferentes tipos de artículos. Free downloadable irs tax forms Impuestos extranjeros. Free downloadable irs tax forms   Éstos son impuestos que grava un país extranjero o cualesquiera de sus subdivisiones políticas. Free downloadable irs tax forms Useful Items - You may want to see: Publicación 514 Foreign Tax Credit for Individuals (Crédito por impuestos extranjeros para personas físicas), en inglés 530 Tax Information for Homeowners (Información tributaria para propietarios de vivienda), en inglés Formularios (e Instrucciones) Anexo A (Formulario 1040) Itemized Deductions (Deducciones detalladas), en inglés Anexo E (Formulario 1040) Supplemental Income and Loss (Ingresos y pérdidas suplementarios), en inglés 1116 Foreign Tax Credit (Crédito por impuestos extranjeros), en inglés Requisitos para Deducir Todo Impuesto Para que un impuesto sea deducible, se tienen que cumplir los dos requisitos siguientes: Se le tiene que gravar el impuesto a usted. Free downloadable irs tax forms Usted tiene que pagar el impuesto durante su año tributario. Free downloadable irs tax forms Se le tiene que gravar el impuesto a usted. Free downloadable irs tax forms   En general, sólo puede deducir los impuestos que se le gravan a usted. Free downloadable irs tax forms   Generalmente, puede deducir impuestos sobre bienes muebles sólo si usted es el dueño de la propiedad. Free downloadable irs tax forms Si su cónyuge es dueño de la propiedad y paga impuestos sobre bienes raíces correspondientes a la misma, los impuestos se pueden deducir en la declaración separada de su cónyuge o en su declaración conjunta. Free downloadable irs tax forms Tiene que pagar el impuesto durante su año tributario. Free downloadable irs tax forms   Si es un contribuyente que usa el método contable a base de efectivo para pagar sus impuestos, puede deducir sólo aquellos impuestos que de hecho pagó durante su año tributario. Free downloadable irs tax forms Si paga sus impuestos con cheque, el día en que envía o entrega el cheque se considera la fecha de pago, con tal de que el cheque sea aceptado por la institución financiera. Free downloadable irs tax forms Si utiliza una cuenta para pagar por teléfono (como una tarjeta de crédito o retiro de fondos electrónico), la fecha de pago será la fecha en el estado de cuentas de la institución financiera indicando cuándo se hizo el pago. Free downloadable irs tax forms Si usted disputa una obligación tributaria y es un contribuyente que usa el método a base de efectivo para pagar sus impuestos, puede deducir el impuesto únicamente en el año en que de hecho lo paga (o transfiere dinero u otros bienes para cumplir con la obligación en disputa). Free downloadable irs tax forms Vea la Publicación 538, Accounting Periods and Methods (Períodos y métodos contables), en inglés, para más detalles. Free downloadable irs tax forms    Si usa el método contable a base de lo devengado, vea la Publicación 538, en inglés, para más información. Free downloadable irs tax forms Impuestos sobre los Ingresos Esta sección explica cuáles impuestos estatales y locales sobre los ingresos (incluyendo aportaciones del empleado a fondos estatales de beneficios) y cuáles impuestos sobre ingresos extranjeros se pueden deducir. Free downloadable irs tax forms Impuestos Estatales y Locales sobre los Ingresos Puede deducir los impuestos estatales o locales sobre los ingresos. Free downloadable irs tax forms Sin embargo, puede eligir deducir los impuestos generales estatales y locales sobre ventas en vez de deducir los impuestos estatales y locales sobre los ingresos. Free downloadable irs tax forms Vea Impuestos Generales sobre las Ventas , mas adelante. Free downloadable irs tax forms Excepción. Free downloadable irs tax forms    No puede deducir impuestos estatales y locales que pague sobre ingresos exentos del impuesto federal sobre el ingreso, a menos que el ingreso exento del impuesto sea ingreso de intereses. Free downloadable irs tax forms Por ejemplo, no puede deducir la parte del impuesto estatal sobre el ingreso que se grava sobre un subsidio por costo de vida exento del impuesto federal sobre el ingreso. Free downloadable irs tax forms Qué Deducir Su deducción puede ser por impuestos retenidos, pagos de impuesto estimado u otros pagos de impuestos conforme a lo siguiente: Impuestos retenidos. Free downloadable irs tax forms   Puede deducir los impuestos estatales y locales sobre el ingreso retenidos de su sueldo en el año en que son retenidos. Free downloadable irs tax forms Sus Formularios W-2 indicarán la cantidad. Free downloadable irs tax forms Los Formularios W-2G, 1099-G, 1099-R, y 1099-MISC también pueden indicar los impuestos sobre los ingresos estatales y locales retenidos. Free downloadable irs tax forms Pagos de impuesto estimado. Free downloadable irs tax forms   Puede deducir los pagos de impuesto estimado que hizo durante el año a un gobierno estatal o local. Free downloadable irs tax forms Sin embargo, tendrá que tener una base razonable para hacer los pagos de impuesto estimado. Free downloadable irs tax forms Todo pago de impuesto estimado estatal o local que no haya sido hecho de buena fe en el momento del pago no es deducible. Free downloadable irs tax forms Por ejemplo, usted hizo un pago estimado del impuesto estatal sobre el ingreso. Free downloadable irs tax forms No obstante, el cálculo aproximado de su obligación tributaria estatal resulta en que va a recibir un reembolso de todo su pago estimado. Free downloadable irs tax forms Usted no tenía ninguna base razonable para creer que podría adeudar algún impuesto estatal sobre el ingreso adicional y no puede deducir el pago de impuesto estimado. Free downloadable irs tax forms Reembolso aplicado a los impuestos. Free downloadable irs tax forms   Puede deducir toda parte de un reembolso de impuestos estatales y locales sobre el ingreso de un año anterior que haya elegido utilizar para pagar sus impuestos estimados estatales o locales sobre el ingreso del año 2013. Free downloadable irs tax forms    No reste de la deducción ninguno de los siguientes artículos: Todo reembolso de (o crédito por) el impuesto estatal o local sobre el ingreso (o crédito) que espere recibir para el año 2013. Free downloadable irs tax forms Todo reembolso de (o crédito por) impuestos estatales y locales sobre los ingresos de un año anterior que de hecho haya recibido en 2013. Free downloadable irs tax forms   Sin embargo, todo o parte de este reembolso (o crédito) puede ser tributable. Free downloadable irs tax forms Vea Reembolso de (o crédito por) impuestos estatales o locales sobre el ingreso , más adelante. Free downloadable irs tax forms Declaraciones federales separadas. Free downloadable irs tax forms   Si usted y su cónyuge presentan declaraciones separadas del impuesto estatal, local y federal sobre el ingreso, cada uno puede deducir en su declaración federal sólo la cantidad de su propio impuesto estatal y local sobre el ingreso que pagó durante el año tributario. Free downloadable irs tax forms Declaraciones conjuntas estatales y locales. Free downloadable irs tax forms   Si usted y su cónyuge presentan declaraciones conjuntas estatales y locales y declaraciones federales separadas, cada uno puede deducir en su declaración federal separada parte del total de los impuestos estatales y locales sobre el ingreso pagados durante el año tributario. Free downloadable irs tax forms Puede deducir sólo la cantidad del total de los impuestos que esté en proporción con sus ingresos brutos, comparados con la suma de los ingresos brutos de usted y los de su cónyuge. Free downloadable irs tax forms Sin embargo, no puede deducir más de la cantidad que realmente pagó durante el año. Free downloadable irs tax forms Puede evitar este cálculo si usted y su cónyuge son responsables, conjuntamente y por separado, de pagar la cantidad completa de impuestos estatales y locales sobre el ingreso. Free downloadable irs tax forms De ser así, ambos pueden deducir en sus declaraciones federales separadas la cantidad que de hecho pagó cada uno. Free downloadable irs tax forms Declaración conjunta federal. Free downloadable irs tax forms   Si ustedes presentan una declaración conjunta federal, pueden deducir el total de los impuestos estatales y locales sobre el ingreso que pagaron ustedes dos. Free downloadable irs tax forms Aportaciones a fondos de beneficios estatales. Free downloadable irs tax forms    Como empleado, puede deducir aportaciones obligatorias hechas a fondos de beneficios estatales y retenidas de su salario que proveen protección contra la pérdida de salario. Free downloadable irs tax forms Por ejemplo, algunos estados requieren que los empleados hagan aportaciones a fondos estatales que proveen beneficios del seguro por incapacidad o desempleo. Free downloadable irs tax forms Los pagos obligatorios hechos a los siguientes fondos de beneficios estatales se pueden deducir como impuestos estatales sobre el ingreso en la línea 5 del Anexo A (Formulario 1040). Free downloadable irs tax forms Fondo de Compensación por Desempleo de Alaska. Free downloadable irs tax forms Fondo de Beneficios por Incapacidad no Laboral de California. Free downloadable irs tax forms Fondo de Beneficios por Incapacidad no Laboral de Nueva Jersey. Free downloadable irs tax forms Fondo de Compensación por Desempleo de Nueva Jersey. Free downloadable irs tax forms Fondo de Beneficios por Incapacidad no Laboral de Nueva York. Free downloadable irs tax forms Fondo de Compensación por Desempleo de Pennsylvania. Free downloadable irs tax forms Fondo de Beneficios Temporales por Incapacidad de Rhode Island. Free downloadable irs tax forms Fondo de Compensación Suplementaria del Seguro Obrero del Estado de Washington. Free downloadable irs tax forms    Las aportaciones del empleado a planes de incapacidad privados o voluntarios no son deducibles. Free downloadable irs tax forms Reembolso de (o crédito por) impuestos estatales o locales sobre el ingreso. Free downloadable irs tax forms   Si recibe un reembolso de (o crédito por) impuestos estatales o locales sobre el ingreso en un año siguiente al año en que los pagó, puede verse obligado a incluir el reembolso en sus ingresos del año en que lo reciba, anotándolo en la línea 10 del Formulario 1040. Free downloadable irs tax forms Esto incluye los reembolsos resultantes de impuestos que han sido retenidos en exceso, aplicados de una declaración de un año anterior, que no han sido calculados correctamente, o que han sido calculados nuevamente, debido a una declaración enmendada. Free downloadable irs tax forms Si no detalló sus deducciones en el año anterior, no incluya el reembolso en los ingresos. Free downloadable irs tax forms Si dedujo los impuestos en el año anterior, incluya todo o parte del reembolso en la línea 10 del Formulario 1040 en el año en que reciba el reembolso. Free downloadable irs tax forms Para obtener una explicación de cuánto incluir, vea Recuperaciones de Fondos en el capítulo 12. Free downloadable irs tax forms Impuestos Extranjeros sobre los Ingresos Generalmente, puede tomar una deducción o un crédito por los impuestos sobre los ingresos que le grava un país extranjero o una posesión (territorio no autónomo) de los Estados Unidos. Free downloadable irs tax forms Sin embargo, no puede tomar una deducción ni un crédito por impuestos sobre los ingresos gravados a usted por otros países, que usted pagó sobre ingresos exentos del impuesto de los EE. Free downloadable irs tax forms UU. Free downloadable irs tax forms , conforme a la exclusión de ingresos ganados en el extranjero o la exclusión por concepto de vivienda en el extranjero. Free downloadable irs tax forms Para información sobre estas exclusiones, vea la Publicación 54, Tax Guide for U. Free downloadable irs tax forms S. Free downloadable irs tax forms Citizens and Resident Aliens Abroad (Guía tributaria para ciudadanos y residentes extranjeros de los EE. Free downloadable irs tax forms UU. Free downloadable irs tax forms en el extranjero), en inglés. Free downloadable irs tax forms Para información sobre el crédito por impuestos extranjeros, vea la Publicación 514, en inglés. Free downloadable irs tax forms Impuestos Generales sobre las Ventas Puede optar por deducir impuestos generales estatales y locales sobre ventas, en lugar de impuestos estatales y locales sobre los ingresos, como deducción detallada en la línea 5b del Anexo A (Formulario 1040). Free downloadable irs tax forms Usted puede calcular la deducción de impuestos sobre las ventas usando los gastos reales o las tablas correspondientes a impuestos estatales y locales. Free downloadable irs tax forms Gastos reales. Free downloadable irs tax forms   Normalmente, puede deducir los impuestos generales estatales y locales reales sobre las ventas (incluidos los impuestos de uso compensatorio) si la tasa de impuestos era igual a la tasa del impuesto general sobre las ventas. Free downloadable irs tax forms No obstante, los impuestos sobre las ventas de comida, ropa, suministros médicos y vehículos motorizados son deducibles como impuestos generales sobre las ventas aun si la tasa de impuestos era inferior a la tasa del impuesto general sobre las ventas. Free downloadable irs tax forms Si pagó impuestos sobre la venta de un vehículo motorizado a una tasa superior a la tasa del impuesto general sobre las ventas, puede deducir sólo la cantidad de impuestos que hubiera pagado conforme a la tasa del impuesto general sobre las ventas correspondientes a dicho vehículo. Free downloadable irs tax forms Si usa el método basado en los gastos reales, tiene que tener recibos para demostrar los impuestos generales pagados sobre las ventas. Free downloadable irs tax forms No incluya impuestos sobre las ventas pagado en los artículos utilizados en su actividad comercial o empresarial. Free downloadable irs tax forms Vehículos de motor. Free downloadable irs tax forms   Para propósitos de esta sección, los vehículos de motor incluyen: automóviles, motocicletas, casas rodantes, vehículos recreativos, vehículos utilitarios deportivos, camiones, camionetas y vehículos para uso fuera de la carretera. Free downloadable irs tax forms Esto también incluye los impuestos sobre las ventas en un vehículo arrendado, pero no en los vehículos utilizados en su actividad comercial o empresarial. Free downloadable irs tax forms Tablas de las tarifas opcionales para impuestos sobre las ventas. Free downloadable irs tax forms   En vez de usar los gastos reales, puede calcular la deducción por impuestos generales estatales y locales sobre las ventas consultando las tablas de tarifas para el impuesto estatal y local sobre las ventas en las Instrucciones del Anexo A (Formulario1040). Free downloadable irs tax forms Además, tal vez pueda añadir los impuestos generales estatales y locales sobre las ventas pagados sobre ciertos artículos específicos. Free downloadable irs tax forms   Su cantidad correspondiente de las tarifas está basada en el estado donde vive, sus ingresos y el número de exenciones reclamadas en su declaración de impuestos. Free downloadable irs tax forms Sus ingresos son el ingreso bruto ajustado más todo artículo no sujeto a impuestos, como los siguientes: Intereses exentos de impuestos. Free downloadable irs tax forms Beneficios para veteranos. Free downloadable irs tax forms Paga por combate no tributable. Free downloadable irs tax forms Compensación del seguro obrero. Free downloadable irs tax forms La parte no sujeta a impuestos de los beneficios del Seguro Social y de la jubilación de empleados ferroviarios. Free downloadable irs tax forms La parte no sujeta a impuestos de una cuenta IRA, pensión o distribuciones de una anualidad, a excepción de las reinversiones. Free downloadable irs tax forms Pagos de beneficios de asistencia pública. Free downloadable irs tax forms   Si vivió en diferentes estados del país durante el mismo año tributario, tiene que prorratear la cantidad de las tarifas correspondiente a cada estado en el que vivió según las fechas en que vivió que en cada estado. Free downloadable irs tax forms Vea las instrucciones de la línea 5 del Anexo A (Formulario 1040) para detalles adicionales. Free downloadable irs tax forms Impuestos sobre Bienes Raíces Los impuestos sobre bienes raíces deducibles son todos los impuestos estatales, locales o extranjeros sobre bienes raíces que se graven para el bienestar general del público. Free downloadable irs tax forms Puede deducir dichos impuestos sólo si se basan en el valor tasado de los bienes raíces y son cobrados uniformemente contra todos los bienes dentro de la jurisdicción de las autoridades tributarias. Free downloadable irs tax forms Los impuestos sobre bienes raíces deducibles no suelen incluir impuestos cobrados por beneficios locales ni mejoras que aumentan el valor de los bienes. Free downloadable irs tax forms Tampoco incluyen cargos detallados por servicios (tal como la recogida de basura) que se les cobran a bienes específicos o ciertas personas, aunque se les pague el cargo a las autoridades tributarias. Free downloadable irs tax forms Para más información sobre impuestos y cargos que no son deducibles, vea Cantidades Relacionadas con Bienes Raíces que no Puede Deducir , más adelante. Free downloadable irs tax forms Inquilinos-accionistas de una sociedad anónima de cooperativa de viviendas. Free downloadable irs tax forms   Normalmente, si es inquilino-accionista de una sociedad anónima de cooperativa de viviendas, puede deducir la cantidad pagada a dicha sociedad anónima que corresponda a su parte de los impuestos sobre bienes raíces que dicha sociedad anónima pagó, o en los que incurrió por la vivienda de usted. Free downloadable irs tax forms La sociedad anónima debería proporcionarle un estado de cuentas en el cual indica la parte de los impuestos que le corresponde. Free downloadable irs tax forms Para más información, vea las Special Rules for Cooperatives (Reglas especiales para cooperativas), en la Publicación 530, en inglés. Free downloadable irs tax forms División de los impuestos sobre bienes raíces entre compradores y vendedores. Free downloadable irs tax forms   Si compró o vendió bienes raíces durante el año, los impuestos sobre bienes raíces tienen que ser divididos entre el comprador y el vendedor. Free downloadable irs tax forms   El comprador y el vendedor tienen que dividir los impuestos de bienes raíces basándose en el número de días del año tributario para bienes raíces (el período relacionado con el impuesto gravado) que cada uno fue dueño de la propiedad. Free downloadable irs tax forms Al vendedor se le trata como si hubiese pagado los impuestos hasta la fecha de la venta, pero sin incluir dicha fecha. Free downloadable irs tax forms Al comprador se le trata como si hubiese pagado los impuestos a partir de la fecha de la venta. Free downloadable irs tax forms Esto corresponde independientemente de las fechas de gravamen bajo la ley local. Free downloadable irs tax forms Generalmente, esta información se incluye en el estado de liquidación proporcionado al cierre. Free downloadable irs tax forms    Si usted (el vendedor) no puede deducir los impuestos hasta que se paguen debido a su uso del método contable a base de efectivo, y el comprador de su propiedad es personalmente responsable de pagar el impuesto, se considera que usted ha pagado su parte del impuesto en el momento de la venta. Free downloadable irs tax forms Esto le permite deducir su parte del impuesto hasta la fecha de venta aunque de hecho no lo haya pagado. Free downloadable irs tax forms Sin embargo, también tiene que incluir la cantidad de dicho impuesto en el precio de venta de la propiedad. Free downloadable irs tax forms El comprador tiene que incluir la misma cantidad en su costo de la propiedad. Free downloadable irs tax forms   Calcule su deducción tributaria sobre cada propiedad comprada o vendida durante el año tributario para bienes raíces conforme a lo siguiente: Hoja de Trabajo 22-1. Free downloadable irs tax forms Cómo Calcular su Deducción por Impuestos sobre Bienes Raíces 1. Free downloadable irs tax forms Anote el total de los impuestos sobre bienes raíces del año tributario para bienes raíces   2. Free downloadable irs tax forms Anote el número de días del año tributario para bienes raíces que usted fue dueño de la propiedad   3. Free downloadable irs tax forms Divida la cantidad de la línea 2 entre 365 (para años bisiestos, divida la cantidad de la línea 2 entre 366) . Free downloadable irs tax forms 4. Free downloadable irs tax forms Multiplique la línea 1 por la línea 3. Free downloadable irs tax forms Ésta es su deducción. Free downloadable irs tax forms Anótela en la línea 6 del Anexo A (Formulario 1040). Free downloadable irs tax forms   Nota: Repita los pasos 1 al 4 para cada propiedad que compró o vendió durante el año tributario para bienes raíces. Free downloadable irs tax forms La deducción total es la suma de las cantidades de la línea 4 para todas las propiedades. Free downloadable irs tax forms Impuestos sobre bienes raíces de años anteriores. Free downloadable irs tax forms   No divida impuestos morosos entre el comprador y el vendedor si dichos impuestos corresponden a un año tributario de bienes raíces anterior al año en que se vendió la propiedad. Free downloadable irs tax forms Aunque el comprador acuerde pagar los impuestos morosos, el mismo no los puede deducir y tiene que sumarlos al costo de la propiedad. Free downloadable irs tax forms El vendedor puede deducir estos impuestos pagados por el comprador. Free downloadable irs tax forms Sin embargo, el vendedor tiene que incluirlos en el precio de venta. Free downloadable irs tax forms Ejemplos. Free downloadable irs tax forms   Los siguientes ejemplos demuestran cómo se dividen los impuestos sobre bienes raíces entre el comprador y el vendedor. Free downloadable irs tax forms Ejemplo 1. Free downloadable irs tax forms El año tributario de bienes raíces de José y María Blanco, tanto para su antigua vivienda como para su nueva vivienda, es el año natural. Free downloadable irs tax forms El plazo para pagar vence el 1 de agosto. Free downloadable irs tax forms El impuesto sobre su antigua vivienda, vendida el 7 de mayo, era $620. Free downloadable irs tax forms El impuesto sobre su nueva vivienda, comprada el 3 de mayo, es $732. Free downloadable irs tax forms Se considera que José y María han pagado una parte proporcional de los impuestos para bienes raíces sobre la antigua vivienda aunque de hecho no se los pagaron a las autoridades tributarias. Free downloadable irs tax forms Por otro lado, pueden declarar sólo una parte proporcional de los impuestos que pagaron sobre su nueva propiedad, aunque pagaron la cantidad completa. Free downloadable irs tax forms José y María fueron dueños de su antigua vivienda durante 126 días del año tributario para bienes raíces (del 1 de enero al 6 de mayo, el día antes de la venta). Free downloadable irs tax forms Calculan su deducción tributaria sobre su antigua vivienda conforme a lo siguiente: Hoja de Trabajo 22-1. Free downloadable irs tax forms Cómo Calcular su Deducción por Impuestos sobre Bienes Raíces−Impuestos sobre Antigua Vivienda 1. Free downloadable irs tax forms Anote el total de los impuestos sobre bienes raíces del año tributario para bienes raíces $620 2. Free downloadable irs tax forms Anote el número de días del año tributario para bienes raíces que usted fue dueño de la propiedad 126 3. Free downloadable irs tax forms Divida la cantidad de la línea 2 entre 365 (para años bisiestos, divida la cantidad de la línea 2 entre 366) . Free downloadable irs tax forms 3452 4. Free downloadable irs tax forms Multiplique la línea 1 por la línea 3. Free downloadable irs tax forms Ésta es su deducción. Free downloadable irs tax forms Anótela en la línea 6 del Anexo A (Formulario 1040). Free downloadable irs tax forms $214 Como los compradores de su antigua vivienda pagaron todos los impuestos, José y María también incluyen los $214 en el precio de venta de la antigua vivienda. Free downloadable irs tax forms Los compradores suman los $214 al costo de su vivienda. Free downloadable irs tax forms José y María fueron dueños de su nueva vivienda durante el año tributario para bienes raíces por 243 días (del 3 de mayo al 31 de diciembre, incluyendo la fecha de compra). Free downloadable irs tax forms Calculan su deducción tributaria sobre su nueva vivienda conforme a lo siguiente: Hoja de Trabajo 22-1. Free downloadable irs tax forms Cómo Calcular su Deducción por Impuestos sobre Bienes Raíces−Impuestos sobre Nueva Vivienda 1. Free downloadable irs tax forms Anote el total de los impuestos sobre bienes raíces del año tributario para bienes raíces $732 2. Free downloadable irs tax forms Anote el número de días del año tributario para bienes raíces que usted fue dueño de la propiedad 243 3. Free downloadable irs tax forms Divida la cantidad de la línea 2 entre 365 (para años bisiestos, divida la cantidad de la línea 2 entre 366) . Free downloadable irs tax forms 6658 4. Free downloadable irs tax forms Multiplique la línea 1 por la línea 3. Free downloadable irs tax forms Ésta es su deducción. Free downloadable irs tax forms Anótela en la línea 6 del Anexo A (Formulario 1040). Free downloadable irs tax forms $487 Como José y María pagaron todos los impuestos sobre la nueva vivienda, suman $245 ($732 pagados menos una deducción de $487) a su costo de la nueva vivienda. Free downloadable irs tax forms Los vendedores suman estos $245 a su precio de venta y deducen los $245 como impuesto sobre los bienes raíces. Free downloadable irs tax forms La deducción por el impuesto sobre bienes raíces de José y María por sus antiguas y nuevas viviendas es la suma de $214 y $487, o sea $701. Free downloadable irs tax forms Anotarán esta cantidad en la línea 6 del Anexo A (Formulario 1040). Free downloadable irs tax forms Ejemplo 2. Free downloadable irs tax forms Jorge y Helena Moreno compraron una nueva casa el 3 de mayo del año 2013. Free downloadable irs tax forms Su año tributario de bienes raíces para la nueva casa es el año natural. Free downloadable irs tax forms Los impuestos sobre bienes raíces para el año 2012 fueron gravados en el estado donde viven los Moreno el 1 de enero del año 2013. Free downloadable irs tax forms El plazo para pagar los impuestos venció el 31 de mayo del año 2013 y el 31 de octubre del año 2013. Free downloadable irs tax forms Los Moreno acordaron pagar todos los impuestos morosos después de la fecha de compra. Free downloadable irs tax forms Los impuestos sobre bienes raíces para el año 2012 fueron $680. Free downloadable irs tax forms Pagaron $340 el 31 de mayo del año 2012 y $340 el 31 de octubre del año 2013. Free downloadable irs tax forms Estos impuestos fueron para el año tributario de bienes raíces de 2012. Free downloadable irs tax forms Los Moreno no pueden deducirlos ya que no fueron dueños de la propiedad hasta el año 2013. Free downloadable irs tax forms En lugar de ello, tienen que añadir $680 al costo de su nueva vivienda. Free downloadable irs tax forms En enero del año 2014, los Moreno reciben su estado de cuenta del impuesto sobre bienes raíces del año 2013 por $752 y pagarán esta cantidad en el año 2014. Free downloadable irs tax forms Los Moreno fueron dueños de su nueva vivienda por 243 días (desde el 3 de mayo hasta el 31 de diciembre) durante el año tributario para bienes raíces de 2013. Free downloadable irs tax forms Calcularán su deducción tributaria para el año 2014 conforme a lo siguiente: Hoja de Trabajo 22-1. Free downloadable irs tax forms Cómo Calcular su Deducción por Impuestos sobre Bienes Raíces−Impuestos sobre Nueva Vivienda 1. Free downloadable irs tax forms Anote el total de los impuestos sobre bienes raíces del año tributario para bienes raíces $752 2. Free downloadable irs tax forms Anote el número de días del año tributario para bienes raíces que usted fue dueño de la propiedad 243 3. Free downloadable irs tax forms Divida la cantidad de la línea 2 entre 365 (para años bisiestos, divida la cantidad de la línea 2 entre 366) . Free downloadable irs tax forms 6658 4. Free downloadable irs tax forms Multiplique la línea 1 por la línea 3. Free downloadable irs tax forms Ésta es su deducción. Free downloadable irs tax forms Anótela en la línea 6 del Anexo A (Formulario 1040). Free downloadable irs tax forms $501 Los impuestos restantes de $251 (los $752 pagados menos una deducción de $501) que fueron pagados en el año 2014, junto con los $680 que fueron pagados en el año 2013, se suman al costo de su nueva vivienda. Free downloadable irs tax forms Debido a que se considera que los impuestos hasta la fecha de venta han sido pagados por el vendedor en la fecha de venta, éste tiene derecho a una deducción tributaria de $931 para el año 2013. Free downloadable irs tax forms Ésta es la suma de los $680 del año 2012 y los $251 por los 122 días durante los cuales fue dueño de la vivienda en el año 2013. Free downloadable irs tax forms El vendedor también tiene que incluir los $931 en el precio de venta cuando calcule la ganancia o pérdida en la venta. Free downloadable irs tax forms El vendedor debería ponerse en contacto con los Moreno en enero del año 2014 para averiguar cuánto impuesto sobre bienes raíces se debe pagar para el año 2013. Free downloadable irs tax forms Formulario 1099-S. Free downloadable irs tax forms   Para ciertas ventas o intercambios de bienes raíces, la persona encargada del cierre de la venta (generalmente el agente a cargo del cierre) prepara el Formulario 1099-S, Proceeds From Real Estate Transactions (Ganancias procedentes de transacciones de bienes raíces), en inglés, para declarar cierta información al IRS y al vendedor de la propiedad. Free downloadable irs tax forms El recuadro 2 del Formulario 1099-S es para las utilidades brutas de la venta y debería incluir la parte de la obligación tributaria por bienes raíces correspondiente al vendedor que el comprador pagará a partir de la fecha de la venta. Free downloadable irs tax forms El comprador incluye estos impuestos en la base del costo de la propiedad y el vendedor deduce esta cantidad como un impuesto pagado y lo incluye en el precio de venta de la propiedad. Free downloadable irs tax forms   Para una transacción de bienes raíces que incluya una vivienda, todo impuesto sobre bienes raíces que el vendedor haya pagado por adelantado pero que es la obligación del comprador aparece en el recuadro 5 del Formulario 1099-S. Free downloadable irs tax forms El comprador deduce esta cantidad como un impuesto sobre bienes raíces y el vendedor reduce esa misma cantidad de su deducción del impuesto sobre bienes raíces (o la incluye en el ingreso). Free downloadable irs tax forms Vea Reembolso (o rebaja) , más adelante. Free downloadable irs tax forms Impuestos depositados en plica. Free downloadable irs tax forms   Si su pago hipotecario mensual incluye una cantidad depositada en plica (puesta bajo la custodia de un tercero) para impuestos sobre bienes raíces, es posible que no pueda deducir toda la cantidad que fue depositada en plica. Free downloadable irs tax forms Puede deducir sólo el impuesto sobre bienes raíces que el tercero de hecho les pagó a las autoridades tributarias. Free downloadable irs tax forms Si el tercero no le avisa de la cantidad de impuesto sobre bienes raíces pagada en nombre suyo, póngase en contacto con el tercero o las autoridades tributarias para averiguar la cantidad que debe usar en su declaración. Free downloadable irs tax forms Tenencia en su totalidad. Free downloadable irs tax forms   Si usted y su cónyuge tuvieron propiedad conyugal en su totalidad y presentan declaraciones federales separadas, cada uno de ustedes puede deducir sólo los impuestos que cada uno de ustedes pagó sobre la propiedad. Free downloadable irs tax forms Personas divorciadas. Free downloadable irs tax forms   Si su acuerdo de divorcio o separación declara que usted tiene que pagar los impuestos sobre bienes raíces por una vivienda cuyos dueños son usted y su cónyuge, una parte de sus pagos podría ser deducible como pensión para el cónyuge divorciado y otra parte como impuestos sobre bienes raíces. Free downloadable irs tax forms Vea Impuestos y seguro en el capítulo 18 para más información. Free downloadable irs tax forms Asignaciones para la vivienda para ministros de una orden religiosa y personal militar. Free downloadable irs tax forms   Si es ministro de la iglesia o miembro de los servicios militares y recibe una asignación para su vivienda que puede excluir de sus ingresos, aún puede deducir todos los impuestos sobre bienes raíces que pague sobre su vivienda. Free downloadable irs tax forms Reembolso (o rebaja). Free downloadable irs tax forms   Si recibió un reembolso o una rebaja en el año tributario 2013 sobre bienes raíces que pagó ese año, tiene que reducir su deducción por la cantidad que se le ha reembolsado. Free downloadable irs tax forms Si recibió un reembolso o una rebaja en el año tributario 2013 sobre bienes raíces que dedujo en un año anterior (ya sea como deducción detallada o como aumento en la deducción estándar), generalmente tiene que incluir el reembolso o la rebaja en los ingresos del año en que lo reciba. Free downloadable irs tax forms Sin embargo, la cantidad que se incluye en los ingresos se limita a la cantidad de la deducción que disminuyó su impuesto en el año anterior. Free downloadable irs tax forms Para más información, vea Recuperación de Fondos en el capítulo 12. Free downloadable irs tax forms Tabla 22-1. Free downloadable irs tax forms ¿Qué Impuestos Puede Deducir? Tipo de Impuestos Puede Deducir No Puede Deducir Honorarios y Cargos Honorarios y cargos que son gastos de su ocupación o negocio o de la generación de ingresos. Free downloadable irs tax forms Honorarios y cargos que no son gastos de su ocupación o negocio o de la generación de ingresos, tales como cargos de licencias para conducir, inspección de vehículos, estacionamiento o cargos por servicios de agua (vea Impuestos y Cargos que no Puede Deducir ). Free downloadable irs tax forms     Multas y sanciones. Free downloadable irs tax forms Impuestos sobre los Ingresos Impuestos estatales y locales sobre los ingresos. Free downloadable irs tax forms Impuestos federales sobre los ingresos. Free downloadable irs tax forms   Impuestos extranjeros sobre los ingresos. Free downloadable irs tax forms Aportaciones del empleado a planes de seguro por incapacidad privados o voluntarios. Free downloadable irs tax forms   Aportaciones del empleado a fondos estatales, tal como se indica bajo Aportaciones a fondos de beneficios estatales . Free downloadable irs tax forms Impuestos generales estatales y locales sobre las ventas si opta por deducir impuestos estatales y locales sobre los ingresos. Free downloadable irs tax forms Impuestos Generales sobre las Ventas Impuestos generales estatales y locales sobre las ventas, incluyendo los impuestos de uso compensatorio. Free downloadable irs tax forms Impuestos estatales y locales sobre los ingresos si opta por deducir impuestos generales estatales y locales sobre las ventas. Free downloadable irs tax forms Otros Impuestos Impuestos que son gastos de su ocupación o negocio. Free downloadable irs tax forms Impuestos federales sobre artículos de uso y consumo, tal como el impuesto sobre gasolina, que no son gastos de su ocupación o negocio o de la generación de ingresos. Free downloadable irs tax forms   Impuestos sobre bienes que generan ingresos del alquiler o de regalías. Free downloadable irs tax forms Impuestos per cápita. Free downloadable irs tax forms   Impuestos sobre una profesión u ocupación. Free downloadable irs tax forms Vea el capítulo 28. Free downloadable irs tax forms     La mitad del impuesto sobre el trabajo por cuenta propia pagado. Free downloadable irs tax forms   Impuestos sobre Bienes Muebles Impuestos estatales y locales sobre bienes muebles. Free downloadable irs tax forms Aranceles de aduanas que no son gastos de su ocupación o negocio o de la generación de ingresos. Free downloadable irs tax forms Impuestos sobre Bienes Raíces Impuestos estatales y locales sobre bienes raíces. Free downloadable irs tax forms Impuestos sobre bienes raíces que se tratan como si hubiesen sido gravados a otra persona (vea División de los impuestos sobre bienes raíces entre compradores y vendedores ). Free downloadable irs tax forms   Impuestos extranjeros sobre bienes raíces. Free downloadable irs tax forms Impuestos para beneficios locales (con excepciones). Free downloadable irs tax forms Vea Cantidades Relacionadas con Bienes Raíces que no Puede Deducir . Free downloadable irs tax forms   La parte de los impuestos sobre bienes raíces del inquilino pagada por una sociedad anónima cooperativa de viviendas. Free downloadable irs tax forms Cargos por la recogida de basura y desperdicios (hay excepciones). Free downloadable irs tax forms Vea Cantidades Relacionadas con Bienes Raíces que no Puede Deducir . Free downloadable irs tax forms     Aumento del alquiler debido a impuestos sobre bienes raíces más altos. Free downloadable irs tax forms     Cuotas de la asociación de propietarios de viviendas. Free downloadable irs tax forms Cantidades Relacionadas con Bienes Raíces que no Puede Deducir Los pagos de los siguientes no suelen ser deducibles como impuestos sobre bienes raíces: Impuestos por beneficios locales. Free downloadable irs tax forms Cargos detallados por servicios (tales como cargos por la recogida de basura y desperdicios). Free downloadable irs tax forms Impuestos de traspaso (impuestos de timbre). Free downloadable irs tax forms Aumentos del alquiler ocasionados por aumentos en los impuestos sobre bienes raíces. Free downloadable irs tax forms Cuotas de la asociación de propietarios de vivienda. Free downloadable irs tax forms Impuestos por beneficios locales. Free downloadable irs tax forms   Los impuestos deducibles sobre bienes raíces no suelen incluir impuestos gravados por beneficios locales y mejoras que tienden a aumentar el valor de la propiedad. Free downloadable irs tax forms Estos incluyen impuestos por mejoras de calles, aceras o banquetas, cañerías principales, alcantarillado, instalaciones de estacionamiento público y mejoras parecidas. Free downloadable irs tax forms Debe aumentar la base de su propiedad por la cantidad pagada. Free downloadable irs tax forms   Los impuestos sobre beneficios locales se pueden deducir únicamente si son por mantenimiento, reparaciones o cargos de intereses relacionados con aquellos beneficios. Free downloadable irs tax forms Si sólo una parte de los impuestos es por mantenimiento, reparaciones o intereses, tiene que poder determinar cuánta fue la cantidad de dicha parte para reclamar la deducción. Free downloadable irs tax forms Si no puede determinar qué parte del impuesto es por mantenimiento, reparaciones o intereses, ninguna parte de éste es deducible. Free downloadable irs tax forms    Los impuestos sobre beneficios locales podrían incluirse en su factura del impuesto sobre bienes raíces. Free downloadable irs tax forms Si las autoridades tributarias (o prestamista hipotecario) no le proveen una copia de su factura del impuesto sobre bienes raíces, pídala. Free downloadable irs tax forms Debe usar las reglas indicadas anteriormente para determinar si puede deducir el impuesto sobre beneficios locales. Free downloadable irs tax forms Comuníquese con las autoridades tributarias si necesita información adicional sobre un cargo específico indicado en su factura del impuesto sobre bienes raíces. Free downloadable irs tax forms Cargos detallados por servicios. Free downloadable irs tax forms    Un cargo detallado por servicios sobre una propiedad o persona específica no es un impuesto, aun si el cargo se paga a las autoridades tributarias. Free downloadable irs tax forms Por ejemplo, no puede deducir el cargo como un impuesto sobre bienes raíces si es: Un cargo unitario por el abastecimiento de un servicio (tal como un cargo de $5 que se cobra por cada 1,000 galones de agua que use), Un cargo periódico por un servicio residencial (tal como un cargo de $20 al mes o $240 al año que se le cobra a cada propietario de viviendas por la recogida de basura) o Un cargo fijo que se cobra por un solo servicio provisto por su gobierno (tal como un cargo de $30 por cortar el césped por haberla dejado crecer más de lo permitido conforme al reglamento local). Free downloadable irs tax forms    Tiene que revisar su factura del impuesto sobre bienes raíces para determinar si algún cargo detallado no deducible, como los que se enumeran anteriormente, se ha incluido en la factura. Free downloadable irs tax forms Si las autoridades tributarias (o el prestamista hipotecario) no le proveen una copia de su factura del impuesto sobre bienes raíces, pídala. Free downloadable irs tax forms Excepción. Free downloadable irs tax forms   Los cargos que se utilizan para mantener o mejorar servicios (tal como la recogida de basura o la protección policial o contra incendios) son deducibles como impuestos sobre bienes raíces si: Los cargos se gravan a una tasa similar para todos los bienes en la jurisdicción que impone el impuesto, Los fondos recaudados no tienen designación específica; en vez de ello, están mezclados con fondos fiscales generales y Los fondos utilizados para mantener y mejorar servicios no se limitan a la cantidad de dichos cargos recaudados ni están determinados por dicha cantidad. Free downloadable irs tax forms Impuestos de traspaso (impuestos de timbre). Free downloadable irs tax forms   No se pueden deducir los impuestos de traspaso ni impuestos similares, ni los cargos sobre la venta de una vivienda personal. Free downloadable irs tax forms Si los paga el vendedor, son gastos de la venta y reducen la cantidad generada por la venta. Free downloadable irs tax forms Si los paga el comprador, se incluyen en la base del costo de los bienes. Free downloadable irs tax forms Aumento del alquiler debido a impuestos sobre bienes raíces más altos. Free downloadable irs tax forms   Si su arrendador aumenta su alquiler en forma de recargo tributario (surcharge) debido a un aumento de los impuestos sobre bienes raíces, no puede deducir dicho aumento como impuesto. Free downloadable irs tax forms Cuotas de la asociación de propietarios de vivienda. Free downloadable irs tax forms   Estos cargos no se pueden deducir porque son gravados por la asociación de propietarios de vivienda y no por el gobierno estatal o local. Free downloadable irs tax forms Impuestos sobre Bienes Muebles El impuesto sobre bienes muebles es deducible si es un impuesto estatal o local que: Se cobra sobre bienes muebles, Se basa únicamente en el valor de los bienes muebles y Se cobra anualmente, aunque se pague más o menos una vez al año. Free downloadable irs tax forms Se puede considerar que un impuesto que reúna los requisitos anteriores ha sido cobrado sobre bienes muebles aunque sea para el ejercicio de un privilegio. Free downloadable irs tax forms Por ejemplo, un impuesto anual basado en el valor reúne los requisitos como impuesto sobre bienes muebles, aunque se denomine un cargo de registro y sea para el privilegio de registrar automóviles o utilizarlos en las carreteras. Free downloadable irs tax forms Si el impuesto se basa parcialmente en el valor y parcialmente en otros criterios, puede reunir los requisitos en parte. Free downloadable irs tax forms Ejemplo. Free downloadable irs tax forms El estado en el que vive cobra un impuesto anual del 1% del valor, más 50 centavos por quintal (cien libras de peso) de un vehículo por el registro del mismo. Free downloadable irs tax forms Usted pagó $32 basados en el valor ($1,500) y peso (3,400 libras) de su automóvil. Free downloadable irs tax forms Puede deducir $15 (1% x $1,500) como un impuesto sobre bienes muebles, ya que esa parte se basa en el valor. Free downloadable irs tax forms Los $17 restantes ($0. Free downloadable irs tax forms 50 x 34), basados en el peso, no se pueden deducir. Free downloadable irs tax forms Impuestos y Cargos que no Puede Deducir Muchos impuestos del gobierno federal, estatal y local no son deducibles porque no pertenecen a las categorías mencionadas anteriormente. Free downloadable irs tax forms Otros impuestos y cargos, tales como los impuestos federales sobre los ingresos, no son deducibles debido a que la ley tributaria prohibe específicamente la deducción de éstos. Free downloadable irs tax forms Vea la Tabla 22-1. Free downloadable irs tax forms Los impuestos y cargos que generalmente no se pueden deducir incluyen los siguientes: Impuestos sobre la nómina. Free downloadable irs tax forms Esto incluye los impuestos del Seguro Social, Medicare e impuestos sobre la jubilación ferroviaria retenidos de su paga. Free downloadable irs tax forms No obstante, una mitad del impuesto que usted paga sobre el trabajo por cuenta propia es deducible. Free downloadable irs tax forms Asimismo, es posible que los impuestos del Seguro Social y otros impuestos laborales sobre la nómina que usted paga sobre el salario de un empleado doméstico se puedan incluir en los gastos médicos deducibles o en los gastos del cuidado de hijos que le permitan reclamar el crédito por gastos del cuidado de menores y dependientes. Free downloadable irs tax forms Para más información, vea los capítulos 21 y 32. Free downloadable irs tax forms Impuestos sobre caudales hereditarios, herencias, legados o sucesiones. Free downloadable irs tax forms No obstante, puede deducir la parte del impuesto sobre la herencia atribuible al ingreso proveniente de un difunto si usted, como beneficiario, tiene que incluir dicho ingreso en su propio ingreso bruto. Free downloadable irs tax forms En este caso, deduzca el impuesto sobre la herencia como deducción miscelánea no sujeta al límite del 2% del ingreso bruto ajustado. Free downloadable irs tax forms Para más información, vea la Publicación 559, Survivors, Executors, and Administrators (Sobrevivientes, albaceas y administradores), en inglés. Free downloadable irs tax forms Impuestos federales sobre los ingresos. Free downloadable irs tax forms Incluye impuestos sobre los ingresos retenidos de su paga. Free downloadable irs tax forms Multas y sanciones. Free downloadable irs tax forms No puede deducir multas y sanciones pagadas a un gobierno por la violación de alguna ley, incluidas cantidades afines de garantía que haya perdido. Free downloadable irs tax forms Impuestos sobre donaciones. Free downloadable irs tax forms Cargos por licencias. Free downloadable irs tax forms No puede deducir cargos por licencias para propósitos personales (cargos por licencia matrimonial, licencias para conducir y permiso para perros). Free downloadable irs tax forms Impuestos per cápita. Free downloadable irs tax forms No puede deducir los impuestos per cápita estatales o locales. Free downloadable irs tax forms Muchos impuestos y cargos que no se enumeraron anteriormente tampoco pueden ser deducidos, a menos que sean gastos ordinarios y necesarios de una actividad comercial o una actividad que genere ingresos. Free downloadable irs tax forms Para otros cargos que no se pueden deducir, vea Cantidades Relacionadas con Bienes Raíces que no Puede Deducir , anteriormente. Free downloadable irs tax forms Dónde se Anotan las Deducciones Los impuestos se deducen en los siguientes anexos: Impuestos estatales y locales sobre los ingresos. Free downloadable irs tax forms    Estos impuestos se deducen en la línea 5 del Anexo A (Formulario 1040), aunque su única fuente de ingresos sea de negocios, alquileres o regalías. Free downloadable irs tax forms Marque el recuadro a en la línea 5. Free downloadable irs tax forms Impuestos generales sobre las ventas. Free downloadable irs tax forms   Los impuestos sobre las ventas se deducen en la línea 5 del Anexo A (Formulario 1040). Free downloadable irs tax forms Usted tiene que marcar el recuadro b en la línea 5. Free downloadable irs tax forms Si elige deducir estos impuestos, no puede deducir impuestos estatales y locales sobre los ingresos en el recuadro a de la línea 5 del Anexo A (Formulario 1040). Free downloadable irs tax forms Impuestos extranjeros sobre los ingresos. Free downloadable irs tax forms   Por lo general, los impuestos que paga a un país extranjero o una posesión (territorio no autónomo) estadounidense pueden ser reclamados como una deducción detallada en la línea 8 del Anexo A (Formulario 1040) o como un crédito a su favor para su impuesto sobre el ingreso de los EE. Free downloadable irs tax forms UU. Free downloadable irs tax forms en la línea 47 del Formulario 1040. Free downloadable irs tax forms Para reclamar el crédito, es posible que tenga que llenar y adjuntar el Formulario 1116, en inglés. Free downloadable irs tax forms Para más información, vea el capítulo 37 de esta publicación, las Instrucciones del Formulario 1040 o la Publicación 514, estos dos últimos en inglés. Free downloadable irs tax forms Impuestos sobre bienes raíces e impuestos sobre bienes muebles. Free downloadable irs tax forms    Los impuestos sobre bienes raíces e impuestos sobre bienes muebles se anotan en las líneas 6 y 7, respectivamente, del Anexo A (Formulario 1040), a menos que se paguen sobre bienes utilizados en su negocio. Free downloadable irs tax forms En tal caso, se anotan en el Anexo C, Anexo C-EZ o Anexo F (Formulario 1040). Free downloadable irs tax forms Los impuestos sobre propiedad que genere ingresos de alquiler o de regalías se anotan en el Anexo E (Formulario 1040). Free downloadable irs tax forms Impuestos sobre el trabajo por cuenta propia. Free downloadable irs tax forms    Deduzca la mitad de su impuesto sobre el trabajo por cuenta propia en la línea 27 del Formulario 1040. Free downloadable irs tax forms Otros impuestos. Free downloadable irs tax forms    Todos los demás impuestos deducibles se anotan en la línea 8 del Anexo A (Formulario 1040). Free downloadable irs tax forms Prev  Up  Next   Home   More Online Publications
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The Free Downloadable Irs Tax Forms

Free downloadable irs tax forms 3. Free downloadable irs tax forms   Investment Expenses Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Limits on DeductionsPassive activity. Free downloadable irs tax forms Other income (nonpassive income). Free downloadable irs tax forms Expenses. Free downloadable irs tax forms Additional information. Free downloadable irs tax forms Interest ExpensesInvestment Interest Limit on Deduction Bond Premium AmortizationSpecial rules to determine amounts payable on a bond. Free downloadable irs tax forms Basis. Free downloadable irs tax forms How To Figure Amortization Choosing To Amortize How To Report Amortization Expenses of Producing IncomeFees to buy or sell. Free downloadable irs tax forms Including mutual fund or REMIC expenses in income. Free downloadable irs tax forms Nondeductible ExpensesUsed as collateral. Free downloadable irs tax forms Short-sale expenses. Free downloadable irs tax forms Expenses for both tax-exempt and taxable income. Free downloadable irs tax forms State income taxes. Free downloadable irs tax forms Nondeductible amount. Free downloadable irs tax forms Basis adjustment. Free downloadable irs tax forms How To Report Investment Expenses When To Report Investment Expenses Topics - This chapter discusses: Limits on Deductions , Interest Expenses , Bond Premium Amortization , Expenses of Producing Income , Nondeductible Expenses , How To Report Investment Expenses , and When To Report Investment Expenses . Free downloadable irs tax forms Useful Items - You may want to see: Publication 535 Business Expenses 925 Passive Activity and At-Risk Rules 929 Tax Rules for Children and Dependents Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 4952 Investment Interest Expense Deduction See chapter 5, How To Get Tax Help , for information about getting these publications and forms. Free downloadable irs tax forms Limits on Deductions Your deductions for investment expenses may be limited by: The at-risk rules, The passive activity loss limits, The limit on investment interest, or The 2% limit on certain miscellaneous itemized deductions. Free downloadable irs tax forms The at-risk rules and passive activity rules are explained briefly in this section. Free downloadable irs tax forms The limit on investment interest is explained later in this chapter under Interest Expenses . Free downloadable irs tax forms The 2% limit is explained later in this chapter under Expenses of Producing Income . Free downloadable irs tax forms At-risk rules. Free downloadable irs tax forms   Special at-risk rules apply to most income-producing activities. Free downloadable irs tax forms These rules limit the amount of loss you can deduct to the amount you risk losing in the activity. Free downloadable irs tax forms Generally, this is the cash and the adjusted basis of property you contribute to the activity. Free downloadable irs tax forms It also includes money you borrow for use in the activity if you are personally liable for repayment or if you use property not used in the activity as security for the loan. Free downloadable irs tax forms For more information, see Publication 925. Free downloadable irs tax forms Passive activity losses and credits. Free downloadable irs tax forms   The amount of losses and tax credits you can claim from passive activities is limited. Free downloadable irs tax forms Generally, you are allowed to deduct passive activity losses only up to the amount of your passive activity income. Free downloadable irs tax forms Also, you can use credits from passive activities only against tax on the income from passive activities. Free downloadable irs tax forms There are exceptions for certain activities, such as rental real estate activities. Free downloadable irs tax forms Passive activity. Free downloadable irs tax forms   A passive activity generally is any activity involving the conduct of any trade or business in which you do not materially participate and any rental activity. Free downloadable irs tax forms However, if you are involved in renting real estate, the activity is not a passive activity if both of the following are true. Free downloadable irs tax forms More than one-half of the personal services you perform during the year in all trades or businesses are performed in real property trades or businesses in which you materially participate. Free downloadable irs tax forms You perform more than 750 hours of services during the year in real property trades or businesses in which you materially participate. Free downloadable irs tax forms  The term “trade or business” generally means any activity that involves the conduct of a trade or business, is conducted in anticipation of starting a trade or business, or involves certain research or experimental expenditures. Free downloadable irs tax forms However, it does not include rental activities or certain activities treated as incidental to holding property for investment. Free downloadable irs tax forms   You are considered to materially participate in an activity if you are involved on a regular, continuous, and substantial basis in the operations of the activity. Free downloadable irs tax forms Other income (nonpassive income). Free downloadable irs tax forms    Generally, you can use losses from passive activities only to offset income from passive activities. Free downloadable irs tax forms You cannot use passive activity losses to offset your other income, such as your wages or your portfolio income. Free downloadable irs tax forms Portfolio income includes gross income from interest, dividends, annuities, or royalties that is not derived in the ordinary course of a trade or business. Free downloadable irs tax forms It also includes gains or losses (not derived in the ordinary course of a trade or business) from the sale or trade of property (other than an interest in a passive activity) producing portfolio income or held for investment. Free downloadable irs tax forms This includes capital gain distributions from mutual funds (and other regulated investment companies) and real estate investment trusts. Free downloadable irs tax forms   You cannot use passive activity losses to offset Alaska Permanent Fund dividends. Free downloadable irs tax forms Expenses. Free downloadable irs tax forms   Do not include in the computation of your passive activity income or loss: Expenses (other than interest) that are clearly and directly allocable to your portfolio income, or Interest expense properly allocable to portfolio income. Free downloadable irs tax forms However, this interest and other expenses may be subject to other limits. Free downloadable irs tax forms These limits are explained in the rest of this chapter. Free downloadable irs tax forms Additional information. Free downloadable irs tax forms   For more information about determining and reporting income and losses from passive activities, see Publication 925. Free downloadable irs tax forms Interest Expenses This section discusses interest expenses you may be able to deduct as an investor. Free downloadable irs tax forms For information on business interest, see chapter 4 of Publication 535. Free downloadable irs tax forms You cannot deduct personal interest expenses other than qualified home mortgage interest, as explained in Publication 936, Home Mortgage Interest Deduction, and interest on certain student loans, as explained in Publication 970. Free downloadable irs tax forms Investment Interest If you borrow money to buy property you hold for investment, the interest you pay is investment interest. Free downloadable irs tax forms You can deduct investment interest subject to the limit discussed later. Free downloadable irs tax forms However, you cannot deduct interest you incurred to produce tax-exempt income. Free downloadable irs tax forms See Tax-exempt income under Nondeductible Expenses, later. Free downloadable irs tax forms You also cannot deduct interest expenses on straddles discussed under Interest expense and carrying charges on straddles , later. Free downloadable irs tax forms Investment interest does not include any qualified home mortgage interest or any interest taken into account in computing income or loss from a passive activity. Free downloadable irs tax forms Investment property. Free downloadable irs tax forms   Property held for investment includes property that produces interest, dividends, annuities, or royalties not derived in the ordinary course of a trade or business. Free downloadable irs tax forms It also includes property that produces gain or loss (not derived in the ordinary course of a trade or business) from the sale or trade of property producing these types of income or held for investment (other than an interest in a passive activity). Free downloadable irs tax forms Investment property also includes an interest in a trade or business activity in which you did not materially participate (other than a passive activity). Free downloadable irs tax forms Partners, shareholders, and beneficiaries. Free downloadable irs tax forms   To determine your investment interest, combine your share of investment interest from a partnership, S corporation, estate, or trust with your other investment interest. Free downloadable irs tax forms Allocation of Interest Expense If you borrow money for business or personal purposes as well as for investment, you must allocate the debt among those purposes. Free downloadable irs tax forms Only the interest expense on the part of the debt used for investment purposes is treated as investment interest. Free downloadable irs tax forms The allocation is not affected by the use of property that secures the debt. Free downloadable irs tax forms Example 1. Free downloadable irs tax forms You borrow $10,000 and use $8,000 to buy stock. Free downloadable irs tax forms You use the other $2,000 to buy items for your home. Free downloadable irs tax forms Since 80% of the debt is used for, and allocated to, investment purposes, 80% of the interest on that debt is investment interest. Free downloadable irs tax forms The other 20% is nondeductible personal interest. Free downloadable irs tax forms Debt proceeds received in cash. Free downloadable irs tax forms   If you receive debt proceeds in cash, the proceeds are generally not treated as investment property. Free downloadable irs tax forms Debt proceeds deposited in account. Free downloadable irs tax forms   If you deposit debt proceeds in an account, that deposit is treated as investment property, regardless of whether the account bears interest. Free downloadable irs tax forms But, if you withdraw the funds and use them for another purpose, you must reallocate the debt to determine the amount considered to be for investment purposes. Free downloadable irs tax forms Example 2. Free downloadable irs tax forms Assume in Example 1 that you borrowed the money on March 1 and immediately bought the stock for $8,000. Free downloadable irs tax forms You did not buy the household items until June 1. Free downloadable irs tax forms You had deposited the $2,000 in the bank. Free downloadable irs tax forms You had no other transactions on the bank account until June. Free downloadable irs tax forms You did not sell the stock, and you made no principal payments on the debt. Free downloadable irs tax forms You paid interest from another account. Free downloadable irs tax forms The $8,000 is treated as being used for an investment purpose. Free downloadable irs tax forms The $2,000 is treated as being used for an investment purpose for the 3-month period. Free downloadable irs tax forms Your total interest expense for 3 months on this debt is investment interest. Free downloadable irs tax forms In June, when you spend the $2,000 for household items, you must begin to allocate 80% of the debt and the interest expense to investment purposes and 20% to personal purposes. Free downloadable irs tax forms Amounts paid within 30 days. Free downloadable irs tax forms   If you receive loan proceeds in cash or if the loan proceeds are deposited in an account, you can treat any payment (up to the amount of the proceeds) made from any account you own, or from cash, as made from those proceeds. Free downloadable irs tax forms This applies to any payment made within 30 days before or after the proceeds are received in cash or deposited in your account. Free downloadable irs tax forms   If you received the loan proceeds in cash, you can treat the payment as made on the date you received the cash instead of the date you actually made the payment. Free downloadable irs tax forms Payments on debt may require new allocation. Free downloadable irs tax forms   As you repay a debt used for more than one purpose, you must reallocate the balance. Free downloadable irs tax forms You must first reduce the amount allocated to personal purposes by the repayment. Free downloadable irs tax forms You then reallocate the rest of the debt to find what part is for investment purposes. Free downloadable irs tax forms Example 3. Free downloadable irs tax forms If, in Example 2 , you repay $500 on November 1, the entire repayment is applied against the amount allocated to personal purposes. Free downloadable irs tax forms The debt balance is now allocated as $8,000 for investment purposes and $1,500 for personal purposes. Free downloadable irs tax forms Until the next reallocation is necessary, 84% ($8,000 ÷ $9,500) of the debt and the interest expense is allocated to investment. Free downloadable irs tax forms Pass-through entities. Free downloadable irs tax forms   If you use borrowed funds to buy an interest in a partnership or S corporation, then the interest on those funds must be allocated based on the assets of the entity. Free downloadable irs tax forms If you contribute to the capital of the entity, you can make the allocation using any reasonable method. Free downloadable irs tax forms Additional allocation rules. Free downloadable irs tax forms   For more information about allocating interest expense, see chapter 4 of Publication 535. Free downloadable irs tax forms When To Deduct Investment Interest If you use the cash method of accounting, you must pay the interest before you can deduct it. Free downloadable irs tax forms If you use an accrual method of accounting, you can deduct interest over the period it accrues, regardless of when you pay it. Free downloadable irs tax forms For an exception, see Unpaid expenses owed to related party under When To Report Investment Expenses, later in this chapter. Free downloadable irs tax forms Example. Free downloadable irs tax forms You borrowed $1,000 on August 26, 2013, payable in 90 days at 12% interest. Free downloadable irs tax forms On November 26, 2013, you paid this with a new note for $1,030, due on February 26, 2014. Free downloadable irs tax forms If you use the cash method of accounting, you cannot deduct any part of the $30 interest on your return for 2013 because you did not actually pay it. Free downloadable irs tax forms If you use an accrual method, you may be able to deduct a portion of the interest on the loans through December 31, 2013, on your return for 2013. Free downloadable irs tax forms Interest paid in advance. Free downloadable irs tax forms   Generally, if you pay interest in advance for a period that goes beyond the end of the tax year, you must spread the interest over the tax years to which it belongs under the OID rules discussed in chapter 1. Free downloadable irs tax forms You can deduct in each year only the interest for that year. Free downloadable irs tax forms Interest on margin accounts. Free downloadable irs tax forms   If you are a cash method taxpayer, you can deduct interest on margin accounts to buy taxable securities as investment interest in the year you paid it. Free downloadable irs tax forms You are considered to have paid interest on these accounts only when you actually pay the broker or when payment becomes available to the broker through your account. Free downloadable irs tax forms Payment may become available to the broker through your account when the broker collects dividends or interest for your account, or sells securities held for you or received from you. Free downloadable irs tax forms   You cannot deduct any interest on money borrowed for personal reasons. Free downloadable irs tax forms Limit on interest deduction for market discount bonds. Free downloadable irs tax forms   The amount you can deduct for interest expense you paid or accrued during the year to buy or carry a market discount bond may be limited. Free downloadable irs tax forms This limit does not apply if you accrue the market discount and include it in your income currently. Free downloadable irs tax forms   Under this limit, the interest is deductible only to the extent it is more than: The total interest and OID includible in gross income for the bond for the year, plus The market discount for the number of days you held the bond during the year. Free downloadable irs tax forms Figure the amount in (2) above using the rules for figuring accrued market discount in chapter 1 under Market Discount Bonds . Free downloadable irs tax forms Interest not deducted due to limit. Free downloadable irs tax forms   In the year you dispose of the bond, you can deduct any interest expense you were not allowed to deduct in earlier years because of the limit. Free downloadable irs tax forms Choosing to deduct disallowed interest expense before the year of disposition. Free downloadable irs tax forms   You can choose to deduct disallowed interest expense in any year before the year you dispose of the bond, up to your net interest income from the bond during the year. Free downloadable irs tax forms The rest of the disallowed interest expense remains deductible in the year you dispose of the bond. Free downloadable irs tax forms Net interest income. Free downloadable irs tax forms   This is the interest income (including OID) from the bond that you include in income for the year, minus the interest expense paid or accrued during the year to purchase or carry the bond. Free downloadable irs tax forms Limit on interest deduction for short-term obligations. Free downloadable irs tax forms   If the current income inclusion rules discussed in chapter 1 under Discount on Short-Term Obligations do not apply to you, the amount you can deduct for interest expense you paid or accrued during the year to buy or carry a short-term obligation is limited. Free downloadable irs tax forms   The interest is deductible only to the extent it is more than: The amount of acquisition discount or OID on the obligation for the tax year, plus The amount of any interest payable on the obligation for the year that is not included in income because of your accounting method (other than interest taken into account in determining the amount of acquisition discount or OID). Free downloadable irs tax forms The method of determining acquisition discount and OID for short-term obligations is discussed in chapter 1 under Discount on Short-Term Obligations . Free downloadable irs tax forms Interest not deducted due to limit. Free downloadable irs tax forms   In the year you dispose of the obligation, or, if you choose, in another year in which you have net interest income from the obligation, you can deduct any interest expense you were not allowed to deduct for an earlier year because of the limit. Free downloadable irs tax forms Follow the same rules provided in the earlier discussion under Limit on interest deduction for market discount bonds , earlier. Free downloadable irs tax forms Limit on Deduction Generally, your deduction for investment interest expense is limited to your net investment income. Free downloadable irs tax forms You can carry over the amount of investment interest you could not deduct because of this limit to the next tax year. Free downloadable irs tax forms The interest carried over is treated as investment interest paid or accrued in that next year. Free downloadable irs tax forms You can carry over disallowed investment interest to the next tax year even if it is more than your taxable income in the year the interest was paid or accrued. Free downloadable irs tax forms Net Investment Income Determine the amount of your net investment income by subtracting your investment expenses (other than interest expense) from your investment income. Free downloadable irs tax forms Investment income. Free downloadable irs tax forms   This generally includes your gross income from property held for investment (such as interest, dividends, annuities, and royalties). Free downloadable irs tax forms Investment income does not include Alaska Permanent Fund dividends. Free downloadable irs tax forms It also does not include qualified dividends or net capital gain unless you choose to include them. Free downloadable irs tax forms Choosing to include qualified dividends. Free downloadable irs tax forms   Investment income generally does not include qualified dividends, discussed in chapter 1. Free downloadable irs tax forms However, you can choose to include all or part of your qualified dividends in investment income. Free downloadable irs tax forms   You make this choice by completing Form 4952, line 4g, according to its instructions. Free downloadable irs tax forms   If you choose to include any of your qualified dividends in investment income, you must reduce your qualified dividends that are eligible for the lower capital gains tax rates by the same amount. Free downloadable irs tax forms Choosing to include net capital gain. Free downloadable irs tax forms    Investment income generally does not include net capital gain from disposing of investment property (including capital gain distributions from mutual funds). Free downloadable irs tax forms However, you can choose to include all or part of your net capital gain in investment income. Free downloadable irs tax forms   You make this choice by completing Form 4952, line 4g, according to its instructions. Free downloadable irs tax forms   If you choose to include any of your net capital gain in investment income, you must reduce your net capital gain that is eligible for the lower capital gains tax rates by the same amount. Free downloadable irs tax forms   For more information about the capital gains rates, see Capital Gain Tax Rates in chapter 4. Free downloadable irs tax forms    Before making either choice, consider the overall effect on your tax liability. Free downloadable irs tax forms Compare your tax if you make one or both of these choices with your tax if you do not. Free downloadable irs tax forms Investment income of child reported on parent's return. Free downloadable irs tax forms   Investment income includes the part of your child's interest and dividend income you choose to report on your return. Free downloadable irs tax forms If the child does not have qualified dividends, Alaska Permanent Fund dividends, or capital gain distributions, this is the amount on line 6 of Form 8814. Free downloadable irs tax forms Include it on line 4a of Form 4952. Free downloadable irs tax forms Example. Free downloadable irs tax forms Your 8-year-old son has interest income of $2,200, which you choose to report on your own return. Free downloadable irs tax forms You enter $2,200 on Form 8814, lines 1a and 4, and $200 on lines 6 and 12 and complete Part II. Free downloadable irs tax forms Also enter $200 on Form 1040, line 21. Free downloadable irs tax forms Your investment income includes this $200. Free downloadable irs tax forms Child's qualified dividends. Free downloadable irs tax forms   If part of the amount you report is your child's qualified dividends, that part (which is reported on Form 1040, line 9b) generally does not count as investment income. Free downloadable irs tax forms However, you can choose to include all or part of it in investment income, as explained under Choosing to include qualified dividends , earlier. Free downloadable irs tax forms   Your investment income also includes the amount on Form 8814, line 12 (or, if applicable, the reduced amount figured next under Child's Alaska Permanent Fund dividends). Free downloadable irs tax forms Child's Alaska Permanent Fund dividends. Free downloadable irs tax forms   If part of the amount you report is your child's Alaska Permanent Fund dividends, that part does not count as investment income. Free downloadable irs tax forms To figure the amount of your child's income that you can consider your investment income, start with the amount on Form 8814, line 6. Free downloadable irs tax forms Multiply that amount by a percentage that is equal to the Alaska Permanent Fund dividends divided by the total amount on Form 8814, line 4. Free downloadable irs tax forms Subtract the result from the amount on Form 8814, line 12. Free downloadable irs tax forms Example. Free downloadable irs tax forms Your 10-year-old child has taxable interest income of $4,000 and Alaska Permanent Fund dividends of $2,000. Free downloadable irs tax forms You choose to report this on your return. Free downloadable irs tax forms You enter $4,000 on Form 8814, line 1a, $2,000 on line 2a, and $6,000 on line 4. Free downloadable irs tax forms You then enter $4,000 on Form 8814, lines 6 and 12, and Form 1040, line 21. Free downloadable irs tax forms You figure the amount of your child's income that you can consider your investment income as follows: $4,000 − ($4,000 × ($2,000 ÷ $6,000)) = $2,667 You include the result, $2,667, on Form 4952, line 4a. Free downloadable irs tax forms Child's capital gain distributions. Free downloadable irs tax forms   If part of the amount you report is your child's capital gain distributions, that part (which is reported on Schedule D (Form 1040), line 13, or Form 1040, line 13) generally does not count as investment income. Free downloadable irs tax forms However, you can choose to include all or part of it in investment income, as explained in Choosing to include net capital gain , earlier. Free downloadable irs tax forms   Your investment income also includes the amount on Form 8814, line 12 (or, if applicable, the reduced amount figured under Child's Alaska Permanent Fund dividends , earlier). Free downloadable irs tax forms Investment expenses. Free downloadable irs tax forms   Investment expenses are your allowed deductions (other than interest expense) directly connected with the production of investment income. Free downloadable irs tax forms Investment expenses that are included as a miscellaneous itemized deduction on Schedule A (Form 1040) are allowable deductions after applying the 2% limit that applies to miscellaneous itemized deductions. Free downloadable irs tax forms Use the smaller of: The investment expenses included on Schedule A (Form 1040), line 23, or The amount on Schedule A (Form 1040), line 27. Free downloadable irs tax forms See Expenses of Producing Income , later, for a discussion of the 2% limit. Free downloadable irs tax forms Losses from passive activities. Free downloadable irs tax forms   Income or expenses that you used in computing income or loss from a passive activity are not included in determining your investment income or investment expenses (including investment interest expense). Free downloadable irs tax forms See Publication 925 for information about passive activities. Free downloadable irs tax forms Example. Free downloadable irs tax forms Ted is a partner in a partnership that operates a business. Free downloadable irs tax forms However, he does not materially participate in the partnership's business. Free downloadable irs tax forms Ted's interest in the partnership is considered a passive activity. Free downloadable irs tax forms Ted's investment income from interest and dividends (other than qualified dividends) is $10,000. Free downloadable irs tax forms His investment expenses (other than interest) are $3,200 after taking into account the 2% limit on miscellaneous itemized deductions. Free downloadable irs tax forms His investment interest expense is $8,000. Free downloadable irs tax forms Ted also has income from the partnership of $2,000. Free downloadable irs tax forms Ted figures his net investment income and the limit on his investment interest expense deduction in the following way: Total investment income $10,000 Minus: Investment expenses (other than interest) 3,200 Net investment income $6,800 Deductible investment interest expense for the year $6,800 The $2,000 of income from the passive activity is not used in determining Ted's net investment income. Free downloadable irs tax forms His investment interest deduction for the year is limited to $6,800, the amount of his net investment income. Free downloadable irs tax forms Form 4952 Use Form 4952 to figure your deduction for investment interest. Free downloadable irs tax forms See Form 4952 for more information. Free downloadable irs tax forms Exception to use of Form 4952. Free downloadable irs tax forms   You do not have to complete Form 4952 or attach it to your return if you meet all of the following tests. Free downloadable irs tax forms Your investment interest expense is not more than your investment income from interest and ordinary dividends minus any qualified dividends. Free downloadable irs tax forms You do not have any other deductible investment expenses. Free downloadable irs tax forms You have no carryover of investment interest expense from 2012. Free downloadable irs tax forms   If you meet all of these tests, you can deduct all of your investment interest. Free downloadable irs tax forms    Bond Premium Amortization If you pay a premium to buy a bond, the premium is part of your basis in the bond. Free downloadable irs tax forms If the bond yields taxable interest, you can choose to amortize the premium. Free downloadable irs tax forms This generally means that each year, over the life of the bond, you use a part of the premium to reduce the amount of interest includible in your income. Free downloadable irs tax forms If you make this choice, you must reduce your basis in the bond by the amortization for the year. Free downloadable irs tax forms If the bond yields tax-exempt interest, you must amortize the premium. Free downloadable irs tax forms This amortized amount is not deductible in determining taxable income. Free downloadable irs tax forms However, each year you must reduce your basis in the bond (and tax-exempt interest otherwise reportable on Form 1040, line 8b) by the amortization for the year. Free downloadable irs tax forms Bond premium. Free downloadable irs tax forms   Bond premium is the amount by which your basis in the bond right after you get it is more than the total of all amounts payable on the bond after you get it (other than payments of qualified stated interest). Free downloadable irs tax forms For example, a bond with a maturity value of $1,000 generally would have a $50 premium if you buy it for $1,050. Free downloadable irs tax forms Special rules to determine amounts payable on a bond. Free downloadable irs tax forms   For special rules that apply to determine the amounts payable on a variable rate bond, an inflation-indexed debt instrument, a bond that provides for certain alternative payment schedules (for example, a bond callable prior to the stated maturity date of the bond), or a bond that provides for remote or incidental contingencies, see Regulations section 1. Free downloadable irs tax forms 171-3. Free downloadable irs tax forms Basis. Free downloadable irs tax forms   In general, your basis for figuring bond premium amortization is the same as your basis for figuring any loss on the sale of the bond. Free downloadable irs tax forms However, you may need to use a different basis for: Convertible bonds, Bonds you got in a trade, and Bonds whose basis has to be determined using the basis of the person who transferred the bond to you. Free downloadable irs tax forms See Regulations section 1. Free downloadable irs tax forms 171-1(e). Free downloadable irs tax forms Dealers. Free downloadable irs tax forms   A dealer in taxable bonds (or anyone who holds them mainly for sale to customers in the ordinary course of a trade or business or who would properly include bonds in inventory at the close of the tax year) cannot claim a deduction for amortizable bond premium. Free downloadable irs tax forms   See section 75 of the Internal Revenue Code for the treatment of bond premium by a dealer in tax-exempt bonds. Free downloadable irs tax forms How To Figure Amortization For bonds issued after September 27, 1985, you must amortize bond premium using a constant yield method on the basis of the bond's yield to maturity, determined by using the bond's basis and compounding at the close of each accrual period. Free downloadable irs tax forms Constant yield method. Free downloadable irs tax forms   Figure the bond premium amortization for each accrual period as follows. Free downloadable irs tax forms Step 1: Determine your yield. Free downloadable irs tax forms   Your yield is the discount rate that, when used in figuring the present value of all remaining payments to be made on the bond (including payments of qualified stated interest), produces an amount equal to your basis in the bond. Free downloadable irs tax forms Figure the yield as of the date you got the bond. Free downloadable irs tax forms It must be constant over the term of the bond and must be figured to at least two decimal places when expressed as a percentage. Free downloadable irs tax forms   If you do not know the yield, consult your broker or tax advisor. Free downloadable irs tax forms Databases available to them are likely to show the yield at the date of purchase. Free downloadable irs tax forms Step 2: Determine the accrual periods. Free downloadable irs tax forms   You can choose the accrual periods to use. Free downloadable irs tax forms They may be of any length and may vary in length over the term of the bond, but each accrual period can be no longer than 1 year and each scheduled payment of principal or interest must occur either on the first or the final day of an accrual period. Free downloadable irs tax forms The computation is simplest if accrual periods are the same as the intervals between interest payment dates. Free downloadable irs tax forms Step 3: Determine the bond premium for the accrual period. Free downloadable irs tax forms   To do this, multiply your adjusted acquisition price at the beginning of the accrual period by your yield. Free downloadable irs tax forms Then subtract the result from the qualified stated interest for the period. Free downloadable irs tax forms   Your adjusted acquisition price at the beginning