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My1040ez

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My1040ez

My1040ez 14. My1040ez   Sale of Property Table of Contents Reminder Introduction Useful Items - You may want to see: Sales and TradesWhat Is a Sale or Trade? How To Figure Gain or Loss Nontaxable Trades Transfers Between Spouses Related Party Transactions Capital Gains and LossesCapital or Ordinary Gain or Loss Capital Assets and Noncapital Assets Holding Period Nonbusiness Bad Debts Wash Sales Rollover of Gain From Publicly Traded Securities Reminder Foreign income. My1040ez  If you are a U. My1040ez S. My1040ez citizen who sells property located outside the United States, you must report all gains and losses from the sale of that property on your tax return unless it is exempt by U. My1040ez S. My1040ez law. My1040ez This is true whether you reside inside or outside the United States and whether or not you receive a Form 1099 from the payer. My1040ez Introduction This chapter discusses the tax consequences of selling or trading investment property. My1040ez It explains the following. My1040ez What a sale or trade is. My1040ez Figuring gain or loss. My1040ez Nontaxable trades. My1040ez Related party transactions. My1040ez Capital gains or losses. My1040ez Capital assets and noncapital assets. My1040ez Holding period. My1040ez Rollover of gain from publicly traded securities. My1040ez Other property transactions. My1040ez   Certain transfers of property are not discussed here. My1040ez They are discussed in other IRS publications. My1040ez These include the following. My1040ez Sales of a main home, covered in chapter 15. My1040ez Installment sales, covered in Publication 537, Installment Sales. My1040ez Transactions involving business property, covered in Publication 544, Sales and Other Dispositions of Assets. My1040ez Dispositions of an interest in a passive activity, covered in Publication 925, Passive Activity and At-Risk Rules. My1040ez    Publication 550, Investment Income and Expenses (Including Capital Gains and Losses), provides a more detailed discussion about sales and trades of investment property. My1040ez Publication 550 includes information about the rules covering nonbusiness bad debts, straddles, section 1256 contracts, puts and calls, commodity futures, short sales, and wash sales. My1040ez It also discusses investment-related expenses. My1040ez Useful Items - You may want to see: Publication 550 Investment Income and Expenses Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 8949 Sales and Other Dispositions of Capital Assets 8824 Like-Kind Exchanges Sales and Trades If you sold property such as stocks, bonds, or certain commodities through a broker during the year, you should receive, for each sale, a Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or substitute statement, from the broker. My1040ez Generally, you should receive the statement by February 15 of the next year. My1040ez It will show the gross proceeds from the sale. My1040ez If you sold a covered security in 2013, your 1099-B (or substitute statement) will show your basis. My1040ez Generally, a covered security is a security you acquired after 2010, with certain exceptions. My1040ez See the Instructions for Form 8949. My1040ez The IRS will also get a copy of Form 1099-B from the broker. My1040ez Use Form 1099-B (or substitute statement received from your broker) to complete Form 8949. My1040ez What Is a Sale or Trade? This section explains what is a sale or trade. My1040ez It also explains certain transactions and events that are treated as sales or trades. My1040ez A sale is generally a transfer of property for money or a mortgage, note, or other promise to pay money. My1040ez A trade is a transfer of property for other property or services and may be taxed in the same way as a sale. My1040ez Sale and purchase. My1040ez   Ordinarily, a transaction is not a trade when you voluntarily sell property for cash and immediately buy similar property to replace it. My1040ez The sale and purchase are two separate transactions. My1040ez But see Like-kind exchanges under Nontaxable Trades, later. My1040ez Redemption of stock. My1040ez   A redemption of stock is treated as a sale or trade and is subject to the capital gain or loss provisions unless the redemption is a dividend or other distribution on stock. My1040ez Dividend versus sale or trade. My1040ez   Whether a redemption is treated as a sale, trade, dividend, or other distribution depends on the circumstances in each case. My1040ez Both direct and indirect ownership of stock will be considered. My1040ez The redemption is treated as a sale or trade of stock if: The redemption is not essentially equivalent to a dividend (see chapter 8), There is a substantially disproportionate redemption of stock, There is a complete redemption of all the stock of the corporation owned by the shareholder, or The redemption is a distribution in partial liquidation of a corporation. My1040ez Redemption or retirement of bonds. My1040ez   A redemption or retirement of bonds or notes at their maturity is generally treated as a sale or trade. My1040ez   In addition, a significant modification of a bond is treated as a trade of the original bond for a new bond. My1040ez For details, see Regulations section 1. My1040ez 1001-3. My1040ez Surrender of stock. My1040ez   A surrender of stock by a dominant shareholder who retains ownership of more than half of the corporation's voting shares is treated as a contribution to capital rather than as an immediate loss deductible from taxable income. My1040ez The surrendering shareholder must reallocate his or her basis in the surrendered shares to the shares he or she retains. My1040ez Worthless securities. My1040ez    Stocks, stock rights, and bonds (other than those held for sale by a securities dealer) that became completely worthless during the tax year are treated as though they were sold on the last day of the tax year. My1040ez This affects whether your capital loss is long term or short term. My1040ez See Holding Period , later. My1040ez   Worthless securities also include securities that you abandon after March 12, 2008. My1040ez To abandon a security, you must permanently surrender and relinquish all rights in the security and receive no consideration in exchange for it. My1040ez All the facts and circumstances determine whether the transaction is properly characterized as an abandonment or other type of transaction, such as an actual sale or exchange, contribution to capital, dividend, or gift. My1040ez    If you are a cash basis taxpayer and make payments on a negotiable promissory note that you issued for stock that became worthless, you can deduct these payments as losses in the years you actually make the payments. My1040ez Do not deduct them in the year the stock became worthless. My1040ez How to report loss. My1040ez    Report worthless securities in Part I or Part II, whichever applies, of Form 8949. My1040ez In column (a), enter “Worthless. My1040ez ”    Report your worthless securities transactions on Form 8949 with the correct box checked for these transactions. My1040ez See Form 8949 and the Instructions for Form 8949. My1040ez For more information on Form 8949 and Schedule D (Form 1040), see Reporting Capital Gains and Losses in chapter 16. My1040ez See also Schedule D (Form 1040), Form 8949, and their separate instructions. My1040ez Filing a claim for refund. My1040ez   If you do not claim a loss for a worthless security on your original return for the year it becomes worthless, you can file a claim for a credit or refund due to the loss. My1040ez You must use Form 1040X, Amended U. My1040ez S. My1040ez Individual Income Tax Return, to amend your return for the year the security became worthless. My1040ez You must file it within 7 years from the date your original return for that year had to be filed, or 2 years from the date you paid the tax, whichever is later. My1040ez For more information about filing a claim, see Amended Returns and Claims for Refund in chapter 1. My1040ez How To Figure Gain or Loss You figure gain or loss on a sale or trade of property by comparing the amount you realize with the adjusted basis of the property. My1040ez Gain. My1040ez   If the amount you realize from a sale or trade is more than the adjusted basis of the property you transfer, the difference is a gain. My1040ez Loss. My1040ez   If the adjusted basis of the property you transfer is more than the amount you realize, the difference is a loss. My1040ez Adjusted basis. My1040ez   The adjusted basis of property is your original cost or other original basis properly adjusted (increased or decreased) for certain items. My1040ez See chapter 13 for more information about determining the adjusted basis of property. My1040ez Amount realized. My1040ez   The amount you realize from a sale or trade of property is everything you receive for the property minus your expenses of sale (such as redemption fees, sales commissions, sales charges, or exit fees). My1040ez Amount realized includes the money you receive plus the fair market value of any property or services you receive. My1040ez If you received a note or other debt instrument for the property, see How To Figure Gain or Loss in chapter 4 of Publication 550 to figure the amount realized. My1040ez If you finance the buyer's purchase of your property and the debt instrument does not provide for adequate stated interest, the unstated interest that you must report as ordinary income will reduce the amount realized from the sale. My1040ez For more information, see Publication 537. My1040ez Fair market value. My1040ez   Fair market value is the price at which the property would change hands between a buyer and a seller, neither being forced to buy or sell and both having reasonable knowledge of all the relevant facts. My1040ez Example. My1040ez You trade A Company stock with an adjusted basis of $7,000 for B Company stock with a fair market value of $10,000, which is your amount realized. My1040ez Your gain is $3,000 ($10,000 − $7,000). My1040ez Debt paid off. My1040ez    A debt against the property, or against you, that is paid off as a part of the transaction, or that is assumed by the buyer, must be included in the amount realized. My1040ez This is true even if neither you nor the buyer is personally liable for the debt. My1040ez For example, if you sell or trade property that is subject to a nonrecourse loan, the amount you realize generally includes the full amount of the note assumed by the buyer even if the amount of the note is more than the fair market value of the property. My1040ez Example. My1040ez You sell stock that you had pledged as security for a bank loan of $8,000. My1040ez Your basis in the stock is $6,000. My1040ez The buyer pays off your bank loan and pays you $20,000 in cash. My1040ez The amount realized is $28,000 ($20,000 + $8,000). My1040ez Your gain is $22,000 ($28,000 − $6,000). My1040ez Payment of cash. My1040ez   If you trade property and cash for other property, the amount you realize is the fair market value of the property you receive. My1040ez Determine your gain or loss by subtracting the cash you pay plus the adjusted basis of the property you trade in from the amount you realize. My1040ez If the result is a positive number, it is a gain. My1040ez If the result is a negative number, it is a loss. My1040ez No gain or loss. My1040ez   You may have to use a basis for figuring gain that is different from the basis used for figuring loss. My1040ez In this case, you may have neither a gain nor a loss. My1040ez See Basis Other Than Cost in chapter 13. My1040ez Nontaxable Trades This section discusses trades that generally do not result in a taxable gain or deductible loss. My1040ez For more information on nontaxable trades, see chapter 1 of Publication 544. My1040ez Like-kind exchanges. My1040ez   If you trade business or investment property for other business or investment property of a like kind, you do not pay tax on any gain or deduct any loss until you sell or dispose of the property you receive. My1040ez To be nontaxable, a trade must meet all six of the following conditions. My1040ez The property must be business or investment property. My1040ez You must hold both the property you trade and the property you receive for productive use in your trade or business or for investment. My1040ez Neither property may be property used for personal purposes, such as your home or family car. My1040ez The property must not be held primarily for sale. My1040ez The property you trade and the property you receive must not be property you sell to customers, such as merchandise. My1040ez The property must not be stocks, bonds, notes, choses in action, certificates of trust or beneficial interest, or other securities or evidences of indebtedness or interest, including partnership interests. My1040ez However, see Special rules for mutual ditch, reservoir, or irrigation company stock, in chapter 4 of Publication 550 for an exception. My1040ez Also, you can have a nontaxable trade of corporate stocks under a different rule, as discussed later. My1040ez There must be a trade of like property. My1040ez The trade of real estate for real estate, or personal property for similar personal property, is a trade of like property. My1040ez The trade of an apartment house for a store building, or a panel truck for a pickup truck, is a trade of like property. My1040ez The trade of a piece of machinery for a store building is not a trade of like property. My1040ez Real property located in the United States and real property located outside the United States are not like property. My1040ez Also, personal property used predominantly within the United States and personal property used predominantly outside the United States are not like property. My1040ez The property to be received must be identified in writing within 45 days after the date you transfer the property given up in the trade. My1040ez The property to be received must be received by the earlier of: The 180th day after the date on which you transfer the property given up in the trade, or The due date, including extensions, for your tax return for the year in which the transfer of the property given up occurs. My1040ez    If you trade property with a related party in a like-kind exchange, a special rule may apply. My1040ez See Related Party Transactions , later in this chapter. My1040ez Also, see chapter 1 of Publication 544 for more information on exchanges of business property and special rules for exchanges using qualified intermediaries or involving multiple properties. My1040ez Partly nontaxable exchange. My1040ez   If you receive money or unlike property in addition to like property, and the above six conditions are met, you have a partly nontaxable trade. My1040ez You are taxed on any gain you realize, but only up to the amount of the money and the fair market value of the unlike property you receive. My1040ez You cannot deduct a loss. My1040ez Like property and unlike property transferred. My1040ez   If you give up unlike property in addition to the like property, you must recognize gain or loss on the unlike property you give up. My1040ez The gain or loss is the difference between the adjusted basis of the unlike property and its fair market value. My1040ez Like property and money transferred. My1040ez   If all of the above conditions (1) – (6) are met, you have a nontaxable trade even if you pay money in addition to the like property. My1040ez Basis of property received. My1040ez   To figure the basis of the property received, see Nontaxable Exchanges in chapter 13. My1040ez How to report. My1040ez   You must report the trade of like property on Form 8824. My1040ez If you figure a recognized gain or loss on Form 8824, report it on Schedule D (Form 1040), or on Form 4797, Sales of Business Property, whichever applies. My1040ez See the instructions for Line 22 in the Instructions for Form 8824. My1040ez   For information on using Form 4797, see chapter 4 of Publication 544. My1040ez Corporate stocks. My1040ez   The following trades of corporate stocks generally do not result in a taxable gain or a deductible loss. My1040ez Corporate reorganizations. My1040ez   In some instances, a company will give you common stock for preferred stock, preferred stock for common stock, or stock in one corporation for stock in another corporation. My1040ez If this is a result of a merger, recapitalization, transfer to a controlled corporation, bankruptcy, corporate division, corporate acquisition, or other corporate reorganization, you do not recognize gain or loss. My1040ez Stock for stock of the same corporation. My1040ez   You can exchange common stock for common stock or preferred stock for preferred stock in the same corporation without having a recognized gain or loss. My1040ez This is true for a trade between two stockholders as well as a trade between a stockholder and the corporation. My1040ez Convertible stocks and bonds. My1040ez   You generally will not have a recognized gain or loss if you convert bonds into stock or preferred stock into common stock of the same corporation according to a conversion privilege in the terms of the bond or the preferred stock certificate. My1040ez Property for stock of a controlled corporation. My1040ez   If you transfer property to a corporation solely in exchange for stock in that corporation, and immediately after the trade you are in control of the corporation, you ordinarily will not recognize a gain or loss. My1040ez This rule applies both to individuals and to groups who transfer property to a corporation. My1040ez It does not apply if the corporation is an investment company. My1040ez   For this purpose, to be in control of a corporation, you or your group of transferors must own, immediately after the exchange, at least 80% of the total combined voting power of all classes of stock entitled to vote and at least 80% of the outstanding shares of each class of nonvoting stock of the corporation. My1040ez   If this provision applies to you, you may have to attach to your return a complete statement of all facts pertinent to the exchange. My1040ez For details, see Regulations section 1. My1040ez 351-3. My1040ez Additional information. My1040ez   For more information on trades of stock, see Nontaxable Trades in chapter 4 of Publication 550. My1040ez Insurance policies and annuities. My1040ez   You will not have a recognized gain or loss if the insured or annuitant is the same under both contracts and you trade: A life insurance contract for another life insurance contract or for an endowment or annuity contract or for a qualified long-term care insurance contract, An endowment contract for another endowment contract that provides for regular payments beginning at a date no later than the beginning date under the old contract or for an annuity contract or for a qualified long-term insurance contract, An annuity contract for annuity contract or for a qualified long-term care insurance contract, or A qualified long-term care insurance contract for a qualified long-term care insurance contract. My1040ez   You also may not have to recognize gain or loss on an exchange of a portion of an annuity contract for another annuity contract. My1040ez For transfers completed before October 24, 2011, see Revenue Ruling 2003-76 in Internal Revenue Bulletin 2003-33 and Revenue Procedure 2008-24 in Internal Revenue Bulletin 2008-13. My1040ez Revenue Ruling 2003-76 is available at www. My1040ez irs. My1040ez gov/irb/2003-33_IRB/ar11. My1040ez html. My1040ez Revenue Procedure 2008-24 is available at www. My1040ez irs. My1040ez gov/irb/2008-13_IRB/ar13. My1040ez html. My1040ez For transfers completed on or after October 24, 2011, see Revenue Ruling 2003-76, above, and Revenue Procedure 2011-38, in Internal Revenue Bulletin 2011-30. My1040ez Revenue Procedure 2011-38 is available at www. My1040ez irs. My1040ez gov/irb/2011-30_IRB/ar09. My1040ez html. My1040ez   For tax years beginning after December 31, 2010, amounts received as an annuity for a period of 10 years or more, or for the lives of one or more individuals, under any portion of an annuity, endowment, or life insurance contract, are treated as a separate contract and are considered partial annuities. My1040ez A portion of an annuity, endowment, or life insurance contract may be annuitized, provided that the annuitization period is for 10 years or more or for the lives of one or more individuals. My1040ez The investment in the contract is allocated between the part of the contract from which amounts are received as an annuity and the part of the contract from which amounts are not received as an annuity. My1040ez   Exchanges of contracts not included in this list, such as an annuity contract for an endowment contract, or an annuity or endowment contract for a life insurance contract, are taxable. My1040ez Demutualization of life insurance companies. My1040ez   If you received stock in exchange for your equity interest as a policyholder or an annuitant, you generally will not have a recognized gain or loss. My1040ez See Demutualization of Life Insurance Companies in Publication 550. My1040ez U. My1040ez S. My1040ez Treasury notes or bonds. My1040ez   You can trade certain issues of U. My1040ez S. My1040ez Treasury obligations for other issues designated by the Secretary of the Treasury, with no gain or loss recognized on the trade. My1040ez See Savings bonds traded in chapter 1 of Publication 550 for more information. My1040ez Transfers Between Spouses Generally, no gain or loss is recognized on a transfer of property from an individual to (or in trust for the benefit of) a spouse, or if incident to a divorce, a former spouse. My1040ez This nonrecognition rule does not apply in the following situations. My1040ez The recipient spouse or former spouse is a nonresident alien. My1040ez Property is transferred in trust and liability exceeds basis. My1040ez Gain must be recognized to the extent the amount of the liabilities assumed by the trust, plus any liabilities on the property, exceed the adjusted basis of the property. My1040ez For other situations, see Transfers Between Spouses in chapter 4 of Publication 550. My1040ez Any transfer of property to a spouse or former spouse on which gain or loss is not recognized is treated by the recipient as a gift and is not considered a sale or exchange. My1040ez The recipient's basis in the property will be the same as the adjusted basis of the giver immediately before the transfer. My1040ez This carryover basis rule applies whether the adjusted basis of the transferred property is less than, equal to, or greater than either its fair market value at the time of transfer or any consideration paid by the recipient. My1040ez This rule applies for purposes of determining loss as well as gain. My1040ez Any gain recognized on a transfer in trust increases the basis. My1040ez A transfer of property is incident to a divorce if the transfer occurs within 1 year after the date on which the marriage ends, or if the transfer is related to the ending of the marriage. My1040ez Related Party Transactions Special rules apply to the sale or trade of property between related parties. My1040ez Gain on sale or trade of depreciable property. My1040ez   Your gain from the sale or trade of property to a related party may be ordinary income, rather than capital gain, if the property can be depreciated by the party receiving it. My1040ez See chapter 3 of Publication 544 for more information. My1040ez Like-kind exchanges. My1040ez   Generally, if you trade business or investment property for other business or investment property of a like kind, no gain or loss is recognized. My1040ez See Like-kind exchanges , earlier, under Nontaxable Trades. My1040ez   This rule also applies to trades of property between related parties, defined next under Losses on sales or trades of property. My1040ez However, if either you or the related party disposes of the like property within 2 years after the trade, you both must report any gain or loss not recognized on the original trade on your return filed for the year in which the later disposition occurs. My1040ez See Related Party Transactions in chapter 4 of Publication 550 for exceptions. My1040ez Losses on sales or trades of property. My1040ez   You cannot deduct a loss on the sale or trade of property, other than a distribution in complete liquidation of a corporation, if the transaction is directly or indirectly between you and the following related parties. My1040ez Members of your family. My1040ez This includes only your brothers and sisters, half-brothers and half-sisters, spouse, ancestors (parents, grandparents, etc. My1040ez ), and lineal descendants (children, grandchildren, etc. My1040ez ). My1040ez A partnership in which you directly or indirectly own more than 50% of the capital interest or the profits interest. My1040ez A corporation in which you directly or indirectly own more than 50% in value of the outstanding stock. My1040ez (See Constructive ownership of stock , later. My1040ez ) A tax-exempt charitable or educational organization directly or indirectly controlled, in any manner or by any method, by you or by a member of your family, whether or not this control is legally enforceable. My1040ez   In addition, a loss on the sale or trade of property is not deductible if the transaction is directly or indirectly between the following related parties. My1040ez A grantor and fiduciary, or the fiduciary and beneficiary, of any trust. My1040ez Fiduciaries of two different trusts, or the fiduciary and beneficiary of two different trusts, if the same person is the grantor of both trusts. My1040ez A trust fiduciary and a corporation of which more than 50% in value of the outstanding stock is directly or indirectly owned by or for the trust, or by or for the grantor of the trust. My1040ez A corporation and a partnership if the same persons own more than 50% in value of the outstanding stock of the corporation and more than 50% of the capital interest, or the profits interest, in the partnership. My1040ez Two S corporations if the same persons own more than 50% in value of the outstanding stock of each corporation. My1040ez Two corporations, one of which is an S corporation, if the same persons own more than 50% in value of the outstanding stock of each corporation. My1040ez An executor and a beneficiary of an estate (except in the case of a sale or trade to satisfy a pecuniary bequest). My1040ez Two corporations that are members of the same controlled group. My1040ez (Under certain conditions, however, these losses are not disallowed but must be deferred. My1040ez ) Two partnerships if the same persons own, directly or indirectly, more than 50% of the capital interests or the profit interests in both partnerships. My1040ez Multiple property sales or trades. My1040ez   If you sell or trade to a related party a number of blocks of stock or pieces of property in a lump sum, you must figure the gain or loss separately for each block of stock or piece of property. My1040ez The gain on each item may be taxable. My1040ez However, you cannot deduct the loss on any item. My1040ez Also, you cannot reduce gains from the sales of any of these items by losses on the sales of any of the other items. My1040ez Indirect transactions. My1040ez   You cannot deduct your loss on the sale of stock through your broker if, under a prearranged plan, a related party buys the same stock you had owned. My1040ez This does not apply to a trade between related parties through an exchange that is purely coincidental and is not prearranged. My1040ez Constructive ownership of stock. My1040ez   In determining whether a person directly or indirectly owns any of the outstanding stock of a corporation, the following rules apply. My1040ez Rule 1. My1040ez   Stock directly or indirectly owned by or for a corporation, partnership, estate, or trust is considered owned proportionately by or for its shareholders, partners, or beneficiaries. My1040ez Rule 2. My1040ez   An individual is considered to own the stock directly or indirectly owned by or for his or her family. My1040ez Family includes only brothers and sisters, half-brothers and half-sisters, spouse, ancestors, and lineal descendants. My1040ez Rule 3. My1040ez   An individual owning, other than by applying rule 2, any stock in a corporation is considered to own the stock directly or indirectly owned by or for his or her partner. My1040ez Rule 4. My1040ez   When applying rule 1, 2, or 3, stock constructively owned by a person under rule 1 is treated as actually owned by that person. My1040ez But stock constructively owned by an individual under rule 2 or rule 3 is not treated as owned by that individual for again applying either rule 2 or rule 3 to make another person the constructive owner of the stock. My1040ez Property received from a related party. My1040ez    If you sell or trade at a gain property you acquired from a related party, you recognize the gain only to the extent it is more than the loss previously disallowed to the related party. My1040ez This rule applies only if you are the original transferee and you acquired the property by purchase or exchange. My1040ez This rule does not apply if the related party's loss was disallowed because of the wash sale rules described in chapter 4 of Publication 550 under Wash Sales. My1040ez   If you sell or trade at a loss property you acquired from a related party, you cannot recognize the loss that was not allowed to the related party. My1040ez Example 1. My1040ez Your brother sells you stock for $7,600. My1040ez His cost basis is $10,000. My1040ez Your brother cannot deduct the loss of $2,400. My1040ez Later, you sell the same stock to an unrelated party for $10,500, realizing a gain of $2,900. My1040ez Your reportable gain is $500 (the $2,900 gain minus the $2,400 loss not allowed to your brother). My1040ez Example 2. My1040ez If, in Example 1, you sold the stock for $6,900 instead of $10,500, your recognized loss is only $700 (your $7,600 basis minus $6,900). My1040ez You cannot deduct the loss that was not allowed to your brother. My1040ez Capital Gains and Losses This section discusses the tax treatment of gains and losses from different types of investment transactions. My1040ez Character of gain or loss. My1040ez   You need to classify your gains and losses as either ordinary or capital gains or losses. My1040ez You then need to classify your capital gains and losses as either short term or long term. My1040ez If you have long-term gains and losses, you must identify your 28% rate gains and losses. My1040ez If you have a net capital gain, you must also identify any unrecaptured section 1250 gain. My1040ez   The correct classification and identification helps you figure the limit on capital losses and the correct tax on capital gains. My1040ez Reporting capital gains and losses is explained in chapter 16. My1040ez Capital or Ordinary Gain or Loss If you have a taxable gain or a deductible loss from a transaction, it may be either a capital gain or loss or an ordinary gain or loss, depending on the circumstances. My1040ez Generally, a sale or trade of a capital asset (defined next) results in a capital gain or loss. My1040ez A sale or trade of a noncapital asset generally results in ordinary gain or loss. My1040ez Depending on the circumstances, a gain or loss on a sale or trade of property used in a trade or business may be treated as either capital or ordinary, as explained in Publication 544. My1040ez In some situations, part of your gain or loss may be a capital gain or loss and part may be an ordinary gain or loss. My1040ez Capital Assets and Noncapital Assets For the most part, everything you own and use for personal purposes, pleasure, or investment is a capital asset. My1040ez Some examples are: Stocks or bonds held in your personal account, A house owned and used by you and your family, Household furnishings, A car used for pleasure or commuting, Coin or stamp collections, Gems and jewelry, and Gold, silver, or any other metal. My1040ez Any property you own is a capital asset, except the following noncapital assets. My1040ez Property held mainly for sale to customers or property that will physically become a part of the merchandise for sale to customers. My1040ez For an exception, see Capital Asset Treatment for Self-Created Musical Works , later. My1040ez Depreciable property used in your trade or business, even if fully depreciated. My1040ez Real property used in your trade or business. My1040ez A copyright, a literary, musical, or artistic composition, a letter or memorandum, or similar property that is: Created by your personal efforts, Prepared or produced for you (in the case of a letter, memorandum, or similar property), or Acquired under circumstances (for example, by gift) entitling you to the basis of the person who created the property or for whom it was prepared or produced. My1040ez For an exception to this rule, see Capital Asset Treatment for Self-Created Musical Works , later. My1040ez Accounts or notes receivable acquired in the ordinary course of a trade or business for services rendered or from the sale of property described in (1). My1040ez U. My1040ez S. My1040ez Government publications that you received from the government free or for less than the normal sales price, or that you acquired under circumstances entitling you to the basis of someone who received the publications free or for less than the normal sales price. My1040ez Certain commodities derivative financial instruments held by commodities derivatives dealers. My1040ez Hedging transactions, but only if the transaction is clearly identified as a hedging transaction before the close of the day on which it was acquired, originated, or entered into. My1040ez Supplies of a type you regularly use or consume in the ordinary course of your trade or business. My1040ez Investment Property Investment property is a capital asset. My1040ez Any gain or loss from its sale or trade is generally a capital gain or loss. My1040ez Gold, silver, stamps, coins, gems, etc. My1040ez   These are capital assets except when they are held for sale by a dealer. My1040ez Any gain or loss you have from their sale or trade generally is a capital gain or loss. My1040ez Stocks, stock rights, and bonds. My1040ez   All of these (including stock received as a dividend) are capital assets except when held for sale by a securities dealer. My1040ez However, if you own small business stock, see Losses on Section 1244 (Small Business) Stock , later, and Losses on Small Business Investment Company Stock, in chapter 4 of Publication 550. My1040ez Personal Use Property Property held for personal use only, rather than for investment, is a capital asset, and you must report a gain from its sale as a capital gain. My1040ez However, you cannot deduct a loss from selling personal use property. My1040ez Capital Asset Treatment for Self-Created Musical Works You can elect to treat musical compositions and copyrights in musical works as capital assets when you sell or exchange them if: Your personal efforts created the property, or You acquired the property under circumstances (for example, by gift) entitling you to the basis of the person who created the property or for whom it was prepared or produced. My1040ez You must make a separate election for each musical composition (or copyright in a musical work) sold or exchanged during the tax year. My1040ez You must make the election on or before the due date (including extensions) of the income tax return for the tax year of the sale or exchange. My1040ez You must make the election on Form 8949 by treating the sale or exchange as the sale or exchange of a capital asset, according to Form 8949, Schedule D (Form 1040), and their separate instructions. My1040ez For more information on Form 8949 and Schedule D (Form 1040), see Reporting Capital Gains and Losses in chapter 16. My1040ez See also Schedule D (Form 1040), Form 8949, and their separate instructions. My1040ez You can revoke the election if you have IRS approval. My1040ez To get IRS approval, you must submit a request for a letter ruling under the appropriate IRS revenue procedure. My1040ez See, for example, Rev. My1040ez Proc. My1040ez 2013-1, corrected by Announcement 2013–9, and amplified and modified by Rev. My1040ez Proc. My1040ez 2013–32, available at www. My1040ez irs. My1040ez gov/irb/2013-01_IRB/ar06. My1040ez html. My1040ez Alternatively, you are granted an automatic 6-month extension from the due date of your income tax return (excluding extensions) to revoke the election, provided you timely file your income tax return, and within this 6-month extension period, you file Form 1040X that treats the sale or exchange as the sale or exchange of property that is not a capital asset. My1040ez Discounted Debt Instruments Treat your gain or loss on the sale, redemption, or retirement of a bond or other debt instrument originally issued at a discount or bought at a discount as capital gain or loss, except as explained in the following discussions. My1040ez Short-term government obligations. My1040ez   Treat gains on short-term federal, state, or local government obligations (other than tax-exempt obligations) as ordinary income up to your ratable share of the acquisition discount. My1040ez This treatment applies to obligations with a fixed maturity date not more than 1 year from the date of issue. My1040ez Acquisition discount is the stated redemption price at maturity minus your basis in the obligation. My1040ez   However, do not treat these gains as income to the extent you previously included the discount in income. My1040ez See Discount on Short-Term Obligations in chapter 1 of Publication 550. My1040ez Short-term nongovernment obligations. My1040ez   Treat gains on short-term nongovernment obligations as ordinary income up to your ratable share of original issue discount (OID). My1040ez This treatment applies to obligations with a fixed maturity date of not more than 1 year from the date of issue. My1040ez   However, to the extent you previously included the discount in income, you do not have to include it in income again. My1040ez See Discount on Short-Term Obligations in chapter 1 of Publication 550. My1040ez Tax-exempt state and local government bonds. My1040ez   If these bonds were originally issued at a discount before September 4, 1982, or you acquired them before March 2, 1984, treat your part of OID as tax-exempt interest. My1040ez To figure your gain or loss on the sale or trade of these bonds, reduce the amount realized by your part of OID. My1040ez   If the bonds were issued after September 3, 1982, and acquired after March 1, 1984, increase the adjusted basis by your part of OID to figure gain or loss. My1040ez For more information on the basis of these bonds, see Discounted Debt Instruments in chapter 4 of Publication 550. My1040ez   Any gain from market discount is usually taxable on disposition or redemption of tax-exempt bonds. My1040ez If you bought the bonds before May 1, 1993, the gain from market discount is capital gain. My1040ez If you bought the bonds after April 30, 1993, the gain is ordinary income. My1040ez   You figure the market discount by subtracting the price you paid for the bond from the sum of the original issue price of the bond and the amount of accumulated OID from the date of issue that represented interest to any earlier holders. My1040ez For more information, see Market Discount Bonds in chapter 1 of Publication 550. My1040ez    A loss on the sale or other disposition of a tax-exempt state or local government bond is deductible as a capital loss. My1040ez Redeemed before maturity. My1040ez   If a state or local bond issued before June 9, 1980, is redeemed before it matures, the OID is not taxable to you. My1040ez   If a state or local bond issued after June 8, 1980, is redeemed before it matures, the part of OID earned while you hold the bond is not taxable to you. My1040ez However, you must report the unearned part of OID as a capital gain. My1040ez Example. My1040ez On July 2, 2002, the date of issue, you bought a 20-year, 6% municipal bond for $800. My1040ez The face amount of the bond was $1,000. My1040ez The $200 discount was OID. My1040ez At the time the bond was issued, the issuer had no intention of redeeming it before it matured. My1040ez The bond was callable at its face amount beginning 10 years after the issue date. My1040ez The issuer redeemed the bond at the end of 11 years (July 2, 2013) for its face amount of $1,000 plus accrued annual interest of $60. My1040ez The OID earned during the time you held the bond, $73, is not taxable. My1040ez The $60 accrued annual interest also is not taxable. My1040ez However, you must report the unearned part of OID ($127) as a capital gain. My1040ez Long-term debt instruments issued after 1954 and before May 28, 1969 (or before July 2, 1982, if a government instrument). My1040ez   If you sell, trade, or redeem for a gain one of these debt instruments, the part of your gain that is not more than your ratable share of the OID at the time of the sale or redemption is ordinary income. My1040ez The rest of the gain is capital gain. My1040ez If, however, there was an intention to call the debt instrument before maturity, all of your gain that is not more than the entire OID is treated as ordinary income at the time of the sale. My1040ez This treatment of taxable gain also applies to corporate instruments issued after May 27, 1969, under a written commitment that was binding on May 27, 1969, and at all times thereafter. My1040ez Long-term debt instruments issued after May 27, 1969 (or after July 1, 1982, if a government instrument). My1040ez   If you hold one of these debt instruments, you must include a part of OID in your gross income each year you own the instrument. My1040ez Your basis in that debt instrument is increased by the amount of OID that you have included in your gross income. My1040ez See Original Issue Discount (OID) in chapter 7 for information about OID that you must report on your tax return. My1040ez   If you sell or trade the debt instrument before maturity, your gain is a capital gain. My1040ez However, if at the time the instrument was originally issued there was an intention to call it before its maturity, your gain generally is ordinary income to the extent of the entire OID reduced by any amounts of OID previously includible in your income. My1040ez In this case, the rest of the gain is capital gain. My1040ez Market discount bonds. My1040ez   If the debt instrument has market discount and you chose to include the discount in income as it accrued, increase your basis in the debt instrument by the accrued discount to figure capital gain or loss on its disposition. My1040ez If you did not choose to include the discount in income as it accrued, you must report gain as ordinary interest income up to the instrument's accrued market discount. My1040ez The rest of the gain is capital gain. My1040ez See Market Discount Bonds in chapter 1 of Publication 550. My1040ez   A different rule applies to market discount bonds issued before July 19, 1984, and purchased by you before May 1, 1993. My1040ez See Market discount bonds under Discounted Debt Instruments in chapter 4 of Publication 550. My1040ez Retirement of debt instrument. My1040ez   Any amount you receive on the retirement of a debt instrument is treated in the same way as if you had sold or traded that instrument. My1040ez Notes of individuals. My1040ez   If you hold an obligation of an individual issued with OID after March 1, 1984, you generally must include the OID in your income currently, and your gain or loss on its sale or retirement is generally capital gain or loss. My1040ez An exception to this treatment applies if the obligation is a loan between individuals and all the following requirements are met. My1040ez The lender is not in the business of lending money. My1040ez The amount of the loan, plus the amount of any outstanding prior loans, is $10,000 or less. My1040ez Avoiding federal tax is not one of the principal purposes of the loan. My1040ez   If the exception applies, or the obligation was issued before March 2, 1984, you do not include the OID in your income currently. My1040ez When you sell or redeem the obligation, the part of your gain that is not more than your accrued share of OID at that time is ordinary income. My1040ez The rest of the gain, if any, is capital gain. My1040ez Any loss on the sale or redemption is capital loss. My1040ez Deposit in Insolvent or Bankrupt Financial Institution If you lose money you have on deposit in a bank, credit union, or other financial institution that becomes insolvent or bankrupt, you may be able to deduct your loss in one of three ways. My1040ez Ordinary loss. My1040ez Casualty loss. My1040ez Nonbusiness bad debt (short-term capital loss). My1040ez  For more information, see Deposit in Insolvent or Bankrupt Financial Institution, in chapter 4 of Publication 550. My1040ez Sale of Annuity The part of any gain on the sale of an annuity contract before its maturity date that is based on interest accumulated on the contract is ordinary income. My1040ez Losses on Section 1244 (Small Business) Stock You can deduct as an ordinary loss, rather than as a capital loss, your loss on the sale, trade, or worthlessness of section 1244 stock. My1040ez Report the loss on Form 4797, line 10. My1040ez Any gain on section 1244 stock is a capital gain if the stock is a capital asset in your hands. My1040ez Report the gain on Form 8949. My1040ez See Losses on Section 1244 (Small Business) Stock in chapter 4 of Publication 550. My1040ez For more information on Form 8949 and Schedule D (Form 1040), see Reporting Capital Gains and Losses in chapter 16. My1040ez See also Schedule D (Form 1040), Form 8949, and their separate instructions. My1040ez Holding Period If you sold or traded investment property, you must determine your holding period for the property. My1040ez Your holding period determines whether any capital gain or loss was a short-term or long-term capital gain or loss. My1040ez Long-term or short-term. My1040ez   If you hold investment property more than 1 year, any capital gain or loss is a long-term capital gain or loss. My1040ez If you hold the property 1 year or less, any capital gain or loss is a short-term capital gain or loss. My1040ez   To determine how long you held the investment property, begin counting on the date after the day you acquired the property. My1040ez The day you disposed of the property is part of your holding period. My1040ez Example. My1040ez If you bought investment property on February 6, 2012, and sold it on February 6, 2013, your holding period is not more than 1 year and you have a short-term capital gain or loss. My1040ez If you sold it on February 7, 2013, your holding period is more than 1 year and you will have a long-term capital gain or loss. My1040ez Securities traded on established market. My1040ez   For securities traded on an established securities market, your holding period begins the day after the trade date you bought the securities, and ends on the trade date you sold them. My1040ez    Do not confuse the trade date with the settlement date, which is the date by which the stock must be delivered and payment must be made. My1040ez Example. My1040ez You are a cash method, calendar year taxpayer. My1040ez You sold stock at a gain on December 30, 2013. My1040ez According to the rules of the stock exchange, the sale was closed by delivery of the stock 4 trading days after the sale, on January 6, 2014. My1040ez You received payment of the sales price on that same day. My1040ez Report your gain on your 2013 return, even though you received the payment in 2014. My1040ez The gain is long term or short term depending on whether you held the stock more than 1 year. My1040ez Your holding period ended on December 30. My1040ez If you had sold the stock at a loss, you would also report it on your 2013 return. My1040ez U. My1040ez S. My1040ez Treasury notes and bonds. My1040ez   The holding period of U. My1040ez S. My1040ez Treasury notes and bonds sold at auction on the basis of yield starts the day after the Secretary of the Treasury, through news releases, gives notification of acceptance to successful bidders. My1040ez The holding period of U. My1040ez S. My1040ez Treasury notes and bonds sold through an offering on a subscription basis at a specified yield starts the day after the subscription is submitted. My1040ez Automatic investment service. My1040ez   In determining your holding period for shares bought by the bank or other agent, full shares are considered bought first and any fractional shares are considered bought last. My1040ez Your holding period starts on the day after the bank's purchase date. My1040ez If a share was bought over more than one purchase date, your holding period for that share is a split holding period. My1040ez A part of the share is considered to have been bought on each date that stock was bought by the bank with the proceeds of available funds. My1040ez Nontaxable trades. My1040ez   If you acquire investment property in a trade for other investment property and your basis for the new property is determined, in whole or in part, by your basis in the old property, your holding period for the new property begins on the day following the date you acquired the old property. My1040ez Property received as a gift. My1040ez   If you receive a gift of property and your basis is determined by the donor's adjusted basis, your holding period is considered to have started on the same day the donor's holding period started. My1040ez   If your basis is determined by the fair market value of the property, your holding period starts on the day after the date of the gift. My1040ez Inherited property. My1040ez   Generally, if you inherited investment property, your capital gain or loss on any later disposition of that property is long-term capital gain or loss. My1040ez This is true regardless of how long you actually held the property. My1040ez However, if you inherited property from someone who died in 2010, see the information below. My1040ez Inherited property from someone who died in 2010. My1040ez   If you inherit investment property from a decedent who died in 2010, and the executor of the decedent's estate made the election to file Form 8939, refer to the information provided by the executor or see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, to determine your holding period. My1040ez Real property bought. My1040ez   To figure how long you have held real property bought under an unconditional contract, begin counting on the day after you received title to it or on the day after you took possession of it and assumed the burdens and privileges of ownership, whichever happened first. My1040ez However, taking delivery or possession of real property under an option agreement is not enough to start the holding period. My1040ez The holding period cannot start until there is an actual contract of sale. My1040ez The holding period of the seller cannot end before that time. My1040ez Real property repossessed. My1040ez   If you sell real property but keep a security interest in it, and then later repossess the property under the terms of the sales contract, your holding period for a later sale includes the period you held the property before the original sale and the period after the repossession. My1040ez Your holding period does not include the time between the original sale and the repossession. My1040ez That is, it does not include the period during which the first buyer held the property. My1040ez Stock dividends. My1040ez   The holding period for stock you received as a taxable stock dividend begins on the date of distribution. My1040ez   The holding period for new stock you received as a nontaxable stock dividend begins on the same day as the holding period of the old stock. My1040ez This rule also applies to stock acquired in a “spin-off,” which is a distribution of stock or securities in a controlled corporation. My1040ez Nontaxable stock rights. My1040ez   Your holding period for nontaxable stock rights begins on the same day as the holding period of the underlying stock. My1040ez The holding period for stock acquired through the exercise of stock rights begins on the date the right was exercised. My1040ez Nonbusiness Bad Debts If someone owes you money that you cannot collect, you have a bad debt. My1040ez You may be able to deduct the amount owed to you when you figure your tax for the year the debt becomes worthless. My1040ez Generally, nonbusiness bad debts are bad debts that did not come from operating your trade or business, and are deductible as short-term capital losses. My1040ez To be deductible, nonbusiness bad debts must be totally worthless. My1040ez You cannot deduct a partly worthless nonbusiness debt. My1040ez Genuine debt required. My1040ez   A debt must be genuine for you to deduct a loss. My1040ez A debt is genuine if it arises from a debtor-creditor relationship based on a valid and enforceable obligation to repay a fixed or determinable sum of money. My1040ez Basis in bad debt required. My1040ez    To deduct a bad debt, you must have a basis in it—that is, you must have already included the amount in your income or loaned out your cash. My1040ez For example, you cannot claim a bad debt deduction for court-ordered child support not paid to you by your former spouse. My1040ez If you are a cash method taxpayer (as most individuals are), you generally cannot take a bad debt deduction for unpaid salaries, wages, rents, fees, interest, dividends, and similar items. My1040ez When deductible. My1040ez   You can take a bad debt deduction only in the year the debt becomes worthless. My1040ez You do not have to wait until a debt is due to determine whether it is worthless. My1040ez A debt becomes worthless when there is no longer any chance that the amount owed will be paid. My1040ez   It is not necessary to go to court if you can show that a judgment from the court would be uncollectible. My1040ez You must only show that you have taken reasonable steps to collect the debt. My1040ez Bankruptcy of your debtor is generally good evidence of the worthlessness of at least a part of an unsecured and unpreferred debt. My1040ez How to report bad debts. My1040ez    Deduct nonbusiness bad debts as short-term capital losses on Form 8949. My1040ez    Make sure you report your bad debt(s) (and any other short-term transactions for which you did not receive a Form 1099-B) on Form 8949, Part I, with box C checked. My1040ez    For more information on Form 8949 and Schedule D (Form 1040), see Reporting Capital Gains and Losses in chapter 16. My1040ez See also Schedule D (Form 1040), Form 8949, and their separate instructions. My1040ez   For each bad debt, attach a statement to your return that contains: A description of the debt, including the amount, and the date it became due, The name of the debtor, and any business or family relationship between you and the debtor, The efforts you made to collect the debt, and Why you decided the debt was worthless. My1040ez For example, you could show that the borrower has declared bankruptcy, or that legal action to collect would probably not result in payment of any part of the debt. My1040ez Filing a claim for refund. My1040ez    If you do not deduct a bad debt on your original return for the year it becomes worthless, you can file a claim for a credit or refund due to the bad debt. My1040ez To do this, use Form 1040X to amend your return for the year the debt became worthless. My1040ez You must file it within 7 years from the date your original return for that year had to be filed, or 2 years from the date you paid the tax, whichever is later. My1040ez For more information about filing a claim, see Amended Returns and Claims for Refund in chapter 1. My1040ez Additional information. My1040ez   For more information, see Nonbusiness Bad Debts in Publication 550. My1040ez For information on business bad debts, see chapter 10 of Publication 535, Business Expenses. My1040ez Wash Sales You cannot deduct losses from sales or trades of stock or securities in a wash sale. My1040ez A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you: Buy substantially identical stock or securities, Acquire substantially identical stock or securities in a fully taxable trade, Acquire a contract or option to buy substantially identical stock or securities, or Acquire substantially identical stock for your individual retirement account (IRA) or Roth IRA. My1040ez If your loss was disallowed because of the wash sale rules, add the disallowed loss to the cost of the new stock or securities (except in (4) above). My1040ez The result is your basis in the new stock or securities. My1040ez This adjustment postpones the loss deduction until the disposition of the new stock or securities. My1040ez Your holding period for the new stock or securities includes the holding period of the stock or securities sold. My1040ez For more information, see Wash Sales, in chapter 4 of Publication 550. My1040ez Rollover of Gain From Publicly Traded Securities You may qualify for a tax-free rollover of certain gains from the sale of publicly traded securities. My1040ez This means that if you buy certain replacement property and make the choice described in this section, you postpone part or all of your gain. My1040ez You postpone the gain by adjusting the basis of the replacement property as described in Basis of replacement property , later. My1040ez This postpones your gain until the year you dispose of the replacement property. My1040ez You qualify to make this choice if you meet all the following tests. My1040ez You sell publicly traded securities at a gain. My1040ez Publicly traded securities are securities traded on an established securities market. My1040ez Your gain from the sale is a capital gain. My1040ez During the 60-day period beginning on the date of the sale, you buy replacement property. My1040ez This replacement property must be either common stock of, or a partnership interest in a specialized small business investment company (SSBIC). My1040ez This is any partnership or corporation licensed by the Small Business Administration under section 301(d) of the Small Business Investment Act of 1958, as in effect on May 13, 1993. My1040ez Amount of gain recognized. My1040ez   If you make the choice described in this section, you must recognize gain only up to the following amount. My1040ez The amount realized on the sale, minus The cost of any common stock or partnership interest in an SSBIC that you bought during the 60-day period beginning on the date of sale (and did not previously take into account on an earlier sale of publicly traded securities). My1040ez  If this amount is less than the amount of your gain, you can postpone the rest of your gain, subject to the limit described next. My1040ez If this amount is equal to or more than the amount of your gain, you must recognize the full amount of your gain. My1040ez Limit on gain postponed. My1040ez   The amount of gain you can postpone each year is limited to the smaller of: $50,000 ($25,000 if you are married and file a separate return), or $500,000 ($250,000 if you are married and file a separate return), minus the amount of gain you postponed for all earlier years. My1040ez Basis of replacement property. My1040ez   You must subtract the amount of postponed gain from the basis of your replacement property. My1040ez How to report and postpone gain. My1040ez    See How to report and postpone gain under Rollover of Gain From Publicly Traded Securities in chapter 4 of Publication 550 for details. My1040ez Prev  Up  Next   Home   More Online Publications
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The My1040ez

My1040ez Index A Abusive tax shelters (see Tax shelters) Accounting fees, Attorney or accounting fees. My1040ez Accrual method, Accrual method taxpayers. My1040ez , Accrual method. My1040ez , Holders must use accrual method. My1040ez , When To Deduct Investment Interest Accuracy-related penalty, Accuracy-related penalty. My1040ez Acquisition discount, Government obligations. My1040ez , Acquisition discount on short-term obligations. My1040ez Adjusted basis, Basis adjustment. My1040ez , Fair market value equal to or more than donor's adjusted basis. My1040ez , Adjusted Basis, Short sales. My1040ez Alaska Permanent Fund dividends, Alaska Permanent Fund dividends. My1040ez , Child's Alaska Permanent Fund dividends. My1040ez Amortization of bond premium, Bond Premium Amortization, Bonds acquired after October 22, 1986, but before 1988. My1040ez Annuities Borrowing on, Borrowing on insurance. My1040ez Interest on, Interest on annuity contract. My1040ez Life insurance proceeds used to buy, Annuity. My1040ez Sale of, Sale of Annuity Single-premium, Single-premium life insurance, endowment, and annuity contracts. My1040ez Trade for, Trade of investment property for an annuity. My1040ez , Insurance Policies and Annuities Applicable federal rate, Applicable federal rate. My1040ez Appreciated financial positions, Constructive Sales of Appreciated Financial Positions Arbitrage bonds, Arbitrage bonds. My1040ez Assistance (see Tax help) At-risk rules, At-risk rules. My1040ez , At-risk rules. My1040ez Attorneys' fees, Attorney or accounting fees. My1040ez Automatic investment service, Automatic investment service and dividend reinvestment plans. My1040ez , Automatic investment service. My1040ez , Automatic investment service. My1040ez Average basis, Average Basis Double-category method, Transition rule from double-category method. My1040ez Illustrated, Average basis method illustrated. My1040ez B Backup withholding, Backup withholding. My1040ez Bad debts, Nonbusiness bad debt. My1040ez , Nonbusiness Bad Debts Bankrupt financial institutions Deposit in, Deposit in Insolvent or Bankrupt Financial Institution Bargain purchases, Bargain purchases. My1040ez Basis, Basis of Investment Property, U. My1040ez S. My1040ez Treasury Notes or Bonds Adjusted, Basis adjustment. My1040ez , Fair market value equal to or more than donor's adjusted basis. My1040ez , Adjusted Basis, Short sales. My1040ez Average, Average Basis Cost, Cost Basis, Cost Basis Inherited property, Property Received as Inheritance Investment property, Basis of Investment Property Like-kind exchanges, Basis of property received. My1040ez Other than cost, Basis Other Than Cost REITs, Shares in a mutual fund or REIT. My1040ez REMIC, residual interest, Basis in the residual interest. My1040ez Replacement stock, Basis of replacement stock. My1040ez Shares acquired by reinvestment, Reinvestment right. My1040ez Stocks and bonds, Basis adjustment. My1040ez , Basis. My1040ez , Basis. My1040ez , Stocks and Bonds Bearer obligations, Bearer CDs. My1040ez , Bearer Obligations Below-market loans, Below-Market Loans Bonds Accrued interest on, Accrued interest on bonds. My1040ez Amortization of premium, Bond Premium Amortization Arbitrage, Arbitrage bonds. My1040ez Basis, Basis. My1040ez , Stocks and Bonds Capital asset, Stocks, stock rights, and bonds. My1040ez Convertible, Convertible stocks and bonds. My1040ez Coupon, Coupon bonds. My1040ez Enterprise zone facility, Enterprise zone facility bonds. My1040ez Federally guaranteed, Federally guaranteed bonds. My1040ez Identification, Identifying stock or bonds sold. My1040ez Market discount, Market discount. My1040ez , Limit on interest deduction for market discount bonds. My1040ez , Market discount on bonds. My1040ez , Market discount bonds. My1040ez , Market discount bonds. My1040ez New York Liberty bonds, New York Liberty bonds. My1040ez Par value, Bonds purchased at par value. My1040ez Premiums on, Bond premium. My1040ez , Premiums on bonds. My1040ez Private activity, Private activity bonds. My1040ez Redemption or retirement of, Redemption or retirement of bonds. My1040ez Sold between interest dates, Bonds Sold Between Interest Dates State and local government, Tax-exempt state and local government bonds. My1040ez Stripped, Stripped bonds or coupons. My1040ez , Stripped Bonds and Coupons, Stripped tax-exempt obligation. My1040ez Tax credit bonds, Tax credit bonds. My1040ez Tax-exempt, Tax-exempt state and local government bonds. My1040ez Traded flat, Bonds traded flat. My1040ez U. My1040ez S. My1040ez savings (see U. My1040ez S. My1040ez savings bonds) U. My1040ez S. My1040ez Treasury (see U. My1040ez S. My1040ez Treasury bills, notes, and bonds) Brokerage fees, Fees to buy or sell. My1040ez , Sale expenses. My1040ez C Calls and puts, Puts and Calls Table 4-3, Table 4-3. My1040ez Puts and Calls Capital assets, Capital Assets and Noncapital Assets Capital gain distributions, Capital Gain Distributions, Basis adjustment. My1040ez , Capital gain distributions. My1040ez , Child's capital gain distributions. My1040ez , Capital gain distributions received. My1040ez Capital gains and losses, Capital Gains and Losses, Loss on stock that paid qualified dividends. My1040ez Constructive ownership transactions, Gains From Certain Constructive Ownership Transactions Definition, Capital or Ordinary Gain or Loss Empowerment zone assets, Exclusion of Gain From DC Zone Assets Investment property, Investment property. My1040ez Long-term, Short-Term or Long-Term Capital Gain or Loss, Long-term gains and losses. My1040ez Long-term debt instruments, Long-term debt instruments issued after 1954 and before May 28, 1969 (or before July 2, 1982, if a government instrument). My1040ez Losses, limit on, Limit on deduction. My1040ez Passive activities, Passive activity gains and losses. My1040ez Qualified covered call options, Capital loss on qualified covered call options. My1040ez Qualified small business stock, Gains on Qualified Small Business Stock Reporting requirements, How To Report Gains and Losses (Form 6781), How to report gain. My1040ez Rollover of gain from sale of securities, Rollover of Gain From Publicly Traded Securities Short-term, Short-Term or Long-Term Capital Gain or Loss, Short-term gains and losses. My1040ez Tax rates, Capital Gain Tax Rates, Table 4-4. My1040ez What Is Your Maximum Capital Gain Rate? Table 4-4, Table 4-4. My1040ez What Is Your Maximum Capital Gain Rate? Capital loss carryover, Capital loss carryover. My1040ez , Capital Losses Worksheet 4-1, