File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Irs Amended Tax Return

Free 2005 Tax FilingFree State FilingFree State Tax Preparation OnlineFree Income Tax Preparation 2007Free Tax Act 2012State Income Tax ChartI Need Prior Year 1040ez Form 2010 I Caot Access Anywhere AnyoneFree 2011 Tax Forms1040ez Fill In1040ez Instructions 2012How To Do 2012 Taxes1040nr EfileTaxact Online 2012File 2009 Taxes Online Free State And FederalFile Free Tax Return2014 1040ez FormsMyfreetaxes Com KingcountyHow To File An Amended Tax Return For 2012Free Tax 20121040x Electronic FilingAmendment TaxEfile 2011 TaxHow Do I Get 2010 Tax FormsStudent Tax InformationHow To File Taxes When Self EmployedWhat Can Military Claim On Taxes1040ez Fillable Form1040 X Tax FormEz Tax FilingWww Freefilefillableforms ComFile For An ExtensionFree Turbotax For MilitaryIrs Amended ReturnsLowest Price State Tax FilingH&r Block Federal FreeEz Tax Form 2013Free State TaxPrint 1040ezIrs E File 1040 EzHow Do I Amend My 2013 Tax Return

Irs Amended Tax Return

Irs amended tax return 18. Irs amended tax return   Pensión para el Cónyuge Divorciado Table of Contents IntroductionCónyuge o ex cónyuge. Irs amended tax return Documento (instrumento) de divorcio o separación judicial. Irs amended tax return Useful Items - You may want to see: Reglas GeneralesPagos hipotecarios. Irs amended tax return Impuestos y seguro. Irs amended tax return Otros pagos a terceros. Irs amended tax return Documentos Firmados Después de 1984Pagos a terceros. Irs amended tax return Excepción. Irs amended tax return Pagos sustitutivos. Irs amended tax return Específicamente designado como pensión para hijos menores. Irs amended tax return Contingencia relacionada con su hijo. Irs amended tax return Pago claramente asociado con una contingencia. Irs amended tax return Cómo Deducir la Pensión para el Cónyuge Divorciado que Pagó Cómo Declarar la Pensión para el Cónyuge Divorciado Recibida Regla de Recuperación Introduction Este capítulo trata de las reglas correspondientes si paga o recibe pensión para el cónyuge divorciado. Irs amended tax return Abarca los siguientes temas: Qué pagos se consideran pensión para el cónyuge divorciado. Irs amended tax return Qué pagos no se consideran pensión para el cónyuge divorciado, como la pensión para la manutención de hijos. Irs amended tax return Cómo deducir la pensión para el cónyuge divorciado que pagó. Irs amended tax return Cómo declarar la pensión para el cónyuge divorciado que recibió por concepto de ingresos. Irs amended tax return Si debe o no recuperar los beneficios tributarios de la pensión para el cónyuge divorciado. Irs amended tax return “Recuperar” significa volver a añadir a sus ingresos toda, o parte de, una deducción que haya tomado en un año anterior. Irs amended tax return La “pensión para el cónyuge divorciado” es un pago hecho a, o para, un cónyuge o ex cónyuge conforme a un documento (instrumento) de divorcio o separación judicial. Irs amended tax return No incluye pagos voluntarios que no sean hechos conforme a un documento de divorcio o separación. Irs amended tax return La pensión para el cónyuge divorciado es deducible por el pagador y tiene que ser incluida en los ingresos del cónyuge o ex cónyuge. Irs amended tax return Aunque en general este capítulo está dirigido al pagador de la pensión para el cónyuge divorciado, el cónyuge beneficiario puede usar la información para determinar si una cantidad recibida se considera pago de pensión para el cónyuge divorciado. Irs amended tax return Para considerarse pensión para el cónyuge divorciado, un pago tiene que cumplir ciertos requisitos. Irs amended tax return Requisitos distintos generalmente corresponden a pagos hechos conforme a documentos firmados después de 1984 y a pagos hechos conforme a documentos firmados antes de 1985. Irs amended tax return Este capítulo trata de las reglas relativas a pagos hechos conforme a documentos firmados después de 1984. Irs amended tax return Si usted necesita consultar las reglas para pagos hechos conforme a documentos firmados antes de 1985, obtenga y guarde una copia de la versión del año 2004 de la Publicación 504, Divorced or Separated Individuals (Personas divorciadas o separadas), en inglés. Irs amended tax return Ése fue el último año en que la información sobre documentos firmados antes de 1985 se incluyó en la Publicación 504. Irs amended tax return Use la Tabla 18-1 de este capítulo como guía para determinar si ciertos pagos se consideran pensión para el cónyuge divorciado. Irs amended tax return Definiciones. Irs amended tax return   Las siguientes son definiciones aplicables a lo largo de este capítulo. Irs amended tax return Cónyuge o ex cónyuge. Irs amended tax return   Salvo que se indique lo contrario, el término “cónyuge” incluye a un ex cónyuge. Irs amended tax return Documento (instrumento) de divorcio o separación judicial. Irs amended tax return   El término “documento de divorcio o separación judicial” significa: Un decreto u orden de divorcio o de manutención por separación judicial o un documento (instrumento) por escrito relacionado con ese decreto u orden; Un acuerdo de separación por escrito o Un decreto o cualquier tipo de orden judicial, que le exige a un cónyuge que haga pagos para la manutención del otro cónyuge. Irs amended tax return Esto abarca un decreto temporal, un decreto interlocutorio (no final) y un decreto de pensión para el cónyuge divorciado pendente lite (en espera de que se tomen acciones con respecto al decreto o acuerdo final). Irs amended tax return Useful Items - You may want to see: Publicación 504 Divorced or Separated Individuals (Personas divorciadas o separadas), en inglés. Irs amended tax return Reglas Generales Las siguientes reglas corresponden a la pensión para el cónyuge divorciado independientemente de cuándo se firmó el documento de divorcio o separación judicial. Irs amended tax return Pagos que no son pensión para el cónyuge divorciado. Irs amended tax return   No todos los pagos hechos conforme a un documento de divorcio o separación judicial son pensión para el cónyuge divorciado. Irs amended tax return La pensión para el cónyuge divorciado no abarca: Pensión para hijos menores; Acuerdos de división (distribución) de bienes que no sean en efectivo; Pagos que le corresponden a su cónyuge como parte de los ingresos de la comunidad de bienes conyugales, según se explica bajo Community Property (Bienes gananciales), en la Publicación 504, en inglés; Pagos hechos para el mantenimiento de los bienes del pagador o Uso de los bienes del pagador. Irs amended tax return Pagos a terceros. Irs amended tax return   Los pagos en efectivo, cheques o giros hechos a un tercero en nombre de su cónyuge según las condiciones del documento de divorcio o separación judicial pueden ser pagos de pensión para el cónyuge divorciado, si por lo demás reúnen los requisitos. Irs amended tax return Estos abarcan pagos hechos para cubrir los gastos médicos de su cónyuge, costos de vivienda (alquiler, servicios públicos, etc. Irs amended tax return ), impuestos, matrícula escolar, etcétera. Irs amended tax return A estos pagos se les trata como si hubiesen sido recibidos por su cónyuge y luego pagados al tercero. Irs amended tax return Primas de un seguro de vida. Irs amended tax return   La pensión para el cónyuge divorciado incluye las primas que tiene que pagar conforme a su documento de divorcio o separación judicial por su seguro de vida hasta la medida o el punto en que su cónyuge sea el dueño de la póliza. Irs amended tax return Pagos por una vivienda comprada conjuntamente. Irs amended tax return   Si su documento de divorcio o separación judicial estipula que tiene que pagar los gastos de una vivienda que es propiedad de usted y su cónyuge, algunos de sus pagos pueden ser considerados pensión para el cónyuge divorciado. Irs amended tax return Pagos hipotecarios. Irs amended tax return   Si tiene que pagar todos los pagos hipotecarios (capital e intereses) sobre una vivienda de propiedad conjunta y por lo demás estos pagos reúnen los requisitos para considerarse pensión para el cónyuge divorciado, puede deducir la mitad del total de los pagos como pensión para el cónyuge divorciado. Irs amended tax return Si detalla sus deducciones y la vivienda reúne los requisitos, puede declarar la mitad de los intereses al calcular sus intereses deducibles. Irs amended tax return Su cónyuge tiene que declarar la mitad de los pagos como pensión para el cónyuge divorciado recibida. Irs amended tax return Si su cónyuge detalla sus deducciones y la vivienda reúne los requisitos, él o ella puede declarar la mitad de los intereses sobre la hipoteca al calcular sus intereses deducibles. Irs amended tax return Impuestos y seguro. Irs amended tax return   Si tiene que pagar todos los impuestos sobre bienes raíces o seguro de una vivienda que es tenencia común (tenancy in common), puede deducir la mitad de dichos pagos como pensión para el cónyuge divorciado. Irs amended tax return Su cónyuge tiene que declarar la mitad de estos pagos como pensión para el cónyuge divorciado recibida. Irs amended tax return Si usted y su cónyuge detallan sus deducciones, cada uno puede reclamar la mitad de los impuestos sobre bienes raíces y ninguna parte del seguro de la vivienda. Irs amended tax return    Si es dueño de una vivienda de tenencia en su totalidad (tenancy by the entirety) o tenencia conjunta (joint tenancy), ninguno de sus pagos de impuestos o pagos de seguro se considera pensión para el cónyuge divorciado. Irs amended tax return Sin embargo, si detalla sus deducciones, puede reclamar todos los impuestos sobre bienes raíces y ninguna parte del seguro de vivienda. Irs amended tax return Otros pagos a terceros. Irs amended tax return   Si hizo otros pagos a terceros, vea la Publicación 504, en inglés, para ver si alguna parte de los pagos reúne los requisitos como pensión para el cónyuge divorciado. Irs amended tax return Documentos Firmados Después de 1984 Las reglas siguientes de la pensión para el cónyuge divorciado corresponden a pagos hechos conforme a un documento de divorcio o separación judicial firmado después de 1984. Irs amended tax return Excepción para documentos firmados antes de 1985. Irs amended tax return   Existen dos situaciones en las que las reglas para documentos firmados después de 1984 corresponden a documentos firmados antes de 1985: Un documento de divorcio o separación judicial firmado antes de 1985 y modificado después de 1984 para especificar que las reglas para documentos firmados después de 1984 se aplicarán. Irs amended tax return Un documento temporal de divorcio o separación judicial firmado antes de 1985 e incorporado dentro de, o adoptado por, un decreto final firmado después de 1984 que: Cambie la cantidad o el período del pago o Añada o suprima cualquier contingencia o condición. Irs amended tax return   Para las reglas de los pagos de la pensión para el cónyuge divorciado hechos conforme a documentos anteriores a 1985 que no cumplan estas excepciones, consulte la versión de la Publicación 504 publicada en 2004, en inglés, en www. Irs amended tax return irs. Irs amended tax return gov/pub504. Irs amended tax return Ejemplo 1. Irs amended tax return En noviembre de 1984, usted y su ex cónyuge firmaron un acuerdo de separación judicial. Irs amended tax return En febrero de 1985, el acuerdo de separación judicial por escrito fue sustituido por un documento de divorcio. Irs amended tax return El documento de divorcio no cambió las condiciones relativas a la pensión para el cónyuge divorciado que le paga a su ex cónyuge. Irs amended tax return El documento de divorcio se trata como si hubiese sido firmado antes de 1985. Irs amended tax return Los pagos de pensión para el cónyuge divorciado hechos conforme a este documento no están sujetos a las reglas de pagos hechos conforme a documentos firmados después de 1984. Irs amended tax return Ejemplo 2. Irs amended tax return Suponga que los hechos son iguales a los del Ejemplo 1, salvo que el documento de divorcio cambió la cantidad de la pensión para el cónyuge divorciado. Irs amended tax return En este ejemplo, el documento de divorcio no se trata como si hubiese sido firmado antes de 1985. Irs amended tax return Los pagos de pensión para el cónyuge divorciado están sujetos a las reglas de pagos hechos conforme a documentos firmados después de 1984. Irs amended tax return Requisitos de la pensión para el cónyuge divorciado. Irs amended tax return   Un pago realizado a, o para, un cónyuge conforme a un documento de divorcio o separación se considera pensión para el cónyuge divorciado si los cónyuges no presentan una declaración conjunta juntos y si todos los siguientes requisitos se cumplen: El pago es en efectivo. Irs amended tax return El documento no indica que el pago no es pensión para el cónyuge divorciado. Irs amended tax return Cónyuges que han sido separados legalmente conforme a un decreto de divorcio o un decreto de manutención por separación judicial no se consideran miembros de la misma vivienda. Irs amended tax return No hay obligación de hacer pago alguno (en efectivo o en bienes) después de la muerte del cónyuge beneficiario. Irs amended tax return El pago no se considera pensión para hijos menores. Irs amended tax return Cada uno de estos requisitos se trata a continuación. Irs amended tax return Requisito de pagos en efectivo. Irs amended tax return   Sólo los pagos en efectivo, incluidos cheques y giros, se consideran pensión para el cónyuge divorciado. Irs amended tax return Los siguientes ejemplos no se consideran pensión para el cónyuge divorciado: Transferencias de servicios o bienes (incluyendo una escritura de deuda de un tercero o un contrato de anualidad). Irs amended tax return La firma de una escritura de deuda por parte del pagador. Irs amended tax return Uso de los bienes del pagador. Irs amended tax return Pagos a terceros. Irs amended tax return   Los pagos en efectivo a terceros conforme a las condiciones de su documento de divorcio o separación judicial pueden considerarse pagos en efectivo hechos a su cónyuge. Irs amended tax return Vea Pagos a terceros bajo Reglas Generales, anteriormente. Irs amended tax return   Además, los pagos en efectivo a terceros por medio de una solicitud escrita de parte de su cónyuge pudieran ser considerados pensión para el cónyuge divorciado si se cumplen los requisitos siguientes: Los pagos se hacen en lugar de pagos de la pensión para el cónyuge divorciado hechos directamente a su cónyuge. Irs amended tax return La solicitud por escrito declara que ambos cónyuges quieren que los pagos se consideren pagos de pensión para el cónyuge divorciado. Irs amended tax return Usted recibe la solicitud por escrito de su cónyuge antes de presentar su declaración para el año en que hizo los pagos. Irs amended tax return Pagos no designados como pensión para el cónyuge divorciado. Irs amended tax return   Usted y su cónyuge pueden designar que los pagos que de otra manera se considerarían pensión para el cónyuge divorciado, en este caso, no se consideren como tal. Irs amended tax return Esto se hace incluyendo una disposición en su documento de divorcio o separación judicial que declare que sus pagos de pensión para el cónyuge divorciado no son deducibles y pueden ser excluidos de los ingresos de su cónyuge. Irs amended tax return Con este fin, todo instrumento (documento por escrito) firmado tanto por usted como por su cónyuge que haga esta designación y que se refiera a un acuerdo de separación judicial por escrito anterior se considera acuerdo de separación por escrito (y por lo tanto, un documento de divorcio o separación judicial). Irs amended tax return Si está sujeto a una orden temporal de manutención, la designación debe ser hecha en la orden original o en una orden temporal de manutención posterior. Irs amended tax return   Su cónyuge puede excluir los pagos de los ingresos sólo si él o ella adjunta a la declaración de impuestos una copia del documento que los designa pagos que no son pensión para el cónyuge divorciado. Irs amended tax return La copia debe ser adjuntada cada año en el que la designación corresponda. Irs amended tax return Los cónyuges no pueden vivir en la misma vivienda. Irs amended tax return    Los pagos a su cónyuge mientras ustedes vivan en la misma vivienda no son pensión para el cónyuge divorciado si están legalmente separados conforme a un documento de divorcio o de manutención por separación judicial. Irs amended tax return Una residencia que ambos compartieran antiguamente se considera una vivienda, aun si ustedes