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Irs Amended Tax Return Form

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Irs Amended Tax Return Form

Irs amended tax return form 2. Irs amended tax return form   Fuel Tax Credits and Refunds Table of Contents Gasoline and Aviation Gasoline Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation)Sales by Registered Ultimate Vendors Diesel-Water Fuel Emulsion Kerosene for Use in AviationSales by Registered Ultimate Vendors Other Fuels (Including Alternative Fuels) Refunds of Second TaxOptional reporting. Irs amended tax return form Providing information. Irs amended tax return form Definitions of Nontaxable UsesCustom application of fertilizer and pesticide. Irs amended tax return form Fuel used between airfield and farm. Irs amended tax return form Fuel not used for farming. Irs amended tax return form Vehicles not considered highway vehicles. Irs amended tax return form Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture CreditHow to Claim the Credit Filing Claims Claiming A Refund Claiming a Credit on Form 4136 Including the Credit or Refund in Income Federal excise taxes are imposed on certain fuels as discussed in chapter 1. Irs amended tax return form This chapter lists the nontaxable uses of each fuel and defines the nontaxable uses. Irs amended tax return form Information on the refund of second tax is included. Irs amended tax return form This chapter also explains credits and refunds for the biodiesel or renewable diesel mixture credits, and the alternative fuel mixture and alternative fuel credits. Irs amended tax return form Information on how to make a claim for credit or refund is included in this chapter and in the instructions for: Form 720, Form 4136, and Form 8849. Irs amended tax return form Exported taxable fuel. Irs amended tax return form   The claim rates for exported taxable fuel are listed on Schedule C (Form 720), Schedule 1 (Form 8849), and Form 4136. Irs amended tax return form Taxpayers making a claim for exported taxable fuel must include with their records proof of exportation. Irs amended tax return form Proof of exportation includes: A copy of the export bill of lading issued by the delivering carrier, A certificate by the agent or representative of the export carrier showing actual exportation of the fuel, A certificate of lading signed by a customs officer of the foreign country to which the fuel is exported, or A statement of the foreign consignee showing receipt of the fuel. Irs amended tax return form Gasoline and Aviation Gasoline Ultimate Purchasers. Irs amended tax return form   The following are the uses of gasoline (defined earlier) for which a credit or refund may be allowable to an ultimate purchaser. Irs amended tax return form On a farm for farming purposes (credit only). Irs amended tax return form Off-highway business use. Irs amended tax return form Export. Irs amended tax return form In a boat engaged in commercial fishing. Irs amended tax return form In certain intercity and local buses. Irs amended tax return form In a school bus. Irs amended tax return form Exclusive use by a qualified blood collector organization. Irs amended tax return form In a highway vehicle owned by the United States that is not used on a highway. Irs amended tax return form Exclusive use by a nonprofit educational organization (see Sales by registered ultimate vendors and Credit Card Purchases, later). Irs amended tax return form Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by registered ultimate vendors and Credit Card Purchases, later). Irs amended tax return form In an aircraft or vehicle owned by an aircraft museum. Irs amended tax return form   The following are the uses of aviation gasoline for which a credit or refund may be allowable to an ultimate purchaser. Irs amended tax return form On a farm for farming purposes (credit only). Irs amended tax return form Export. Irs amended tax return form In foreign trade. Irs amended tax return form Certain helicopter and fixed-wing air ambulance uses. Irs amended tax return form In commercial aviation (other than foreign trade). Irs amended tax return form Exclusive use by a qualified blood collector organization. Irs amended tax return form Exclusive use by a nonprofit education organization (see Sales by registered ultimate vendors and Credit card purchases, later). Irs amended tax return form Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by registered ultimate vendors and Credit and purchases, later). Irs amended tax return form In an aircraft owned by an aircraft museum. Irs amended tax return form In military aircraft. Irs amended tax return form Claims by persons who paid the tax to the government. Irs amended tax return form   Except for sales to nonprofit educational organizations and states and local governments, a credit or refund is allowable to the person that paid the tax to the government if the gasoline was sold to the ultimate purchaser (including an exporter) by either that person or by a retailer and the fuel was exported; used or sold for use as supplies for vessels or aircraft, including military aircraft, commercial fishing, and foreign trade; sold to a qualified blood collector organization; or used or sold for use in the production of Other Fuels. Irs amended tax return form See Filing Claims, later. Irs amended tax return form Sales by registered ultimate vendors. Irs amended tax return form   This is an ultimate vendor that sells gasoline or aviation gasoline to any of the following and that is purchased without the use of a credit card. Irs amended tax return form A state or local government for its exclusive use (including essential government use by an Indian tribal government). Irs amended tax return form A nonprofit educational organization for its exclusive use. Irs amended tax return form   The registered ultimate vendor may make the claim if the ultimate purchaser did not use a credit card and waives its right to the credit or refund by providing the registered ultimate vendor with a certificate. Irs amended tax return form A sample certificate is included as Model Certificate M in the Appendix. Irs amended tax return form The registered ultimate vendor must have the certificate at the time the credit or refund is claimed. Irs amended tax return form   The ultimate vendor must be registered by the IRS. Irs amended tax return form See Registration Requirements, earlier. Irs amended tax return form Credit card purchases. Irs amended tax return form   If gasoline and aviation gasoline are purchased with a credit card issued to a state or local government for its exclusive use (including essential government use by an Indian tribal government), or a nonprofit educational organization for its exclusive use, the person who extended credit to the ultimate purchaser (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the gasoline or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. Irs amended tax return form   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. Irs amended tax return form How to make the claim. Irs amended tax return form   If the claim is made by the credit card issuer, see Schedule C  (Form 720) or Schedule 8 (Form 8849). Irs amended tax return form Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation) For conditions to an allowance of a credit or refund on exported dyed diesel fuel and dyed kerosene, see Exported taxable fuel, earlier. Irs amended tax return form Ultimate purchasers. Irs amended tax return form   The following are nontaxable uses of diesel fuel and kerosene (defined earlier) for which a credit or refund may be allowable to an ultimate purchaser. Irs amended tax return form On a farm for farming purposes. Irs amended tax return form Off-highway business use. Irs amended tax return form Export. Irs amended tax return form In a qualified local bus. Irs amended tax return form In a school bus. Irs amended tax return form Other than as a fuel in a propulsion engine of a diesel-powered highway vehicle (such as home heating oil). Irs amended tax return form Exclusive use by a qualified blood collector organization. Irs amended tax return form In a highway vehicle owned by the United States that is not used on a highway. Irs amended tax return form Exclusive use by a nonprofit educational organization (see Sales by Registered Ultimate Vendors and Credit Card Purchases, later). Irs amended tax return form Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by Registered Ultimate Vendors and Credit Card Purchases, later). Irs amended tax return form In a vehicle owned by an aircraft museum. Irs amended tax return form As a fuel in a propulsion engine of a diesel-powered train. Irs amended tax return form Sales by Registered Ultimate Vendors The following are the sales for which a credit or refund may be allowable to the registered ultimate vendor only. Irs amended tax return form Undyed diesel fuel or undyed kerosene sold for the exclusive use by a state or local government (if credit card rules (defined later) do not apply), Undyed kerosene sold from a blocked pump (defined below), or Undyed diesel fuel or undyed kerosene used in certain intercity and local buses, only if the ultimate purchaser waives its right to the credit or refund by providing the registered ultimate vendor with a waiver. Irs amended tax return form Registered ultimate vendor (state use). Irs amended tax return form   This is a person that sells undyed diesel fuel or undyed kerosene to a state or local government for its exclusive use (including essential government use by an Indian tribal government). Irs amended tax return form The diesel fuel or kerosene must be purchased by the state without the use of a credit card, issued to the state by the credit card issuer, in order for the ultimate vendor to make the claim. Irs amended tax return form The ultimate vendor must be registered by the IRS. Irs amended tax return form See Registration Requirements, earlier. Irs amended tax return form Registered ultimate vendor (blocked pump). Irs amended tax return form   This is an ultimate vendor that sells undyed kerosene from a blocked pump. Irs amended tax return form   A credit or refund may be allowable to a registered ultimate vendor (blocked pump) if the vendor sold to a buyer undyed kerosene from a blocked pump for use other than as a fuel in a diesel-powered highway vehicle and the vendor had no reason to believe the kerosene would not be used in that manner. Irs amended tax return form Blocked pump. Irs amended tax return form   A blocked pump is a fuel pump that meets all the following requirements. Irs amended tax return form It is used to make retail sales of undyed kerosene for use by the buyer in any nontaxable use. Irs amended tax return form It is at a fixed location. Irs amended tax return form It is identified with a legible and conspicuous notice stating, “UNDYED UNTAXED KEROSENE, NONTAXABLE USE ONLY. Irs amended tax return form ” It meets either of the following conditions. Irs amended tax return form It cannot reasonably be used to dispense fuel directly into the fuel supply tank of a diesel-powered highway vehicle or train. Irs amended tax return form It is locked by the vendor after each sale and unlocked by the vendor only in response to a buyer's request for undyed kerosene for use other than as a fuel in a diesel-powered highway vehicle or train. Irs amended tax return form Registered ultimate vendor (certain intercity and local buses). Irs amended tax return form   This is an ultimate vendor that sells undyed diesel fuel or undyed kerosene to the ultimate purchaser for use in certain intercity and local buses. Irs amended tax return form   The registered ultimate vendor may make the claim if the ultimate purchaser waives its right to the credit or refund by providing the registered ultimate vendor with a waiver. Irs amended tax return form A sample waiver is included as Model Waiver N in the Appendix. Irs amended tax return form The registered ultimate vendor must have the waiver at the time the credit or payment is claimed. Irs amended tax return form Credit Card Purchases. Irs amended tax return form   If undyed diesel fuel or kerosene is purchased with a credit card issued to a state, the person who extended credit to the state (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the diesel fuel or kerosene, or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. Irs amended tax return form   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. Irs amended tax return form Diesel-Water Fuel Emulsion A claim for credit or refund may be made for the nontaxable use of a diesel-water fuel emulsion and for undyed diesel fuel used to produce a diesel-water fuel emulsion. Irs amended tax return form The claim rate for nontaxable use of a diesel-water fuel emulsion taxed at $. Irs amended tax return form 198 per gallon is $. Irs amended tax return form 197 (if exported, the claim rate is $. Irs amended tax return form 198). Irs amended tax return form The following are the nontaxable uses for a diesel-water fuel emulsion for which a credit or refund may be allowable to an ultimate purchaser. Irs amended tax return form On a farm for farming purposes. Irs amended tax return form Off-highway business use. Irs amended tax return form Export. Irs amended tax return form In a qualified local bus. Irs amended tax return form In a school bus. Irs amended tax return form Other than as fuel in the propulsion engine of a train or diesel-powered highway vehicle (but not off-highway use). Irs amended tax return form Exclusive use by a qualified blood collector organization. Irs amended tax return form In a highway vehicle owned by the United States that is not used on a highway. Irs amended tax return form Exclusive use by a nonprofit educational organization. Irs amended tax return form Exclusive use by a state, political subdivision of a state, or the District of Columbia. Irs amended tax return form In an aircraft or vehicle owned by an aircraft museum. Irs amended tax return form Blender claims. Irs amended tax return form   The claim rate for undyed diesel fuel taxed at $. Irs amended tax return form 244 and used to produce a diesel-water fuel emulsion is $. Irs amended tax return form 046 per gallon of diesel fuel so used. Irs amended tax return form The blender must be registered by the IRS in order to make the claim. Irs amended tax return form The blender must attach a statement to the claim certifying that: The diesel-water fuel emulsion contains at least 14% water, The emulsion additive is registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003, Undyed diesel fuel taxed at $. Irs amended tax return form 244 was used to produce the diesel-water fuel emulsion, and The diesel-water fuel emulsion was used or sold for use in the blender's trade or business. Irs amended tax return form Kerosene for Use in Aviation Ultimate purchasers. Irs amended tax return form   Ultimate purchasers of kerosene used in certain aviation uses may make a claim if the rate of tax on their use is less than the rate of tax that was charged on the kerosene. Irs amended tax return form   The ultimate purchaser of the kerosene used in commercial aviation (other than foreign trade) and noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) is eligible to make a claim if the ultimate purchaser certifies that the right to make the claim has not been waived. Irs amended tax return form Generally, the ultimate purchaser is the aircraft operator. Irs amended tax return form   The following are the nontaxable uses of kerosene used in noncommercial aviation for which a credit or refund may be allowable to the ultimate purchaser. Irs amended tax return form On a farm for farming purposes. Irs amended tax return form Certain helicopter and fixed-wing aircraft uses. Irs amended tax return form Exclusive use by a qualified blood collector organization. Irs amended tax return form Exclusive use by a nonprofit educational organization. Irs amended tax return form In an aircraft owned by an aircraft museum. Irs amended tax return form In military aircraft. Irs amended tax return form Kerosene for use partly in commercial aviation and partly in nonexempt, noncommercial aviation. Irs amended tax return form   If the fuel is used partly for use in commercial aviation and partly for use in nonexempt, noncommercial aviation, the operator may identify, either at the time of purchase or after the kerosene has been used, the amount that will be (or has been) used in commercial aviation. Irs amended tax return form At the same time, the operator would either make the claim or waive the right to make the claim for credit or refund of the kerosene for use in commercial and nonexempt, noncommercial aviation. Irs amended tax return form   If the operator does not identify the amount of kerosene that will be (or has been) used in commercial aviation, the operator may provide a certificate to the ultimate vendor similar to Model Certificate Q in the Appendix. Irs amended tax return form For kerosene purchased with the certificate, used in commercial aviation, and taxed at $. Irs amended tax return form 244 per gallon, use of the certificate will be treated as a waiver of the right to claim a credit or refund for the $. Irs amended tax return form 025 per gallon part of the tax. Irs amended tax return form The ultimate vendor may make this claim. Irs amended tax return form The operator may make a claim for the $. Irs amended tax return form 175 tax per gallon of the kerosene, but cannot waive the right to make the claim for the $. Irs amended tax return form 175 tax per gallon. Irs amended tax return form Sales by Registered Ultimate Vendors Kerosene for use in commercial aviation or noncommercial aviation. Irs amended tax return form   The registered ultimate vendor of kerosene for use in commercial aviation (other than foreign trade) or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) may make this claim if the ultimate purchaser waives its right to the credit or payment by providing the registered ultimate vendor with a waiver. Irs amended tax return form A sample waiver is included as Model Waiver L in the Appendix. Irs amended tax return form The registered ultimate vendor must have the waiver at the time the credit or payment is claimed. Irs amended tax return form   Noncommercial aviation means any use of an aircraft not described as commercial aviation. Irs amended tax return form For the definition of commercial aviation, see Commercial aviation on page 11. Irs amended tax return form Kerosene for use in nonexempt, noncommercial aviation. Irs amended tax return form   Only the registered ultimate vendor may claim a credit or payment for sales of kerosene for use in nonexempt, noncommercial aviation. Irs amended tax return form The ultimate vendor must be registered by the IRS (activity letter UA) and have the required certificate from the ultimate purchaser. Irs amended tax return form A sample certificate is included as Model Certificate Q in the Appendix. Irs amended tax return form The registered ultimate vendor must have the certificate at the time the credit or payment is claimed. Irs amended tax return form Kerosene for use in aviation by a state or local government. Irs amended tax return form   Only the registered ultimate