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Irs Tax Filing For 2012

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Irs Tax Filing For 2012

Irs tax filing for 2012 How To Get Tax Help Table of Contents You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. Irs tax filing for 2012 By selecting the method that is best for you, you will have quick and easy access to tax help. Irs tax filing for 2012 Contacting your Taxpayer Advocate. Irs tax filing for 2012   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Irs tax filing for 2012   The Taxpayer Advocate represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. Irs tax filing for 2012 While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. Irs tax filing for 2012   To contact your Taxpayer Advocate: Call the Taxpayer Advocate at 1–877–777–4778. Irs tax filing for 2012 Call the IRS at 1–800–829–1040. Irs tax filing for 2012 Call, write, or fax the Taxpayer Advocate office in your area. Irs tax filing for 2012 Call 1–800–829–4059 if you are a TTY/TDD user. Irs tax filing for 2012   For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS. Irs tax filing for 2012 Free tax services. Irs tax filing for 2012   To find out what services are available, get Publication 910, Guide to Free Tax Services. Irs tax filing for 2012 It contains a list of free tax publications and an index of tax topics. Irs tax filing for 2012 It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Irs tax filing for 2012 Personal computer. Irs tax filing for 2012 With your personal computer and modem, you can access the IRS on the Internet at www. Irs tax filing for 2012 irs. Irs tax filing for 2012 gov. Irs tax filing for 2012 While visiting our web site, you can: Find answers to questions you may have. Irs tax filing for 2012 Download forms and publications or search for forms and publications by topic or keyword. Irs tax filing for 2012 View forms that may be filled in electronically, print the completed form, and then save the form for recordkeeping. Irs tax filing for 2012 View Internal Revenue Bulletins published in the last few years. Irs tax filing for 2012 Search regulations and the Internal Revenue Code. Irs tax filing for 2012 Receive our electronic newsletters on hot tax issues and news. Irs tax filing for 2012 Get information on starting and operating a small business. Irs tax filing for 2012 You can also reach us with your computer using File Transfer Protocol at ftp. Irs tax filing for 2012 irs. Irs tax filing for 2012 gov. Irs tax filing for 2012 TaxFax Service. Irs tax filing for 2012 Using the phone attached to your fax machine, you can receive forms and instructions by calling 703–368–9694. Irs tax filing for 2012 Follow the directions from the prompts. Irs tax filing for 2012 When you order forms, enter the catalog number for the form you need. Irs tax filing for 2012 The items you request will be faxed to you. Irs tax filing for 2012 For help with transmission problems, call the FedWorld Help Desk at 703–487–4608. Irs tax filing for 2012 Phone. Irs tax filing for 2012 Many services are available by phone. Irs tax filing for 2012 Ordering forms, instructions, and publications. Irs tax filing for 2012 Call 1–800–829–3676 to order current and prior year forms, instructions, and publications. Irs tax filing for 2012 Asking tax questions. Irs tax filing for 2012 Call the IRS with your tax questions at 1–800–829–1040. Irs tax filing for 2012 TTY/TDD equipment. Irs tax filing for 2012 If you have access to TTY/TDD equipment, call 1–800–829–4059 to ask tax questions or to order forms and publications. Irs tax filing for 2012 TeleTax topics. Irs tax filing for 2012 Call 1–800–829–4477 to listen to pre-recorded messages covering various tax topics. Irs tax filing for 2012 Evaluating the quality of our telephone services. Irs tax filing for 2012 To ensure that IRS representatives give accurate, courteous, and professional answers, we evaluate the quality of our telephone services in several ways. Irs tax filing for 2012 A second IRS representative sometimes monitors live telephone calls. Irs tax filing for 2012 That person only evaluates the IRS assistor and does not keep a record of any taxpayer's name or tax identification number. Irs tax filing for 2012 We sometimes record telephone calls to evaluate IRS assistors objectively. Irs tax filing for 2012 We hold these recordings no longer than one week and use them only to measure the quality of assistance. Irs tax filing for 2012 We value our customers' opinions. Irs tax filing for 2012 Throughout this year, we will be surveying our customers for their opinions on our service. Irs tax filing for 2012 Walk-in. Irs tax filing for 2012 You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Irs tax filing for 2012 Some IRS offices, libraries, grocery stores, copy centers, city and county governments, credit unions, and office supply stores have an extensive collection of products available to print from a CD-ROM or photocopy from reproducible proofs. Irs tax filing for 2012 Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Irs tax filing for 2012 Mail. Irs tax filing for 2012 You can send your order for forms, instructions, and publications to the Distribution Center nearest to you and receive a response within 10 workdays after your request is received. Irs tax filing for 2012 Find the address that applies to your part of the country. Irs tax filing for 2012 Western part of U. Irs tax filing for 2012 S. Irs tax filing for 2012 : Western Area Distribution Center Rancho Cordova, CA 95743–0001 Central part of U. Irs tax filing for 2012 S. Irs tax filing for 2012 : Central Area Distribution Center P. Irs tax filing for 2012 O. Irs tax filing for 2012 Box 8903 Bloomington, IL 61702–8903 Eastern part of U. Irs tax filing for 2012 S. Irs tax filing for 2012 and foreign addresses: Eastern Area Distribution Center P. Irs tax filing for 2012 O. Irs tax filing for 2012 Box 85074 Richmond, VA 23261–5074 CD-ROM. Irs tax filing for 2012 You can order IRS Publication 1796, Federal Tax Products on CD-ROM, and obtain: Current tax forms, instructions, and publications. Irs tax filing for 2012 Prior-year tax forms and instructions. Irs tax filing for 2012 Popular tax forms that may be filled in electronically, printed out for submission, and saved for recordkeeping. Irs tax filing for 2012 Internal Revenue Bulletins. Irs tax filing for 2012 The CD-ROM can be purchased from National Technical Information Service (NTIS) by calling 1–877–233–6767 or on the Internet at www. Irs tax filing for 2012 irs. Irs tax filing for 2012 gov. Irs tax filing for 2012 The first release is available in mid-December and the final release is available in late January. Irs tax filing for 2012 IRS Publication 3207, Small Business Resource Guide, is an interactive CD-ROM that contains information important to small businesses. Irs tax filing for 2012 It is available in mid-February. Irs tax filing for 2012 You can get a free copy by calling 1–800–829–3676 or visiting the IRS web site at www. Irs tax filing for 2012 irs. Irs tax filing for 2012 gov. Irs tax filing for 2012 Prev  Up  Next   Home   More Online Publications
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Projections of Federal Tax Return Filings - IRS Office of Research

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Here you will find forecasts of the number of returns to be filed for tax forms within the individual, tax-exempt, and business areas. These statistical projections are developed by the IRS Office of Research.