of the first accrual period is the same as your basis. Free downloadable irs tax forms After that, it is your basis decreased by the amount of bond premium amortized for earlier periods and the amount of any payment previously made on the bond other than a payment of qualified stated interest. Free downloadable irs tax forms Example. Free downloadable irs tax forms On February 1, 2012, you bought a taxable bond for $110,000. Free downloadable irs tax forms The bond has a stated principal amount of $100,000, payable at maturity on February 1, 2019, making your premium $10,000 ($110,000 − $100,000). Free downloadable irs tax forms The bond pays qualified stated interest of $10,000 on February 1 of each year. Free downloadable irs tax forms Your yield is 8. Free downloadable irs tax forms 07439% compounded annually. Free downloadable irs tax forms You choose to use annual accrual periods ending on February 1 of each year. Free downloadable irs tax forms To find your bond premium amortization for the accrual period ending on February 1, 2013, you multiply the adjusted acquisition price at the beginning of the period ($110,000) by your yield. Free downloadable irs tax forms When you subtract the result ($8,881. Free downloadable irs tax forms 83) from the qualified stated interest for the period ($10,000), you find that your bond premium amortization for the period is $1,118. Free downloadable irs tax forms 17. Free downloadable irs tax forms Special rules to figure amortization. Free downloadable irs tax forms   For special rules to figure the bond premium amortization on a variable rate bond, an inflation-indexed debt instrument, a bond that provides for certain alternative payment schedules (for example, a bond callable prior to the stated maturity date of the bond), or a bond that provides for remote or incidental contingencies, see Regulations section 1. Free downloadable irs tax forms 171-3. Free downloadable irs tax forms Bonds Issued Before September 28, 1985 For these bonds, you can amortize bond premium using any reasonable method. Free downloadable irs tax forms Reasonable methods include: The straight-line method, and The Revenue Ruling 82-10 method. Free downloadable irs tax forms Straight-line method. Free downloadable irs tax forms   Under this method, the amount of your bond premium amortization is the same each month. Free downloadable irs tax forms Divide the number of months you held the bond during the year by the number of months from the beginning of the tax year (or, if later, the date of acquisition) to the date of maturity or earlier call date. Free downloadable irs tax forms Then multiply the result by the bond premium (reduced by any bond premium amortization claimed in earlier years). Free downloadable irs tax forms This gives you your bond premium amortization for the year. Free downloadable irs tax forms Revenue Ruling 82-10 method. Free downloadable irs tax forms   Under this method, the amount of your bond premium amortization increases each month over the life of the bond. Free downloadable irs tax forms This method is explained in Revenue Ruling 82-10, 1982-1 C. Free downloadable irs tax forms B. Free downloadable irs tax forms 46. Free downloadable irs tax forms Choosing To Amortize You choose to amortize the premium on taxable bonds by reporting the amortization for the year on your income tax return for the first tax year you want the choice to apply. Free downloadable irs tax forms You should attach a statement to your return that you are making this choice under section 171. Free downloadable irs tax forms See How To Report Amortization, next. Free downloadable irs tax forms This choice is binding for the year you make it and for later tax years. Free downloadable irs tax forms It applies to all taxable bonds you own in the year you make the choice and also to those you acquire in later years. Free downloadable irs tax forms You can change your decision to amortize bond premium only with the written approval of the IRS. Free downloadable irs tax forms To request approval, use Form 3115. Free downloadable irs tax forms For more information on requesting approval, see section 5 of the Appendix to Revenue Procedure 2011-14 in Internal Revenue Bulletin 2011-4. Free downloadable irs tax forms You can find Revenue Procedure 2011-14 at www. Free downloadable irs tax forms irs. Free downloadable irs tax forms gov/irb/2011-04_IRB/ar08. Free downloadable irs tax forms html. Free downloadable irs tax forms How To Report Amortization Subtract the bond premium amortization from your interest income from these bonds. Free downloadable irs tax forms Report the bond's interest on Schedule B (Form 1040A or 1040), line 1. Free downloadable irs tax forms Under your last entry on line 1, put a subtotal of all interest listed on line 1. Free downloadable irs tax forms Below this subtotal, print “ABP Adjustment,” and the total interest you received. Free downloadable irs tax forms Subtract this amount from the subtotal, and enter the result on line 2. Free downloadable irs tax forms Bond premium amortization more than interest. Free downloadable irs tax forms   If the amount of your bond premium amortization for an accrual period is more than the qualified stated interest for the period, you can deduct the difference as a miscellaneous itemized deduction on Schedule A (Form 1040), line 28. Free downloadable irs tax forms    But your deduction is limited to the amount by which your total interest inclusions on the bond in prior accrual periods is more than your total bond premium deductions on the bond in prior periods. Free downloadable irs tax forms Any amount you cannot deduct because of this limit can be carried forward to the next accrual period. Free downloadable irs tax forms Pre-1998 election to amortize bond premium. Free downloadable irs tax forms   Generally, if you first elected to amortize bond premium before 1998, the above treatment of the premium does not apply to bonds you acquired before 1988. Free downloadable irs tax forms Bonds acquired before October 23, 1986. Free downloadable irs tax forms   The amortization of the premium on these bonds is a miscellaneous itemized deduction not subject to the 2%-of-adjusted-gross-income limit. Free downloadable irs tax forms Bonds acquired after October 22, 1986, but before 1988. Free downloadable irs tax forms    The amortization of the premium on these bonds is investment interest expense subject to the investment interest limit, unless you choose to treat it as an offset to interest income on the bond. Free downloadable irs tax forms Expenses of Producing Income You deduct investment expenses (other than interest expenses) as miscellaneous itemized deductions on Schedule A (Form 1040). Free downloadable irs tax forms To be deductible, these expenses must be ordinary and necessary expenses paid or incurred: To produce or collect income, or To manage property held for producing income. Free downloadable irs tax forms The expenses must be directly related to the income or income-producing property, and the income must be taxable to you. Free downloadable irs tax forms The deduction for most income-producing expenses is subject to a 2% limit that also applies to certain other miscellaneous itemized deductions. Free downloadable irs tax forms The amount deductible is limited to the total of these miscellaneous deductions that is more than 2% of your adjusted gross income. Free downloadable irs tax forms For information on how to report expenses of producing income, see How To Report Investment Expenses , later. Free downloadable irs tax forms Attorney or accounting fees. Free downloadable irs tax forms   You can deduct attorney or accounting fees that are necessary to produce or collect taxable income. Free downloadable irs tax forms However, in some cases, attorney or accounting fees are part of the basis of property. Free downloadable irs tax forms See Basis of Investment Property in chapter 4. Free downloadable irs tax forms Automatic investment service and dividend reinvestment plans. Free downloadable irs tax forms   A bank may offer its checking account customers an automatic investment service so that, for a charge, each customer can choose to invest a part of the checking account each month in common stock. Free downloadable irs tax forms Or a bank that is a dividend disbursing agent for a number of publicly-owned corporations may set up an automatic dividend reinvestment service. Free downloadable irs tax forms Through that service, cash dividends are reinvested in more shares of stock after the bank deducts a service charge. Free downloadable irs tax forms   A corporation in which you own stock also may have a dividend reinvestment plan. Free downloadable irs tax forms This plan lets you choose to use your dividends to buy more shares of stock in the corporation instead of receiving the dividends in cash. Free downloadable irs tax forms   You can deduct the monthly service charge you pay to a bank to participate in an automatic investment service. Free downloadable irs tax forms If you participate in a dividend reinvestment plan, you can deduct any service charge subtracted from your cash dividends before the dividends are used to buy more shares of stock. Free downloadable irs tax forms Deduct the charges in the year you pay them. Free downloadable irs tax forms Clerical help and office rent. Free downloadable irs tax forms   You can deduct office expenses, such as rent and clerical help, you incurred in connection with your investments and collecting the taxable income on your investments. Free downloadable irs tax forms Cost of replacing missing securities. Free downloadable irs tax forms   To replace your taxable securities that are mislaid, lost, stolen, or destroyed, you may have to post an indemnity bond. Free downloadable irs tax forms You can deduct the premium you pay to buy the indemnity bond and the related incidental expenses. Free downloadable irs tax forms   You may, however, get a refund of part of the bond premium if the missing securities are recovered within a specified time. Free downloadable irs tax forms Under certain types of insurance policies, you can recover some of the expenses. Free downloadable irs tax forms   If you receive the refund in the tax year you pay the amounts, you can deduct only the difference between the expenses paid and the amount refunded. Free downloadable irs tax forms If the refund is made in a later tax year, you must include the refund in income in the year you received it, but only to the extent that the expenses decreased your tax in the year you deducted them. Free downloadable irs tax forms Fees to collect income. Free downloadable irs tax forms   You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect investment income, such as your taxable bond or mortgage interest, or your dividends on shares of stock. Free downloadable irs tax forms Fees to buy or sell. Free downloadable irs tax forms   You cannot deduct a fee you pay to a broker to acquire investment property, such as stocks or bonds. Free downloadable irs tax forms You must add the fee to the cost of the property. Free downloadable irs tax forms See Basis of Investment Property in chapter 4. Free downloadable irs tax forms    You cannot deduct any broker's fees, commissions, or option premiums you pay (or that were netted out) in connection with the sale of investment property. Free downloadable irs tax forms They can be used only to figure gain or loss from the sale. Free downloadable irs tax forms See Reporting Capital Gains and Losses , in chapter 4, for more information about the treatment of these sale expenses. Free downloadable irs tax forms Investment counsel and advice. Free downloadable irs tax forms   You can deduct fees you pay for counsel and advice about investments that produce taxable income. Free downloadable irs tax forms This includes amounts you pay for investment advisory services. Free downloadable irs tax forms Safe deposit box rent. Free downloadable irs tax forms   You can deduct rent you pay for a safe deposit box if you use the box to store taxable income-producing stocks, bonds, or other investment-related papers and documents. Free downloadable irs tax forms If you also use the box to store tax-exempt securities or personal items, you can deduct only part of the rent. Free downloadable irs tax forms See Tax-exempt income under Nondeductible Expenses, later, to figure what part you can deduct. Free downloadable irs tax forms State and local transfer taxes. Free downloadable irs tax forms   You cannot deduct the state and local transfer taxes you pay when you buy or sell securities. Free downloadable irs tax forms If you pay these transfer taxes when you buy securities, you must treat them as part of the cost of the property. Free downloadable irs tax forms If you pay these transfer taxes when you sell securities, you must treat them as a reduction in the amount realized. Free downloadable irs tax forms Trustee's commissions for revocable trust. Free downloadable irs tax forms   If you set up a revocable trust and have its income distributed to you, you can deduct the commission you pay the trustee for managing the trust to the extent it is to produce or collect taxable income or to manage property. Free downloadable irs tax forms However, you cannot deduct any part of the commission used for producing or collecting tax-exempt income or for managing property that produces tax-exempt income. Free downloadable irs tax forms   If you are a cash-basis taxpayer and pay the commissions for several years in advance, you must deduct a part of the commission each year. Free downloadable irs tax forms You cannot deduct the entire amount in the year you pay it. Free downloadable irs tax forms Investment expenses from pass-through entities. Free downloadable irs tax forms   If you hold an interest in a partnership, S corporation, real estate mortgage investment conduit (REMIC), or a nonpublicly offered mutual fund, you can deduct your share of that entity's investment expenses. Free downloadable irs tax forms A partnership or S corporation will show your share of these expenses on your Schedule K-1 (Form 1065) or Schedule K-1 (Form 1120S). Free downloadable irs tax forms A nonpublicly offered mutual fund will indicate your share of these expenses in box 5 of Form 1099-DIV (or substitute statement). Free downloadable irs tax forms Publicly-offered mutual funds are discussed later. Free downloadable irs tax forms   If you hold an interest in a REMIC, any expenses relating to your residual interest investment will be shown on Schedule Q (Form 1066), line 3b. Free downloadable irs tax forms Any expenses relating to your regular interest investment will appear in box 5 of Form 1099-INT (or substitute statement) or box 9 of Form 1099-OID (or substitute statement). Free downloadable irs tax forms   Report your share of these investment expenses on Schedule A (Form 1040), subject to the 2% limit, in the same manner as your other investment expenses. Free downloadable irs tax forms Including mutual fund or REMIC expenses in income. Free downloadable irs tax forms   Your share of the investment expenses of a REMIC or a nonpublicly offered mutual fund, as described above, are considered to be indirect deductions through that pass-through entity. Free downloadable irs tax forms You must include in your gross income an amount equal to the expenses allocated to you, whether or not you are able to claim a deduction for those expenses. Free downloadable irs tax forms If you are a shareholder in a nonpublicly offered mutual fund, you must include on your return the full amount of ordinary dividends or other distributions of stock, as shown in box 1a of Form 1099-DIV (or substitute statement). Free downloadable irs tax forms If you are a residual interest holder in a REMIC, you must report as ordinary income on Schedule E (Form 1040) the total amounts shown on Schedule Q (Form 1066), lines 1b and 3b. Free downloadable irs tax forms If you are a REMIC regular interest holder, you must include the amount of any expense allocation you received on Form 1040, line 8a. Free downloadable irs tax forms Publicly-offered mutual funds. Free downloadable irs tax forms   Most mutual funds are publicly offered. Free downloadable irs tax forms These mutual funds, generally, are traded on an established securities exchange. Free downloadable irs tax forms These funds do not pass investment expenses through to you. Free downloadable irs tax forms Instead, the dividend income they report to you in box 1a of Form 1099-DIV (or substitute statement) is already reduced by your share of investment expenses. Free downloadable irs tax forms As a result, you cannot deduct the expenses on your return. Free downloadable irs tax forms   Include the amount from box 1a of Form 1099-DIV (or substitute statement) in your income. Free downloadable irs tax forms    A publicly offered mutual fund is one that: Is continuously offered pursuant to a public offering, Is regularly traded on an established securities market, and Is held by or for no fewer than 500 persons at any time during the year. Free downloadable irs tax forms Contact your mutual fund if you are not sure whether it is publicly offered. Free downloadable irs tax forms Nondeductible Expenses Some expenses that you incur as an investor are not deductible. Free downloadable irs tax forms Stockholders' meetings. Free downloadable irs tax forms   You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you have no interest other than owning stock. Free downloadable irs tax forms This is true even if your purpose in attending is to get information that would be useful in making further investments. Free downloadable irs tax forms Investment-related seminar. Free downloadable irs tax forms   You cannot deduct expenses for attending a convention, seminar, or similar meeting for investment purposes. Free downloadable irs tax forms Single-premium life insurance, endowment, and annuity contracts. Free downloadable irs tax forms   You cannot deduct interest on money you borrow to buy or carry a single-premium life insurance, endowment, or annuity contract. Free downloadable irs tax forms Used as collateral. Free downloadable irs tax forms   If you use a single premium annuity contract as collateral to obtain or continue a mortgage loan, you cannot deduct any interest on the loan that is collateralized by the annuity contract. Free downloadable irs tax forms Figure the amount of interest expense disallowed by multiplying the current interest rate on the mortgage loan by the lesser of the amount of the annuity contract used as collateral or the amount of the loan. Free downloadable irs tax forms Borrowing on insurance. Free downloadable irs tax forms   Generally, you cannot deduct interest on money you borrow to buy or carry a life insurance, endowment, or annuity contract if you plan to systematically borrow part or all of the increases in the cash value of the contract. Free downloadable irs tax forms This rule applies to the interest on the total amount borrowed to buy or carry the contract, not just the interest on the borrowed increases in the cash value. Free downloadable irs tax forms Tax-exempt income. Free downloadable irs tax forms   You cannot deduct expenses you incur to produce tax-exempt income. Free downloadable irs tax forms Nor can you deduct interest on money you borrow to buy tax-exempt securities or shares in a mutual fund or other regulated investment company that distributes only exempt-interest dividends. Free downloadable irs tax forms Short-sale expenses. Free downloadable irs tax forms   The rule disallowing a deduction for interest expenses on tax-exempt securities applies to amounts you pay in connection with personal property used in a short sale or amounts paid by others for the use of any collateral in connection with the short sale. Free downloadable irs tax forms However, it does not apply to the expenses you incur if you deposit cash as collateral for the property used in the short sale and the cash does not earn a material return during the period of the sale. Free downloadable irs tax forms Short sales are discussed in Short Sales in chapter 4. Free downloadable irs tax forms Expenses for both tax-exempt and taxable income. Free downloadable irs tax forms   You may have expenses that are for both tax-exempt and taxable income. Free downloadable irs tax forms If you cannot specifically identify what part of the expenses is for each type of income, you can divide the expenses, using reasonable proportions based on facts and circumstances. Free downloadable irs tax forms You must attach a statement to your return showing how you divided the expenses and stating that each deduction claimed is not based on tax-exempt income. Free downloadable irs tax forms   One accepted method for dividing expenses is to do it in the same proportion that each type of income is to the total income. Free downloadable irs tax forms If the expenses relate in part to capital gains and losses, include the gains, but not the losses, in figuring this proportion. Free downloadable irs tax forms To find the part of the expenses that is for the tax-exempt income, divide your tax-exempt income by the total income and multiply your expenses by the result. Free downloadable irs tax forms Example. Free downloadable irs tax forms You received $6,000 interest; $4,800 was tax-exempt and $1,200 was taxable. Free downloadable irs tax forms In earning this income, you had $500 of expenses. Free downloadable irs tax forms You cannot specifically identify the amount of each expense item that is for each income item, so you must divide your expenses. Free downloadable irs tax forms 80% ($4,800 tax-exempt interest divided by $6,000 total interest) of your expenses is for the tax-exempt income. Free downloadable irs tax forms You cannot deduct $400 (80% of $500) of the expenses. Free downloadable irs tax forms You can deduct $100 (the rest of the expenses) because they are for the taxable interest. Free downloadable irs tax forms State income taxes. Free downloadable irs tax forms   If you itemize your deductions, you can deduct, as taxes, state income taxes on interest income that is exempt from federal income tax. Free downloadable irs tax forms But you cannot deduct, as either taxes or investment expenses, state income taxes on other exempt income. Free downloadable irs tax forms Interest expense and carrying charges on straddles. Free downloadable irs tax forms   You cannot deduct interest and carrying charges allocable to personal property that is part of a straddle. Free downloadable irs tax forms The nondeductible interest and carrying charges are added to the basis of the straddle property. Free downloadable irs tax forms However, this treatment does not apply if: All the offsetting positions making up the straddle either consist of one or more qualified covered call options and the optioned stock, or consist of section 1256 contracts (and the straddle is not part of a larger straddle); or The straddle is a hedging transaction. Free downloadable irs tax forms  For information about straddles, including definitions of the terms used in this discussion, see Straddles in chapter 4. Free downloadable irs tax forms   Interest includes any amount you pay or incur in connection with personal property used in a short sale. Free downloadable irs tax forms However, you must first apply the rules discussed in Payments in lieu of dividends under Short Sales in chapter 4. Free downloadable irs tax forms   To determine the interest on market discount bonds and short-term obligations that are part of a straddle, you must first apply the rules discussed under Limit on interest deduction for market discount bonds and Limit on interest deduction for short-term obligations (both under Interest Expenses, earlier). Free downloadable irs tax forms Nondeductible amount. Free downloadable irs tax forms   Figure the nondeductible interest and carrying charges on straddle property as follows. Free downloadable irs tax forms Add: Interest on indebtedness incurred or continued to buy or carry the personal property, and All other amounts (including charges to insure, store, or transport the personal property) paid or incurred to carry the personal property. Free downloadable irs tax forms Subtract from the amount in (1): Interest (including OID) includible in gross income for the year on the personal property, Any income from the personal property treated as ordinary income on the disposition of short-term government obligations or as ordinary income under the market discount and short-term bond provisions — see Discount on Debt Instruments in chapter 1, The dividends includible in gross income for the year from the personal property, and Any payment on a loan of the personal property for use in a short sale that is includible in gross income. Free downloadable irs tax forms Basis adjustment. Free downloadable irs tax forms   Add the nondeductible amount to the basis of your straddle property. Free downloadable irs tax forms How To Report Investment Expenses To deduct your investment expenses, you must itemize deductions on Schedule A (Form 1040). Free downloadable irs tax forms Enter your deductible investment interest expense on Schedule A (Form1040), line 14. Free downloadable irs tax forms Include any deductible short sale expenses. Free downloadable irs tax forms (See Short Sales in chapter 4 for information on these expenses. Free downloadable irs tax forms ) Also attach a completed Form 4952 if you used that form to figure your investment interest expense. Free downloadable irs tax forms Enter the total amount of your other investment expenses (other than interest expenses) on Schedule A (Form 1040), line 23. Free downloadable irs tax forms List the type and amount of each expense on the dotted lines next to line 23. Free downloadable irs tax forms (If necessary, you can show the required information on an attached statement. Free downloadable irs tax forms ) For information on how to report amortizable bond premium, see Bond Premium Amortization , earlier in this chapter. Free downloadable irs tax forms When To Report Investment Expenses If you use the cash method to report income and expenses, you generally deduct your expenses, except for certain prepaid interest, in the year you pay them. Free downloadable irs tax forms If you use an accrual method, you generally deduct your expenses when you incur a liability for them, rather than when you pay them. Free downloadable irs tax forms Also see When To Deduct Investment Interest , earlier in this chapter. Free downloadable irs tax forms Unpaid expenses owed to related party. Free downloadable irs tax forms   If you use an accrual method, you cannot deduct interest and other expenses owed to a related cash-basis person until payment is made and the amount is includible in the gross income of that person. Free downloadable irs tax forms The relationship, for purposes of this rule, is determined as of the end of the tax year for which the interest or expense would otherwise be deductible. Free downloadable irs tax forms If a deduction is denied under this rule, this rule will continue to apply even if your relationship with the person ceases to exist before the amount is includible in the gross income of that person. Free downloadable irs tax forms   This rule generally applies to those relationships listed in chapter 4 under Related Party Transactions . Free downloadable irs tax forms It also applies to accruals by partnerships to partners, partners to partnerships, shareholders to S corporations, and S corporations to shareholders. Free downloadable irs tax forms   The postponement of deductions for unpaid expenses and interest under the related party rule does not apply to OID, regardless of when payment is made. Free downloadable irs tax forms This rule also does not apply to loans with below-market interest rates or to certain payments for the use of property and services when the lender or recipient has to include payments periodically in income, even if a payment has not been made. Free downloadable irs tax forms Prev  Up  Next   Home   More Online Publications