se separan físicamente en la residencia. Irs amended tax return   No se consideran miembros de la misma vivienda si uno de ustedes se va a ir de la vivienda y se va a más tardar un mes después de la fecha del pago. Irs amended tax return Excepción. Irs amended tax return   Si no está legalmente separado conforme a un documento de divorcio o de manutención por separación judicial, un pago hecho conforme a un acuerdo de separación por escrito, documento de manutención u otra orden judicial puede considerarse pensión para el cónyuge divorciado aun si ustedes son miembros de la misma vivienda cuando se hace el pago. Irs amended tax return Tabla 18-1. Irs amended tax return Requisitos de la Pensión para el Cónyuge Divorciado (Documentos Firmados Después de 1984) Los pagos SON pensión para el cónyuge divorciado si todas las condiciones siguientes le corresponden: Los pagos NO son pensión para el cónyuge divorciado si cualquiera de las condiciones siguientes le corresponden: Los pagos son requeridos por un documento de divorcio o de separación judicial. Irs amended tax return Los pagos no son requeridos por un documento de divorcio o de separación judicial. Irs amended tax return El cónyuge que paga y el cónyuge beneficiario del pago no presentan una declaración conjunta juntos. Irs amended tax return El cónyuge que paga y el cónyuge beneficiario del pago presentan una declaración conjunta juntos. Irs amended tax return Los pagos son en efectivo (incluyendo cheques o giros). Irs amended tax return El pago: No es en efectivo, Es un acuerdo de división (distribución) de bienes que no son en efectivo, Le corresponde a su cónyuge como su parte de los ingresos de la comunidad de bienes conyugales o Es para el mantenimiento de los bienes del cónyuge que paga. Irs amended tax return El documento no indica que el pago no es pensión para el cónyuge divorciado. Irs amended tax return El documento indica que el pago no es pensión para el cónyuge divorciado. Irs amended tax return Los cónyuges que están legalmente separados conforme a un decreto de divorcio o de manutención por separación judicial no son miembros de la misma vivienda. Irs amended tax return Los cónyuges que están legalmente separados conforme a un decreto de divorcio o de manutención por separación judicial viven en la misma vivienda. Irs amended tax return Los pagos no son requeridos después de la muerte del cónyuge beneficiario. Irs amended tax return Los pagos son requeridos después de la muerte del cónyuge beneficiario. Irs amended tax return El pago no se considera pensión para hijos menores. Irs amended tax return El pago se considera pensión para hijos menores. Irs amended tax return Estos pagos pueden ser deducidos por el cónyuge que paga y deben ser incluidos en los ingresos del cónyuge beneficiario. Irs amended tax return Estos pagos no pueden ser deducidos por el cónyuge que paga ni pueden ser incluidos en los ingresos del cónyuge beneficiario. Irs amended tax return Obligación de pagos después de la muerte del cónyuge beneficiario. Irs amended tax return   Si tiene que continuar haciendo pagos por algún período después de la muerte de su cónyuge, la parte del pago que continuaría no se considera pensión para el cónyuge divorciado, independientemente de si se haya hecho antes o después de la muerte. Irs amended tax return Si la totalidad del pago continúa, ninguno de los pagos hechos antes o después de la muerte se considera pensión para el cónyuge divorciado. Irs amended tax return   En el documento de divorcio o de separación judicial no tiene que constar expresamente que los pagos cesan al morir su cónyuge si, por ejemplo, la obligación de continuar con los pagos terminara conforme a la ley estatal. Irs amended tax return Ejemplo. Irs amended tax return Usted tiene que pagar a su ex cónyuge $10,000 en efectivo anualmente por 10 años. Irs amended tax return En su decreto de divorcio consta que los pagos cesarán al morir su ex cónyuge. Irs amended tax return También tiene que pagarle $20,000 en efectivo a su ex cónyuge, o al caudal hereditario (patrimonio) de su ex cónyuge, anualmente por 10 años. Irs amended tax return La muerte de su cónyuge no causaría el cese de estos pagos conforme a la ley estatal. Irs amended tax return Los pagos anuales de $10,000 podrían considerarse pensión para el cónyuge divorciado. Irs amended tax return Los pagos anuales de $20,000 que no cesan al morir su ex cónyuge no son pensión para el cónyuge divorciado. Irs amended tax return Pagos sustitutivos. Irs amended tax return   Si tiene que hacer algún pago en efectivo o en bienes después de la muerte de su cónyuge para sustituir los pagos continuos que de otra manera corresponderían antes de la muerte, los pagos que de otra manera corresponderían no son considerados pensión para el cónyuge divorciado. Irs amended tax return Hasta el punto en que sus pagos comiencen, se aceleren o aumenten debido a la muerte de su cónyuge, los pagos que de otra manera corresponderían que usted hizo podrían considerarse pagos que no son pensión para el cónyuge divorciado. Irs amended tax return Si los pagos son o no considerados pensión para el cónyuge divorciado depende de todos los hechos y circunstancias. Irs amended tax return Ejemplo 1. Irs amended tax return Conforme a su decreto de divorcio, tiene que pagarle a su ex cónyuge $30,000 anualmente. Irs amended tax return Los pagos cesarán al final de 6 años o al morir su cónyuge, lo que suceda antes. Irs amended tax return Su ex cónyuge tiene la custodia de sus hijos menores de edad. Irs amended tax return El decreto estipula que si algún hijo aún es menor de edad al morir su cónyuge, tiene que pagar $10,000 anualmente a un fideicomiso hasta que su hijo más joven alcance la mayoría de edad. Irs amended tax return Los ingresos de fideicomiso y los bienes entregados en fideicomiso (capital) sólo pueden ser usados para el beneficio de sus hijos. Irs amended tax return Estos hechos indican que los pagos que han de hacerse después de la muerte de su ex cónyuge sustituyen $10,000 de los pagos anuales de $30,000. Irs amended tax return De cada uno de los pagos anuales de $30,000, $10,000 no se consideran pensión para el cónyuge divorciado. Irs amended tax return Ejemplo 2. Irs amended tax return Conforme a su decreto de divorcio, usted tiene que pagarle a su ex cónyuge $30,000 anualmente. Irs amended tax return Los pagos cesarán al final de 15 años o al morir su ex cónyuge, lo que suceda antes. Irs amended tax return El decreto estipula que si su ex cónyuge fallece antes del final del período de 15 años, usted le tiene que pagar a su caudal hereditario (patrimonio) la diferencia entre $450,000 ($30,000 x 15) y el total de la cantidad pagada hasta ese momento. Irs amended tax return Por ejemplo, si su cónyuge fallece al final del décimo año, tiene que pagarle al caudal hereditario (patrimonio) $150,000 ($450,000 − $300,000). Irs amended tax return Estos hechos indican que el pago de suma global que ha de hacerse después de la muerte de su ex cónyuge sustituye la cantidad completa de los pagos anuales de $30,000. Irs amended tax return Ninguno de los pagos anuales se considera pensión para el cónyuge divorciado. Irs amended tax return El resultado sería el mismo si el pago que se requiere cuando ocurre la muerte se descontara por un factor de intereses correspondientes para justificar el pago por adelantado. Irs amended tax return Pensión para hijos menores. Irs amended tax return   Un pago específicamente designado como pensión para hijos menores o tratado específicamente como pensión para hijos menores conforme a su documento de divorcio o separación judicial no se considera pensión para el cónyuge divorciado. Irs amended tax return La cantidad o parte designada podría variar con el tiempo. Irs amended tax return Los pagos de la pensión para hijos menores no son deducibles por parte del pagador ni están sujetos a impuestos por parte del beneficiario. Irs amended tax return Específicamente designado como pensión para hijos menores. Irs amended tax return   Un pago se considera específicamente designado como pensión para hijos menores hasta el punto en que el pago sea reducido por una de las siguientes situaciones: En el caso de una contingencia relacionada con su hijo o En un momento que pueda ser claramente asociado con la contingencia. Irs amended tax return Un pago puede considerarse específicamente designado pensión para hijos menores aun si otros pagos por separado son específicamente designados como pensión para hijos menores. Irs amended tax return Contingencia relacionada con su hijo. Irs amended tax return   Una contingencia está relacionada con su hijo si depende de algún suceso relacionado con ese hijo. Irs amended tax return No importa si es seguro o probable que el suceso vaya a ocurrir. Irs amended tax return Los sucesos relacionados con su hijo incluyen que éste: Obtenga un empleo, Muera, Deje la unidad familiar, Deje la escuela, Se case o Alcance una edad o un nivel de ingresos específico. Irs amended tax return Pago claramente asociado con una contingencia. Irs amended tax return   Se considera que los pagos se reducirán en un momento que esté claramente asociado con el suceso de una contingencia relacionada con su hijo sólo en las siguientes situaciones: Los pagos han de ser reducidos dentro de un período de no más de 6 meses antes o después de la fecha en que su hijo alcance los 18 o 21 años de edad o la mayoría de edad en su localidad. Irs amended tax return Los pagos han de ser reducidos en dos o más ocasiones que ocurran a más tardar un año antes o después de que otro hijo suyo alcance cierta edad entre los 18 y 24 años. Irs amended tax return Esta edad tiene que ser la misma para cada hijo pero no tiene que ser en años completos. Irs amended tax return En todas las demás situaciones, las reducciones en pagos no se consideran claramente asociadas con el suceso de una contingencia relacionada con su hijo. Irs amended tax return   Usted o el IRS puede evitar la presunción hecha en las dos situaciones anteriores. Irs amended tax return Esto se hace mostrando que el momento en el que los pagos han de ser reducidos fue determinado independientemente de toda contingencia relacionada con sus hijos. Irs amended tax return Por ejemplo, si puede mostrar que el período de pagos de la pensión para el cónyuge divorciado es el que se acostumbra en su jurisdicción local, tal como un período equivalente a la mitad de los años que duró el matrimonio, puede evitar la presunción y tal vez pueda tratar la cantidad que pagó como pensión para el cónyuge divorciado. Irs amended tax return Cómo Deducir la Pensión para el Cónyuge Divorciado que Pagó Puede deducir la pensión para el cónyuge divorciado que pagó, independientemente de si detalla sus deducciones en su declaración o no. Irs amended tax return Tiene que presentar el Formulario 1040. Irs amended tax return No puede usar el Formulario 1040A ni el Formulario 1040EZ. Irs amended tax return Anote la cantidad de la pensión para el cónyuge divorciado que pagó en la línea 31a del Formulario 1040. Irs amended tax return En el espacio provisto en la línea 31b, anote el número de Seguro Social (SSN, por sus siglas en inglés o su número de identificación de contribuyente individual para extranjeros (ITIN, por sus siglas en inglés)) de su cónyuge. Irs amended tax return Si le pagó pensión para el cónyuge divorciado a más de una persona, anote el número de Seguro Social o número de identificación de contribuyente individual para extranjeros de uno de los beneficiarios de pago. Irs amended tax return Muestre el número de Seguro Social o número de identificación de contribuyente individual para extranjeros y la cantidad pagada a cada otro beneficiario de pago en una hoja adjunta. Irs amended tax return Anote el total de sus pagos en la línea 31a. Irs amended tax return Tiene que proveer el SSN o ITIN de su cónyuge. Irs amended tax return Si no lo hace, quizás podría que pagar una multa de $50 y su deducción podría ser denegada. Irs amended tax return Para más información sobre los SSN o ITIN, consulte Número de Seguro Social , en el capítulo 1. Irs amended tax return Cómo Declarar la Pensión para el Cónyuge Divorciado Recibida Declare la pensión para el cónyuge divorciado que usted recibió en la línea 11 del Formulario 1040. Irs amended tax return No puede usar el Formulario 1040A ni el Formulario 1040EZ. Irs amended tax return Tiene que darle su número de Seguro Social o número de identificación de contribuyente individual para extranjeros a la persona que pagó la pensión para el cónyuge divorciado. Irs amended tax return Si no lo hace, podría tener que pagar una multa de $50. Irs amended tax return Regla de Recuperación Si sus pagos de la pensión para el cónyuge divorciado disminuyen o cesan durante los primeros 3 años naturales, podría estar sujeto a la regla de recuperación. Irs amended tax return Si está sujeto a esta regla, tiene que incluir en sus ingresos del tercer año parte de los pagos de la pensión para el cónyuge divorciado que había deducido anteriormente. Irs amended tax return Su cónyuge puede deducir en el tercer año parte de los pagos de la pensión para el cónyuge divorciado que él o ella anteriormente había incluido en los ingresos. Irs amended tax return El período de los 3 años comienza con el primer año natural en el cual usted haga un pago que se considere pensión para el cónyuge divorciado conforme a un documento de divorcio o de separación judicial o conforme a un acuerdo de separación por escrito. Irs amended tax return No incluya ningún período en que los pagos se hayan hecho conforme a una orden de manutención temporal. Irs amended tax return El segundo y tercer año son los 2 años naturales siguientes, independientemente de si se hacen o no pagos durante esos años. Irs amended tax return Las causas de una reducción o cese de pagos de la pensión para el cónyuge divorciado que puedan requerir una recuperación incluyen: Un cambio en su documento de divorcio o separación, No hacer pagos oportunamente, Reducción en su capacidad de proveer manutención o Reducción en las necesidades de su cónyuge. Irs amended tax return Cuándo aplicar la regla de recuperación. Irs amended tax return   Usted está sujeto a la regla de recuperación el tercer año si la pensión para el cónyuge divorciado que paga el tercer año disminuye por más de $15,000 en comparación con la cantidad que pagó en el segundo año o la pensión para el cónyuge divorciado que paga en el segundo y tercer año disminuye considerablemente de la cantidad de la pensión para el cónyuge divorciado que pagó en el primer año. Irs amended tax return   Cuando calcule una disminución en la pensión para el cónyuge divorciado, no incluya las cantidades de los pagos siguientes: Pagos hechos conforme a una orden de manutención temporal. Irs amended tax return Pagos requeridos durante un período de por lo menos 3 años naturales que varían porque son una parte fija de sus ingresos provenientes de un negocio o bienes, o de la remuneración de empleo o empleo por cuenta propia. Irs amended tax return Pagos que disminuyen debido a la muerte de cualquiera de los cónyuges o porque el cónyuge beneficiario de pago se vuelve a casar antes de finalizar el tercer año. Irs amended tax return Cómo calcular la recuperación. Irs amended tax return   Use la Worksheet 1 (Hoja de Trabajo 1) de la Publicación 504, en inglés, para calcular la pensión para el cónyuge divorciado recuperada. Irs amended tax return Cómo incluir la recuperación en los ingresos. Irs amended tax return   Si tiene que incluir una cantidad recuperada en sus ingresos, anótela en la línea 11 (Formulario 1040), “Alimony received” (Pensión para el cónyuge divorciado recibida). Irs amended tax return Tache la palabra “received” (recibida) y anote, en inglés, la palabra “recapture” (recuperación). Irs amended tax return En la línea de puntos junto a la cantidad, escriba el apellido y número de Seguro Social o número de identificación de contribuyente individual para extranjeros de su cónyuge. Irs amended tax return Cómo deducir la recuperación. Irs amended tax return   Si puede deducir una cantidad recuperada, anótela en la línea 31a (Formulario 1040), “Alimony paid” (Pensión para el cónyuge divorciado pagada). Irs amended tax return Tache la palabra “paid” (pagada) y anote, en inglés, la palabra “recapture” (recuperación). Irs amended tax return En el espacio provisto, anote el número de Seguro Social o número de identificación de contribuyente individual para extranjeros de su cónyuge. Irs amended tax return Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

IRS Has $760 Million for People Who Have Not Filed a 2010 Income Tax Return

Español

IRS YouTube Videos:
Haven't Filed a Tax Return in Years?: English | Spanish | ASL
Amending My Return:  
English | Spanish | ASL

IR-2014-30, March 19, 2014

WASHINGTON — Refunds totaling almost $760 million may be waiting for an estimated 918,600 taxpayers who did not file a federal income tax return for 2010, the Internal Revenue Service announced today. However, to collect the money, a return for 2010 must be filed with the IRS no later than Tuesday, April 15, 2014.

"The window is quickly closing for people who are owed refunds from 2010 who haven't filed a tax return," said IRS Commissioner John Koskinen. "We encourage students, part-time workers and others who haven't filed for 2010 to look into this before time runs out on April 15."

The IRS estimates that half the potential refunds for 2010 are more than $571.

Some people may not have filed because they had too little income to require filing a tax return even though they had taxes withheld from their wages or made quarterly estimated payments. In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim a refund within three years, the money becomes property of the U.S. Treasury.

For 2010 returns, the window closes on April 15, 2014. The law requires that the return be properly addressed, mailed and postmarked by that date. There is no penalty for filing a late return qualifying for a refund.

The IRS reminds taxpayers seeking a 2010 refund that their checks may be held if they have not filed tax returns for 2011 and 2012. In addition, the refund will be applied to any amounts still owed to the IRS or their state tax agency, and may be used to offset unpaid child support or past due federal debts such as student loans.

By failing to file a return, people stand to lose more than just their refund of taxes withheld or paid during 2010. In addition, many low-and-moderate income workers may not have claimed the Earned Income Tax Credit (EITC). For 2010, the credit is worth as much as $5,666. The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2010 were:

  • $43,352 ($48,362 if married filing jointly) for those with three or more qualifying children,
  • $40,363 ($45,373 if married filing jointly) for people with two qualifying children,
  • $35,535 ($40,545 if married filing jointly) for those with one qualifying child, and
  • $13,460 ($18,470 if married filing jointly) for people without qualifying children.

Current and prior year tax forms and instructions are available on the Forms and Publications page of IRS.gov or by calling toll-free 800-TAX-FORM (800-829-3676). Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for 2010, 2011 or 2012 should request copies from their employer, bank or other payer.

If these efforts are unsuccessful, taxpayers can get a free transcript showing information from these year-end documents by going to IRS.gov. Taxpayers can also file Form 4506-T to request a transcript of their tax return.

Individuals who did not file a 2010 return with a potential refund:
 

State or District

Estimated

Number of

Individuals

Median

Potential

Refund

Total

Potential

Refunds*

 

Alabama

15,700

$574

$12,473,000

Alaska

4,700

$649

$4,810,000

Arizona

23,800

$508

$17,517,000

Arkansas

8,400

$562

$6,667,000

California

86,500

$519

$69,752,000

Colorado

17,100

$567

$14,061,000

Connecticut

11,700

$620

$10,304,000

Delaware

3,800

$573

$3,126,000

District of Columbia

3,500

$604

$3,080,000

Florida

56,800

$593

$48,407,000

Georgia

28,400

$539

$22,504,000

Hawaii

6,200

$586

$5,413,000

Idaho

3,500

$490

$2,604,000

Illinois

37,900

$626

$32,696,000

Indiana

19,600

$570

$15,478,000

Iowa

9,200

$576

$7,050,000

Kansas

9,300

$522

$6,986,000

Kentucky

11,500

$576

$8,975,000

Louisiana

17,500

$603

$15,579,000

Maine

3,500

$502

$2,373,000

Maryland

20,700

$575

$18,002,000

Massachusetts

21,000

$560

$17,856,000

Michigan

29,200

$597

$24,259,000

Minnesota

12,700

$516

$9,582,000

Mississippi

8,500

$556

$6,769,000

Missouri

17,900

$514

$13,153,000

Montana

2,900

$534

$2,338,000

Nebraska

4,500

$528

$3,368,000

Nevada

11,400

$570

$9,156,000

New Hampshire

3,800

$602

$3,245,000

New Jersey

29,500

$639

$26,712,000

New Mexico

7,200

$572

$5,915,000

New York

57,400

$623

$50,543,000

North Carolina

24,300

$494

$17,538,000

North Dakota

1,900

$600

$1,551,000

Ohio

32,100

$560

$24,508,000

Oklahoma

15,100

$585

$12,246,000

Oregon

14,300

$519

$10,359,000

Pennsylvania

37,400

$614

$31,009,000

Rhode Island

3,000

$598

$2,472,000

South Carolina

10,200

$532

$7,756,000

South Dakota

2,100

$558

$1,605,000

Tennessee

16,300

$559

$12,839,000

Texas

80,600

$588

$71,998,000

Utah

6,100

$518

$4,705,000

Vermont

1,600

$519

$1,136,000

Virginia

26,300

$568

$22,376,000

Washington

24,800

$640

$23,033,000

West Virginia

4,100

$626

$3,534,000

Wisconsin

10,900

$516

$8,423,000

Wyoming

2,200

$648

$2,045,000

Totals

918,600

$571

$759,889,000

                      * Excluding the Earned Income Tax Credit and other credits.