Projections Publications

The following publications are available as an Adobe Acrobat PDF file. A free Adobe® reader is available for download, if needed. Also, the following tables are available as Microsoft Excel spreadsheets. A free Excel® reader is available for download, if needed.

Calendar Year Projections of Information and Withholding Documents for the United States and IRS Campuses (PDF)
Publication 6961 (Revised 12/12) by IRS; Research, Analysis, and Statistics; Office of Research
This IRS Publication contains multi-year projections of the number of information and withholding documents to be filed with the IRS. The publication includes detailed projections by approximately 30 information document types such as Form W-2, Form 1099INT, etc., by medium of filing (paper versus electronic) and by IRS processing campus location.
Fiscal Year Return Projections for the United States (PDF)
Publication 6292 (Revised 07/12) by IRS; Research, Analysis, and Statistics; Office of Research
IRS Publication 6292 contains multi-year projections of the number of tax returns to be filed with the IRS by fiscal year of filing. The publication includes detailed projections by approximately 50 different individual, business and tax-exempt return types such as Form 1040, Form 1120, Form 941 and Form 990. There is also additional detail by medium of filing (paper versus electronic) and by IRS business operating division categorizations.
Calendar Year Projections of Individual Returns by Major Processing Categories, Selected Years and Areas (PDF)
Publication 6187 (Revised 11/12) by IRS; Research, Analysis, and Statistics; Office of Research
IRS Publication 6187 contains multi-year projections of the number of individual Form 1040 series returns to be filed with the IRS by major processing categories important to IRS planning operations. This includes detail by form type (Forms 1040, 1040A, and 1040EZ), by medium of filing (paper versus electronic), and by other characteristics such as refund returns. Selected portions of the forecasts are also shown by IRS processing campus location, and by state.
Calendar Year Return Projections for the United States and IRS Campuses (PDF)
Publication 6186 (Revised 10/13) by IRS; Research, Analysis, and Statistics; Office of Research
IRS Publication 6186 contains multi-year projections of the number of tax returns to be filed with the IRS by the calendar year of filing. The publication includes detailed projections by approximately 50 different individual, business and tax-exempt return types such as Form 1040, Form 1120, Form 941 and Form 990. There is also additional detail by medium of filing (paper versus electronic) and by IRS processing campus location.
Calendar Year Return Projections by State (PDF)
Publication 6149 (Revised 12/12) by IRS; Research, Analysis, and Statistics; Office of Research.
IRS Publication 6149 contains multi-year projections of the number of tax returns to be filed with the IRS by state—as determined by the addresses on the tax returns. The publication includes detailed projections by approximately 50 different individual, business and tax-exempt return types such as Form 1040, Form 1120, Form 941 and Form 990. There is also additional detail by medium of filing (paper versus electronic).

Articles

Projections of Federal Tax Return Filings: Calendar Years 2009–2016
Winter Bulletin, 2010

A grand total of 238 million tax returns are projected to be filed with the IRS during Calendar Year (CY) 2010. This number represents a decrease of 1 percent from the estimated CY 2009 filings of 240.4 million returns.

Related
Statistical Table: 1
Projections of Federal Tax Return Filings: Calendar Years 2005–2012
SOI Bulletin, Winter 2005–2006
Taxpayers are expected to file a grand total of 229.3 million tax returns with the Internal Revenue Service (IRS) during Calendar Year (CY) 2006. That projected level reflects a modest increase of only 0.1 percent over the estimated CY 2005 filings of 229.0 million. Related
Statistical Table: 1

Historical Projections Table


Data Presented

Selected Returns and Forms Filed or To Be Filed by Type During Specified Calendar Years
Tax Years
1990–2007
Published as:
SOI Bulletin, Historical Table 22

 

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Page Last Reviewed or Updated: 15-Nov-2013

