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Irs Tax Forms

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Irs Tax Forms

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

E-file to Remain Available for Irene Victims through Oct. 31

Updated 10/11/11 to include Bladen, Columbus and Sampson counties.

Updated 9/12/11 to include Pender and Wayne counties.

Updated 9/7/11 to include Bertie, Brunswick, Camden, Chowan, Duplin, Edgecombe, Gates, Greene, Hertford, Johnston, Jones, Martin, Nash, New Hanover, Northampton, Pasquotank, Perquimans, Vance, Warren and Wilson counties.

Updated 9/2/11 to include Halifax and Lenoir counties. Also added Currituck, Onslow, Pitt and Washington counties.

NC-2011-58, Sept. 1, 2011

GREENSBORO — Victims of Hurricane Irene that began on Aug. 25, 2011 in parts of North Carolina may qualify for tax relief from the Internal Revenue Service.

The President has declared the following counties a federal disaster area: Beaufort, Bertie, Bladen, Brunswick, Camden, Carteret, Chowan, Columbus, Craven, Currituck, Dare, Duplin, Edgecombe, Gates, Greene, Halifax, Hertford, Hyde, Johnston, Jones, Lenoir, Martin, Nash, New Hanover, Northampton, Onslow, Pamlico, Pasquotank, Pender, Perquimans, Pitt, Sampson, Tyrrell, Vance, Warren, Washington, Wayne and Wilson. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Aug. 25, and on or before Oct. 31, have been postponed to Oct. 31, 2011. This includes corporations and other businesses that previously obtained an extension until Sept. 15 to file their 2010 returns, and individuals and businesses that received a similar extension until Oct. 17. It also includes the estimated tax payment for the third quarter, normally due Sept. 15.  

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Aug. 25, and on or before Sept. 9, as long as the deposits are made by Sept. 9, 2011.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.

Covered Disaster Area

The counties listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until Oct. 31 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Aug. 25 and on or before Oct. 31.

The IRS also gives affected taxpayers until Oct. 31 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Aug. 25 and on or before Oct. 31.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Aug. 25 and on or before Sept. 9 provided the taxpayer makes these deposits by Sept. 9.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.
Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “North Carolina/Hurricane Irene” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.

Related Information

Page Last Reviewed or Updated: 24-Mar-2014

The Irs Tax Forms

Irs tax forms Publication 4492 - Main Contents Table of Contents DefinitionsHurricane Katrina Disaster Area Katrina Covered Disaster Area Gulf Opportunity (GO) Zone (Core Disaster Area) Hurricane Rita Disaster Area (Rita Covered Disaster Area) Rita GO Zone Hurricane Wilma Disaster Area Wilma Covered Disaster Area Wilma GO Zone Extended Tax Deadlines Charitable Giving IncentivesTemporary Suspension of Limits on Charitable Contributions Standard Mileage Rate for Charitable Use of Vehicles Mileage Reimbursements to Charitable Volunteers Charitable Deduction for Contributions of Food Inventory Charitable Deduction for Contributions of Book Inventories to Public Schools Casualty and Theft LossesTime limit for making election. Irs tax forms Replacement Period for Nonrecognition of Gain Net Operating Losses IRAs and Other Retirement PlansDefinitions Taxation of Qualified Hurricane Distributions Repayment of Qualified Hurricane Distributions Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Loans From Qualified Plans Additional Tax Relief for IndividualsEarned Income Credit and Child Tax Credit Additional Exemption for Housing Individuals Displaced by Hurricane Katrina Education Credits Recapture of Federal Mortgage Subsidy Exclusion of Certain Cancellations of Indebtedness by Reason of Hurricane Katrina Tax Relief for Temporary Relocation Additional Tax Relief for BusinessesSpecial Depreciation Allowance Increased Section 179 Deduction Work Opportunity Credit Employee Retention Credit Hurricane Katrina Housing Credit Reforestation Costs Demolition and Clean-up Costs Increase in Rehabilitation Tax Credit Request for Copy or Transcript of Tax Return How To Get Tax Help Definitions The following definitions are used throughout this publication. Irs tax forms Hurricane Katrina Disaster Area The Hurricane Katrina disaster area covers the area for which the President declared a major disaster before September 14, 2005, because of Hurricane Katrina. Irs tax forms The Hurricane Katrina disaster area covers the entire states of Alabama, Florida, Louisiana, and Mississippi. Irs tax forms Katrina Covered Disaster Area A portion of the Hurricane Katrina disaster area has been designated by the IRS as a covered disaster area. Irs tax forms The Katrina covered disaster area covers the following areas in four states. Irs tax forms Alabama. Irs tax forms   The counties of Baldwin, Bibb, Choctaw, Clarke, Colbert, Cullman, Greene, Hale, Jefferson, Lamar, Lauderdale, Marengo, Marion, Mobile, Monroe, Perry, Pickens, Sumter, Tuscaloosa, Washington, Wilcox, and Winston. Irs tax forms Florida. Irs tax forms   The counties of Bay, Broward, Collier, Escambia, Franklin, Gulf, Miami-Dade, Monroe, Okaloosa, Santa Rosa, and Walton. Irs tax forms Louisiana. Irs tax forms   All parishes. Irs tax forms Mississippi. Irs tax forms   All counties. Irs tax forms Gulf Opportunity (GO) Zone (Core Disaster Area) The GO Zone (also called the core disaster area) covers the portion of the Hurricane Katrina disaster area determined by the Federal Emergency Management Agency (FEMA) to be eligible for either individual only or both individual and public assistance from the Federal Government. Irs tax forms The GO Zone covers the following areas in three states. Irs tax forms Alabama. Irs tax forms   The counties of Baldwin, Choctaw, Clarke, Greene, Hale, Marengo, Mobile, Pickens, Sumter, Tuscaloosa, and Washington. Irs tax forms Louisiana. Irs tax forms   The parishes of Acadia, Ascension, Assumption, Calcasieu, Cameron, East Baton Rouge, East Feliciana, Iberia, Iberville, Jefferson, Jefferson Davis, Lafayette, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, St. Irs tax forms Bernard, St. Irs tax forms Charles, St. Irs tax forms Helena, St. Irs tax forms James, St. Irs tax forms John the Baptist, St. Irs tax forms Martin, St. Irs tax forms Mary, St. Irs tax forms Tammany, Tangipahoa, Terrebonne, Vermilion, Washington, West Baton Rouge, and West Feliciana. Irs tax forms Mississippi. Irs tax forms   The counties of Adams, Amite, Attala, Choctaw, Claiborne, Clarke, Copiah, Covington, Forrest, Franklin, George, Greene, Hancock, Harrison, Hinds, Holmes, Humphreys, Jackson, Jasper, Jefferson, Jefferson Davis, Jones, Kemper, Lamar, Lauderdale, Lawrence, Leake, Lincoln, Lowndes, Madison, Marion, Neshoba, Newton, Noxubee, Oktibbeha, Pearl River, Perry, Pike, Rankin, Scott, Simpson, Smith, Stone, Walthall, Warren, Wayne, Wilkinson, Winston, and Yazoo. Irs tax forms Hurricane Rita Disaster Area (Rita Covered Disaster Area) The Hurricane Rita disaster area (also designated by the IRS as the Rita covered disaster area) covers the area for which the President declared a major disaster before October 6, 2005, because of Hurricane Rita. Irs tax forms This area covers the entire states of Louisiana and Texas. Irs tax forms Rita GO Zone The Rita GO Zone covers the portion of the Hurricane Rita disaster area determined by FEMA to be eligible for either individual only or both individual and public assistance from the Federal Government. Irs tax forms The Rita GO Zone covers the following areas in two states. Irs tax forms Louisiana. Irs tax forms   The parishes of Acadia, Allen, Ascension, Beauregard, Calcasieu, Cameron, Evangeline, Iberia, Jefferson, Jefferson Davis, Lafayette, Lafourche, Livingston, Plaquemines, Sabine, St. Irs tax forms Landry, St. Irs tax forms Martin, St. Irs tax forms Mary, St. Irs tax forms Tammany, Terrebonne, Vermilion, Vernon, and West Baton Rouge. Irs tax forms Texas. Irs tax forms   The counties of Angelina, Brazoria, Chambers, Fort Bend, Galveston, Hardin, Harris, Jasper, Jefferson, Liberty, Montgomery, Nacogdoches, Newton, Orange, Polk, Sabine, San Augustine, San Jacinto, Shelby, Trinity, Tyler, and Walker. Irs tax forms Hurricane Wilma Disaster Area The Hurricane Wilma disaster area covers the area for which the President declared a major disaster before November 14, 2005, because of Hurricane Wilma. Irs tax forms The Hurricane Wilma disaster area covers the entire state of Florida. Irs tax forms Wilma Covered Disaster Area A portion of the Hurricane Wilma disaster area has been designated by the IRS as a covered disaster area. Irs tax forms The Wilma covered disaster area covers the following counties. Irs tax forms Florida. Irs tax forms   Brevard, Broward, Charlotte, Collier, DeSoto, Glades, Hardee, Hendry, Highlands, Indian River, Lee, Martin, Miami-Dade, Monroe, Okeechobee, Osceola, Palm Beach, Polk, St. Irs tax forms Lucie, and Sarasota. Irs tax forms Wilma GO Zone The Wilma GO Zone covers the portion of the Hurricane Wilma disaster area determined by FEMA to be eligible for either individual only or both individual and public assistance from the Federal Government. Irs tax forms The Wilma GO Zone covers the following counties. Irs tax forms Florida. Irs tax forms   Brevard, Broward, Collier, Glades, Hendry, Indian River, Lee, Martin, Miami-Dade, Monroe, Okeechobee, Palm Beach, and St. Irs tax forms Lucie. Irs tax forms Extended Tax Deadlines The IRS has extended deadlines that apply to filing returns, paying taxes, and performing certain other time-sensitive acts for certain taxpayers affected by Hurricane Katrina, Rita, or Wilma, until February 28, 2006. Irs tax forms The extension applies to deadlines (either an original or extended due date) that occur during the following periods. Irs tax forms After August 28, 2005 (August 23, 2005, for Florida affected taxpayers), and before February 28, 2006, for taxpayers affected by Hurricane Katrina. Irs tax forms After September 22, 2005, and before February 28, 2006, for taxpayers affected by Hurricane Rita. Irs tax forms After October 22, 2005, and before February 28, 2006, for taxpayers affected by Hurricane Wilma. Irs tax forms Affected taxpayer. Irs tax forms   The following taxpayers are eligible for the extension. Irs tax forms Any individual whose main home is located in a covered disaster area. Irs tax forms Any business entity or sole proprietor whose principal place of business is located in a covered disaster area. Irs tax forms Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained or whose tax professional's office is in a covered disaster area. Irs tax forms The main home or principal place of business does not have to be located in the covered area. Irs tax forms Any individual visiting a county or parish in the Hurricane Katrina or Hurricane Rita covered disaster area that was injured or killed (and the estate of an individual killed) as a result of the hurricane or its aftermath. Irs tax forms Any estate or trust whose tax records needed to meet a filing or payment deadline are maintained in a covered disaster area. Irs tax forms Generally, any individual who is a worker assisting in the relief activities in a covered disaster area. Irs tax forms However, a relief worker assisting in the Wilma covered disaster area is not an affected taxpayer unless the worker is affiliated with a recognized government or philanthropic organization assisting in the relief activities. Irs tax forms The spouse of an affected taxpayer, solely with regard to a joint income tax return with that taxpayer. Irs tax forms   To ensure correct processing, affected taxpayers should write the assigned disaster designation (for example, “Hurricane Katrina”) in red ink at the top of any forms or documents filed with the IRS. Irs tax forms Affected taxpayers can also identify themselves to the IRS or ask hurricane-related questions by calling the special IRS disaster hotline at 1-866-562-5227. Irs tax forms Acts extended. Irs tax forms   Deadlines for performing the following acts are extended. Irs tax forms Filing any return of income, estate, gift, generation-skipping transfer, excise, or employment tax. Irs tax forms Paying any