Follow the IRS on New Media
Subscribe to IRS Newswire

Page Last Reviewed or Updated: 28-Mar-2014

The Irs Amended Tax Return

Irs amended tax return 1. Irs amended tax return   Gain or Loss Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Sales and ExchangesGain or Loss From Sales and Exchanges Abandonments Foreclosures and RepossessionsAmount realized on a nonrecourse debt. Irs amended tax return Amount realized on a recourse debt. Irs amended tax return Involuntary ConversionsCondemnations Nontaxable ExchangesLike-Kind Exchanges Other Nontaxable Exchanges Transfers to Spouse Rollover of Gain From Publicly Traded Securities Gains on Sales of Qualified Small Business Stock Exclusion of Gain From Sale of DC Zone Assets Topics - This chapter discusses: Sales and exchanges Abandonments Foreclosures and repossessions Involuntary conversions Nontaxable exchanges Transfers to spouse Rollovers and exclusions for certain capital gains Useful Items - You may want to see: Publication 523 Selling Your Home 537 Installment Sales 547 Casualties, Disasters, and Thefts 550 Investment Income and Expenses 551 Basis of Assets 908 Bankruptcy Tax Guide 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 1040 U. Irs amended tax return S. Irs amended tax return Individual Income Tax Return 1040X Amended U. Irs amended tax return S. Irs amended tax return Individual Income Tax Return 1099-A Acquisition or Abandonment of Secured Property 1099-C Cancellation of Debt 4797 Sales of Business Property 8824 Like-Kind Exchanges 8949 Sales and Other Dispositions of Capital Assets Although the discussions in this chapter may at times refer mainly to individuals, many of the rules discussed also apply to taxpayers other than individuals. Irs amended tax return However, the rules for property held for personal use usually will not apply to taxpayers other than individuals. Irs amended tax return See chapter 5 for information about getting publications and forms. Irs amended tax return Sales and Exchanges A sale is a transfer of property for money or a mortgage, note, or other promise to pay money. Irs amended tax return An exchange is a transfer of property for other property or services. Irs amended tax return The following discussions describe the kinds of transactions that are treated as sales or exchanges and explain how to figure gain or loss. Irs amended tax return Sale or lease. Irs amended tax return    Some agreements that seem to be leases may really be conditional sales contracts. Irs amended tax return The intention of the parties to the agreement can help you distinguish between a sale and a lease. Irs amended tax return   There is no test or group of tests to prove what the parties intended when they made the agreement. Irs amended tax return You should consider each agreement based on its own facts and circumstances. Irs amended tax return For more information, see chapter 3 in Publication 535, Business Expenses. Irs amended tax return Cancellation of a lease. Irs amended tax return    Payments received by a tenant for the cancellation of a lease are treated as an amount realized from the sale of property. Irs amended tax return Payments received by a landlord (lessor) for the cancellation of a lease are essentially a substitute for rental payments and are taxed as ordinary income in the year in which they are received. Irs amended tax return Copyright. Irs amended tax return    Payments you receive for granting the exclusive use of (or right to exploit) a copyright throughout its life in a particular medium are treated as received from the sale of property. Irs amended tax return It does not matter if the payments are a fixed amount or a percentage of receipts from the sale, performance, exhibition, or publication of the copyrighted work, or an amount based on the number of copies sold, performances given, or exhibitions made. Irs amended tax return Nor does it matter if the payments are made over the same period as that covering the grantee's use of the copyrighted work. Irs amended tax return   If the copyright was used in your trade or business and you held it longer than a year, the gain or loss may be a section 1231 gain or loss. Irs amended tax return For more information, see Section 1231 Gains and Losses in chapter 3. Irs amended tax return Easement. Irs amended tax return   The amount received for granting an easement is subtracted from the basis of the property. Irs amended tax return If only a specific part of the entire tract of property is affected by the easement, only the basis of that part is reduced by the amount received. Irs amended tax return If it is impossible or impractical to separate the basis of the part of the property on which the easement is granted, the basis of the whole property is reduced by the amount received. Irs amended tax return   Any amount received that is more than the basis to be reduced is a taxable gain. Irs amended tax return The transaction is reported as a sale of property. Irs amended tax return   If you transfer a perpetual easement for consideration and do not keep any beneficial interest in the part of the property affected by the easement, the transaction will be treated as a sale of property. Irs amended tax return However, if you make a qualified conservation contribution of a restriction or easement granted in perpetuity, it is treated as a charitable contribution and not a sale or exchange, even though you keep a beneficial interest in the property affected by the easement. Irs amended tax return   If you grant an easement on your property (for example, a right-of-way over it) under condemnation or threat of condemnation, you are considered to have made a forced sale, even though you keep the legal title. Irs amended tax return Although you figure gain or loss on the easement in the same way as a sale of property, the gain or loss is treated as a gain or loss from a condemnation. Irs amended tax return See Gain or Loss From Condemnations, later. Irs amended tax return Property transferred to satisfy debt. Irs amended tax return   A transfer of property to satisfy a debt is an exchange. Irs amended tax return Note's maturity date extended. Irs amended tax return   The extension of a note's maturity date is not treated as an exchange of an outstanding note for a new and different note. Irs amended tax return Also, it is not considered a closed and completed transaction that would result in a gain or loss. Irs amended tax return However, an extension will be treated as a taxable exchange of the outstanding note for a new and materially different note if the changes in the terms of the note are significant. Irs amended tax return Each case must be determined by its own facts. Irs amended tax return For more information, see Regulations section 1. Irs amended tax return 1001-3. Irs amended tax return Transfer on death. Irs amended tax return   The transfer of property of a decedent to an executor or administrator of the estate, or to the heirs or beneficiaries, is not a sale or exchange or other disposition. Irs amended tax return No taxable gain or deductible loss results from the transfer. Irs amended tax return Bankruptcy. Irs amended tax return   Generally, a transfer (other than by sale or exchange) of property from a debtor to a bankruptcy estate is not treated as a disposition. Irs amended tax return Consequently, the transfer generally does not result in gain or loss. Irs amended tax return For more information, see Publication 908, Bankruptcy Tax Guide. Irs amended tax return Gain or Loss From Sales and Exchanges You usually realize gain or loss when property is sold or exchanged. Irs amended tax return A gain is the amount you realize from a sale or exchange of property that is more than its adjusted basis. Irs amended tax return A loss is the adjusted basis of the property that is more than the amount you realize. Irs amended tax return   Table 1-1. Irs amended tax return How To Figure Whether You Have a Gain or Loss IF your. Irs amended tax return . Irs amended tax return . Irs amended tax return THEN you have a. Irs amended tax return . Irs amended tax return . Irs amended tax return Adjusted basis is more than the amount realized, Loss. Irs amended tax return Amount realized is more than the adjusted basis, Gain. Irs amended tax return Basis. Irs amended tax return   You must know the basis of your property to determine whether you have a gain or loss from its sale or other disposition. Irs amended tax return The basis of property you buy is usually its cost. Irs amended tax return However, if you acquired the property by gift, inheritance, or in some way other than buying it, you must use a basis other than its cost. Irs amended tax return See Basis Other Than Cost in Publication 551, Basis of Assets. Irs amended tax return Special rules apply to property acquired from a decedent who died in 2010 and the executor made the election to file Form 8939, Allocation of Increase in Basis for Property Received From a Decedent. Irs amended tax return See Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, for details. Irs amended tax return Adjusted basis. Irs amended tax return   The adjusted basis of property is your original cost or other basis plus (increased by) certain additions and minus (decreased by) certain deductions. Irs amended tax return Increases include costs of any improvements having a useful life of more than 1 year. Irs amended tax return Decreases include depreciation and casualty losses. Irs amended tax return For more details and additional examples, see Adjusted Basis in Publication 551. Irs amended tax return Amount realized. Irs amended tax return   The amount you realize from a sale or exchange is the total of all money you receive plus the fair market value (defined below) of all property or services you receive. Irs amended tax return The amount you realize also includes any of your liabilities that were assumed by the buyer and any liabilities to which the property you transferred is subject, such as real estate taxes or a mortgage. Irs amended tax return Fair market value. Irs amended tax return   Fair market value (FMV) is the price at which the property would change hands between a buyer and a seller when both have reasonable knowledge of all the necessary facts and neither is being forced to buy or sell. Irs amended tax return If parties with adverse interests place a value on property in an arm's-length transaction, that is strong evidence of FMV. Irs amended tax return If there is a stated price for services, this price is treated as the FMV unless there is evidence to the contrary. Irs amended tax return Example. Irs amended tax return You used a building in your business that cost you $70,000. Irs amended tax return You made certain permanent improvements at a cost of $20,000 and deducted depreciation totaling $10,000. Irs amended tax return You sold the building for $100,000 plus property having an FMV of $20,000. Irs amended tax return The buyer assumed your real estate taxes of $3,000 and a mortgage of $17,000 on the building. Irs amended tax return The selling expenses were $4,000. Irs amended tax return Your gain on the sale is figured as follows. Irs amended tax return Amount realized:     Cash $100,000   FMV of property received 20,000   Real estate taxes assumed by buyer 3,000   Mortgage assumed by  buyer 17,000   Total 140,000   Minus: Selling expenses 4,000 $136,000 Adjusted basis:     Cost of building $70,000   Improvements 20,000   Total $90,000   Minus: Depreciation 10,000   Adjusted basis   $80,000 Gain on sale $56,000 Amount recognized. Irs amended tax return   Your gain or loss realized from a sale or exchange of property is usually a recognized gain or loss for tax purposes. Irs amended tax return Recognized gains must be included in gross income. Irs amended tax return Recognized losses are deductible from gross income. Irs amended tax return However, your gain or loss realized from certain exchanges of property is not recognized for tax purposes. Irs amended tax return See Nontaxable Exchanges, later. Irs amended tax return Also, a loss from the sale or other disposition of property held for personal use is not deductible, except in the case of a casualty or theft. Irs amended tax return Interest in property. Irs amended tax return   The amount you realize from the disposition of a life interest in property, an interest in property for a set number of years, or an income interest in a trust is a recognized gain under certain circumstances. Irs amended tax return If you received the interest as a gift, inheritance, or in a transfer from a spouse or former spouse incident to a divorce, the amount realized is a recognized gain. Irs amended tax return Your basis in the property is disregarded. Irs amended tax return This rule does not apply if all interests in the property are disposed of at the same time. Irs amended tax return Example 1. Irs amended tax return Your father dies and leaves his farm to you for life with a remainder interest to your younger brother. Irs amended tax return You decide to sell your life interest in the farm. Irs amended tax return The entire amount you receive is a recognized gain. Irs amended tax return Your basis in the farm is disregarded. Irs amended tax return Example 2. Irs amended tax return The facts are the same as in Example 1, except that your brother joins you in selling the farm. Irs amended tax return The entire interest in the property is sold, so your basis in the farm is not disregarded. Irs amended tax return Your gain or loss is the difference between your share of the sales price and your adjusted basis in the farm. Irs amended tax return Canceling a sale of real property. Irs amended tax return   If you sell real property under a sales contract that allows the buyer to return the property for a full refund and the buyer does so, you may not have to recognize gain or loss on the sale. Irs amended tax return If the buyer returns the property in the year of sale, no gain or loss is recognized. Irs amended tax return This cancellation of the sale in the same year it occurred places both you and the buyer in the same positions you were in before the sale. Irs amended tax return If the buyer returns the property in a later tax year, you must recognize gain (or loss, if allowed) in the year of the sale. Irs amended tax return When the property is returned in a later year, you acquire a new basis in the property. Irs amended tax return That basis is equal to the amount you pay to the buyer. Irs amended tax return Bargain Sale If you sell or exchange property for less than fair market value with the intent of making a gift, the transaction is partly a sale or exchange and partly a gift. Irs amended tax return You have a gain if the amount realized is more than your adjusted basis in the property. Irs amended tax return However, you do not have a loss if the amount realized is less than the adjusted basis of the property. Irs amended tax return Bargain sales to charity. Irs amended tax return   A bargain sale of property to a charitable organization is partly a sale or exchange and partly a charitable contribution. Irs amended tax return If a charitable deduction for the contribution is allowable, you must allocate your adjusted basis in the property between the part sold and the part contributed based on the fair market value of each. Irs amended tax return The adjusted basis of the part sold is figured as follows. Irs amended tax return Adjusted basis of entire property × Amount realized (fair market value of part sold)   Fair market value of entire property   Based on this allocation rule, you will have a gain even if the amount realized is not more than your adjusted basis in the property. Irs amended tax return This allocation rule does not apply if a charitable contribution deduction is not allowable. Irs amended tax return   See Publication 526, Charitable Contributions, for information on figuring your charitable contribution. Irs amended tax return Example. Irs amended tax return You sold property with a fair market value of $10,000 to a charitable organization for $2,000 and are allowed a deduction for your contribution. Irs amended tax return Your adjusted basis in the property is $4,000. Irs amended tax return Your gain on the sale is $1,200, figured as follows. Irs amended tax return Sales price $2,000 Minus: Adjusted basis of part sold ($4,000 × ($2,000 ÷ $10,000)) 800 Gain on the sale $1,200 Property Used Partly for Business or Rental Generally, if you sell or exchange property you used partly for business or rental purposes and partly for personal purposes, you must figure the gain or loss on the sale or exchange as though you had sold two separate pieces of property. Irs amended tax return You must subtract depreciation you took or could have taken from the basis of the business or rental part. Irs amended tax return However, see the special rule below for a home used partly for business or rental. Irs amended tax return You must allocate the selling price, selling expenses, and the basis of the property between the business or rental part and the personal part. Irs amended tax return Gain or loss on the business or rental part of the property may be a capital gain or loss or an ordinary gain or loss, as discussed in chapter 3 under Section 1231 Gains and Losses. Irs amended tax return Any gain on the personal part of the property is a capital gain. Irs amended tax return You cannot deduct a loss on the personal part. Irs amended tax return Home used partly for business or rental. Irs amended tax return    If you use property partly as a home and partly for business or to produce rental income, the computation and treatment of any gain on the sale depends partly on whether the business or rental part of the property is part of your home or separate from it. Irs amended tax return See Property Used Partly for Business or Rental, in Publication 523. Irs amended tax return Property Changed to Business or Rental Use You cannot deduct a loss on the sale of property you purchased or constructed for use as your home and used as your home until the time of sale. Irs amended tax return You can deduct a loss on the sale of property you acquired for use as your home but changed to business or rental property and used as business or rental property at the time of sale. Irs amended tax return However, if the adjusted basis of the property at the time of the change was more than its fair market value, the loss you can deduct is limited. Irs amended tax return Figure the loss you can deduct as follows. Irs amended tax return Use the lesser of the property's adjusted basis or fair market value at the time of the change. Irs amended tax return Add to (1) the cost of any improvements and other increases to basis since the change. Irs amended tax return Subtract from (2) depreciation and any other decreases to basis since the change. Irs amended tax return Subtract the amount you realized on the sale from the result in (3). Irs amended tax return If the amount you realized is more than the result in (3), treat this result as zero. Irs amended tax return The result in (4) is the loss you can deduct. Irs amended tax return Example. Irs amended tax return You changed your main home to rental property 5 years ago. Irs amended tax return At the time of the change, the adjusted basis of your home was $75,000 and the fair market value was $70,000. Irs amended tax return This year, you sold the property for $55,000. Irs amended tax return You made no improvements to the property but you have depreciation expense of $12,620 over the 5 prior years. Irs amended tax return Although your loss on the sale is $7,380 [($75,000 − $12,620) − $55,000], the amount you can deduct as a loss is limited to $2,380, figured as follows. Irs amended tax return Lesser of adjusted basis or fair market value at time of the change $70,000 Plus: Cost of any improvements and any other additions to basis after the change -0-   70,000 Minus: Depreciation and any other decreases to basis after the change 12,620   57,380 Minus: Amount you realized from the sale 55,000 Deductible loss $2,380 Gain. Irs amended tax return   If you have a gain on the sale, you generally must recognize the full amount of the gain. Irs amended tax return You figure the gain by subtracting your adjusted basis from your amount realized, as described earlier. Irs amended tax return   You may be able to exclude all or part of the gain if you 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 However, you may not be able to exclude the part of the gain allocated to any period of nonqualified use. Irs amended tax return   For more information, see Business Use or Rental of Home in Publication 523. Irs amended tax return In addition, special rules apply if the home sold was acquired in a like-kind exchange. Irs amended tax return See Special Situations in Publication 523. Irs amended tax return Also see Like-Kind Exchanges, later. Irs amended tax return Abandonments The abandonment of property is a disposition of property. Irs amended tax return You abandon property when you voluntarily and permanently give up possession and use of the property with the intention of ending your ownership but without passing it on to anyone else. Irs amended tax return Generally, abandonment is not treated as a sale or exchange of the property. Irs amended tax return If the amount you realize (if any) is more than your adjusted basis, then you have a gain. Irs amended tax return If your adjusted basis is more than the amount you realize (if any), then you have a loss. Irs amended tax return Loss from abandonment of business or investment property is deductible as a loss. Irs amended tax return A loss from an abandonment of business or investment property that is not treated as a sale or exchange generally is an ordinary loss. Irs amended tax return This rule also applies to leasehold improvements the lessor made for the lessee that were abandoned. Irs amended tax return If the property is foreclosed on or repossessed in lieu of abandonment, gain or loss is figured as discussed later under Foreclosure and Repossessions. Irs amended tax return The abandonment loss is deducted in the tax year in which the loss is sustained. Irs amended tax return If the abandoned property is secured by debt, special rules apply. Irs amended tax return The tax consequences of abandonment of property that is secured by debt depend on whether you are personally liable for the debt (recourse debt) or you are not personally liable for the debt (nonrecourse debt). Irs amended tax return For more information, including examples, see chapter 3 of Publication 4681. Irs amended tax return You cannot deduct any loss from abandonment of your home or other property held for personal use only. Irs amended tax return Cancellation of debt. Irs amended tax return   If the abandoned property secures a debt for which you are personally liable and the debt is canceled, you may realize ordinary income equal to the canceled debt. Irs amended tax return This income is separate from any loss realized from abandonment of the property. Irs amended tax return   You must report this income on your tax return unless one of the following applies. Irs amended tax return The cancellation is intended as a gift. Irs amended tax return The debt is qualified farm debt. Irs amended tax return The debt is qualified real property business debt. Irs amended tax return You are insolvent or bankrupt. Irs amended tax return The debt is qualified principal residence indebtedness. Irs amended tax return File Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), to report the income exclusion. Irs amended tax return For more information, including other exceptions and exclusion, see Publication 4681. Irs amended tax return Forms 1099-A and 1099-C. Irs amended tax return   If you abandon property that secures a loan and the lender knows the property has been abandoned, the lender should send you Form 1099-A showing information you need to figure your loss from the abandonment. Irs amended tax return However, if your debt is canceled and the lender must file Form 1099-C, the lender may include the information about the abandonment on that form instead of on Form 1099-A, and send you Form 1099-C only. Irs amended tax return The lender must file Form 1099-C and send you a copy if the amount of debt canceled is $600 or more and the lender is a financial institution, credit union, federal government agency, or any organization that has a significant trade or business of lending money. Irs amended tax return For abandonments of property and debt cancellations occurring in 2013, these forms should be sent to you by January 31, 2014. Irs amended tax return Foreclosures and Repossessions If you do not make payments you owe on a loan secured by property, the lender may foreclose on the loan or repossess the property. Irs amended tax return The foreclosure or repossession is treated as a sale or exchange from which you may realize gain or loss. Irs amended tax return This is true even if you voluntarily return the property to the lender. Irs amended tax return You also may realize ordinary income from cancellation of debt if the loan balance is more than the fair market value of the property. Irs amended tax return Buyer's (borrower's) gain or loss. Irs amended tax return   You figure and report gain or loss from a foreclosure or repossession in the same way as gain or loss from a sale or exchange. Irs amended tax return The gain or loss is the difference between your adjusted basis in the transferred property and the amount realized. Irs amended tax return See Gain or Loss From Sales and Exchanges, earlier. Irs amended tax return You can use Table 1-2 to figure your gain or loss from a foreclosure or repossession. Irs amended tax return Amount realized on a nonrecourse debt. Irs amended tax return   If you are not personally liable for repaying the debt (nonrecourse debt) secured by the transferred property, the amount you realize includes the full debt canceled by the transfer. Irs amended tax return The full canceled debt is included even if the fair market value of the property is less than the canceled debt. Irs amended tax return Example 1. Irs amended tax return Chris bought a new car for $15,000. Irs amended tax return He paid $2,000 down and borrowed the remaining $13,000 from the dealer's credit company. Irs amended tax return Chris is not personally liable for the loan (nonrecourse debt), but pledges the new car as security. Irs amended tax return The credit company repossessed the car because he stopped making loan payments. Irs amended tax return The balance due after taking into account the payments Chris made was $10,000. Irs amended tax return The fair market value of the car when repossessed was $9,000. Irs amended tax return The amount Chris realized on the repossession is $10,000. Irs amended tax return That is the outstanding amount of the debt canceled by the repossession, even though the car's fair market value is less than $10,000. Irs amended tax return Chris figures his gain or loss on the repossession by comparing the amount realized ($10,000) with his adjusted basis ($15,000). Irs amended tax return He has a $5,000 nondeductible loss. Irs amended tax return Example 2. Irs amended tax return Abena paid $200,000 for her home. Irs amended tax return She paid $15,000 down and borrowed the remaining $185,000 from a bank. Irs amended tax return Abena is not personally liable for the loan (nonrecourse debt), but pledges the house as security. Irs amended tax return The bank foreclosed on the loan because Abena stopped making payments. Irs amended tax return When the bank foreclosed on the loan, the balance due was $180,000, the fair market value of the house was $170,000, and Abena's adjusted basis was $175,000 due to a casualty loss she had deducted. Irs amended tax return The amount Abena realized on the foreclosure is $180,000, the balance due and debt canceled by the foreclosure. Irs amended tax return She figures her gain or loss by comparing the amount realized ($180,000) with her adjusted basis ($175,000). Irs amended tax return She has a $5,000 realized gain. Irs amended tax return Amount realized on a recourse debt. Irs amended tax return   If you are personally liable for the debt (recourse debt), the amount realized on the foreclosure or repossession includes the lesser of: The outstanding debt immediately before the transfer reduced by any amount for which you remain personally liable immediately after the transfer, or The fair market value of the transferred property. Irs amended tax return You are treated as receiving ordinary income from the canceled debt for the part of the debt that is more than the fair market value. Irs amended tax return The amount realized does not include the canceled debt that is your income from cancellation of debt. Irs amended tax return See Cancellation of debt, below. Irs amended tax return Seller's (lender's) gain or loss on repossession. Irs amended tax return   If you finance a buyer's purchase of property and later acquire an interest in it through foreclosure or repossession, you may have a gain or loss on the acquisition. Irs amended tax return For more information, see Repossession in Publication 537. Irs amended tax return    Table 1-2. Irs amended tax return Worksheet for Foreclosures and Repossessions Part 1. Irs amended tax return Use Part 1 to figure your ordinary income from the cancellation of debt upon foreclosure or repossession. Irs amended tax return Complete this part only  if you were personally liable for the debt. Irs amended tax return Otherwise,  go to Part 2. Irs amended tax return   1. Irs amended tax return Enter the amount of outstanding debt immediately before the transfer of   property reduced by any amount for which you remain personally liable after   the transfer of property   2. Irs amended tax return Enter the fair market value of the transferred property   3. Irs amended tax return Ordinary income from cancellation of debt upon foreclosure or    repossession. Irs amended tax return * Subtract line 2 from line 1. Irs amended tax return   If less than zero, enter zero   Part 2. Irs amended tax return Figure your gain or loss from foreclosure or repossession. Irs amended tax return   4. Irs amended tax return If you completed Part 1, enter the smaller of line 1 or line 2. Irs amended tax return   If you did not complete Part 1, enter the outstanding debt immediately before   the transfer of property   5. Irs amended tax return Enter any proceeds you received from the foreclosure sale   6. Irs amended tax return Add lines 4 and 5   7. Irs amended tax return Enter the adjusted basis of the transferred property   8. Irs amended tax return Gain or loss from foreclosure or repossession. Irs amended tax return Subtract line 7  from line 6   * The income may not be taxable. Irs amended tax return See Cancellation of debt. Irs amended tax return Cancellation of debt. Irs amended tax return   If property that is repossessed or foreclosed on secures a debt for which you are personally liable (recourse debt), you generally must report as ordinary income the amount by which the canceled debt is more than the fair market value of the property. Irs amended tax return This income is separate from any gain or loss realized from the foreclosure or repossession. Irs amended tax return Report the income from cancellation of a debt related to a business or rental activity as business or rental income. Irs amended tax return    You can use Table 1-2 to figure your income from cancellation of debt. Irs amended tax return   You must report this income on your tax return unless one of the following applies. Irs amended tax return The cancellation is intended as a gift. Irs amended tax return The debt is qualified farm debt. Irs amended tax return The debt is qualified real property business debt. Irs amended tax return You are insolvent or bankrupt. Irs amended tax return The debt is qualified principal residence indebtedness. Irs amended tax return File Form 982 to report the income exclusion. Irs amended tax return Example 1. Irs amended tax return Assume the same facts as in Example 1 under Amount realized on a nonrecourse debt, earlier, except Chris is personally liable for the car loan (recourse debt). Irs amended tax return In this case, the amount he realizes is $9,000. Irs amended tax return This is the lesser of the canceled debt ($10,000) or the car's fair market value ($9,000). Irs amended tax return Chris figures his gain or loss on the repossession by comparing the amount realized ($9,000) with his adjusted basis ($15,000). Irs amended tax return He has a $6,000 nondeductible loss. Irs amended tax return He also is treated as receiving ordinary income from cancellation of debt. Irs amended tax return That income is $1,000 ($10,000 − $9,000). Irs amended tax return This is the part of the canceled debt not included in the amount realized. Irs amended tax return Example 2. Irs amended tax return Assume the same facts as in Example 2 under Amount realized on a nonrecourse debt, earlier, except Abena is personally liable for the loan (recourse debt). Irs amended tax return In this case, the amount she realizes is $170,000. Irs amended tax return This is the lesser of the canceled debt ($180,000) or the fair market value of the house ($170,000). Irs amended tax return Abena figures her gain or loss on the foreclosure by comparing the amount realized ($170,000) with her adjusted basis ($175,000). Irs amended tax return She has a $5,000 nondeductible loss. Irs amended tax return She also is treated as receiving ordinary income from cancellation of debt. Irs amended tax return (The debt is not exempt from tax as discussed under Cancellation of debt, above. Irs amended tax return ) That income is $10,000 ($180,000 − $170,000). Irs amended tax return This is the part of the canceled debt not included in the amount realized. Irs amended tax return Forms 1099-A and 1099-C. Irs amended tax return   A lender who acquires an interest in your property in a foreclosure or repossession should send you Form 1099-A showing the information you need to figure your gain or loss. Irs amended tax return However, if the lender also cancels part of your debt and must file Form 1099-C, the lender may include the information about the foreclosure or repossession on that form instead of on Form 1099-A and send you Form 1099-C only. Irs amended tax return The lender must file Form 1099-C and send you a copy if the amount of debt canceled is $600 or more and the lender is a financial institution, credit union, federal government agency, or any organization that has a significant trade or business of lending money. Irs amended tax return For foreclosures or repossessions occurring in 2013, these forms should be sent to you by January 31, 2014. Irs amended tax return Involuntary Conversions An involuntary conversion occurs when your property is destroyed, stolen, condemned, or disposed of under the threat of condemnation and you receive other property or money in payment, such as insurance or a condemnation award. Irs amended tax return Involuntary conversions are also called involuntary exchanges. Irs amended tax return Gain or loss from an involuntary conversion of your property is usually recognized for tax purposes unless the property is your main home. Irs amended tax return You report the gain or deduct the loss on your tax return for the year you realize it. Irs amended tax return You cannot deduct a loss from an involuntary conversion of property you held for personal use unless the loss resulted from a casualty or theft. Irs amended tax return However, depending on the type of property you receive, you may not have to report a gain on an involuntary conversion. Irs amended tax return Generally, you do not report the gain if you receive property that is similar or related in service or use to the converted property. Irs amended tax return Your basis for the new property is the same as your basis for the converted property. Irs amended tax return This means that the gain is deferred until a taxable sale or exchange occurs. Irs amended tax return If you receive money or property that is not similar or related in service or use to the involuntarily converted property and you buy qualifying replacement property within a certain period of time, you can elect to postpone reporting the gain on the property purchased. Irs amended tax return This publication explains the treatment of a gain or loss from a condemnation or disposition under the threat of condemnation. Irs amended tax return If you have a gain or loss from the destruction or theft of property, see Publication 547. Irs amended tax return Condemnations A condemnation is the process by which private property is legally taken for public use without the owner's consent. Irs amended tax return The property may be taken by the federal government, a state government, a political subdivision, or a private organization that has the power to legally take it. Irs amended tax return The owner receives a condemnation award (money or property) in exchange for the property taken. Irs amended tax return A condemnation is like a forced sale, the owner being the seller and the condemning authority being the buyer. Irs amended tax return Example. Irs amended tax return A local government authorized to acquire land for public parks informed you that it wished to acquire your property. Irs amended tax return After the local government took action to condemn your property, you went to court to keep it. Irs amended tax return But, the court decided in favor of the local government, which took your property and paid you an amount fixed by the court. Irs amended tax return This is a condemnation of private property for public use. Irs amended tax return Threat of condemnation. Irs amended tax return   A threat of condemnation exists if a representative of a government body or a public official authorized to acquire property for public use informs you that the government body or official has decided to acquire your property. Irs amended tax return You must have reasonable grounds to believe that, if you do not sell voluntarily, your property will be condemned. Irs amended tax return   The sale of your property to someone other than the condemning authority will also qualify as an involuntary conversion, provided you have reasonable grounds to believe that your property will be condemned. Irs amended tax return If the buyer of this property knows at the time of purchase that it will be condemned and sells it to the condemning authority, this sale also qualifies as an involuntary conversion. Irs amended tax return Reports of condemnation. Irs amended tax return   A threat of condemnation exists if you learn of a decision to acquire your property for public use through a report in a newspaper or other news medium, and this report is confirmed by a representative of the government body or public official involved. Irs amended tax return You must have reasonable grounds to believe that they will take necessary steps to condemn your property if you do not sell voluntarily. Irs amended tax return If you relied on oral statements made by a government representative or public official, the Internal Revenue Service (IRS) may ask you to get written confirmation of the statements. Irs amended tax return Example. Irs amended tax return Your property lies along public utility lines. Irs amended tax return The utility company has the authority to condemn your property. Irs amended tax return The company informs you that it intends to acquire your property by negotiation or condemnation. Irs amended tax return A threat of condemnation exists when you receive the notice. Irs amended tax return Related property voluntarily sold. Irs amended tax return   A voluntary sale of your property may be treated as a forced sale that qualifies as an involuntary conversion if the property had a substantial economic relationship to property of yours that was condemned. Irs amended tax return A substantial economic relationship exists if together the properties were one economic unit. Irs amended tax return You also must show that the condemned property could not reasonably or adequately be replaced. Irs amended tax return You can elect to postpone reporting the gain by buying replacement property. Irs amended tax return See Postponement of Gain, later. Irs amended tax return Gain or Loss From Condemnations If your property was condemned or disposed of under the threat of condemnation, figure your gain or loss by comparing the adjusted basis of your condemned property with your net condemnation award. Irs amended tax return If your net condemnation award is more than the adjusted basis of the condemned property, you have a gain. Irs amended tax return You can postpone reporting gain from a condemnation if you buy replacement property. Irs amended tax return If only part of your property is condemned, you can treat the cost of restoring the remaining part to its former usefulness as the cost of replacement property. Irs amended tax return See Postponement of Gain, later. Irs amended tax return If your net condemnation award is less than your adjusted basis, you have a loss. Irs amended tax return If your loss is from property you held for personal use, you cannot deduct it. Irs amended tax return You must report any deductible loss in the tax year it happened. Irs amended tax return You can use Part 2 of Table 1-3 to figure your gain or loss from a condemnation award. Irs amended tax return Main home condemned. Irs amended tax return   If you have a gain because your main home is condemned, you generally can exclude the gain from your income as if you had sold or exchanged your home. Irs amended tax return You may be able to exclude up to $250,000 of the gain (up to $500,000 if married filing jointly). Irs amended tax return For information on this exclusion, see Publication 523. Irs amended tax return If your gain is more than you can exclude but you buy replacement property, you may be able to postpone reporting the rest of the gain. Irs amended tax return See Postponement of Gain, later. Irs amended tax return Table 1-3. Irs amended tax return Worksheet for Condemnations Part 1. Irs amended tax return Gain from severance damages. Irs amended tax return  If you did not receive severance damages, skip Part 1 and go to Part 2. Irs amended tax return   1. Irs amended tax return Enter gross severance damages received   2. Irs amended tax return Enter your expenses in getting severance damages   3. Irs amended tax return Subtract line 2 from line 1. Irs amended tax return If less than zero, enter -0-   4. Irs amended tax return Enter any special assessment on remaining property taken out of your award   5. Irs amended tax return Net severance damages. Irs amended tax return Subtract line 4 from line 3. Irs amended tax return If less than zero, enter -0-   6. Irs amended tax return Enter the adjusted basis of the remaining property   7. Irs amended tax return Gain from severance damages. Irs amended tax return Subtract line 6 from line 5. Irs amended tax return If less than zero, enter -0-   8. Irs amended tax return Refigured adjusted basis of the remaining property. Irs amended tax return Subtract line 5 from line 6. Irs amended tax return If less than zero, enter -0-   Part 2. Irs amended tax return Gain or loss from condemnation award. Irs amended tax return   9. Irs amended tax return Enter the gross condemnation award received   10. Irs amended tax return Enter your expenses in getting the condemnation award   11. Irs amended tax return If you completed Part 1, and line 4 is more than line 3, subtract line 3 from line 4. Irs amended tax return If you did not complete Part 1, but a special assessment was taken out of your award, enter that amount. Irs amended tax return Otherwise, enter -0-   12. Irs amended tax return Add lines 10 and 11   13. Irs amended tax return Net condemnation award. Irs amended tax return Subtract line 12 from line 9   14. Irs amended tax return Enter the adjusted basis of the condemned property   15. Irs amended tax return Gain from condemnation award. Irs amended tax return If line 14 is more than line 13, enter -0-. Irs amended tax return Otherwise, subtract line 14 from  line 13 and skip line 16   16. Irs amended tax return Loss from condemnation award. Irs amended tax return Subtract line 13 from line 14     (Note: You cannot deduct the amount on line 16 if the condemned property was held for personal use. Irs amended tax return )   Part 3. Irs amended tax return Postponed gain from condemnation. Irs amended tax return  (Complete only if line 7 or line 15 is more than zero and you bought qualifying replacement property or made expenditures to restore the usefulness of your remaining property. Irs amended tax return )   17. Irs amended tax return If you completed Part 1, and line 7 is more than zero, enter the amount from line 5. Irs amended tax return Otherwise, enter -0-   18. Irs amended tax return If line 15 is more than zero, enter the amount from line 13. Irs amended tax return Otherwise, enter -0-   19. Irs amended tax return Add lines 17 and 18. Irs amended tax return If the condemned property was your main home, subtract from this total the gain you excluded from your income and enter the result   20. Irs amended tax return Enter the total cost of replacement property and any expenses to restore the usefulness of your remaining property   21. Irs amended tax return Subtract line 20 from line 19. Irs amended tax return If less than zero, enter -0-   22. Irs amended tax return If you completed Part 1, add lines 7 and 15. Irs amended tax return Otherwise, enter the amount from line 15. Irs amended tax return If the condemned property was your main home, subtract from this total the gain you excluded from your income and enter the result   23. Irs amended tax return Recognized gain. Irs amended tax return Enter the smaller of line 21 or line 22. Irs amended tax return   24. Irs amended tax return Postponed gain. Irs amended tax return Subtract line 23 from line 22. Irs amended tax return If less than zero, enter -0-   Condemnation award. Irs amended tax return   A condemnation award is the money you are paid or the value of other property you receive for your condemned property. Irs amended tax return The award is also the amount you are paid for the sale of your property under threat of condemnation. Irs amended tax return Payment of your debts. Irs amended tax return   Amounts taken out of the award to pay your debts are considered paid to you. Irs amended tax return Amounts the government pays directly to the holder of a mortgage or lien against your property are part of your award, even if the debt attaches to the property and is not your personal liability. Irs amended tax return Example. Irs amended tax return The state condemned your property for public use. Irs amended tax return The award was set at $200,000. Irs amended tax return The state paid you only $148,000 because it paid $50,000 to your mortgage holder and $2,000 accrued real estate taxes. Irs amended tax return You are considered to have received the entire $200,000 as a condemnation award. Irs amended tax return Interest on award. Irs amended tax return   If the condemning authority pays you interest for its delay in paying your award, it is not part of the condemnation award. Irs amended tax return You must report the interest separately as ordinary income. Irs amended tax return Payments to relocate. Irs amended tax return   Payments you receive to relocate and replace housing because you have been displaced from your home, business, or farm as a result of federal or federally assisted programs are not part of the condemnation award. Irs amended tax return Do not include them in your income. Irs amended tax return Replacement housing payments used to buy new property are included in the property's basis as part of your cost. Irs amended tax return Net condemnation award. Irs amended tax return   A net condemnation award is the total award you received, or are considered to have received, for the condemned property minus your expenses of obtaining the award. Irs amended tax return If only a part of your property was condemned, you also must reduce the award by any special assessment levied against the part of the property you retain. Irs amended tax return This is discussed later under Special assessment taken out of award. Irs amended tax return Severance damages. Irs amended tax return    Severance damages are not part of the award paid for the property condemned. Irs amended tax return They are paid to you if part of your property is condemned and the value of the part you keep is decreased because of the condemnation. Irs amended tax return   For example, you may receive severance damages if your property is subject to flooding because you sell flowage easement rights (the condemned property) under threat of condemnation. Irs amended tax return Severance damages also may be given to you if, because part of your property is condemned for a highway, you must replace fences, dig new wells or ditches, or plant trees to restore your remaining property to the same usefulness it had before the condemnation. Irs amended tax return   The contracting parties should agree on the specific amount of severance damages in writing. Irs amended tax return If this is not done, all proceeds from the condemning authority are considered awarded for your condemned property. Irs amended tax return   You cannot make a completely new allocation of the total award after the transaction is completed. Irs amended tax return However, you can show how much of the award both parties intended for severance damages. Irs amended tax return The severance damages part of the award is determined from all the facts and circumstances. Irs amended tax return Example. Irs amended tax return You sold part of your property to the state under threat of condemnation. Irs amended tax return The contract you and the condemning authority signed showed only the total purchase price. Irs amended tax return It did not specify a fixed sum for severance damages. Irs amended tax return However, at settlement, the condemning authority gave you closing papers showing clearly the part of the purchase price that was for severance damages. Irs amended tax return You may treat this part as severance damages. Irs amended tax return Treatment of severance damages. Irs amended tax return   Your net severance damages are treated as the amount realized from an involuntary conversion of the remaining part of your property. Irs amended tax return Use them to reduce the basis of the remaining property. Irs amended tax return If the amount of severance damages is based on damage to a specific part of the property you kept, reduce the basis of only that part by the net severance damages. Irs amended tax return   If your net severance damages are more than the basis of your retained property, you have a gain. Irs amended tax return You may be able to postpone reporting the gain. Irs amended tax return See Postponement of Gain, later. Irs amended tax return    You can use Part 1 of Table 1-3 to figure any gain from severance damages and to refigure the adjusted basis of the remaining part of your property. Irs amended tax return Net severance damages. Irs amended tax return   To figure your net severance damages, you first must reduce your severance damages by your expenses in obtaining the damages. Irs amended tax return You then reduce them by any special assessment (described later) levied against the remaining part of the property and retained out of the award by the condemning authority. Irs amended tax return The balance is your net severance damages. Irs amended tax return Expenses of obtaining a condemnation award and severance damages. Irs amended tax return   Subtract the expenses of obtaining a condemnation award, such as legal, engineering, and appraisal fees, from the total award. Irs amended tax return Also, subtract the expenses of obtaining severance damages, which may include similar expenses, from the severance damages paid to you. Irs amended tax return If you cannot determine which part of your expenses is for each part of the condemnation proceeds, you must make a proportionate allocation. Irs amended tax return Example. Irs amended tax return You receive a condemnation award and severance damages. Irs amended tax return One-fourth of the total was designated as severance damages in your agreement with the condemning authority. Irs amended tax return You had legal expenses for the entire condemnation proceeding. Irs amended tax return You cannot determine how much of your legal expenses is for each part of the condemnation proceeds. Irs amended tax return You must allocate one-fourth of your legal expenses to the severance damages and the other three-fourths to the condemnation award. Irs amended tax return Special assessment retained out of award. Irs amended tax return   When only part of your property is condemned, a special assessment levied against the remaining property may be retained by the governing body out of your condemnation award. Irs amended tax return An assessment may be levied if the remaining part of your property benefited by the improvement resulting from the condemnation. Irs amended tax return Examples of improvements that may cause a special assessment are widening a street and installing a sewer. Irs amended tax return   To figure your net condemnation award, you must reduce the amount of the award by the assessment retained out of the award. Irs amended tax return Example. Irs amended tax return To widen the street in front of your home, the city condemned a 25-foot deep strip of your land. Irs amended tax return You were awarded $5,000 for this and spent $300 to get the award. Irs amended tax return Before paying the award, the city levied a special assessment of $700 for the street improvement against your remaining property. Irs amended tax return The city then paid you only $4,300. Irs amended tax return Your net award is $4,000 ($5,000 total award minus $300 expenses in obtaining the award and $700 for the special assessment retained). Irs amended tax return If the $700 special assessment was not retained out of the award and you were paid $5,000, your net award would be $4,700 ($5,000 − $300). Irs amended tax return The net award would not change, even if you later paid the assessment from the amount you received. Irs amended tax return Severance damages received. Irs amended tax return   If severance damages are included in the condemnation proceeds, the special assessment retained out of the severance damages is first used to reduce the severance damages. Irs amended tax return Any balance of the special assessment is used to reduce the condemnation award. Irs amended tax return Example. Irs amended tax return You were awarded $4,000 for the condemnation of your property and $1,000 for severance damages. Irs amended tax return You spent $300 to obtain the severance damages. Irs amended tax return A special assessment of $800 was retained out of the award. Irs amended tax return The $1,000 severance damages are reduced to zero by first subtracting the $300 expenses and then $700 of the special assessment. Irs amended tax return Your $4,000 condemnation award is reduced by the $100 balance of the special assessment, leaving a $3,900 net condemnation award. Irs amended tax return Part business or rental. Irs amended tax return   If you used part of your condemned property as your home and part as business or rental property, treat each part as a separate property. Irs amended tax return Figure your gain or loss separately because gain or loss on each part may be treated differently. Irs amended tax return   Some examples of this type of property are a building in which you live and operate a grocery, and a building in which you live on the first floor and rent out the second floor. Irs amended tax return Example. Irs amended tax return You sold your building for $24,000 under threat of condemnation to a public utility company that had the authority to condemn. Irs amended tax return You rented half the building and lived in the other half. Irs amended tax return You paid $25,000 for the building and spent an additional $1,000 for a new roof. Irs amended tax return You claimed allowable depreciation of $4,600 on the rental half. Irs amended tax return You spent $200 in legal expenses to obtain the condemnation award. Irs amended tax return Figure your gain or loss as follows. Irs amended tax return     Resi- dential Part Busi- ness Part 1) Condemnation award received $12,000 $12,000 2) Minus: Legal expenses, $200 100 100 3) Net condemnation award $11,900 $11,900 4) Adjusted basis:       ½ of original cost, $25,000 $12,500 $12,500   Plus: ½ of cost of roof, $1,000 500 500   Total $13,000 $13,000 5) Minus: Depreciation   4,600 6) Adjusted basis, business part   $8,400 7) (Loss) on residential property ($1,100)   8) Gain on business property $3,500 The loss on the residential part of the property is not deductible. Irs amended tax return Postponement of Gain Do not report the gain on condemned property if you receive only property that is similar or related in service or use to the condemned property. Irs amended tax return Your basis for the new property is the same as your basis for the old. Irs amended tax return Money or unlike property received. Irs amended tax return   You ordinarily must report the gain if you receive money or unlike property. Irs amended tax return You can elect to postpone reporting the gain if you buy property that is similar or related in service or use to the condemned property within the replacement period, discussed later. Irs amended tax return You also can elect to postpone reporting the gain if you buy a controlling interest (at least 80%) in a corporation owning property that is similar or related in service or use to the condemned property. Irs amended tax return See Controlling interest in a corporation, later. Irs amended tax return   To postpone reporting all the gain, you must buy replacement property costing at least as much as the amount realized for the condemned property. Irs amended tax return If the cost of the replacement property is less than the amount realized, you must report the gain up to the unspent part of the amount realized. Irs amended tax return   The basis of the replacement property is its cost, reduced by the postponed gain. Irs amended tax return Also, if your replacement property is stock in a corporation that owns property similar or related in service or use, the corporation generally will reduce its basis in its assets by the amount by which you reduce your basis in the stock. Irs amended tax return See Controlling interest in a corporation, later. Irs amended tax return You can use Part 3 of Table 1-3 to figure the gain you must report and your postponed gain. Irs amended tax return Postponing gain on severance damages. Irs amended tax return   If you received severance damages for part of your property because another part was condemned and you buy replacement property, you can elect to postpone reporting gain. Irs amended tax return See Treatment of severance damages, earlier. Irs amended tax return You can postpone reporting all your gain if the replacement property costs at least as much as your net severance damages plus your net condemnation award (if resulting in gain). Irs amended tax return   You also can make this election if you spend the severance damages, together with other money you received for the condemned property (if resulting in gain), to acquire nearby property that will allow you to continue your business. Irs amended tax return If suitable nearby property is not available and you are forced to sell the remaining property and relocate in order to continue your business, see Postponing gain on the sale of related property, next. Irs amended tax return   If you restore the remaining property to its former usefulness, you can treat the cost of restoring it as the cost of replacement property. Irs amended tax return Postponing gain on the sale of related property. Irs amended tax return   If you sell property that is related to the condemned property and then buy replacement property, you can elect to postpone reporting gain on the sale. Irs amended tax return You must meet the requirements explained earlier under Related property voluntarily sold. Irs amended tax return You can postpone reporting all your gain if the replacement property costs at least as much as the amount realized from the sale plus your net condemnation award (if resulting in gain) plus your net severance damages, if any (if resulting in gain). Irs amended tax return Buying replacement property from a related person. Irs amended tax return   Certain taxpayers cannot postpone reporting gain from a condemnation if they buy the replacement property from a related person. Irs amended tax return For information on related persons, see Nondeductible Loss under Sales and Exchanges Between Related Persons in chapter 2. Irs amended tax return   This rule applies to the following taxpayers. Irs amended tax return C corporations. Irs amended tax return Partnerships in which more than 50% of the capital or profits interest is owned by  C corporations. Irs amended tax return All others (including individuals, partnerships (other than those in (2)), and S corporations) if the total realized gain for the tax year on all involuntarily converted properties on which there is realized gain of more than $100,000. Irs amended tax return   For taxpayers described in (3) above, gains cannot be offset with any losses when determining whether the total gain is more than $100,000. Irs amended tax return If the property is owned by a partnership, the $100,000 limit applies to the partnership and each partner. Irs amended tax return If the property is owned by an S corporation, the $100,000 limit applies to the S corporation and each shareholder. Irs amended tax return Exception. Irs amended tax return   This rule does not apply if the related person acquired the property from an unrelated person within the replacement period. Irs amended tax return Advance payment. Irs amended tax return   If you pay a contractor in advance to build your replacement property, you have not bought replacement property unless it is finished before the end of the replacement period (discussed later). Irs amended tax return Replacement property. Irs amended tax return   To postpone reporting gain, you must buy replacement property for the specific purpose of replacing your condemned property. Irs amended tax return You do not have to use the actual funds from the condemnation award to acquire the replacement property. Irs amended tax return Property you acquire by gift or inheritance does not qualify as replacement property. Irs amended tax return Similar or related in service or use. Irs amended tax return   Your replacement property must be similar or related in service or use to the property it replaces. Irs amended tax return   If the condemned property is real property you held for productive use in your trade or business or for investment (other than property held mainly for sale), like-kind property to be held either for productive use in trade or business or for investment will be treated as property similar or related in service or use. Irs amended tax return For a discussion of like-kind property, see Like-Kind Property under Like-Kind Exchanges, later. Irs amended tax return Owner-user. Irs amended tax return   If you are an owner-user, similar or related in service or use means that replacement property must function in the same way as the property it replaces. Irs amended tax return Example. Irs amended tax return Your home was condemned and you invested the proceeds from the condemnation in a grocery store. Irs amended tax return Your replacement property is not similar or related in service or use to the condemned property. Irs amended tax return To be similar or related in service or use, your replacement property must also be used by you as your home. Irs amended tax return Owner-investor. Irs amended tax return   If you are an owner-investor, similar or related in service or use means that any replacement property must have the same relationship of services or uses to you as the property it replaces. Irs amended tax return You decide this by determining all the following information. Irs amended tax return Whether the properties are of similar service to you. Irs amended tax return The nature of the business risks connected with the properties. Irs amended tax return What the properties demand of you in the way of management, service, and relations to your tenants. Irs amended tax return Example. Irs amended tax return You owned land and a building you rented to a manufacturing company. Irs amended tax return The building was condemned. Irs amended tax return During the replacement period, you had a new building built on other land you already owned. Irs amended tax return You rented out the new building for use as a wholesale grocery warehouse. Irs amended tax return The replacement property is also rental property, so the two properties are considered similar or related in service or use if there is a similarity in all the following areas. Irs amended tax return Your management activities. Irs amended tax return The amount and kind of services you provide to your tenants. Irs amended tax return The nature of your business risks connected with the properties. Irs amended tax return Leasehold replaced with fee simple property. Irs amended tax return   Fee simple property you will use in your trade or business or for investment can qualify as replacement property that is similar or related in service or use to a condemned leasehold if you use it in the same business and for the identical purpose as the condemned leasehold. Irs amended tax return   A fee simple property interest generally is a property interest that entitles the owner to the entire property with unconditional power to dispose of it during his or her lifetime. Irs amended tax return A leasehold is property held under a lease, usually for a term of years. Irs amended tax return Outdoor advertising display replaced with real property. Irs amended tax return   You can elect to treat an outdoor advertising display as real property. Irs amended tax return If you make this election and you replace the display with real property in which you hold a different kind of interest, your replacement property can qualify as like-kind property. Irs amended tax return For example, real property bought to replace a destroyed billboard and leased property on which the billboard was located qualify as property of a like-kind. Irs amended tax return   You can make this election only if you did not claim a section 179 deduction for the display. Irs amended tax return You cannot cancel this election unless you get the consent of the IRS. Irs amended tax return   An outdoor advertising display is a sign or device rigidly assembled and permanently attached to the ground, a building, or any other permanent structure used to display a commercial or other advertisement to the public. Irs amended tax return Substituting replacement property. Irs amended tax return   Once you designate certain property as replacement property on your tax return, you cannot substitute other qualified property. Irs amended tax return But, if your previously designated replacement property does not qualify, you can substitute qualified property if you acquire it within the replacement period. Irs amended tax return Controlling interest in a corporation. Irs amended tax return   You can replace property by acquiring a controlling interest in a corporation that owns property similar or related in service or use to your condemned property. Irs amended tax return You have controlling interest if you own stock having at least 80% of the combined voting power of all classes of stock entitled to vote and at least 80% of the total number of shares of all other classes of stock of the corporation. Irs amended tax return Basis adjustment to corporation's property. Irs amended tax return   The basis of property held by the corporation at the time you acquired control must be reduced by your postponed gain, if any. Irs amended tax return You are not required to reduce the adjusted basis of the corporation's properties below your adjusted basis in the corporation's stock (determined after reduction by your postponed gain). Irs amended tax return   Allocate this reduction to the following classes of property in the order shown below. Irs amended tax return Property that is similar or related in service or use to the condemned property. Irs amended tax return Depreciable property not reduced in (1). Irs amended tax return All other property. Irs amended tax return If two or more properties fall in the same class, allocate the reduction to each property in proportion to the adjusted basis of all the properties in that class. Irs amended tax return The reduced basis of any single property cannot be less than zero. Irs amended tax return Main home replaced. Irs amended tax return   If your gain from a condemnation of your main home is more than you can exclude from your income (see Main home condemned under Gain or Loss From Condemnations, earlier), you can postpone reporting the rest of the gain by buying replacement property that is similar or related in service or use. Irs amended tax return The replacement property must cost at least as much as the amount realized from the condemnation minus the excluded gain. Irs amended tax return   You must reduce the basis of your replacement property by the postponed gain. Irs amended tax return Also, if you postpone reporting any part of your gain under these rules, you are treated as having owned and used the replacement property as your main home for the period you owned and used the condemned property as your main home. Irs amended tax return Example. Irs amended tax return City authorities condemned your home that you had used as a personal residence for 5 years prior to the condemnation. Irs amended tax return The city paid you a condemnation award of $400,000. Irs amended tax return Your adjusted basis in the property was $80,000. Irs amended tax return You realize a gain of $320,000 ($400,000 − $80,000). Irs amended tax return You purchased a new home for $100,000. Irs amended tax return You can exclude $250,000 of the realized gain from your gross income. Irs amended tax return The amount realized is then treated as being $150,000 ($400,000 − $250,000) and the gain realized is $70,000 ($150,000 amount realized − $80,000 adjusted basis). Irs amended tax return You must recognize $50,000 of the gain ($150,000 amount realized − $100,000 cost of new home). Irs amended tax return The remaining $20,000 of realized gain is postponed. Irs amended tax return Your basis in the new home is $80,000 ($100,000 cost − $20,000 gain postponed). Irs amended tax return Replacement period. Irs amended tax return   To postpone reporting your gain from a condemnation, you must buy replacement property within a certain period of time. Irs amended tax return This is the replacement period. Irs amended tax return   The replacement period for a condemnation begins on the earlier of the following dates. Irs amended tax return The date on which you disposed of the condemned property. Irs amended tax return The date on which the threat of condemnation began. Irs amended tax return   The replacement period generally ends 2 years after the end of the first tax year in which any part of the gain on the condemnation is realized. Irs amended tax return However, see the exceptions below. Irs amended tax return Three-year replacement period for certain property. Irs amended tax return   If real property held for use in a trade or business or for investment (not including property held primarily for sale) is condemned, the replacement period ends 3 years after the end of the first tax year in which any part of the gain on the condemnation is realized. Irs amended tax return However, this 3-year replacement period cannot be used if you replace the condemned property by acquiring control of a corporation owning property that is similar or related in service or use. Irs amended tax return Five-year replacement period for certain property. Irs amended tax return   The replacement period ends 5 years after the end of the first tax year in which any part of the gain is realized on the compulsory or involuntary conversion of the following qualified property. Irs amended tax return Property in any Midwestern disaster area compulsorily or involuntarily converted on or after the applicable disaster date as a result of severe storms, tornadoes, or flooding, but only if substantially all of the use of the replacement property is in a Midwestern disaster area. Irs amended tax return Property in the Kansas disaster area compulsorily or involuntarily converted after May 3, 2007, but only if substantially all of the use of the replacement property is in the Kansas disaster area. Irs amended tax return Property in the Hurricane Katrina disaster area compulsorily or involuntarily converted after August 24, 2005, as a result of Hurricane Katrina, but only if substantially all of the use of the replacement property is in the Hurricane Katrina disaster area. Irs amended tax return Extended replacement period for taxpayers affected by other federally declared disasters. Irs amended tax return    If you are affected by a federally declared disaster, the IRS may grant disaster relief by extending the periods to perform certain tax-related acts for 2013, including the replacement period, by up to one year. Irs amended tax return For more information visit www. Irs amended tax return irs. Irs amended tax return gov/uac/Tax-Relief-in-Disaster-Situations. Irs amended tax return Weather-related sales of livestock in an area eligible for federal assistance. Irs amended tax return   Generally, if the sale or exchange of livestock is due to drought, flood, or other weather-related conditions in an area eligible for federal assistance, the replacement period ends 4 years after the close of the first tax year in which you realize any part of your gain from the sale or exchange. Irs amended tax return    If the weather-related conditions continue for longer than 3 years, the replacement period may be extended on a regional basis until the end of your first drought-free year for the applicable region. Irs amended tax return See Notice 2006-82. Irs amended tax return You can find Notice 2006-82 on page 529 of Internal Revenue Bulletin 2006-39 at www. Irs amended tax return irs. Irs amended tax return gov/irb/2006-39_IRB/ar13. Irs amended tax return html. Irs amended tax return    Each year, the IRS publishes a list of counties, districts, cities, or parishes for which exceptional, extreme, or severe drought was reported during the preceding 12 months. Irs amended tax return If you qualified for a 4-year replacement period for livestock sold or exchanged on account of drought and your replacement period is scheduled to expire at the end of 2013 (or at the end of the tax year that includes August 31, 2013), see Notice 2013-62. Irs amended tax return You can find Notice 2013-62 on page 466 of Internal Revenue Bulletin 2013-45 at www. Irs amended tax return irs. Irs amended tax return gov/irb/2013-45_IRB/ar04. Irs amended tax return html. Irs amended tax return The replacement period will be extended under Notice 2006-82 if the applicable region is on the list included in Notice 2013-62. Irs amended tax return Determining when gain is realized. Irs amended tax return   If you are a cash basis taxpayer, you realize gain when you receive payments that are more than your basis in the property. Irs amended tax return If the condemning authority makes deposits with the court, you realize gain when you withdraw (or have the right to withdraw) amounts that are more than your basis. Irs amended tax return   This applies even if the amounts received are only partial or advance payments and the full award has not yet been determined. Irs amended tax return A replacement will be too late if you wait for a final determination that does not take place in the applicable replacement period after you first realize gain. Irs amended tax return   For accrual basis taxpayers, gain (if any) accrues in the earlier year when either of the following occurs. Irs amended tax return All events have occurred that fix the right to the condemnation award and the amount can be determined with reasonable accuracy. Irs amended tax return All or part of the award is actually or constructively received. Irs amended tax return For example, if you have an absolute right to a part of a condemnation award when it is deposited with the court, the amount deposited accrues in the year the deposit is made even though the full amount of the award is still contested. Irs amended tax return Replacement property bought before the condemnation. Irs amended tax return   If you buy your replacement property after there is a threat of condemnation but before the actual condemnation and you still hold the replacement property at the time of the condemnation, you have bought your replacement property within the replacement period. Irs amended tax return Property you acquire before there is a threat of condemnation does not qualify as replacement property acquired within the replacement period. Irs amended tax return Example. Irs amended tax return On April 3, 2012, city authorities notified you that your property would be condemned. Irs amended tax return On June 5, 2012, you acquired property to replace the property to be condemned. Irs amended tax return You still had the new property when the city took possession of your old property on September 4, 2013. Irs amended tax return You have made a replacement within the replacement period. Irs amended tax return Extension. Irs amended tax return   You can request an extension of the replacement period from the IRS director for your area. Irs amended tax return You should apply before the end of the replacement period. Irs amended tax return Your request should explain in detail why you need an extension. Irs amended tax return The IRS will consider a request filed within a reasonable time after the replacement period if you can show reasonable cause for the delay. Irs amended tax return An extension of the replacement period will be granted if you can show reasonable cause for not making the replacement within the regular period. Irs amended tax return   Ordinarily, requests for extensions are granted near the end of the replacement period or the extended replacement period. Irs amended tax return Extensions are usually limited to a period of 1 year or less. Irs amended tax return The high market value or scarcity of replacement property is not a sufficient reason for granting an extension. Irs amended tax return If your replacement property is being built and you clearly show that the replacement or restoration cannot be made within the replacement peri