The Irs Tax Filing For 2012

Irs tax filing for 2012 4. Irs tax filing for 2012   Interest Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Allocation of InterestOrder of funds spent. Irs tax filing for 2012 Payments from checking accounts. Irs tax filing for 2012 Amounts paid within 30 days. Irs tax filing for 2012 Optional method for determining date of reallocation. Irs tax filing for 2012 Interest on a segregated account. Irs tax filing for 2012 How to report. Irs tax filing for 2012 Interest You Can DeductStatement. Irs tax filing for 2012 Expenses paid to obtain a mortgage. Irs tax filing for 2012 Prepayment penalty. Irs tax filing for 2012 De minimis OID. Irs tax filing for 2012 Constant-yield method. Irs tax filing for 2012 Loan or mortgage ends. Irs tax filing for 2012 Interest You Cannot DeductPenalties. Irs tax filing for 2012 Who is a key person? Exceptions for pre-June 1997 contracts. Irs tax filing for 2012 Interest allocated to unborrowed policy cash value. Irs tax filing for 2012 Capitalization of Interest When To Deduct InterestPrepaid interest. Irs tax filing for 2012 Discounted loan. Irs tax filing for 2012 Refunds of interest. Irs tax filing for 2012 Prepaid interest. Irs tax filing for 2012 Discounted loan. Irs tax filing for 2012 Tax deficiency. Irs tax filing for 2012 Related person. Irs tax filing for 2012 Below-Market LoansLimit on forgone interest for gift loans of $100,000 or less. Irs tax filing for 2012 Introduction This chapter discusses the tax treatment of business interest expense. Irs tax filing for 2012 Business interest expense is an amount charged for the use of money you borrowed for business activities. Irs tax filing for 2012 Topics - This chapter discusses: Allocation of interest Interest you can deduct Interest you cannot deduct Capitalization of interest When to deduct interest Below-market loans Useful Items - You may want to see: Publication 537 Installment Sales 550 Investment Income and Expenses 936 Home Mortgage Interest Deduction Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch E (Form 1040) Supplemental Income and Loss Sch K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. Irs tax filing for 2012 Sch K-1 (Form 1120S) Shareholder's Share of Income, Deductions, Credits, etc. Irs tax filing for 2012 1098 Mortgage Interest Statement 3115 Application for Change in Accounting Method 4952 Investment Interest Expense Deduction 8582 Passive Activity Loss Limitations See chapter 12 for information about getting publications and forms. Irs tax filing for 2012 Allocation of Interest The rules for deducting interest vary, depending on whether the loan proceeds are used for business, personal, or investment activities. Irs tax filing for 2012 If you use the proceeds of a loan for more than one type of expense, you must allocate the interest based on the use of the loan's proceeds. Irs tax filing for 2012 Allocate your interest expense to the following categories. Irs tax filing for 2012 Nonpassive trade or business activity interest Passive trade or business activity interest Investment interest Portfolio interest Personal interest In general, you allocate interest on a loan the same way you allocate the loan proceeds. Irs tax filing for 2012 You allocate loan proceeds by tracing disbursements to specific uses. Irs tax filing for 2012 The easiest way to trace disbursements to specific uses is to keep the proceeds of a particular loan separate from any other funds. Irs tax filing for 2012 Secured loan. Irs tax filing for 2012   The allocation of loan proceeds and the related interest is not generally affected by the use of property that secures the loan. Irs tax filing for 2012 Example. Irs tax filing for 2012 You secure a loan with property used in your business. Irs tax filing for 2012 You use the loan proceeds to buy an automobile for personal use. Irs tax filing for 2012 You must allocate interest expense on the loan to personal use (purchase of the automobile) even though the loan is secured by business property. Irs tax filing for 2012    If the property that secures the loan is your home, you generally do not allocate the loan proceeds or the related interest. Irs tax filing for 2012 The interest is usually deductible as qualified home mortgage interest, regardless of how the loan proceeds are used. Irs tax filing for 2012 For more information, see Publication 936. Irs tax filing for 2012 Allocation period. Irs tax filing for 2012   The period for which a loan is allocated to a particular use begins on the date the proceeds are used and ends on the earlier of the following dates. Irs tax filing for 2012 The date the loan is repaid. Irs tax filing for 2012 The date the loan is reallocated to another use. Irs tax filing for 2012 Proceeds not disbursed to borrower. Irs tax filing for 2012   Even if the lender disburses the loan proceeds to a third party, the allocation of the loan is still based on your use of the funds. Irs tax filing for 2012 This applies whether you pay for property, services, or anything else by incurring a loan, or you take property subject to a debt. Irs tax filing for 2012 Proceeds deposited in borrower's account. Irs tax filing for 2012   Treat loan proceeds deposited in an account as property held for investment. Irs tax filing for 2012 It does not matter whether the account pays interest. Irs tax filing for 2012 Any interest you pay on the loan is investment interest expense. Irs tax filing for 2012 If you withdraw the proceeds of the loan, you must reallocate the loan based on the use of the funds. Irs tax filing for 2012 Example. Irs tax filing for 2012 Celina, a calendar-year taxpayer, borrows $100,000 on January 4 and immediately uses the proceeds to open a checking account. Irs tax filing for 2012 No other amounts are deposited in the account during the year and no part of the loan principal is repaid during the year. Irs tax filing for 2012 On April 2, Celina uses $20,000 from the checking account for a passive activity expenditure. Irs tax filing for 2012 On September 4, Celina uses an additional $40,000 from the account for personal purposes. Irs tax filing for 2012 Under the interest allocation rules, the entire $100,000 loan is treated as property held for investment for the period from January 4 through April 1. Irs tax filing for 2012 From April 2 through September 3, Celina must treat $20,000 of the loan as used in the passive activity and $80,000 of the loan as property held for investment. Irs tax filing for 2012 From September 4 through December 31, she must treat $40,000 of the loan as used for personal purposes, $20,000 as used in the passive activity, and $40,000 as property held for investment. Irs tax filing for 2012 Order of funds spent. Irs tax filing for 2012   Generally, you treat loan proceeds deposited in an account as used (spent) before either of the following amounts. Irs tax filing for 2012 Any unborrowed amounts held in the same account. Irs tax filing for 2012 Any amounts deposited after these loan proceeds. Irs tax filing for 2012 Example. Irs tax filing for 2012 On January 9, Olena opened a checking account, depositing $500 of the proceeds of Loan A and $1,000 of unborrowed funds. Irs tax filing for 2012 The following table shows the transactions in her account during the tax year. Irs tax filing for 2012 Date Transaction January 9 $500 proceeds of Loan A and $1,000 unborrowed funds deposited January 14 $500 proceeds of Loan B  deposited February 19 $800 used for personal purposes February 27 $700 used for passive activity June 19 $1,000 proceeds of Loan C  deposited November 20 $800 used for an investment December 18 $600 used for personal purposes Olena treats the $800 used for personal purposes as made from the $500 proceeds of Loan A and $300 of the proceeds of Loan B. Irs tax filing for 2012 She treats the $700 used for a passive activity as made from the remaining $200 proceeds of Loan B and $500 of unborrowed funds. Irs tax filing for 2012 She treats the $800 used for an investment as made entirely from the proceeds of Loan C. Irs tax filing for 2012 She treats the $600 used for personal purposes as made from the remaining $200 proceeds of Loan C and $400 of unborrowed funds. Irs tax filing for 2012 For the periods during which loan proceeds are held in the account, Olena treats them as property held for investment. Irs tax filing for 2012 Payments from checking accounts. Irs tax filing for 2012   Generally, you treat a payment from a checking or similar account as made at the time the check is written if you mail or deliver it to the payee within a reasonable period after you write it. Irs tax filing for 2012 You can treat checks written on the same day as written in any order. Irs tax filing for 2012 Amounts paid within 30 days. Irs tax filing for 2012   If you receive loan proceeds in cash or if the loan proceeds are deposited in an account, you can treat any payment (up to the amount of the proceeds) made from any account you own, or from cash, as made from those proceeds. Irs tax filing for 2012 This applies to any payment made within 30 days before or after the proceeds are received in cash or deposited in your account. Irs tax filing for 2012   If the loan proceeds are deposited in an account, you can apply this rule even if the rules stated earlier under Order of funds spent would otherwise require you to treat the proceeds as used for other purposes. Irs tax filing for 2012 If you apply this rule to any payments, disregard those payments (and the proceeds from which they are made) when applying the rules stated under Order of funds spent. Irs tax filing for 2012   If you received the loan proceeds in cash, you can treat the payment as made on the date you received the cash instead of the date you actually made the payment. Irs tax filing for 2012 Example. Irs tax filing for 2012 Giovanni gets a loan of $1,000 on August 4 and receives the proceeds in cash. Irs tax filing for 2012 Giovanni deposits $1,500 in an account on August 18 and on August 28 writes a check on the account for a passive activity expense. Irs tax filing for 2012 Also, Giovanni deposits his paycheck, deposits other loan proceeds, and pays his bills during the same period. Irs tax filing for 2012 Regardless of these other transactions, Giovanni can treat $1,000 of the deposit he made on August 18 as being paid on August 4 from the loan proceeds. Irs tax filing for 2012 In addition, Giovanni can treat the passive activity expense he paid on August 28 as made from the $1,000 loan proceeds treated as deposited in the account. Irs tax filing for 2012 Optional method for determining date of reallocation. Irs tax filing for 2012   You can use the following method to determine the date loan proceeds are reallocated to another use. Irs tax filing for 2012 You can treat all payments from loan proceeds in the account during any month as taking place on the later of the following dates. Irs tax filing for 2012 The first day of that month. Irs tax filing for 2012 The date the loan proceeds are deposited in the account. Irs tax filing for 2012 However, you can use this optional method only if you treat all payments from the account during the same calendar month in the same way. Irs tax filing for 2012 Interest on a segregated account. Irs tax filing for 2012   If you have an account that contains only loan proceeds and interest earned on the account, you can treat any payment from that account as being made first from the interest. Irs tax filing for 2012 When the interest earned is used up, any remaining payments are from loan proceeds. Irs tax filing for 2012 Example. Irs tax filing for 2012 You borrowed $20,000 and used the proceeds of this loan to open a new savings account. Irs tax filing for 2012 When the account had earned interest of $867, you withdrew $20,000 for personal purposes. Irs tax filing for 2012 You can treat the withdrawal as coming first from the interest earned on the account, $867, and then from the loan proceeds, $19,133 ($20,000 − $867). Irs tax filing for 2012 All the interest charged on the loan from the time it was deposited in the account until the time of the withdrawal is investment interest expense. Irs tax filing for 2012 The interest charged on the part of the proceeds used for personal purposes ($19,133) from the time you withdrew it until you either repay it or reallocate it to another use is personal interest expense. Irs tax filing for 2012 The interest charged on the loan proceeds you left in the account ($867) continues to be investment interest expense until you either repay it or reallocate it to another use. Irs tax filing for 2012 Loan repayment. Irs tax filing for 2012   When you repay any part of a loan allocated to more than one use, treat it as being repaid in the following order. Irs tax filing for 2012 Personal use. Irs tax filing for 2012 Investments and passive activities (other than those included in (3)). Irs tax filing for 2012 Passive activities in connection with a rental real estate activity in which you actively participate. Irs tax filing for 2012 Former passive activities. Irs tax filing for 2012 Trade or business use and expenses for certain low-income housing projects. Irs tax filing for 2012 Line of credit (continuous borrowings). Irs tax filing for 2012   The following rules apply if you have a line of credit or similar arrangement. Irs tax filing for 2012 Treat all borrowed funds on which interest accrues at the same fixed or variable rate as a single loan. Irs tax filing for 2012 Treat borrowed funds or parts of borrowed funds on which interest accrues at different fixed or variable rates as different loans. Irs tax filing for 2012 Treat these loans as repaid in the order shown on the loan agreement. Irs tax filing for 2012 Loan refinancing. Irs tax filing for 2012   Allocate the replacement loan to the same uses to which the repaid loan was allocated. Irs tax filing for 2012 Make the allocation only to the extent you use the proceeds of the new loan to repay any part of the original loan. Irs tax filing for 2012 Debt-financed distribution. Irs tax filing for 2012   A debt-financed distribution occurs when a partnership or S corporation borrows funds and allocates those funds to distributions made to partners or shareholders. Irs tax filing for 2012 The manner in which you report the interest expense associated with the distributed debt proceeds depends on your use of those proceeds. Irs tax filing for 2012 How to report. Irs tax filing for 2012   If the proceeds were used in a nonpassive trade or business activity, report the interest on Schedule E (Form 1040), line 28; enter “interest expense” and the name of the partnership or S corporation in column (a) and the amount in column (h). Irs tax filing for 2012 If the proceeds were used in a passive activity, follow the Instructions for Form 8582, Passive Activity Loss Limitations, to determine the amount of interest expense that can be reported on Schedule E (Form 1040), line 28; enter “interest expense” and the name of the partnership in column (a) and the amount in column (f). Irs tax filing for 2012 If the proceeds were used in an investment activity, enter the interest on Form 4952. Irs tax filing for 2012 If the proceeds are used for personal purposes, the interest is generally not deductible. Irs tax filing for 2012 Interest You Can Deduct You can generally deduct as a business expense all interest you pay or accrue during the tax year on debts related to your trade or business. Irs tax filing for 2012 Interest relates to your trade or business if you use the proceeds of the loan for a trade or business expense. Irs tax filing for 2012 It does not matter what type of property secures the loan. Irs tax filing for 2012 You can deduct interest on a debt only if you meet all the following requirements. Irs tax filing for 2012 You are legally liable for that debt. Irs tax filing for 2012 Both you and the lender intend that the debt be repaid. Irs tax filing for 2012 You and the lender have a true debtor-creditor relationship. Irs tax filing for 2012 Partial liability. Irs tax filing for 2012   If you are liable for part of a business debt, you can deduct only your share of the total interest paid or accrued. Irs tax filing for 2012 Example. Irs tax filing for 2012 You and your brother borrow money. Irs tax filing for 2012 You are liable for 50% of the note. Irs tax filing for 2012 You use your half of the loan in your business, and you make one-half of the loan payments. Irs tax filing for 2012 You can deduct your half of the total interest payments as a business deduction. Irs tax filing for 2012 Mortgage. Irs tax filing for 2012   Generally, mortgage interest paid or accrued on real estate you own legally or equitably is deductible. Irs tax filing for 2012 However, rather than deducting the interest currently, you may have to add it to the cost basis of the property as explained later under Capitalization of Interest. Irs tax filing for 2012 Statement. Irs tax filing for 2012   If you paid $600 or more of mortgage interest (including certain points) during the year on any one mortgage, you generally will receive a Form 1098 or a similar statement. Irs tax filing for 2012 You will receive the statement if you pay interest to a person (including a financial institution or a cooperative housing corporation) in the course of that person's trade or business. Irs tax filing for 2012 A governmental unit is a person for purposes of furnishing the statement. Irs tax filing for 2012   If you receive a refund of interest you overpaid in an earlier year, this amount will be reported in box 3 of Form 1098. Irs tax filing for 2012 You cannot deduct this amount. Irs tax filing for 2012 For information on how to report this refund, see Refunds of interest, later in this chapter. Irs tax filing for 2012 Expenses paid to obtain a mortgage. Irs tax filing for 2012   Certain expenses you pay to obtain a mortgage cannot be deducted as interest. Irs tax filing for 2012 These expenses, which include mortgage commissions, abstract fees, and recording fees, are capital expenses. Irs tax filing for 2012 If the property mortgaged is business or income-producing property, you can amortize the costs over the life of the mortgage. Irs tax filing for 2012 Prepayment penalty. Irs tax filing for 2012   If you pay off your mortgage early and pay the lender a penalty for doing this, you can deduct the penalty as interest. Irs tax filing for 2012 Interest on employment tax deficiency. Irs tax filing for 2012   Interest charged on employment taxes assessed on your business is deductible. Irs tax filing for 2012 Original issue discount (OID). Irs tax filing for 2012   OID is a form of interest. Irs tax filing for 2012 A loan (mortgage or other debt) generally has OID when its proceeds are less than its principal amount. Irs tax filing for 2012 The OID is the difference between the stated redemption price at maturity and the issue price of the loan. Irs tax filing for 2012   A loan's stated redemption price at maturity is the sum of all amounts (principal and interest) payable on it other than qualified stated interest. Irs tax filing for 2012 Qualified stated interest is stated interest that is unconditionally payable in cash or property (other than another loan of the issuer) at least annually over the term of the loan at a single fixed rate. Irs tax filing for 2012 You generally deduct OID over the term of the loan. Irs tax filing for 2012 Figure the amount to deduct each year using the constant-yield method, unless the OID on the loan is de minimis. Irs tax filing for 2012 De minimis OID. Irs tax filing for 2012   The OID is de minimis if it is less than one-fourth of 1% (. Irs tax filing for 2012 0025) of the stated redemption price of the loan at maturity multiplied by the number of full years from the date of original issue to maturity (the term of the loan). Irs tax filing for 2012   If the OID is de minimis, you can choose one of the following ways to figure the amount you can deduct each year. Irs tax filing for 2012 On a constant-yield basis over the term of the loan. Irs tax filing for 2012 On a straight-line basis over the term of the loan. Irs tax filing for 2012 In proportion to stated interest payments. Irs tax filing for 2012 In its entirety at maturity of the loan. Irs tax filing for 2012 You make this choice by deducting the OID in a manner consistent with the method chosen on your timely filed tax return for the tax year in which the loan is issued. Irs tax filing for 2012 Example. Irs tax filing for 2012 On January 1, 2013, you took out a $100,000 discounted loan and received $98,500 in proceeds. Irs tax filing for 2012 The loan will mature on January 1, 2023 (a 10-year term), and the $100,000 principal is payable on that date. Irs tax filing for 2012 Interest of $10,000 is payable on January 1 of each year, beginning January 1, 2014. Irs tax filing for 2012 The $1,500 OID on the loan is de minimis because it is less than $2,500 ($100,000 × . Irs tax filing for 2012 0025 × 10). Irs tax filing for 2012 You choose to deduct the OID on a straight-line basis over the term of the loan. Irs tax filing for 2012 Beginning in 2013, you can deduct $150 each year for 10 years. Irs tax filing for 2012 Constant-yield method. Irs tax filing for 2012   If the OID is not de minimis, you must use the constant-yield method to figure how much you can deduct each year. Irs tax filing for 2012 You figure your deduction for the first year using the following steps. Irs tax filing for 2012 Determine the issue price of the loan. Irs tax filing for 2012 Generally, this equals the proceeds of the loan. Irs tax filing for 2012 If you paid points on the loan (as discussed later), the issue price generally is the difference between the proceeds and the points. Irs tax filing for 2012 Multiply the result in (1) by the yield to maturity. Irs tax filing for 2012 Subtract any qualified stated interest payments from the result in (2). Irs tax filing for 2012 This is the OID you can deduct in the first year. Irs tax filing for 2012   To figure your deduction in any subsequent year, follow the above steps, except determine the adjusted issue price in step (1). Irs tax filing for 2012 To get the adjusted issue price, add to the issue price any OID previously deducted. Irs tax filing for 2012 Then follow steps (2) and (3) above. Irs tax filing for 2012   The yield to maturity is generally shown in the literature you receive from your lender. Irs tax filing for 2012 If you do not have this information, consult your lender or tax advisor. Irs tax filing for 2012 In general, the yield to maturity is the discount rate that, when used in computing the present value of all principal and interest payments, produces an amount equal to the principal amount of the loan. Irs tax filing for 2012 Example. Irs tax filing for 2012 The facts are the same as in the previous example, except that you deduct the OID on a constant yield basis over the term of the loan. Irs tax filing for 2012 The yield to maturity on your loan is 10. Irs tax filing for 2012 2467%, compounded annually. Irs tax filing for 2012 For 2013, you can deduct $93 [($98,500 × . Irs tax filing for 2012 102467) − $10,000]. Irs tax filing for 2012 For 2014, you can deduct $103 [($98,593 × . Irs tax filing for 2012 102467) − $10,000]. Irs tax filing for 2012 Loan or mortgage ends. Irs tax filing for 2012   If your loan or mortgage ends, you may be able to deduct any remaining OID in the tax year in which the loan or mortgage ends. Irs tax filing for 2012 A loan or mortgage may end due to a refinancing, prepayment, foreclosure, or similar event. Irs tax filing for 2012 If you refinance with the original lender, you generally cannot deduct the remaining OID in the