vendor may claim a credit or payment for sales of kerosene for use in aviation to a state or local government for its exclusive use (including essential government use by an Indian tribal government). Irs amended tax return form The kerosene for use in aviation must be purchased by the state without the use of a credit card in order for the ultimate vendor to make the claim. Irs amended tax return form The ultimate vendor must be registered by the IRS (activity letter UV) and have the required certificate from the ultimate purchaser. Irs amended tax return form A sample certificate is included as Model Certificate P in the Appendix. Irs amended tax return form The registered ultimate vendor must have the certificate at the time the credit or payment is claimed. Irs amended tax return form Credit card purchases. Irs amended tax return form   If taxed kerosene for use in aviation is purchased with a credit card issued to a state, the person who extended credit to the state (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the kerosene, or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. Irs amended tax return form   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. Irs amended tax return form Other Fuels (Including Alternative Fuels) Credit or refund for nontaxable use of taxed Other Fuels may be allowable to an ultimate purchaser. Irs amended tax return form While tax is generally imposed on delivery, Other Fuels are taxed prior to delivery in the case of certain bulk sales described in chapter 1. Irs amended tax return form The following are the nontaxable uses of Other Fuels for which a credit or refund may be allowable to the ultimate purchaser. Irs amended tax return form On a farm for farming purposes. Irs amended tax return form Off-highway business use. Irs amended tax return form In a boat engaged in commercial fishing. Irs amended tax return form In certain intercity and local buses. Irs amended tax return form In a school bus. Irs amended tax return form In a qualified local bus. Irs amended tax return form Exclusive use by a qualified blood collector organization. Irs amended tax return form Exclusive use by a nonprofit educational organization. Irs amended tax return form Exclusive use by a state, political subdivision of a state, or the District of Columbia. Irs amended tax return form In an aircraft or vehicle owned by an aircraft museum. Irs amended tax return form Use in any boat operated by the United States for its exclusive use or any vessel of war of any foreign nation. Irs amended tax return form See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit, later. Irs amended tax return form Refunds of Second Tax The tax on dyed diesel fuel for inland waterways fuel use applies at the rate listed on Form 720. Irs amended tax return form This is in addition to all other taxes imposed on the sale or use of the fuel. Irs amended tax return form The section 4081(e) refund (discussed below) cannot be claimed. Irs amended tax return form If the tax is paid and reported to the government on more than one taxable event for a taxable fuel under section 4081, the person paying the “second tax” may claim a refund (without interest) of that tax if certain conditions and reporting requirements are met. Irs amended tax return form No credit against any tax is allowed for this tax. Irs amended tax return form For information about taxable events, see the discussions under Gasoline, Diesel Fuel and Kerosene and Kerosene for Use in Aviation in chapter 1. Irs amended tax return form Conditions to allowance of refund. Irs amended tax return form   A claim for refund of the tax is allowed only if all the following conditions are met. Irs amended tax return form A tax on the fuel was paid to the government and not credited or refunded (the “first tax”). Irs amended tax return form After the first tax was imposed, another tax was imposed on the same fuel and was paid to the government (the “second tax”). Irs amended tax return form The person that paid the second tax filed a timely claim for refund containing the information required (see Refund claim, later). Irs amended tax return form The person that paid the first tax has met the reporting requirements, discussed next. Irs amended tax return form Reporting requirements. Irs amended tax return form   Generally, the person that paid the first tax must file a “First Taxpayer's Report” with its Form 720 for the quarter to which the report relates. Irs amended tax return form A model first taxpayer's report is shown in the Appendix as Model Certificate B. Irs amended tax return form The report must contain all information needed to complete the model. Irs amended tax return form   By the due date for filing the Form 720, you must also send a separate copy of the report to the following address. Irs amended tax return form Department of the Treasury Internal Revenue Service  Cincinnati, OH 45999-0555 Write “EXCISE – FIRST TAXPAYER'S REPORT” across the top of that copy. Irs amended tax return form Optional reporting. Irs amended tax return form   A first taxpayer's report is not required for the tax imposed on: Removal at a terminal rack, Nonbulk entries into the United States, and Removals or sales by blenders. Irs amended tax return form However, if the person liable for the tax expects that another tax will be imposed on that fuel, that person should (but is not required to) file a first taxpayer's report. Irs amended tax return form Providing information. Irs amended tax return form   The first taxpayer must give a copy of the report to the buyer of the fuel within the bulk transfer/terminal system or to the owner of the fuel immediately before the first tax was imposed, if the first taxpayer is not the owner at that time. Irs amended tax return form If an optional report is filed, a copy should (but is not required to) be given to the buyer or owner. Irs amended tax return form   A person that receives a copy of the first taxpayer's report and later sells the fuel within the bulk transfer/terminal system must give the copy and a “Statement of Subsequent Seller” to the buyer. Irs amended tax return form If the later sale is outside the bulk transfer/terminal system and that person expects that another tax will be imposed, that person should (but is not required to) give the copy and the statement to the buyer. Irs amended tax return form A model statement of subsequent seller is shown in the Appendix as Model Certificate A. Irs amended tax return form The statement must contain all information necessary to complete the model. Irs amended tax return form   If the first taxpayer's report relates to fuel sold to more than one buyer, copies of that report must be made when the fuel is divided. Irs amended tax return form Each buyer must be given a copy of the report. Irs amended tax return form Refund claim. Irs amended tax return form   You must have filed Form 720 and paid the second tax before you file for a refund of that tax. Irs amended tax return form You must make your claim for refund on Form 8849. Irs amended tax return form Complete Schedule 5 (Form 8849) and attach it to your Form 8849. Irs amended tax return form Do not include this claim with a claim under another tax provision. Irs amended tax return form You must not have included the second tax in the price of the fuel and must not have collected it from the purchaser. Irs amended tax return form You must submit the following information with your claim. Irs amended tax return form A copy of the first taxpayer's report (discussed earlier). Irs amended tax return form A copy of the statement of subsequent seller if the fuel was bought from someone other than the first taxpayer. Irs amended tax return form Definitions of Nontaxable Uses This section provides definitions of the terms used in Table 2-1 for nontaxable uses. Irs amended tax return form If applicable, the type of use number from Table 2-1 is indicated in each heading. Irs amended tax return form Type of use table. Irs amended tax return form   The first column of the table is the number you enter on Form 4136, Form 8849, or Schedule C (Form 720) for that type of use. Irs amended tax return form For type of use 2, the mobile machinery parenthetical applies only to Form 8849 and Form 720. Irs amended tax return form Table 2-1. Irs amended tax return form Type of Use Table No. Irs amended tax return form Type of Use 1 On a farm for farming purposes 2 Off-highway business use (for business use other than in a highway vehicle registered or required to be registered for highway use) (other than use in mobile machinery) 3 Export 4 In a boat engaged in commercial fishing 5 In certain intercity and local buses 6 In a qualified local bus 7 In a bus transporting students and employees of schools (school buses) 8 For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel in the propulsion engine of a train or diesel-powered highway vehicle (but not off-highway business use) 9 In foreign trade 10 Certain helicopter and fixed-wing aircraft uses 11 Exclusive use by a qualified blood collector organization 12 In a highway vehicle owned by the United States that is not used on a highway 13 Exclusive use by a nonprofit educational organization 14 Exclusive use by a state, political subdivision of a state, or the District of Columbia 15 In an aircraft or vehicle owned by an aircraft museum 16 In military aircraft On a farm for farming purposes (No. Irs amended tax return form 1). Irs amended tax return form   On a farm for farming purposes means fuel used in carrying on a trade or business of farming, on a farm in the United States, and for farming purposes. Irs amended tax return form Farm. Irs amended tax return form   A farm includes livestock, dairy, fish, poultry, fruit, fur-bearing animals, and truck farms; orchards; plantations; ranches; nurseries; ranges; and feed yards for fattening cattle. Irs amended tax return form It also includes structures such as greenhouses used primarily for the raising of agricultural or horticultural commodities. Irs amended tax return form A fish farm is an area where fish are grown or raised — not merely caught or harvested. Irs amended tax return form Farming purposes. Irs amended tax return form   As an owner, tenant, or operator, you use fuel on a farm for farming purposes if you use it in any of the following ways. Irs amended tax return form To cultivate the soil or to raise or harvest any agricultural or horticultural commodity. Irs amended tax return form To raise, shear, feed, care for, train, or manage livestock, bees, poultry, fur-bearing animals, or wildlife. Irs amended tax return form To operate, manage, conserve, improve, or maintain your farm and its tools and equipment. Irs amended tax return form To handle, dry, pack, grade, or store any raw agricultural or horticultural commodity. Irs amended tax return form For this use to qualify, you must have produced more than half the commodity so treated during the tax year. Irs amended tax return form Commodity means a single raw product. Irs amended tax return form For example, apples and peaches are two separate commodities. Irs amended tax return form To plant, cultivate, care for, or cut trees or to prepare (other than sawing logs into lumber, chipping, or other milling) trees for market, but only if the planting, etc. Irs amended tax return form , is incidental to your farming operations. Irs amended tax return form Your tree operations will be incidental only if they are minor in nature when compared to the total farming operations. Irs amended tax return form   If any other person, such as a neighbor or custom operator, performs a service for you on your farm for any of the purposes listed in (1) or (2), you are considered to be the ultimate purchaser that used the fuel on a farm for farming purposes. Irs amended tax return form However, see Custom application of fertilizer and pesticide, next. Irs amended tax return form   If doubt exists whether the owner, the tenant, or the operator of the farm bought the fuel, determine who bore the cost of the fuel. Irs amended tax return form For example, if the owner of a farm and the tenant equally share the cost of gasoline that is used on a farm for farming purposes, each can claim a credit for the tax on one-half the fuel used. Irs amended tax return form Custom application of fertilizer and pesticide. Irs amended tax return form   Fuel used on a farm for farming purposes includes fuel used in the application of fertilizer, pesticides, or other substances, including aerial applications. Irs amended tax return form Generally, the applicator is treated as having used the fuel on a farm for farming purposes. Irs amended tax return form For aviation gasoline, the aerial applicator makes the claim as the ultimate purchaser. Irs amended tax return form For kerosene used in aviation, the ultimate purchaser may make the claim or waive their right to make the claim to the registered ultimate vendor. Irs amended tax return form Fuel used between airfield and farm. Irs amended tax return form   Fuel used by an aerial applicator for the direct flight between the airfield and one or more farms is treated as a farming purpose. Irs amended tax return form Fuel not used for farming. Irs amended tax return form   Fuel is not used on a farm for farming purposes if it is used in any of the following ways. Irs amended tax return form Off the farm, such as on the highway or in noncommercial aviation, other than fuel used between the airfield and farm described above, even if the fuel is used in transporting livestock, feed, crops, or equipment. Irs amended tax return form For personal use, such as mowing the lawn. Irs amended tax return form In processing, packaging, freezing, or canning operations. Irs amended tax return form In processing crude gum into gum spirits of turpentine or gum resin or in processing maple sap into maple syrup or maple sugar. Irs amended tax return form Off-highway business use (No. Irs amended tax return form 2). Irs amended tax return form   Off-highway business use means fuel used in a trade or business or in an income-producing activity other than as a fuel in a highway vehicle registered or required to be registered for use on public highways. Irs amended tax return form The terms “highway vehicle,” “public highway,” and “registered” are defined below. Irs amended tax return form Do not consider any use in a boat as an off-highway business use. Irs amended tax return form   Off-highway business use includes fuels used in any of the following ways. Irs amended tax return form In stationary machines such as generators, compressors, power saws, and similar equipment. Irs amended tax return form For cleaning purposes. Irs amended tax return form In forklift trucks, bulldozers, and earthmovers. Irs amended tax return form   Generally, this use does not include nonbusiness use of fuel, such as use by minibikes, snowmobiles, power lawn mowers, chain saws, and other yard equipment. Irs amended tax return form Example. Irs amended tax return form Caroline owns a landscaping business. Irs amended tax return form She uses power lawn mowers and chain saws in her business. Irs amended tax return form The gasoline used in the power lawn mowers and chain saws qualifies as fuel used in an off-highway business use. Irs amended tax return form The gasoline used in her personal lawn mower at home does not qualify. Irs amended tax return form Highway vehicle. Irs amended tax return form   A highway vehicle is any self-propelled vehicle designed to carry a load over public highways, whether or not it is also designed to perform other functions. Irs amended tax return form Examples of vehicles designed to carry a load over public highways are passenger automobiles, motorcycles, buses, and highway-type trucks and truck tractors. Irs amended tax return form A vehicle is a highway vehicle even though the vehicle's design allows it to perform a highway transportation function for only one of the following. Irs amended tax return form A particular type of load, such as passengers, furnishings, and personal effects (as in a house, office, or utility trailer). Irs amended tax return form A special kind of cargo, goods, supplies, or materials. Irs amended tax return form Some off-highway task unrelated to highway transportation, except as discussed next. Irs amended tax return form Vehicles not considered highway vehicles. Irs amended tax return form   Generally, the following kinds of vehicles are not considered highway vehicles for purposes of the credit or refund of fuel taxes. Irs amended tax return form Specially designed mobile machinery for nontransportation functions. Irs amended tax return form A self-propelled vehicle is not a highway vehicle if all the following apply. Irs amended tax return form The chassis has permanently mounted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling, mining, timbering, processing, farming, or similar operations) if the operation of the machinery or equipment is unrelated to transportation on or off the public highways. Irs amended tax return form The chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, whether or not the machinery or equipment is in operation. Irs amended tax return form The chassis could not, because of its special design and without substantial structural modification, be used as part of a vehicle designed to carry any other load. Irs amended tax return form The vehicle must have traveled less than 7,500 miles on public highways during the taxable year. Irs amended tax return form Vehicles specially designed for off-highway transportation. Irs amended tax return form A vehicle is not treated as a highway vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicle's capability to transport a load over a public highway is substantially limited or impaired. Irs amended tax return form To make this determination, you can take into account the vehicle's size, whether the vehicle is subject to licensing, safety, or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. Irs amended tax return form It does not matter that the vehicle can carry heavier loads off highway than it is allowed to carry over the highway. Irs amended tax return form Nontransportation trailers and semitrailers. Irs amended tax return form A trailer or semi-trailer is not treated as a highway vehicle if it is specially designed to function only as an enclosed stationary shelter for carrying on a nontransportation function at an off-highway site. Irs amended tax return form For example, a trailer that is capable only of functioning as an office for an off-highway construction operation is not a highway vehicle. Irs amended tax return form Public highway. Irs amended tax return form   A public highway includes any road in the United States that is not a private roadway. Irs amended tax return form This includes federal, state, county, and city roads and streets. Irs amended tax return form Registered. Irs amended tax return form   A vehicle is considered registered when it is registered or required to be registered for highway use under the law of any state, the District of Columbia, or any foreign country in which it is operated or situated. Irs amended tax return form Any highway vehicle operated under a dealer's tag, license, or permit is considered registered. Irs amended tax return form A highway vehicle is not considered registered solely because a special permit allows the vehicle to be operated at particular times and under specified conditions. Irs amended tax return form Dual use of propulsion motor. Irs amended tax return form   Off-highway business use does not include any fuel used in the propulsion motor of a registered highway vehicle even though that motor also operates special equipment by means of a power take-off or power transfer. Irs amended tax return form It does not matter if the special equipment is mounted on the vehicle. Irs amended tax return form Example. Irs amended tax return form The motor of a registered concrete-mixer truck operates both the engine and the mixing unit by means of a power take-off. Irs amended tax return form The fuel used in the motor to run the mixer is not off-highway business use. Irs amended tax return form Use in separate motor. Irs amended tax return form   Off-highway business use includes fuel used in a separate motor to operate special equipment, such as a refrigeration unit, pump, generator, or mixing unit. Irs amended tax return form If you draw fuel from the same tank that supplies fuel to the propulsion motor, you must figure the quantity used in the separate motor operating the special equipment. Irs amended tax return form You may make a reasonable estimate based on your operating experience and supported by your records. Irs amended tax return form   You can use devices that measure the miles the vehicle has traveled (such as hubometers) to figure the gallons of fuel used to propel the vehicle. Irs amended tax return form Add to this amount the fuel consumed while idling or warming up the motor before propelling the vehicle. Irs amended tax return form The difference between your total fuel used and the fuel used to propel the vehicle is the fuel used in the separate motor. Irs amended tax return form Example. Irs amended tax return form Hazel owns a refrigerated truck. Irs amended tax return form It has a separate motor for the refrigeration unit. Irs amended tax return form The same tank supplies both motors. Irs amended tax return form Using the truck's hubometer, Hazel figures that 90% of the fuel was used to propel the truck. Irs amended tax return form Therefore, 10% of the fuel is used in an off-highway business use. Irs amended tax return form Fuel lost or destroyed. Irs amended tax return form   You cannot treat fuel lost or destroyed through spillage, fire, or other casualty as fuel used in an off-highway business use. Irs amended tax return form Export (No. Irs amended tax return form 3). Irs amended tax return form   Export means fuel transported from the United States with the intention that the fuel remain in a foreign country or possession of the United States. Irs amended tax return form Fuel is not exported if it is in the fuel supply tank of a vehicle or aircraft. Irs amended tax return form In a boat engaged in commercial fishing (No. Irs amended tax return form 4). Irs amended tax return form   In a boat engaged in commercial fishing means fuel used in taking, catching, processing, or transporting fish, shellfish, or other aquatic life for commercial purposes, such as selling or processing the catch, on a specific trip basis. Irs amended tax return form They include boats used in both fresh and salt water fishing. Irs amended tax return form They do not include boats used for both sport fishing and commercial fishing on the same trip. Irs amended tax return form In certain intercity and local buses (No. Irs amended tax return form 5). Irs amended tax return form   In certain intercity and local buses means fuel used in a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. Irs amended tax return form The bus must be engaged in one of the following activities. Irs amended tax return form Scheduled transportation along regular routes. Irs amended tax return form Nonscheduled operations if the seating capacity of the bus is at least 20 adults, not including the driver. Irs amended tax return form Vans and similar vehicles used for van-pooling or taxi service do not qualify. Irs amended tax return form Available to the general public. Irs amended tax return form   This means you offer service to more than a limited number of persons or organizations. Irs amended tax return form If a bus operator normally provides charter operations through travel agencies but has buses available for chartering by the general public, this service is available to the general public. Irs amended tax return form A bus does not qualify when its operator uses it to provide exclusive services to only one person, group, or organization. Irs amended tax return form Also, intercity bus transportation does not include transporting students and employees of schools or intercity transportation in a qualified local bus. Irs amended tax return form In a qualified local bus (No. Irs amended tax return form 6). Irs amended tax return form   In a qualified local bus means fuel used in a bus meeting all the following requirements. Irs amended tax return form It is engaged in furnishing (for compensation) intracity passenger land transportation available to the general public. Irs amended tax return form It operates along scheduled, regular routes. Irs amended tax return form It has a seating capacity of at least 20 adults (excluding the driver). Irs amended tax return form It is under contract with (or is receiving more than a nominal subsidy from) any state or local government to furnish the transportation. Irs amended tax return form Intracity passenger land transportation. Irs amended tax return form   This is the land transportation of passengers between points located within the same metropolitan area. Irs amended tax return form It includes transportation along routes that cross state, city, or county boundaries if the routes remain within the metropolitan area. Irs amended tax return form Under contract. Irs amended tax return form   A bus is under contract with a state or local government only if the contract imposes a bona fide obligation on the bus operator to furnish the transportation. Irs amended tax return form More than a nominal subsidy. Irs amended tax return form   A subsidy is more than nominal if it is reasonably expected to exceed an amount equal to 3 cents multiplied by the number of gallons of fuel used in buses on subsidized routes. Irs amended tax return form A company that operates its buses along subsidized and unsubsidized intracity routes may consider its buses qualified local buses only when the buses are used on the subsidized intracity routes. Irs amended tax return form In a school bus (No. Irs amended tax return form 7). Irs amended tax return form   In a school bus means fuel used in a bus engaged in the transportation of students or employees of schools. Irs amended tax return form A school is an educational organization with a regular faculty and curriculum and a regularly enrolled body of students who attend the place where the educational activities occur. Irs amended tax return form For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel (No. Irs amended tax return form 8). Irs amended tax return form   Diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train (not including off-highway business use) means undyed diesel fuel and undyed kerosene used: For home heating, lighting, and cooking; In boats; In stationary machines, such as generators and compressors; For cleaning purposes; or In minibikes and snowmobiles. Irs amended tax return form In foreign trade (No. Irs amended tax return form 9). Irs amended tax return form   In foreign trade means fuel used in civil aircraft employed in foreign trade or trade between the United States and any of its possessions. Irs amended tax return form The term trade includes the transportation of persons or property for hire and the making of the necessary preparations for such transportation. Irs amended tax return form In the case of aircraft registered in a foreign country, the country must allow reciprocal benefits for aircraft registered in the United States. Irs amended tax return form Certain helicopter and fixed-wing aircraft uses (No. Irs amended tax return form 10). Irs amended tax return form   Includes: Certain helicopter uses. Irs amended tax return form   Certain helicopter uses means fuel used by a helicopter for any of the following purposes. Irs amended tax return form Transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas. Irs amended tax return form Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Irs amended tax return form Providing emergency medical transportation. Irs amended tax return form   During a use described in items (1) and (2), the helicopter must not take off from, or land at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise use services provided pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Irs amended tax return form For item (1), treat each flight segment as a separate flight. Irs amended tax return form Fixed-wing aircraft uses. Irs amended tax return form   Fixed-wing aircraft uses means fuel used by a fixed-wing aircraft for any of the following purposes. Irs amended tax return form Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Irs amended tax return form Providing emergency medical transportation. Irs amended tax return form The aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. Irs amended tax return form During a use described in item (1), the aircraft must not take off from, or land at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise use services provided pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Irs amended tax return form Exclusive use by a qualified blood collector organization (No. Irs amended tax return form 11). Irs amended tax return form   Exclusive use by a qualified blood collector organization means fuel used by the qualified blood collector organization for its exclusive use in the collection, storage, or transportation of blood. Irs amended tax return form Qualified blood collector organization. Irs amended tax return form   A qualified blood collector organization is one that is: Described in section 501(c)(3) and exempt from tax under section 501(a), Primarily engaged in the activity of collecting human blood, Registered by the IRS, and Registered by the Food and Drug Administration to collect blood. Irs amended tax return form In a highway vehicle owned by the United States that is not used on a highway (No. Irs amended tax return form 12). Irs amended tax return form   In a highway vehicle owned by the United States that is not used on a highway means fuel used in a vehicle that was not used on public highways during the period covered by the claim. Irs amended tax return form This use applies whether or not the vehicle is registered or required to be registered for highway use. Irs amended tax return form Exclusive use by a nonprofit educational organization (No. Irs amended tax return form 13). Irs amended tax return form   Exclusive use by a nonprofit educational organization means fuel used by an organization exempt from income tax under section 501(a) that meets both of the following requirements. Irs amended tax return form It has a regular faculty and curriculum. Irs amended tax return form It has a regularly enrolled body of students who attend the place where the instruction normally occurs. Irs amended tax return form   A nonprofit educational organization also includes a school operated by a church or other organization described in section 501(c)(3) if the school meets the above requirements. Irs amended tax return form Exclusive use by a state, political subdivision of a state, or the District of Columbia (No. Irs amended tax return form 14). Irs amended tax return form   Exclusive use by a state, political subdivision of a state, or the District of Columbia means fuel purchased by the state or local government for its exclusive use. Irs amended tax return form A state or local government is any state, any political subdivision thereof, or the District of Columbia. Irs amended tax return form An Indian tribal government is treated as a state only if the fuel is used in an activity that involves the exercise of an essential tribal government function. Irs amended tax return form Gasoline, diesel fuel, and kerosene used by the American Red Cross is considered to be the use of these fuels by a state. Irs amended tax return form In an aircraft or vehicle owned by an aircraft museum (No. Irs amended tax return form 15). Irs amended tax return form   In an aircraft or vehicle owned by an aircraft museum means fuel used in an aircraft or vehicle that is owned by an organization that meets all the following requirements. Irs amended tax return form It is exempt from income tax as an organization described in section 501(c)(3). Irs amended tax return form It is operated as a museum under a state (or District of Columbia) charter. Irs amended tax return form It is operated exclusively for acquiring, exhibiting, and caring for aircraft of the type used for combat or transport in  World War II. Irs amended tax return form   The aircraft or vehicle (such as a ground servicing vehicle for aircraft) must be used exclusively for the purposes described in item (3). Irs amended tax return form In military aircraft (No. Irs amended tax return form 16). Irs amended tax return form   In a military aircraft means fuel used in an aircraft owned by the United States or any foreign nation and constituting a part of its armed forces. Irs amended tax return form In commercial aviation (other than foreign trade). Irs amended tax return form   See Commercial aviation, earlier, for the definition. Irs amended tax return form Use in a train. Irs amended tax return form   Use in a train means fuel used in the propulsion engine of equipment or machinery that rides on rails. Irs amended tax return form This includes use in a locomotive, work train, switching engine, and track maintenance machine. Irs amended tax return form Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit For alternative fuel mixtures produced after December 31, 2011, see How to Claim the Credit below. Irs amended tax return form The section 6426 credit for biodiesel and alternative fuel consists of the biodiesel or renewable diesel mixture credit, alternative fuel credit, and alternative fuel mixture credit. Irs amended tax return form Biodiesel or renewable diesel mixture credit claimant. Irs amended tax return form   Claimant produced a biodiesel mixture by mixing biodiesel with diesel fuel. Irs amended tax return form Claimant produced a renewable diesel mixture by mixing renewable diesel with liquid fuel (other than renewable diesel). Irs amended tax return form   The person that produced and sold or used the mixture in their trade or business is the only person eligible to make this claim. Irs amended tax return form The credit is based on the gallons of biodiesel or renewable diesel in the mixture. Irs amended tax return form Renewable diesel does not include any fuel derived from coprocessing biomass (as defined in section 45K(c)(3)) with a feedstock that is not biomass. Irs amended tax return form Claim requirements. Irs amended tax return form   See the Instructions for Form 720 for the biodiesel or renewable diesel mixture claim requirements. Irs amended tax return form Alternative fuel credit claimant. Irs amended tax return form   For the alternative fuel credit, the registered alternative fueler who (1) sold an alternative fuel at retail delivered it into the fuel supply tank of a motor vehicle or motorboat, (2) sold an alternative fuel, delivered it in bulk taxable use in a motor vehicle or motorboat, and received required statement from the buyer, (3) used an alternative fuel (not sold at retail or in bulk as previously described) motor vehicle or motorboat, or (4) sold an alternative fuel used as a fuel in aviation is the only person eligible to make this claim. Irs amended tax return form Carbon capture requirement. Irs amended tax return form   A credit for Fischer-Tropsch process liquid fuel derived from coal (including peat) can be claimed only if the fuel is derived from coal produced at a gasification facility that separates and sequesters at least 75% of the facility's total carbon dioxide emissions. Irs amended tax return form Alternative fuel credit. Irs amended tax return form   The registered alternative fueler is the person eligible to make the claim. Irs amended tax return form An alternative fueler is the person liable for tax on alternative fuel under the rules for taxable events for Other Fuels (discussed in chapter 1) or would be liable but for an exemption for nontaxable uses. Irs amended tax return form An alternative fueler includes a person who sells for use or uses an alternative fuel in aviation. Irs amended tax return form Alternative fuel mixture credit claimant. Irs amended tax return form   For the alternative fuel mixture credit, the registered alternative fueler that produced and sold or used the mixture as a fuel in their trade or business is the only person eligible to make this claim. Irs amended tax return form The credit is based on the gallons of alternative fuel in the mixture. Irs amended tax return form An alternative fuel mixture is a mixture of alternative fuel and section 4081 taxable fuel (gasoline, diesel fuel, or kerosene). Irs amended tax return form Registration. Irs amended tax return form   You must be registered by the IRS to be eligible to claim the section 6426 fuel credit. Irs amended tax return form See Registration Requirements in chapter 1. Irs amended tax return form Credits for fuel provide incentive for United States production. Irs amended tax return form   The section 6426 fuel credit may not be claimed for alternative fuel that is produced outside the United States for use as a fuel outside the United States. Irs amended tax return form The United States includes any possession of the United States. Irs amended tax return form Credit for fuels derived from paper or pulp production. Irs amended tax return form   Credit for alternative fuels and alternative fuel mixtures for any fuel derived from the production of paper or pulp are not available for fuel sold or used on or after December 31, 2009. Irs amended tax return form How to Claim the Credit Any biodiesel or renewable diesel mixture credit must first be claimed on Schedule C to reduce your taxable fuel liability reported on Form 720. Irs amended tax return form Any excess credit may be claimed on Schedule C (Form 720), Schedule 3 (Form 8849), Form 4136, or Form 8864, Biodiesel and Renewable Diesel Fuels Credit. Irs amended tax return form See Notice 2005-4 and the Instructions for Form 720 for more information. Irs amended tax return form Also see Notice 2013-26 on page 984 of I. Irs amended tax return form R. Irs amended tax return form B. Irs amended tax return form 2013-18 at www. Irs amended tax return form irs. Irs amended tax return form gov/pub/irs-irbs/irb13-18. Irs amended tax return form pdf; and see chapter 2, later. Irs amended tax return form Coordination with income tax credit. Irs amended tax return form   Only one credit may be taken for any amount of biodiesel or renewable diesel. Irs amended tax return form If any amount is claimed (or will be claimed) for any amount of biodiesel or renewable diesel on Form 720, Form 8849, or Form 4136, then a claim cannot be made on Form 8864 for that amount of biodiesel or renewable diesel. Irs amended tax return form   Any alternative fuel credit must first be claimed on Schedule C (Form 720) to reduce your section 4041 taxable fuel liability for alternative fuel and CNG reported on Form 720. Irs amended tax return form Any excess credit may claimed on Schedule C (Form 720), Schedule 3 (Form 8849), or Form 4136. Irs amended tax return form   For alternative fuel mixtures produced after December 31, 2011, the alternative fuel mixture credit can be claimed on Schedule C (Form 720), not on Form 4136 or Schedule 3 (Form 8849), and only to the extent of your section 4081 taxable fuel liability for gasoline, diesel fuel and kerosene reported on Form 720. Irs amended tax return form   Calculate the limitation for alternative fuel mixtures separately and enter on Schedule C (Form 720), line 14, only the gallons of mixtures that do not exceed your section 4081 taxable fuel liability. Irs amended tax return form Filing Claims This section tells you how to make a claim for a credit or refund of excise taxes on fuels. Irs amended tax return form This section also covers recordkeeping requirements and when to include the credit or refund in your income. Irs amended tax return form Generally, you will provide all the information needed to claim a credit or refund when you properly complete Form 8849, Form 4136, Schedule C (Form 720), Form 6478, or Form 8864. Irs amended tax return form In some cases, you will have to attach additional information. Irs amended tax return form You need to keep records that support your claim for a credit or refund. Irs amended tax return form Keep at your principal place of business all records needed to enable the IRS to verify that you are the person entitled to claim a credit or refund and the amount you claimed. Irs amended tax return form Ultimate purchaser. Irs amended tax return form   Ultimate purchasers may make claims for the nontaxable use of fuels on Form 4136, Schedule 1 (Form 8849), and Schedule C (Form 720) if reporting excise tax liability on that return. Irs amended tax return form If you are an ultimate purchaser, you must keep the following records. Irs amended tax return form The number of gallons purchased and used during the period covered by your claim. Irs amended tax return form The dates of the purchases. Irs amended tax return form The names and addresses of suppliers and amounts purchased from each in the period covered by your claim. Irs amended tax return form The nontaxable use for which you used the fuel. Irs amended tax return form The number of gallons used for each nontaxable use. Irs amended tax return form It is important that your records show separately the number of gallons used for each nontaxable use that qualifies as a claim. Irs amended tax return form If the fuel is exported, you must have proof of exportation. Irs amended tax return form   For more information about keeping records, see Publication 583, Starting a Business and Keeping Records, or chapter 1 of Publication 17, Your Federal Income Tax for Individuals. Irs amended tax return form Exceptions. Irs amended tax return form    Generally, the ultimate purchaser may not claim a credit or refund for undyed diesel fuel, undyed kerosene, or kerosene for use in aviation sold for the exclusive use of a state or local government. Irs amended tax return form However, see Claims by credit card issuers, later, for an exception. Irs amended tax return form The ultimate purchaser may not claim a credit or refund as follows. Irs amended tax return form The ultimate purchaser of gasoline or aviation gasoline used by a state or local government for its exclusive use or by a nonprofit educational organization for its exclusive use may waive its right to make a claim by providing a certificate that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Certificate M. Irs amended tax return form A new certificate is required each year or when any information in the current certificate expires. Irs amended tax return form The ultimate purchaser of kerosene for use in commercial aviation or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) may waive its right to make a claim by providing a waiver that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Waiver L. Irs amended tax return form A new waiver is required each year or when any information in the current waiver expires. Irs amended tax return form The ultimate purchaser of undyed diesel fuel or undyed kerosene used in certain intercity and local buses may waive its right to make a claim by providing a waiver that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Waiver N. Irs amended tax return form A new waiver is required each year or when any information in the current waiver expires. Irs amended tax return form The ultimate purchaser of kerosene for use in nonexempt, noncommercial aviation must provide a certificate that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Certificate Q. Irs amended tax return form A new certificate is required each year or when any information in the current certificate expires. Irs amended tax return form Registered ultimate vendor. Irs amended tax return form   Registered ultimate vendors may make claims for certain sales of fuels on Form 4136, Schedule 2 (Form 8849), and Schedule C (Form 720) if reporting excise tax liability on that return. Irs amended tax return form If you are a registered ultimate vendor, you must keep certain information pertaining to the sale of the fuel. Irs amended tax return form   To make a claim, you must have sold the fuel at a tax-excluded price, repaid the tax to the buyer, or obtained the buyer's written consent to the allowance of the claim. Irs amended tax return form You are required to have a valid certificate or waiver in your possession in order to make the claim. Irs amended tax return form   In addition, you must have a registration number that has not been revoked or suspended. Irs amended tax return form See Form 637. Irs amended tax return form State use. Irs amended tax return form   To make a claim as an ultimate vendor (state), you must have a UV registration number and the fuel cannot be purchased with a credit card as explained below. Irs amended tax return form If you sell undyed diesel fuel, undyed kerosene, or kerosene for use in aviation for use by a state or local government, you must keep the following information. Irs amended tax return form The name and taxpayer identification number of each person (government unit) that bought the fuel. Irs amended tax return form The number of gallons sold to each person. Irs amended tax return form An unexpired certificate from the buyer. Irs amended tax return form See Model Certificate P in the Appendix. Irs amended tax return form The certificate expires on the earlier of 1 year after the date of the certificate or the date a new certificate is given to the registered ultimate vendor. Irs amended tax return form Nonprofit educational organization and state use. Irs amended tax return form   To make a claim as an ultimate vendor (nonprofit educational organization or state), you must have a UV registration number and the fuel cannot be purchased with a credit card as explained later. Irs amended tax return form If you sell gasoline or aviation gasoline to a nonprofit educational organization for its exclusive use or to a state or local government for its exclusive use, you must keep the following information. Irs amended tax return form The name and taxpayer identification number of each person (nonprofit educational organization or government unit) that bought the fuel. Irs amended tax return form The number of gallons sold to each person. Irs amended tax return form An unexpired certificate from the buyer. Irs amended tax return form See Model Certificate M in the Appendix. Irs amended tax return form  The certificate expires on the earlier of 1 year after the date of the certificate or the date a new certificate is given to the registered ultimate vendor. Irs amended tax return form Blocked pump. Irs amended tax return form   To make a claim as an ultimate vendor (blocked pump), you must have a UP registration number. Irs amended tax return form If you sell undyed kerosene (other than kerosene for use in aviation) from a pump that qualifies as a blocked pump because it is locked by you after each sale and is unlocked by you at the request of the buyer, you must keep the following information for each sale of more than 5 gallons. Irs amended tax return form The date of each sale. Irs amended tax return form The name and address of the buyer. Irs amended tax return form The number of gallons sold to that buyer. Irs amended tax return form Certain intercity and local bus use. Irs amended tax return form   To make a claim as an ultimate vendor of undyed diesel fuel or undyed kerosene used in certain intercity and local buses, you must have a UB registration number. Irs amended tax return form You must keep the following information. Irs amended tax return form The date of each sale. Irs amended tax return form The name and address of the buyer. Irs amended tax return form The number of gallons sold to the buyer. Irs amended tax return form A copy of the waiver signed by the buyer at the time the credit or payment is claimed. Irs amended tax return form See Model Waiver N in the Appendix. Irs amended tax return form Kerosene for use in commercial aviation or noncommercial aviation. Irs amended tax return form   To make a claim as an ultimate vendor of kerosene for use in commercial aviation (other than foreign trade) or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia), you must have a UA registration number. Irs amended tax return form See Kerosene for use in aviation, earlier, for a list of nontaxable uses. Irs amended tax return form You must keep the following information. Irs amended tax return form The date of each sale. Irs amended tax return form The name and address of the buyer. Irs amended tax return form The number of gallons sold to the buyer. Irs amended tax return form A copy of the waiver signed by the buyer at the time the credit or payment is claimed. Irs amended tax return form See Model Waiver L in the Appendix. Irs amended tax return form Kerosene for use in nonexempt, noncommercial aviation. Irs amended tax return form   To make a claim as an ultimate vendor of kerosene for use in nonexempt, noncommercial aviation, you must have a UA registration number. Irs amended tax return form You must keep the following information. Irs amended tax return form The date of each sale. Irs amended tax return form The name and address of the buyer. Irs amended tax return form The number of gallons sold to the buyer. Irs amended tax return form A copy of the certificate signed by the buyer at the time the credit or payment is claimed. Irs amended tax return form See Model Certificate Q in the Appendix. Irs amended tax return form Claims by credit card issuers. Irs amended tax return form   For sales of gasoline, aviation gasoline, diesel fuel, kerosene, or kerosene for use in aviation that are purchased by an exempt user with the use of a credit card, the registered credit card issuer is the only person who can make the claim. Irs amended tax return form An exempt user for this purpose is: For gasoline or aviation gasoline, a state or local government (including essential government use by an Indian tribal government) or a nonprofit educational organization; or For diesel fuel, kerosene, or kerosene for use in aviation, a state or local government (including essential government use by an Indian tribal government). Irs amended tax return form   If gasoline is purchased without the use of a credit card, then the registered ultimate vendor of the gasoline may make the claim for refund or credit. Irs amended tax return form However, if the gasoline is purchased with a credit card issued to a state, but the credit card issuer is not registered by the IRS or does not meet the conditions described, the credit card issuer must collect the tax and the state may make the claim. Irs amended tax return form   If diesel fuel, kerosene, or kerosene for use in aviation is purchased without the use of a credit card, the registered ultimate vendor may make the claim for refund or credit. Irs amended tax return form A state is not allowed to make a claim for these fuels. Irs amended tax return form However, if the diesel fuel or kerosene is purchased with a credit card issued to a state, but the credit card issuer is not registered by the IRS or does not meet the conditions described, the credit card issuer must collect the tax and the state may make the claim. Irs amended tax return form   The claim from the credit card issuer must contain the following information as it applies to the fuel covered in the claim. Irs amended tax return form The total number of gallons. Irs amended tax return form Its registration number. Irs amended tax return form A statement that it has not collected the amount of tax from the ultimate purchaser or has obtained the written consent of the ultimate purchaser to make the claim. Irs amended tax return form A statement that it has repaid or agreed to repay the amount of tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to make the claim, or has otherwise made arrangements which directly or indirectly provide the ultimate vendor with reimbursement of the tax. Irs amended tax return form Has in its possession an unexpired certificate similar to Model Certificate R in the Appendix and has no reason to believe any of the information in the certificate is false. Irs amended tax return form Taxpayer identification number. Irs amended tax return form   To file a claim, you must have a taxpayer identification number. Irs amended tax return form Your taxpayer identification number can be an: Employer identification number (EIN), Social security number (SSN), or Individual taxpayer identification number (ITIN), if you are an alien individual and do not have and are not eligible to get an SSN. Irs amended tax return form   If you normally file only a U. Irs amended tax return form S. Irs amended tax return form individual income tax return (such as Form 1040 or 1040NR), use your SSN or ITIN. Irs amended tax return form You get an SSN by filing Form SS-5, Application for a Social Security Card, with the Social Security Administration. Irs amended tax return form To get an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS. Irs amended tax return form   If you operate a business, use your EIN. Irs amended tax return form If you do not have an EIN, you may apply for one online. Irs amended tax return form Go to the IRS website at irs. Irs amended tax return form gov/businesses/small and click on the “Employer ID Numbers (EINs)” link. Irs amended tax return form You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Irs amended tax return form Claiming A Refund Generally, you may claim a refund of excise taxes on Form 8849. Irs amended tax return form Complete and attach to Form 8849 the appropriate Form 8849 schedules. Irs amended tax return form The instructions for Form 8849 and the separate instructions for each schedule explain the requirements for making a claim for refund. Irs amended tax return form If you file Form 720, you can use the Schedule C (Form 720) for your refund claims for the quarter. Irs amended tax return form See the Instructions for Form 720. Irs amended tax return form Do not claim a refund on Form 8849 for any amount for which you have filed or will file a claim on Schedule C (Form 720) or Form 4136. Irs amended tax return form The alternative fuel mixture credit must be claimed on Schedule C (Form 720) against your section 4081 taxable fuel liability for gasoline, diesel, and kerosene and any excess is not allowed. Irs amended tax return form The alternative fuel credit must first be claimed on Schedule C (Form 720) against your section 4041 taxable fuel liability for alternative fuel and CNG. Irs amended tax return form To the extent the alternative fuel credit exceeds this taxable fuel liability, a payment is allowed and may be claimed as a credit on Schedule C (Form 720), or as an income tax credit on Forms 4136, 6478, or 8864, as applicable. Irs amended tax return form Only one claim may be made for any particular amount of alternative fuel. Irs amended tax return form Claiming a Credit on Form 4136 For alternative fuel mixtures produced after December 31, 2011, the alternative fuel mixture credit cannot be claimed on Form 4136. Irs amended tax return form See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2, earlier. Irs amended tax return form A credit may be claimed for certain uses and sales of fuels on Form 4136 when you file your income tax return at the end of the year. Irs amended tax return form If you meet certain requirements (discussed earlier), you may be able to make a claim during the year. Irs amended tax return form Credit only. Irs amended tax return form   You can claim the following taxes only as a credit on Form 4136. Irs amended tax return form Tax on fuels used for nontaxable uses if the total for your tax year is less than $750. Irs amended tax return form Tax on fuel you did not include in any claim for refund previously filed for any quarter of your tax year. Irs amended tax return form Tax on fuel you used in mobile machinery (off-highway business use) that traveled less than 7,500 miles on public highways. Irs amended tax return form Do not claim a credit for any amount for which you have filed a refund claim on Form 8849 or credit on Schedule C (Form 720). Irs amended tax return form When to file. Irs amended tax return form   You can claim a fuel tax credit on your income tax return for the year you used the fuel (or sold the fuel in the case of a registered ultimate vendor claim). Irs amended tax return form You may be able to make a fuel tax claim on an amended income tax return for the year you used the fuel. Irs amended tax return form Generally, you must file an amended return by the later of 3 years from the date you filed your original return or within 2 years from the date you paid the income tax. Irs amended tax return form How to claim a credit. Irs amended tax return form   How you claim a credit depends on whether you are an individual, partnership, corporation, S corporation, or farmers' cooperative association. Irs amended tax return form Individuals. Irs amended tax return form   You claim the credit on the “Credits from” line of Form 1040. Irs amended tax return form Also check box b on that line. Irs amended tax return form If you would not otherwise have to file an income tax return, you must do so to get a fuel tax credit. Irs amended tax return form Partnerships. Irs amended tax return form   Partnerships (other than electing large partnerships) claim the credit by including a statement on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Irs amended tax return form , showing each partner's share of the number of gallons of each fuel sold or used for a non
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The Irs Amended Tax Return Form

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