income, estate, gift, generation-skipping transfer, excise, or employment tax. Irs tax forms This includes making estimated tax payments. Irs tax forms Making certain contributions, distributions, recharacterizing contributions, or making a rollover to or from a qualified retirement plan. Irs tax forms Filing certain petitions with the Tax Court. Irs tax forms Filing a claim for credit or refund of any tax. Irs tax forms Bringing suit upon a claim for credit or refund. Irs tax forms Certain other acts described in Revenue Procedure 2005-27. Irs tax forms You can find Revenue Procedure 2005-27 on page 1050 of Internal Revenue Bulletin 2005-20 at www. Irs tax forms irs. Irs tax forms gov/pub/irs-irbs/irb05-20. Irs tax forms pdf. Irs tax forms Forgiveness of interest and penalties. Irs tax forms   The IRS may forgive the interest and penalties on any underpaid income, estate, gift, employment, or excise tax for the length of any extension. Irs tax forms Charitable Giving Incentives Temporary Suspension of Limits on Charitable Contributions Individuals. Irs tax forms   Qualified contributions are not subject to the overall limit on itemized deductions or the 50% adjusted gross income (AGI) limit. Irs tax forms A qualified contribution is a charitable contribution paid in cash or by check after August 27, 2005, and before January 1, 2006, to a 50% limit organization (other than certain private foundations described in section 509(a)(3)) if you make an election to have the 50% limit not apply to these contributions. Irs tax forms   Your deduction for qualified contributions is limited to your AGI minus your deduction for all other charitable contributions. Irs tax forms You can carry over any contributions you are not able to deduct for 2005 because of this limit. Irs tax forms In 2006, treat the carryover of your unused qualified contributions as a carryover of contributions subject to the 50% limit. Irs tax forms Exception. Irs tax forms   Qualified contributions do not include a contribution to a segregated fund or account for which you (or any person you appoint or designate) have or expect to have advisory privileges with respect to distributions or investments based on your contribution. Irs tax forms Corporations. Irs tax forms   A corporation may elect to deduct qualified cash contributions without regard to the 10% taxable income limit if the contributions were made after August 27, 2005, and before January 1, 2006, to a qualified charitable organization (other than certain private foundations described in section 509(a)(3)), for Hurricane Katrina, Rita, or Wilma relief efforts. Irs tax forms The corporation's deduction for these qualified contributions is limited to 100% of taxable income (as modified for the 10% limit) minus the corporation's deduction for all other charitable contributions. Irs tax forms Any qualified contributions over this limit can be carried over to the next 5 years, subject to the 10% limit. Irs tax forms Partners and shareholders. Irs tax forms   Each partner in a partnership and each shareholder in an S corporation makes a separate election to have the appropriate limit not apply. Irs tax forms More information. Irs tax forms   For more information, see Publication 526 or Publication 542, Corporations. Irs tax forms Publication 526 includes a worksheet you can use to figure your deduction if any limits apply to your charitable contributions. Irs tax forms Standard Mileage Rate for Charitable Use of Vehicles The following are special standard mileage rates in effect in 2005 and 2006 for the cost of operating your automobile for providing charitable services solely related to Hurricane Katrina. Irs tax forms 29 cents per mile for the period August 25 through August 31, 2005. Irs tax forms 34 cents per mile for the period September 1 through December 31, 2005. Irs tax forms 32 cents per mile for the period January 1 through December 31, 2006. Irs tax forms Mileage Reimbursements to Charitable Volunteers You can exclude from income amounts you receive as mileage reimbursements for the use of a private passenger automobile for the benefit of a qualified charitable organization in providing relief related to Hurricane Katrina during the period beginning on August 25, 2005, and ending on December 31, 2006. Irs tax forms You cannot claim a deduction or credit for amounts you receive as a mileage reimbursement. Irs tax forms You must keep records of miles driven, time, place (or use), and purpose of the mileage. Irs tax forms The amount you can exclude from income cannot exceed the standard business mileage rate (shown below) for expenses incurred during the following periods. Irs tax forms 40. Irs tax forms 5 cents per mile for the period August 25 through August 31, 2005. Irs tax forms 48. Irs tax forms 5 cents per mile for the period September 1 through December 31, 2005. Irs tax forms 44. Irs tax forms 5 cents per mile for the period January 1 through December 31, 2006. Irs tax forms Charitable Deduction for Contributions of Food Inventory Any taxpayer engaged in a trade or business is eligible to claim a deduction for a contribution of “apparently wholesome food” inventory to a qualified charitable organization described in section 501(c)(3) (except for private nonoperating foundations) after August 27, 2005, and before January 1, 2006. Irs tax forms “Apparently wholesome food” is food that meets all quality and labeling standards imposed by federal, state, and local laws and regulations even though the food may not be readily marketable due to appearance, age, freshness, grade, size, surplus, or other conditions. Irs tax forms The deduction is equal to the lesser of: The basis of the donated food plus one-half of the gain that would have been realized if the donated food had been sold at fair market value on the date of the donation, or Two times the basis of the donated food. Irs tax forms The taxpayer must receive written certification from the donee stating: The donated food is related to the purpose or function of the donee's basis for exemption under section 501(c)(3) and is to be used solely for the care of the ill, the needy, or infants; and The food was not given in exchange for money, other property, or services. Irs tax forms For a taxpayer other than a C corporation, the deduction is limited to 10% of the taxpayer's total net income from all trades or businesses from which the food contributions were made (figured without regard to the deduction for charitable contributions). Irs tax forms For example, if a taxpayer is a sole proprietor, a shareholder in an S corporation, and a partner in a partnership, and each made a contribution of apparently wholesome food inventory, the taxpayer's deduction is limited to 10% of the taxpayer's total net income from the sole proprietorship, S corporation, and partnership (figured without regard to the deduction for charitable contributions). Irs tax forms Charitable Deduction for Contributions of Book Inventories to Public Schools A corporation (other than an S corporation) may be allowed a charitable deduction for a qualified book contribution made after August 27, 2005, and before January 1, 2006, to a public school that: Provides elementary or secondary education (kindergarten through grade 12), and Normally maintains a regular faculty and curriculum and has a regular enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on. Irs tax forms . Irs tax forms The deduction is equal to the lesser of: The basis of the donated books plus one-half of the gain that would have been realized if the donated books had been sold at fair market value on the date of the donation, or Two times the basis of the donated books. Irs tax forms The corporation must receive written certification from the school stating that the donated books are suitable for the organization's educational programs and will be used for such programs. Irs tax forms Casualty and Theft Losses The following paragraphs explain changes to casualty and theft losses that were caused by Hurricane Katrina, Rita, or Wilma. Irs tax forms For more information, see Publication 547. Irs tax forms Limits on personal casualty or theft losses caused by Hurricane Katrina, Rita, or Wilma. Irs tax forms   The following losses to personal use property are not subject to the $100 or 10% of adjusted gross income limits. Irs tax forms Losses that arose in the Hurricane Katrina disaster area after August 24, 2005, and that were caused by Hurricane Katrina. Irs tax forms Losses that arose in the Hurricane Rita disaster area after September 22, 2005, and that were caused by Hurricane Rita. Irs tax forms Losses that arose in the Hurricane Wilma disaster area after October 22, 2005, and that were caused by Hurricane Wilma. Irs tax forms Qualifying losses include losses from flooding or other casualty, and from theft, that arose in the hurricane disaster area and that were caused by the hurricane. Irs tax forms Special instructions for individuals who elect to claim a Hurricane Katrina, Rita, or Wilma casualty or theft loss for 2004. Irs tax forms   Casualty and theft losses are generally deductible only in the year the casualty occurred or theft was discovered. Irs tax forms However, Hurricane Katrina, Rita, and Wilma are Presidentially declared disasters. Irs tax forms Therefore, you can elect to deduct losses from these hurricanes on your tax return for the previous year. Irs tax forms If you make this election, use the following additional instructions to complete your forms. Irs tax forms   Individuals filing or amending their 2004 tax return whose only casualty or theft losses to personal use property claimed on that return were caused by Hurricane Katrina, Rita, or Wilma should write “Hurricane Katrina,” “Hurricane Rita,” or “Hurricane Wilma” at the top of Form 1040 or 1040X. Irs tax forms They must also complete and