year in which the refinancing occurs, but you may be able to deduct it over the term of the new mortgage or loan. Irs tax filing for 2012 See Interest paid with funds borrowed from original lender under Interest You Cannot Deduct, later. Irs tax filing for 2012 Points. Irs tax filing for 2012   The term “points” is used to describe certain charges paid, or treated as paid, by a borrower to obtain a loan or a mortgage. Irs tax filing for 2012 These charges are also called loan origination fees, maximum loan charges, discount points, or premium charges. Irs tax filing for 2012 If any of these charges (points) are solely for the use of money, they are interest. Irs tax filing for 2012   Because points are prepaid interest, you generally cannot deduct the full amount in the year paid. Irs tax filing for 2012 However, you can choose to fully deduct points in the year paid if you meet certain tests. Irs tax filing for 2012 For exceptions to the general rule, see Publication 936. Irs tax filing for 2012 The points reduce the issue price of the loan and result in original issue discount (OID), deductible as explained in the preceding discussion. Irs tax filing for 2012 Partial payments on a nontax debt. Irs tax filing for 2012   If you make partial payments on a debt (other than a debt owed the IRS), the payments are applied, in general, first to interest and any remainder to principal. Irs tax filing for 2012 You can deduct only the interest. Irs tax filing for 2012 This rule does not apply when it can be inferred that the borrower and lender understood that a different allocation of the payments would be made. Irs tax filing for 2012 Installment purchase. Irs tax filing for 2012   If you make an installment purchase of business property, the contract between you and the seller generally provides for the payment of interest. Irs tax filing for 2012 If no interest or a low rate of interest is charged under the contract, a portion of the stated principal amount payable under the contract may be recharacterized as interest (unstated interest). Irs tax filing for 2012 The amount recharacterized as interest reduces your basis in the property and increases your interest expense. Irs tax filing for 2012 For more information on installment sales and unstated interest, see Publication 537. Irs tax filing for 2012 Interest You Cannot Deduct Certain interest payments cannot be deducted. Irs tax filing for 2012 In addition, certain other expenses that may seem to be interest but are not, cannot be deducted as interest. Irs tax filing for 2012 You cannot currently deduct interest that must be capitalized, and you generally cannot deduct personal interest. Irs tax filing for 2012 Interest paid with funds borrowed from original lender. Irs tax filing for 2012   If you use the cash method of accounting, you cannot deduct interest you pay with funds borrowed from the original lender through a second loan, an advance, or any other arrangement similar to a loan. Irs tax filing for 2012 You can deduct the interest expense once you start making payments on the new loan. Irs tax filing for 2012   When you make a payment on the new loan, you first apply the payment to interest and then to the principal. Irs tax filing for 2012 All amounts you apply to the interest on the first loan are deductible, along with any interest you pay on the second loan, subject to any limits that apply. Irs tax filing for 2012 Capitalized interest. Irs tax filing for 2012   You cannot currently deduct interest you are required to capitalize under the uniform capitalization rules. Irs tax filing for 2012 See Capitalization of Interest, later. Irs tax filing for 2012 In addition, if you buy property and pay interest owed by the seller (for example, by assuming the debt and any interest accrued on the property), you cannot deduct the interest. Irs tax filing for 2012 Add this interest to the basis of the property. Irs tax filing for 2012 Commitment fees or standby charges. Irs tax filing for 2012   Fees you incur to have business funds available on a standby basis, but not for the actual use of the funds, are not deductible as interest payments. Irs tax filing for 2012 You may be able to deduct them as business expenses. Irs tax filing for 2012   If the funds are for inventory or certain property used in your business, the fees are indirect costs and you generally must capitalize them under the uniform capitalization rules. Irs tax filing for 2012 See Capitalization of Interest, later. Irs tax filing for 2012 Interest on income tax. Irs tax filing for 2012   Interest charged on income tax assessed on your individual income tax return is not a business deduction even though the tax due is related to income from your trade or business. Irs tax filing for 2012 Treat this interest as a business deduction only in figuring a net operating loss deduction. Irs tax filing for 2012 Penalties. Irs tax filing for 2012   Penalties on underpaid deficiencies and underpaid estimated tax are not interest. Irs tax filing for 2012 You cannot deduct them. Irs tax filing for 2012 Generally, you cannot deduct any fines or penalties. Irs tax filing for 2012 Interest on loans with respect to life insurance policies. Irs tax filing for 2012   You generally cannot deduct interest on a debt incurred with respect to any life insurance, annuity, or endowment contract that covers any individual unless that individual is a key person. Irs tax filing for 2012   If the policy or contract covers a key person, you can deduct the interest on up to $50,000 of debt for that person. Irs tax filing for 2012 However, the deduction for any month cannot be more than the interest figured using Moody's Composite Yield on Seasoned Corporate Bonds (formerly known as Moody's Corporate Bond Yield Average-Monthly Average Corporates) (Moody's rate) for that month. Irs tax filing for 2012 Who is a key person?   A key person is an officer or 20% owner. Irs tax filing for 2012 However, the number of individuals you can treat as key persons is limited to the greater of the following. Irs tax filing for 2012 Five individuals. Irs tax filing for 2012 The lesser of 5% of the total officers and employees of the company or 20 individuals. Irs tax filing for 2012 Exceptions for pre-June 1997 contracts. Irs tax filing for 2012   You can generally deduct the interest if the contract was issued before June 9, 1997, and the covered individual is someone other than an employee, officer, or someone financially interested in your business. Irs tax filing for 2012 If the contract was purchased before June 21, 1986, you can generally deduct the interest no matter who is covered by the contract. Irs tax filing for 2012 Interest allocated to unborrowed policy cash value. Irs tax filing for 2012   Corporations and partnerships generally cannot deduct any interest expense allocable to unborrowed cash values of life insurance, annuity, or endowment contracts. Irs tax filing for 2012 This rule applies to contracts issued after June 8, 1997, that cover someone other than an officer, director, employee, or 20% owner. Irs tax filing for 2012 For more information, see section 264(f) of the Internal Revenue Code. Irs tax filing for 2012 Capitalization of Interest Under the uniform capitalization rules, you generally must capitalize interest on debt equal to your expenditures to produce real property or certain tangible personal property. Irs tax filing for 2012 The property must be produced by you for use in your trade or business or for sale to customers. Irs tax filing for 2012 You cannot capitalize interest related to property that you acquire in any other manner. Irs tax filing for 2012 Interest you paid or incurred during the production period must be capitalized if the property produced is designated property. Irs tax filing for 2012 Designated property is any of the following. Irs tax filing for 2012 Real property. Irs tax filing for 2012 Tangible personal property with a class life of 20 years or more. Irs tax filing for 2012 Tangible personal property with an estimated production period of more than 2 years. Irs tax filing for 2012 Tangible personal property with an estimated production period of more than 1 year if the estimated cost of production is more than $1 million. Irs tax filing for 2012 Property you produce. Irs tax filing for 2012   You produce property if you construct, build, install, manufacture, develop, improve, create, raise, or grow it. Irs tax filing for 2012 Treat property produced for you under a contract as produced by you up to the amount you pay or incur for the property. Irs tax filing for 2012 Carrying charges. Irs tax filing for 2012   Carrying charges include taxes you pay to carry or develop real estate or to carry, transport, or install personal property. Irs tax filing for 2012 You can choose to capitalize carrying charges not subject to the uniform capitalization rules if they are otherwise deductible. Irs tax filing for 2012 For more information, see chapter 7. Irs tax filing for 2012 Capitalized interest. Irs tax filing for 2012   Treat capitalized interest as a cost of the property produced. Irs tax filing for 2012 You recover your interest when you sell or use the property. Irs tax filing for 2012 If the property is inventory, recover capitalized interest through cost of goods sold. Irs tax filing for 2012 If the property is used in your trade or business, recover capitalized interest through an adjustment to basis, depreciation, amortization, or other method. Irs tax filing for 2012 Partnerships and S corporations. Irs tax filing for 2012   The interest capitalization rules are applied first at the partnership or S corporation level. Irs tax filing for 2012 The rules are then applied at the partners' or shareholders' level to the extent the partnership or S corporation has insufficient debt to support the production or construction costs. Irs tax filing for 2012   If you are a partner or a shareholder, you may have to capitalize interest you incur during the tax year for the production costs of the partnership or S corporation. Irs tax filing for 2012 You may also have to capitalize interest incurred by the partnership or S corporation for your own production costs. Irs tax filing for 2012 To properly capitalize interest under these rules, you must be given the required information in an attachment to the Schedule K-1 you receive from the partnership or S corporation. Irs tax filing for 2012 Additional information. Irs tax filing for 2012   The procedures for applying the uniform capitalization rules are beyond the scope of this publication. Irs tax filing for 2012 For more information, see sections 1. Irs tax filing for 2012 263A-8 through 1. Irs tax filing for 2012 263A-15 of the regulations and Notice 88-99. Irs tax filing for 2012 Notice 88-99 is in Cumulative Bulletin 1988-2. Irs tax filing for 2012 When To Deduct Interest If the uniform capitalization rules, discussed under Capitalization of Interest, earlier, do not apply to you, deduct interest as follows. Irs tax filing for 2012 Cash method. Irs tax filing for 2012   Under the cash method, you can generally deduct only the interest you actually paid during the tax year. Irs tax filing for 2012 You cannot deduct a promissory note you gave as payment because it is a promise to pay and not an actual payment. Irs tax filing for 2012 Prepaid interest. Irs tax filing for 2012   You generally cannot deduct any interest paid before the year it is due. Irs tax filing for 2012 Interest paid in advance can be deducted only in the tax year in which it is due. Irs tax filing for 2012 Discounted loan. Irs tax filing for 2012   If interest or a discount is subtracted from your loan proceeds, it is not a payment of interest and you cannot deduct it when you get the loan. Irs tax filing for 2012 For more information, see Original issue discount (OID) under Interest You Can Deduct, earlier. Irs tax filing for 2012 Refunds of interest. Irs tax filing for 2012   If you pay interest and then receive a refund in the same tax year of any part of the interest, reduce your interest deduction by the refund. Irs tax filing for 2012 If you receive the refund in a later tax year, include the refund in your income to the extent the deduction for the interest reduced your tax. Irs tax filing for 2012 Accrual method. Irs tax filing for 2012   Under an accrual method, you can deduct only interest that has accrued during the tax year. Irs tax filing for 2012 Prepaid interest. Irs tax filing for 2012   See Prepaid interest, earlier. Irs tax filing for 2012 Discounted loan. Irs tax filing for 2012   See Discounted loan, earlier. Irs tax filing for 2012 Tax deficiency. Irs tax filing for 2012   If you contest a federal income tax deficiency, interest does not accrue until the tax year the final determination of liability is made. Irs tax filing for 2012 If you do not contest the deficiency, then the interest accrues in the year the tax was asserted and agreed to by you. Irs tax filing for 2012   However, if you contest but pay the proposed tax deficiency and interest, and you do not designate the payment as a cash bond, then the interest is deductible in the year paid. Irs tax filing for 2012 Related person. Irs tax filing for 2012   If you use an accrual method, you cannot deduct interest owed to a related person who uses the cash method until payment is made and the interest is includible in the gross income of that person. Irs tax filing for 2012 The relationship is determined as of the end of the tax year for which the interest would otherwise be deductible. Irs tax filing for 2012 See section 267 of the Internal Revenue Code for more information. Irs tax filing for 2012 Below-Market Loans If you receive a below-market gift or demand loan and use the proceeds in your trade or business, you may be able to deduct the forgone interest. Irs tax filing for 2012 See Treatment of gift and demand loans, later, in this discussion. Irs tax filing for 2012 A below-market loan is a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. Irs tax filing for 2012 A gift or demand loan that is a below-market loan generally is considered an arm's-length transaction in which you, the borrower, are considered as having received both the following. Irs tax filing for 2012 A loan in exchange for a note that requires the payment of interest at the applicable federal rate. Irs tax filing for 2012 An additional payment in an amount equal to the forgone interest. Irs tax filing for 2012 The additional payment is treated as a gift, dividend, contribution to capital, payment of compensation, or other payment, depending on the substance of the transaction. Irs tax filing for 2012 Forgone interest. Irs tax filing for 2012   For any period, forgone interest is The interest that would be payable for that period if interest accrued on the loan at the applicable federal rate and was payable annually on December 31, minus Any interest actually payable on the loan for the period. Irs tax filing for 2012 Applicable federal rates are published by the IRS each month in the Internal Revenue Bulletin. Irs tax filing for 2012 Internal Revenue Bulletins are available on the IRS web site at www. Irs tax filing for 2012 irs. Irs tax filing for 2012 gov/irb. Irs tax filing for 2012 You can also contact an IRS office to get these rates. Irs tax filing for 2012 Loans subject to the rules. Irs tax filing for 2012   The rules for below-market loans apply to the following. Irs tax filing for 2012 Gift loans (below-market loans where the forgone interest is in the nature of a gift). Irs tax filing for 2012 Compensation-related loans (below-market loans between an employer and an employee or between an independent contractor and a person for whom the contractor provides services). Irs tax filing for 2012 Corporation-shareholder loans. Irs tax filing for 2012 Tax avoidance loans (below-market loans where the avoidance of federal tax is one of the main purposes of the interest arrangement). Irs tax filing for 2012 Loans to qualified continuing care facilities under a continuing care contract (made after October 11, 1985). Irs tax filing for 2012   Except as noted in (5) above, these rules apply to demand loans (loans payable in full at any time upon the lender's demand) outstanding after June 6, 1984, and to term loans (loans that are not demand loans) made after that date. Irs tax filing for 2012 Treatment of gift and demand loans. Irs tax filing for 2012   If you receive a below-market gift loan or demand loan, you are treated as receiving an additional payment (as a gift, dividend, etc. Irs tax filing for 2012 ) equal to the forgone interest on the loan. Irs tax filing for 2012 You are then treated as transferring this amount back to the lender as interest. Irs tax filing for 2012 These transfers are considered to occur annually, generally on December 31. Irs tax filing for 2012 If you use the loan proceeds in your trade or business, you can deduct the forgone interest each year as a business interest expense. Irs tax filing for 2012 The lender must report it as interest income. Irs tax filing for 2012 Limit on forgone interest for gift loans of $100,000 or less. Irs tax filing for 2012   For gift loans between individuals, forgone interest treated as transferred back to the lender is limited to the borrower's net investment income for the year. Irs tax filing for 2012 This limit applies if the outstanding loans between the lender and borrower total $100,000 or less. Irs tax filing for 2012 If the borrower's net investment income is $1,000 or less, it is treated as zero. Irs tax filing for 2012 This limit does not apply to a loan if the avoidance of any federal tax is one of the main purposes of the interest arrangement. Irs tax filing for 2012 Treatment of term loans. Irs tax filing for 2012   If you receive a below-market term loan other than a gift or demand loan, you are treated as receiving an additional cash payment (as a dividend, etc. Irs tax filing for 2012 ) on the date the loan is made. Irs tax filing for 2012 This payment is equal to the loan amount minus the present value, at the applicable federal rate, of all payments due under the loan. Irs tax filing for 2012 The same amount is treated as original issue discount on the loan. Irs tax filing for 2012 See Original issue discount (OID) under Interest You Can Deduct, earlier. Irs tax filing for 2012 Exceptions for loans of $10,000 or less. Irs tax filing for 2012   The rules for below-market loans do not apply to any day on which the total outstanding loans between the borrower and lender is $10,000 or less. Irs tax filing for 2012 This exception applies only to the following. Irs tax filing for 2012 Gift loans between individuals if the loan is not directly used to buy or carry income-producing assets. Irs tax filing for 2012 Compensation-related loans or corporation-shareholder loans if the avoidance of any federal tax is not a principal purpose of the interest arrangement. Irs tax filing for 2012 This exception does not apply to a term loan described in (2) above that was previously subject to the below-market loan rules. Irs tax filing for 2012 Those rules will continue to apply even if the outstanding balance is reduced to $10,000 or less. Irs tax filing for 2012 Exceptions for loans without significant tax effect. Irs tax filing for 2012   The following loans are specifically exempted from the rules for below-market loans because their interest arrangements do not have a significant effect on the federal tax liability of the borrower or the lender. Irs tax filing for 2012 Loans made available by lenders to the general public on the same terms and conditions that are consistent with the lender's customary business practices. Irs tax filing for 2012 Loans subsidized by a federal, state, or municipal government that are made available under a program of general application to the public. Irs tax filing for 2012 Certain employee-relocation loans. Irs tax filing for 2012 Certain loans to or from a foreign person, unless the interest income would be effectively connected with the conduct of a U. Irs tax filing for 2012 S. Irs tax filing for 2012 trade or business and not exempt from U. Irs tax filing for 2012 S. Irs tax filing for 2012 tax under an income tax treaty. Irs tax filing for 2012 Any other loan if the taxpayer can show that the interest arrangement has no significant effect on the federal tax liability of the lender or the borrower. Irs tax filing for 2012 Whether an interest arrangement has a significant effect on the federal tax liability of the lender or the borrower will be determined by all the facts and circumstances. Irs tax filing for 2012 Consider all the following factors. Irs tax filing for 2012 Whether items of income and deduction generated by the loan offset each other. Irs tax filing for 2012 The amount of the items. Irs tax filing for 2012 The cost of complying with the below-market loan provisions if they were to apply. Irs tax filing for 2012 Any reasons, other than taxes, for structuring the transaction as a below-market loan. Irs tax filing for 2012 Exception for loans to qualified continuing care facilities. Irs tax filing for 2012   The below-market interest rules do not apply to a loan owed by a qualified continuing care facility under a continuing care contract if the lender or lender's spouse is age 62 or older by the end of the calendar year. Irs tax filing for 2012 A qualified continuing care facility is one or more facilities (excluding nursing homes) meeting the requirements listed below. Irs tax filing for 2012 Designed to provide services under continuing care contracts (defined below). Irs tax filing for 2012 Includes an independent living unit, and either an assisted living or nursing facility, or both. Irs tax filing for 2012 Substantially all of the independent living unit residents are covered by continuing care contracts. Irs tax filing for 2012 A continuing care contract is a written contract between an individual and a qualified continuing care facility that includes all of the following conditions. Irs tax filing for 2012 The individual or individual's spouse must be entitled to use the facility for the rest of their life or lives. Irs tax filing for 2012 The individual or individual's spouse will be provided with housing, as appropriate for the health of the individual or individual's spouse in an: independent living unit (which has additional available facilities outside the unit for the provision of meals and other personal care), and assisted living or nursing facility available in the continuing care facility. Irs tax filing for 2012 The individual or individual's spouse will be provided with assisted living or nursing care available in the continuing care facility, as required for the health of the individual or the individual's spouse. Irs tax filing for 2012 For more information, see section 7872(h) of the Internal Revenue Code. Irs tax filing for 2012 Sale or exchange of property. Irs tax filing for 2012   Different rules generally apply to a loan connected with the sale or exchange of property. Irs tax filing for 2012 If the loan does not provide adequate stated interest, part of the principal payment may be considered interest. Irs tax filing for 2012 However, there are exceptions that may require you to apply the below-market interest rate rules to these loans. Irs tax filing for 2012 See Unstated Interest and Original Issue Discount (OID) in Publication 537. Irs tax filing for 2012 More information. Irs tax filing for 2012   For more information on below-market loans, see section 7872 of the Internal Revenue Code and section 1. Irs tax filing for 2012 7872-5 of the regulations. Irs tax filing for 2012 Prev  Up  Next   Home   More Online Publications