attach the 2004 Form 4684 and write “Hurricane Katrina,”“Hurricane Rita,” or “Hurricane Wilma” on the dotted line next to line 11 and enter -0- on lines 11 and 17. Irs tax forms   Individuals filing or amending their 2004 tax return who also have casualty or theft losses to personal use property not related to Hurricane Katrina, Rita, or Wilma should disregard the caution directing taxpayers to use only one Form 4684, located above line 13, and complete lines 13 through 18 on two Forms 4684. Irs tax forms The Form 1040 or 1040X and the first Form 4684 should be prepared as explained above for Hurricane Katrina, Rita, or Wilma losses only. Irs tax forms The second Form 4684 should be prepared in the normal manner for all gains and non-Hurricane Katrina, Rita or Wilma losses. Irs tax forms If both Forms 4684 have a loss on line 18, they should carry the combined losses from that line to Schedule A (Form 1040), line 19. Irs tax forms If there is a gain on line 15 of the second Form 4684, disregard the instruction to enter it on Schedule D (Form 1040), and instead enter on Schedule A (Form 1040), line 19, the excess of the loss from the first Form 4684 over the gain on line 15 of the second Form 4684. Irs tax forms , Time limit for making election. Irs tax forms   You must make this election to claim your casualty or theft loss in 2004 by the later of the following dates. Irs tax forms The due date (without extensions) for filing your 2005 income tax return. Irs tax forms The due date (with extensions) for filing your 2004 income tax return. Irs tax forms Example. Irs tax forms If you are a calendar year individual taxpayer, you have until April 17, 2006, to amend your 2004 tax return to claim a casualty or theft loss that occurred during 2005. Irs tax forms Replacement Period for Nonrecognition of Gain Generally, an involuntary conversion occurs when property is damaged, destroyed, stolen, seized, requisitioned, or condemned, and you receive other property or money in payment, such as insurance or a condemnation award. Irs tax forms Generally, you do not have to report a gain (if any) if you replace the property within 2 years (4 years for a main home in a Presidentially declared disaster area). Irs tax forms However, for property that was involuntarily converted after August 24, 2005, as a result of Hurricane Katrina, a 5-year replacement period applies if substantially all of the use of the replacement property is in the Hurricane Katrina disaster area. Irs tax forms For more information, see the Instructions for Form 4684. Irs tax forms Net Operating Losses Qualified GO Zone loss. Irs tax forms   Generally, you can carry a net operating loss (NOL) back to the 2 tax years before the NOL year. Irs tax forms However, the portion of an NOL that is a qualified GO Zone loss can be carried back to the 5 tax years before the NOL year. Irs tax forms In addition, the 90% limit on the alternative tax NOL deduction (ATNOLD) does not apply to such portion of the ATNOLD. Irs tax forms   A qualified GO Zone loss is the smaller of: The excess of the NOL for the year over the specified liability loss for the year to which a 10-year carryback applies, or The total of the following deductions (to the extent they are taken into account in computing the NOL for the tax year): Qualified GO Zone casualty loss (as defined below), Moving expenses paid or incurred after August 27, 2005, and before January 1, 2008, for the employment of an individual whose main home was in the GO Zone before August 28, 2005, who was unable to remain in that home because of Hurricane Katrina, and whose main job location (after the move) is in the GO Zone, Temporary housing expenses paid or incurred after August 27, 2005, and before January 1, 2008, to house employees of the taxpayer whose main job location is in the GO Zone, Depreciation or amortization allowable for any qualified GO Zone property (even if you elected not to claim the special GO Zone depreciation allowance for such property) for the year placed in service, and Repair expenses (including expenses for the removal of debris) paid or incurred after August 27, 2005, and before January 1, 2008, for any damage from Hurricane Katrina to property located in the GO Zone. Irs tax forms Qualified GO Zone casualty loss. Irs tax forms   A qualified GO Zone casualty loss is any deductible section 1231 loss of property located in the GO Zone if the loss was caused by Hurricane Katrina. Irs tax forms For this purpose, the amount of the loss is reduced by any recognized gain from an involuntary conversion caused by Hurricane Katrina of property located in the GO Zone. Irs tax forms Any such loss taken into account in figuring your qualified GO Zone loss is not eligible for the election to be treated as having occurred in the previous tax year. Irs tax forms 5-year NOL carryback of certain timber losses. Irs tax forms   Generally, you can carry the portion of an NOL due to income and deductions attributable to a farming business back to the 5 tax years before the NOL year. Irs tax forms You can treat income and deductions attributable to qualified timber property as attributable to a farming business if any portion of the property is located in the GO Zone, Rita GO Zone, or Wilma GO Zone, and the income and deductions are allocable to the part of your tax year which is after the applicable date below. Irs tax forms August 27, 2005, if any portion of the property is located in the GO Zone. Irs tax forms September 22, 2005, if any portion of the property is located in the Rita GO Zone (but not in the GO Zone). Irs tax forms October 22, 2005, if any portion of the property is located in the Wilma GO Zone (but not in the GO Zone or the RITA GO Zone). Irs tax forms   These rules will not apply after 2006. Irs tax forms   However, these rules apply only to a timber producer who: Held qualified timber property (defined in Publication 535, Business Expenses) on the applicable date below: August 28, 2005, if any portion of the property is located in the GO Zone, September 23, 2005, if any portion of the property is located in the Rita GO Zone (but not in the GO Zone), or October 23, 2005, if any portion of the property is located in the Wilma GO Zone (but not in the GO Zone or the Rita GO Zone); Is not a corporation with stock publicly traded on an established securities market; Is not a real estate investment trust; and Did not hold more than 500 acres of qualified timber property on the applicable date above. Irs tax forms More information. Irs tax forms   For more information on NOLs, see Publication 536 or Publication 542, Corporations. Irs tax forms IRAs and Other Retirement Plans New rules provide for tax-favored withdrawals, repayments, and loans from certain retirement plans for taxpayers who suffered economic losses as a result of Hurricane Katrina, Rita, or Wilma. Irs tax forms Definitions Qualified hurricane distribution. Irs tax forms   A qualified hurricane distribution is any distribution you received from an eligible retirement plan if all of the following apply. Irs tax forms The distribution was made: After August 24, 2005, and before January 1, 2007, for Hurricane Katrina; After September 22, 2005, and before January 1, 2007, for Hurricane Rita; or After October 22, 2005, and before January 1, 2007, for Hurricane Wilma. Irs tax forms Your main home was located in a hurricane disaster area listed below on the date shown for that area. Irs tax forms August 28, 2005, for the Hurricane Katrina disaster area. Irs tax forms September 23, 2005, for the Hurricane Rita disaster area. Irs tax forms October 23, 2005, for the Hurricane Wilma disaster area. Irs tax forms You sustained an economic loss because of Hurricane Katrina, Rita, or Wilma and your main home was in that hurricane disaster area on the date shown in (2) above for that hurricane. Irs tax forms Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Irs tax forms   If (1) through (3) above apply, you can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified hurricane distribution, regardless of whether the distribution was made on account of Hurricane Katrina, Rita, or Wilma. Irs tax forms Qualified hurricane distributions are permitted without regard to your need or the actual amount of your economic loss. Irs tax forms   The total of your qualified hurricane distributions from all plans is limited to $100,000. Irs tax forms If you have distributions in excess of $100,000 from more than one type of plan, such as a 401(k) plan and an IRA, you may allocate the $100,000 limit among the plans any way you choose. Irs tax forms   A reduction or offset (after August 24, 2005, for Katrina; after September 22, 2005, for Rita; or after October 22, 2005, for Wilma) of your account balance in an eligible retirement plan in order to repay a loan can also be designated as a qualified hurricane distribution. Irs tax forms Eligible retirement plan. Irs tax forms   An eligible retirement plan can be any of the following. Irs tax forms A qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan). Irs tax forms A qualified annuity plan. Irs tax forms A tax-sheltered annuity contract. Irs tax forms A governmental section 457 deferred compensation plan. Irs tax forms A traditional, SEP, SIMPLE, or Roth IRA. Irs tax forms Main home. Irs tax forms   Generally, your main home is the home where you live most of the time. Irs tax forms A temporary absence due to special circumstances, such as illness, education, business, military service, evacuation, or vacation, will not change your main home. Irs tax forms Taxation of Qualified Hurricane Distributions Qualified hurricane distributions are included in income in equal amounts over three years. Irs tax forms However, if you elect, you can include the entire distribution in your income in the year it was received. Irs tax forms Qualified hurricane distributions are not subject to the additional 10% tax (or the additional 25% tax for certain distributions from SIMPLE IRAs) on early distributions from qualified retirement plans (including IRAs). Irs tax forms However, any distributions you receive in excess of the $100,000 qualified hurricane distribution limit may be subject to the additional tax on early distributions. Irs tax forms For more information, see Form 8915. Irs tax forms Repayment of Qualified Hurricane Distributions If you choose, you generally can repay any portion of a qualified hurricane distribution that is eligible for tax-free rollover treatment to an eligible retirement plan. Irs tax forms Also, you can repay a qualified hurricane distribution made on account of a hardship from a retirement plan. Irs tax forms However, see Exceptions below for qualified hurricane distributions you cannot repay. Irs tax forms You have three years from the day after the date you received the distribution to make a repayment. Irs tax forms Amounts that are repaid are treated as a qualified rollover and are not included in income. Irs tax forms Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. Irs tax forms See Form 8915 for more information on how to report repayments. Irs tax forms Exceptions. Irs tax forms   You cannot repay the following types of distributions. Irs tax forms Qualified hurricane distributions received as a beneficiary (other than a surviving spouse). Irs tax forms Required minimum distributions. Irs tax forms Periodic payments (other than from an IRA) that are for: A period of 10 years or more, Your life or life expectancy, or The joint lives or joint life expectancies of you and your beneficiary. Irs tax forms Repayment of Qualified Distributions for the Purchase or Construction of a Main Home If you received a qualified distribution to purchase or construct a main home in the Hurricane Katrina, Rita, or Wilma disaster area, you can repay that distribution before March 1, 2006, to an eligible retirement plan after August 24, 2005 (Katrina); after September 22, 2005 (Rita); or after October 22, 2005 (Wilma). Irs tax forms For this purpose, an eligible retirement plan is any plan, annuity, or IRA to which a qualified rollover can be made. Irs tax forms To be a qualified distribution, the distribution must meet all of the following requirements. Irs tax forms The distribution is a hardship distribution from a 401(k) plan, a hardship distribution from a tax-sheltered annuity contract, or a qualified first-time homebuyer distribution from an IRA. Irs tax forms The distribution was received in 2005 after February 28 and before: August 29 for Hurricane Katrina; September 24 for Hurricane Rita; or October 24 for Hurricane Wilma. Irs tax forms The distribution was to be used to purchase or construct a main home in the Hurricane Katrina, Rita, or Wilma disaster area that was not purchased or constructed because of Hurricane Katrina, Rita, or Wilma. Irs tax forms Amounts that are repaid before March 1, 2006, are treated as a qualified rollover and are not included in income. Irs tax forms Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. Irs tax forms A qualified distribution not repaid before March 1, 2006, may be taxable for 2005 and subject to the additional 10% tax (or the additional 25% tax for certain SIMPLE IRAs) on early distributions. Irs tax forms You must file Form 8915 if you received a qualified distribution that you repaid, in whole or in part, before March 1, 2006. Irs tax forms Loans From Qualified Plans The following benefits are available to qualified individuals. Irs tax forms Increases to the limits for distributions treated as loans from employer plans. Irs tax forms A 1-year suspension for payments due on plan loans. Irs tax forms Qualified individual. Irs tax forms   You are a qualified individual if any of the following apply. Irs tax forms Your main home on August 28, 2005, was located in the Hurricane Katrina disaster area and you had an economic loss because of Hurricane Katrina. Irs tax forms Your main home on September 23, 2005, was located in the Hurricane Rita disaster area and you had an economic loss because of Hurricane Rita. Irs tax forms Your main home on October 23, 2005, was located in the Hurricane Wilma disaster area and you had an economic loss because of Hurricane Wilma. Irs tax forms Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Irs tax forms Limits on plan loans. Irs tax forms   The $50,000 limit for distributions treated as plan loans is increased to $100,000. Irs tax forms In addition, the limit based on 50% of your vested accrued benefit is increased to 100% of that benefit. Irs tax forms The higher limits apply only to loans received during the following period. Irs tax forms If your main home was located in the Hurricane Katrina disaster area, the period began on September 24, 2005, and ends on December 31, 2006. Irs tax forms If your main home was located in the Hurricane Rita or Wilma disaster area, the period began on December 21, 2005, and ends on December 31, 2006. Irs tax forms If you are a qualified individual based on Hurricane Katrina and another hurricane, use the period based on Hurricane Katrina. Irs tax forms One-year suspension of loan payments. Irs tax forms   Payments on plan loans due before 2007 may be suspended for 1 year by the plan administrator. Irs tax forms To qualify for the suspension, the due date for any loan payment must occur during the period beginning on: August 28, 2005, if your main home was located in the Hurricane Katrina disaster area. Irs tax forms September 23, 2005, if your main home was located in the Hurricane Rita disaster area. Irs tax forms October 23, 2005, if your main home was located in the Hurricane Wilma disaster area. Irs tax forms If you are a qualified individual based on more than one hurricane, use the period with the earliest beginning date. Irs tax forms Additional Tax Relief for Individuals Earned Income Credit and Child Tax Credit You can elect to use your 2004 earned income to figure your earned income credit (EIC) and additional child tax credit for 2005 if: Your 2005 earned income is less than your 2004 earned income, and At least one of the following statements is true. Irs tax forms Your main home on August 25, 2005, was in the Gulf Opportunity (GO) Zone. Irs tax forms Your main home on August 25, 2005, was in the Hurricane Katrina disaster area and you were displaced from that home because of Hurricane Katrina. Irs tax forms Your main home on September 23, 2005, was in the Rita GO Zone. Irs tax forms Your main home on September 23, 2005, was in the Hurricane Rita disaster area and you were displaced from that home because of Hurricane Rita. Irs tax forms Your main home on October 23, 2005, was in the Wilma GO Zone. Irs tax forms Your main home on October 23, 2005, was in the Hurricane Wilma disaster area and you were displaced from that home because of Hurricane Wilma. Irs tax forms Earned income. Irs tax forms    For the purpose of this election, your earned income for both the EIC and the additional child tax credit is the amount of earned income used to figure your EIC, even if you did not take the EIC and even if that amount is different than your earned income for the additional child tax credit. Irs tax forms If you are claiming only the additional child tax credit, you must figure the amount of your earned income for EIC purposes to determine your eligibility to make the election and the amount of the credit. Irs tax forms Joint returns. Irs tax forms   If you file a joint return, you qualify to make this election even if only one spouse meets the requirements. Irs tax forms If you make the election, your 2004 earned income is the sum of your 2004 earned income and your spouse's 2004 earned income. Irs tax forms Making the election. Irs tax forms   If you make the election to use your 2004 earned income, the election applies for figuring both the EIC and the additional child tax credit. Irs tax forms However, you can make the election for the additional child tax credit even if you do not take the EIC. Irs tax forms   Electing to use your 2004 earned income may increase or decrease your EIC. Irs tax forms Take the following steps to decide whether to make the election. Irs tax forms Figure your 2005 EIC using your 2004 earned income. Irs tax forms Figure your 2005 additional child tax credit using your 2004 earned income for EIC purposes. Irs tax forms Add the results of (1) and (2). Irs tax forms Figure your 2005 EIC using your 2005 earned income. Irs tax forms Figure your 2005 additional child tax credit using your 2005 earned income for additional child tax credit purposes. Irs tax forms Add the results of (4) and (5). Irs tax forms Compare the results of (3) and (6). Irs tax forms If (3) is larger than (6), it is to your benefit to make the election. Irs tax forms If (3) is equal to or smaller than (6), making the election will not help you. Irs tax forms   If you elect to use your 2004 earned income and you are claiming the EIC, enter “PYEI” and the amount of your 2004 earned income on the dotted line next to line 66a of Form 1040, on the line next to line 41a of Form 1040A, or in the space to the left of line 8a of Form 1040EZ. Irs tax forms   If you elect to use your 2004 earned income and you are claiming the additional child tax credit, enter your 2004 earned income for EIC purposes (even if you did not claim the EIC) on Form 8812, Additional Child Tax Credit, line 4a, and check the box on that line. Irs tax forms   Because Form 8812 was released before the GO Zone legislation was enacted, the instructions refer only to individuals whose main home was in the Hurricane Katrina disaster area. Irs tax forms When completing Form 8812, line 4a, use the above rules to determine your eligibility to make the election (instead of the Form 8812 instructions). Irs tax forms Getting your 2004 tax return information. Irs tax forms   If you do not have your 2004 tax records, you can get the amount of earned income used to figure your 2004 EIC by calling 1-866-562-5227. Irs tax forms You can also get this information by visiting the IRS website at www. Irs tax forms irs. Irs tax forms gov. Irs tax forms   If you prefer to figure your 2004 earned income yourself, copies or transcripts of your filed and processed tax returns can help you reconstruct your tax records. Irs tax forms See Request for Copy or Transcript of Tax Return on page 16. Irs tax forms Additional Exemption for Housing Individuals Displaced by Hurricane Katrina You may be able to claim an additional exemption amount of $500 for providing housing in your main home for each individual displaced by Hurricane Katrina. Irs tax forms The additional exemption amount is claimed on new Form 8914. Irs tax forms The additional exemption amount is allowable once per taxpayer for a specific individual in 2005 or 2006, but not in both years. Irs tax forms The maximum additional exemption amount you can claim for all displaced individuals is $2,000 ($1,000 if married filing separately). Irs tax forms The additional exemption amount you claim for displaced individuals in 2005 will reduce the $2,000 maximum for 2006. Irs tax forms If two or more taxpayers share the same main home, only one taxpayer in that main home can claim the additional exemption amount for a specific displaced individual. Irs tax forms If married filing separately, only one spouse may claim the additional exemption amount for a specific displaced individual. Irs tax forms In order for you to be considered to have provided housing, you must have a legal interest in the main home (that is, own or rent the home). Irs tax forms To qualify as a displaced individual, the individual: Must have had his or her main home in the Hurricane Katrina disaster area on August 28, 2005, and he or she must have been displaced from that home. Irs tax forms If the individual's main home was located outside the core disaster area, that home must have been damaged by Hurricane Katrina or the individual must have been evacuated from that home because of Hurricane Katrina, Must have been provided housing in your main home for a period of at least 60 consecutive days ending in the tax year in which the exemption is claimed, and Cannot be your spouse or dependent. Irs tax forms You cannot claim the additional exemption amount if you received rent (or any other amount) from any source for providing the housing. Irs tax forms You are permitted to receive payments or reimbursements that do not relate to normal housing costs, including the following. Irs tax forms Food, clothing, or personal items consumed or used by the displaced individual. Irs tax forms Reimbursement for the cost of any long distance telephone calls made by the displaced individual. Irs tax forms Reimbursement for the cost of gasoline for the displaced individual's use of your vehicle. Irs tax forms However, you cannot claim the additional exemption amount if you received any reimbursement for the extra costs of heat, electricity, or water used by the displaced individual. Irs tax forms Also, you must report on Form 8914 the displaced individual's social security number or individual taxpayer identification number to claim an additional exemption amount. Irs tax forms For more information, see Form 8914. Irs tax forms Education Credits The education credits have been expanded for students attending an eligible educational institution located in the Gulf Opportunity Zone (GOZ students) for any tax year beginning in 2005 or 2006. Irs tax forms The Hope credit for a GOZ student is increased to 100% of the first $2,000 in qualified education expenses and 50% of the next $2,000 of qualified education expenses for a maximum credit of $3,000 per student. Irs tax forms The lifetime learning credit rate for a GOZ student is increased from 20% to 40%. Irs tax forms The definition of qualified education expenses for a GOZ student also has been expanded. Irs tax forms In addition to tuition and fees required for the student's enrollment or attendance at an eligible educational institution, qualified education expenses for a GOZ student include the following. Irs tax forms Books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. Irs tax forms For a special needs student, expenses that are necessary for that person's enrollment or attendance at an eligible educational institution. Irs tax forms For a student who is at least a half-time student, the reasonable costs of room and board, but only to the extent that the costs are not more than the greater of the following two amounts. Irs tax forms The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. Irs tax forms The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Irs tax forms You will need to contact the eligible educational institution for qualified room and board costs. Irs tax forms For more information, see Form 8863. Irs tax forms Recapture of Federal Mortgage Subsidy Generally, if you financed your home under a federally subsidized program (loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates), you may have to recapture all or part of the benefit you received from that program when you sell or otherwise dispose of your home. Irs tax forms However, you do not have to recapture any benefit if your mortgage loan was a qualified home improvement loan of not more than $15,000. Irs tax forms This amount is increased to $150,000 if the loan was provided before 2011 and was used to: Repair damage caused by Hurricane Katrina to a residence in the Hurricane Katrina disaster area, or Alter, repair, or improve an existing owner-occupied residence in the GO Zone, Rita GO Zone, or Wilma GO Zone. Irs tax forms Exclusion of Certain Cancellations of Indebtedness by Reason of Hurricane Katrina Generally, discharges of nonbusiness debts (such as mortgages) made after August 24, 2005, and before January 1, 2007, are excluded from income for individuals whose main home was in the Hurricane Katrina disaster area on August 25, 2005. Irs tax forms If the individual's main home was located outside the core disaster area, the individual also must have had an economic loss because of Hurricane Katrina. Irs tax forms Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Irs tax forms This relief does not apply to any debt secured by real property located outside the Hurricane Katrina disaster area. Irs tax forms You may also have to reduce certain tax attributes by the amount excluded. Irs tax forms For more information, see Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). Irs tax forms Tax Relief for Temporary Relocation Under the Gulf Opportunity Zone Act of 2005, the IRS may adjust the internal revenue laws to ensure that taxpayers do not lose a deduction or credit or experience a change of filing status in 2005 or 2006 as a result of a temporary relocation caused by Hurricane Katrina, Rita, or Wilma. Irs tax forms However, any such adjustment must ensure that an individual is not taken into account by more than one taxpayer for the same tax benefit. Irs tax forms The IRS has exercised this authority as follows. Irs tax forms In determining whether you furnished over one-half of the cost of maintaining a household, you can exclude from total household costs any assistance received from the government or charitable organizations because you were temporarily relocated as a result of Hurricane Katrina, Rita, or Wilma. Irs tax forms In determining whether you provided more than one-half of an individual's support, you can disregard any assistance received from the government or charitable organizations because you were temporarily relocated as a result of Hurricane Katrina, Rita, or Wilma. Irs tax forms You can treat as a student an individual who enrolled in school before August 25, 2005, and who is unable to attend classes because of Hurricane Katrina, for each month of the enrollment period that individual is prevented by Hurricane Katrina from attending school as planned. Irs tax forms You can treat as a student an individual who enrolled in school before September 23, 2005, and who is unable to attend classes because of Hurricane Rita, for each month of the enrollment period that individual is prevented by Hurricane Rita from attending school as planned. Irs tax forms You can treat as a student an individual who enrolled in school before October 23, 2005, and who is unable to attend classes because of Hurricane Wilma, for each month of the enrollment period that individual is prevented by Hurricane Wilma from attending school as planned. Irs tax forms Additional Tax Relief for Businesses Special Depreciation Allowance You can take a special depreciation allowance for qualified Gulf Opportunity (GO) Zone property (as defined below) you place in service after August 27, 2005. Irs tax forms The allowance is an additional deduction of 50% of the property's depreciable basis (after any section 179 deduction and before figuring your regular depreciation deduction). Irs tax forms The special allowance applies only for the first year the property is placed in service. Irs tax forms The allowance is deductible for both the regular tax and the alternative minimum tax (AMT). Irs tax forms There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. Irs tax forms You can elect not to deduct the special GO Zone depreciation allowance for qualified property. Irs tax forms If you make this election for any property, it applies to all property in the same class placed in service during the year. Irs tax forms Qualified GO Zone property. Irs tax forms   Property that qualifies for the special GO Zone depreciation allowance includes the following. Irs tax forms Tangible property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 years or less. Irs tax forms Water utility property. Irs tax forms Computer software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substantially modified. Irs tax forms (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. Irs tax forms ) Qualified leasehold improvement property. Irs tax forms Nonresidential real property and residential rental property. Irs tax forms   For more information on this property, see Publication 946. Irs tax forms Other tests to be met. Irs tax forms   To be qualified GO Zone property, the property must also meet all of the following tests. Irs tax forms You must have acquired the property, by purchase, after August 27, 2005, but only if no binding written contract for the acquisition was in effect before August 28, 2005. Irs tax forms The property must be placed in service before 2008 (2009 in the case of nonresidential real property and residential rental property). Irs tax forms Substantially all of the use of the property must be in the GO Zone and in the active conduct of your trade or business in the GO Zone. Irs tax forms The original use of the property in the GO Zone must begin with you after August 27, 2005. Irs tax forms Used property can be qualified GO Zone property if it has not previously been used within the GO Zone. Irs tax forms Also, additional capital expenditures you incurred after August 27, 2005, to recondition or rebuild your property meet the original use test if the original use of the property in the GO Zone began with you. Irs tax forms Excepted property. Irs tax forms   Qualified GO Zone property does not include any of the following. Irs tax forms Property required to be depreciated using the Alternative Depreciation System (ADS). Irs tax forms Property any portion of which is financed with the proceeds of a tax-exempt obligation under section 103. Irs tax forms Property for which you are claiming a commercial revitalization deduction. Irs tax forms Any property used in connection with any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, or any store, the principal business of which is the sale of alcoholic beverages for consumption off premises. Irs tax forms Any gambling or animal racing property (as defined below). Irs tax forms Property in the same class as that for which you elected not to claim the special GO Zone depreciation allowance. Irs tax forms   Gambling or animal racing property is: Any equipment, furniture, software, or other property used directly in connection with gambling, the racing of animals, or the on-site viewing of such racing, and The portion of any real property (determined by square footage) that is dedicated to gambling, the racing of animals, or the on-site viewing of such racing, unless this portion is less than 100 square feet. Irs tax forms Recapture of special allowance. Irs tax forms   If, in any year after the year you claim the special allowance, the property ceases to be qualified GO Zone property, you may have to recapture as ordinary income any excess benefit you received from claiming the special allowance. Irs tax forms Increased Section 179 Deduction An increased section 179 deduction is allowable for qualified section 179 Gulf Opportunity (GO) Zone property (as defined later) placed in service in the GO Zone. Irs tax forms Increased dollar limit. Irs tax forms   The limit on the section 179 deduction ($105,000 for 2005, $108,000 for 2006) for qualified section 179 GO Zone property acquired after August 27, 2005, is increased by the smaller of: $100,000, or The cost of qualified section 179 GO Zone property placed in service during the year (including such property placed in service by your spouse, even if you are filing a separate return). Irs tax forms   The amount for which you can make the election is reduced if the cost of all qualified section 179 GO Zone property you placed in service during the year exceeds $420,000 for 2005 ($430,000 for 2006) increased by the smaller of: $600,000, or The cost of qualified section 179 GO Zone property placed in service during the year. Irs tax forms Qualified section 179 GO Zone property. Irs tax forms   Qualified section 179 GO Zone property is section 179 property that is qualified GO Zone property (explained earlier under Special Depreciation Allowance). Irs tax forms Section 179 property does not include nonresidential real property or residential rental property. Irs tax forms For more information, including the requirements that must be met for property to qualify for the section 179 deduction, see chapter 2 of Publication 946. Irs tax forms Work Opportunity Credit For the work opportunity credit, the definition of “targeted group employee” has been expanded to include a Hurricane Katrina employee. Irs tax forms Hurricane Katrina employee. Irs tax forms   A Hurricane Katrina employee is: A person who, on August 28, 2005, had a main home in the core disaster area and, within a two-year period beginning on that date, is hired to perform services principally in the core disaster area; or A person who, on August 28, 2005, had a main home in the core disaster area, was displaced from that main home as a result of Hurricane Katrina, and was hired during the period beginning on August 28, 2005, and ending on December 31, 2005. Irs tax forms Qualified wages. Irs tax forms   Generally, qualified wages do not include wages you paid to a targeted group employee who worked for you previously. Irs tax forms However, wages will qualify if: You paid them to an employee who is a Hurricane Katrina employee, The employee was not in your employment on August 28, 2005, and This is your first hire of the employee as a Hurricane Katrina employee after August 28, 2005. Irs tax forms   For more information, see Form 5884. Irs tax forms Certification requirements. Irs tax forms   An employee must provide to the employer reasonable evidence that he or she is a Hurricane Katrina employee. Irs tax forms An employer may accept a completed Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity and Welfare-to-Work Credits, as such evidence. Irs tax forms The certification requirements described in Form 8850 do not apply to a Hurricane Katrina employee. Irs tax forms Do not send any Forms 8850 that have only box 1 checked to the state employment security agency. Irs tax forms Instead, the employer should keep these Forms 8850 with the employer's other records. Irs tax forms For more information, see Form 8850 and its instructions. Irs tax forms Employee Retention Credit An eligible employer who conducted an active trade or business in the Gulf Opportunity (GO) Zone, the Rita GO Zone, or the Wilma GO Zone can claim the employee retention credit. Irs tax forms The credit is 40% of qualified wages for each eligible employee (up to a maximum of $6,000 in qualified wages per employee). Irs tax forms Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). Irs tax forms Use Form 5884-A to claim the credit. Irs tax forms See the following rules and definitions for each hurricane. Irs tax forms Employers affected by Hurricane Katrina. Irs tax forms   The following definitions apply to employers affected by Hurricane Katrina. Irs tax forms Eligible employer. Irs tax forms   For this purpose, an eligible employer is any employer who conducted an active trade or business on August 28, 2005, in the GO Zone and whose trade or business was inoperable on any day after August 28, 2005, and before January 1, 2006, because of damage caused by Hurricane Katrina. Irs tax forms Eligible employee. Irs tax forms   For this purpose, an eligible employee is an employee whose principal place of employment on August 28, 2005, with such eligible employer was in the GO Zone. Irs tax forms An employee is not an eligible employee for purposes of Hurricane Katrina if the employee is treated as an eligible employee for the work opportunity credit. Irs tax forms Employers affected by Hurricane Rita. Irs tax forms   The following definitions apply to employers affected by Hurricane Rita. Irs tax forms Eligible employer. Irs tax forms   For this purpose, an eligible employer is any employer who conducted an active trade or business on September 23, 2005, in the Rita GO Zone and whose trade or business was inoperable on any day after September 23, 2005, and before January 1, 2006, because of damage caused by Hurricane Rita. Irs tax forms Eligible employee. Irs tax forms   For this purpose, an eligible employee is an employee whose principal place of employment on September 23, 2005, with such eligible employer was in the Rita GO Zone. Irs tax forms An employee is not an eligible employee for purposes of Hurricane Rita if the employee is treated as an eligible employee for the work opportunity credit or the Hurricane Katrina employee retention credit. Irs tax forms Employers affected by Hurricane Wilma. Irs tax forms   The following definitions apply to employers affected by Hurricane Wilma. Irs tax forms Eligible employer. Irs tax forms   For this purpose, an eligible employer is any employer who conducted an active trade or business on October 23, 2005, in the Wilma GO Zone and whose trade or business was inoperable on any day after October 23, 2005, and before January 1, 2006, because of damage caused by Hurricane Wilma. Irs tax forms Eligible employee. Irs tax forms   For this purpose, an eligible employee is an employee whose principal place of employment on October 23, 2005, with such eligible employer was in the Wilma GO Zone. Irs tax forms An employee is not an eligible employee for purposes of Hurricane Wilma if the employee is treated as an eligible employee for the work opportunity credit or the Hurricane Katrina or Rita employee retention credit. Irs tax forms Qualified wages. Irs tax forms   Qualified wages are wages you paid or incurred before January 1, 2006, (up to $6,000 per employee) for an eligible employee beginning on the date your trade or business first became inoperable at the employee's principal place of employment immediately before the applicable hurricane, and ending on the date your trade or business resumed significant operations at that place. Irs tax forms In addition, the wages must have been paid or incurred after the following date. Irs tax forms August 28, 2005, for Hurricane Katrina. Irs tax forms September 23, 2005, for Hurricane Rita. Irs tax forms October 23, 2005, for Hurricane Wilma. Irs tax forms    This includes wages paid even if the employee performed no services, performed services at a place of employment other than the principal place of employment, or performed services at the principal place of employment before significant operations resumed. Irs tax forms    Wages qualifying for the credit generally have the same meaning as wages subject to the Federal Unemployment Tax Act (FUTA). Irs tax forms Qualified wages also include amounts you paid for medical or hospitalization expenses in connection with sickness or accident disability. Irs tax forms Qualified wages for any employee must be reduced by the amount of any work supplementation payment you received under the Social Security Act. Irs tax forms   For agricultural employees, if the work performed by any employee during more than half of any pay period qualified under FUTA as agricultural labor, that employee's wages subject to social security and Medicare taxes are qualified wages. Irs tax forms For a special rule that applies to railroad employees, see section 51(h)(1)(B). Irs tax forms   Qualified wages do not include the following. Irs tax forms Wages paid to your dependent or a related individual. Irs tax forms See section 51(i)(1). Irs tax forms Wages paid to any employee during the period for which you received payment for the employee from a federally funded on-the-job training program. Irs tax forms Wages for services of replacement workers during a strike or lockout. Irs tax forms   For more information, see Form 5884-A. Irs tax forms Hurricane Katrina Housing Credit An employer who conducted an active trade or business in the Gulf Opportunity (GO) Zone can claim the Hurricane Katrina housing credit. Irs tax forms The credit is equal to 30% of the value (up to $600 per month per employee) of in-kind lodging furnished to a qualified employee (and the employee's spouse or dependents) from January 1, 2006, through July 1, 2006. Irs tax forms The value of the lodging is excluded from the income of the qualified employee but is treated as wages for purposes of taxes imposed under the Federal Insurance Contributions Act (FICA) and the Federal Unemployment Tax Act (FUTA). Irs tax forms Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). Irs tax forms The employer must use Form 5884-A to claim the credit. Irs tax forms A qualified employee is an individual who had a main home in the GO Zone on August 28, 2005, and who performs substantially all employment services in the GO Zone for the employer furnishing the lodging. Irs tax forms The employee cannot be your dependent or a related individual. Irs tax forms See section 51(i)(1). Irs tax forms For more information, see Form 5884-A. Irs tax forms Reforestation Costs You may be able to elect to deduct a limited amount of reforestation costs for each qualified timber property. Irs tax forms The deduction for any tax year generally is limited to $10,000 ($5,000 if married filing separately, $0 for a trust). Irs tax forms However, this limit is increased if you paid or incurred reforestation costs after the applicable date below and any portion of the qualified timber property is located in one of the following areas. Irs tax forms August 27, 2005, if any portion of the property is located in the GO Zone. Irs tax forms September 22, 2005, if any portion of the property is located in the Rita GO Zone (but not in the GO Zone). Irs tax forms October 22, 2005, if any portion of the property is located in the Wilma GO Zone. Irs tax forms The limit for each qualified timber property is increased by the smaller of: $10,000 ($5,000 if married filing separately, $0 for a trust), or The amount of reforestation costs you paid or incurred after the applicable date for the qualified timber property, any portion of which is located in the zone described above. Irs tax forms The increase in the limit applies only to costs paid or incurred before 2008. Irs tax forms However, these rules do not apply to any timber producer who: Held more than 500 acres of qualified timber property at any time during the tax year, Is a corporation with stock publicly traded on an established securities market, or Is a real estate investment trust. Irs tax forms For more information about the election to deduct reforestation costs, see chapter 8 in Publication 535, Business Expenses. Irs tax forms Demolition and Clean-up Costs You can elect to deduct 50% of any qualified GO Zone clean-up costs for the tax year in which the costs are paid or incurred, instead of capitalizing them. Irs tax forms Qualified GO Zone clean-up costs are any amounts paid or incurred after August 27, 2005, and before January 1, 2008, for the removal of debris from, or the demolition of structures on, real property located in the GO Zone that is: Held by you for use in a trade or business or for the production of income, or Inventory or other property held primarily for sale to customers in the ordinary course of your trade or business. Irs tax forms Increase in Rehabilitation Tax Credit The rehabilitation credit is increased for qualified rehabilitation expenditures paid or incurred after August 27, 2005, and before January 1, 2009, on buildings located in the GO Zone as follows. Irs tax forms For pre-1936 buildings (other than certified historic structures), the credit percentage is increased from 10% to 13%. Irs tax forms For certified historic structures, the credit percentage is increased from 20% to 26%. Irs tax forms For more information, see Form 3468, Investment Credit. Irs tax forms Request for Copy or Transcript of Tax Return Request for copy of tax return. Irs tax forms   You can use Form 4506 to order a copy of your tax return. Irs tax forms Generally, there is a $39. Irs tax forms 00 fee for requesting each copy of a tax return. Irs tax forms If your main home, principal place of business, or tax records are located in a Presidentially declared disaster area, the fee will be waived if the assigned disaster designation (for example, “Hurricane Katrina”) is written in red across the top of the form when filed. Irs tax forms Request for transcript of tax return. Irs tax forms   You can use Form 4506-T to order a free transcript of your tax return. Irs tax forms A transcript provides most of the line entries from a tax return and usually contains the information that a third party requires. Irs tax forms You can also call 1-800-829-1040 to order a transcript. Irs tax forms How To Get Tax Help Special IRS assistance. Irs tax forms   The IRS is providing special help for those affected by Hurricane Katrina, Rita, or Wilma, as well as survivors and personal representatives of the victims. Irs tax forms We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by Hurricane Katrina, Rita, or Wilma, or who have other tax issues related to the hurricanes. Irs tax forms Call 1-866-562-5227 Monday through Friday In English-7 a. Irs tax forms m. Irs tax forms to 10 p. Irs tax forms m. Irs tax forms local time In Spanish-8 a. Irs tax forms m. Irs tax forms to 9:30 p. Irs tax forms m. Irs tax forms local time   The IRS website at www. Irs tax forms irs. Irs tax forms gov has notices and other tax relief information. Irs tax forms Check it periodically for any new guidance. Irs tax forms Other help from the IRS. Irs tax forms   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 forms By selecting the method that is best for you, you will have quick and easy access to tax help. Irs tax forms Contacting your Taxpayer Advocate. Irs tax forms   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Irs tax forms   The Taxpayer Advocate independently 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 forms 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 forms   To contact your Taxpayer Advocate: Call the Taxpayer Advocate toll free at 1-877-777-4778. Irs tax forms Call, write, or fax the Taxpayer Advocate office in your area. Irs tax forms Call 1-800-829-4059 if you are a TTY/TDD user. Irs tax forms Visit www. Irs tax forms irs. Irs tax forms gov/advocate. Irs tax forms   For more information, see Publication 1546, How To Get Help With Unresolved Tax Problems (now available in Chinese, Korean, Russian, and Vietnamese, in addition to English and Spanish). Irs tax forms Free tax services. Irs tax forms   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. Irs tax forms It contains a list of free tax publications and an index of tax topics. Irs tax forms It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Irs tax forms Internet. Irs tax forms You can access the IRS website 24 hours a day, 7 days a week, at www. Irs tax forms irs. Irs tax forms gov to: E-file your return. Irs tax forms Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Irs tax forms Check the status of your refund. Irs tax forms Click on Where's My Refund. Irs tax forms Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). Irs tax forms Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. Irs tax forms Download forms, instructions, and publications. Irs tax forms Order IRS products online. Irs tax forms Research your tax questions online. Irs tax forms Search publications online by topic or keyword. Irs tax forms View Internal Revenue Bulletins (IRBs) published in the last few years. Irs tax forms Figure your withholdin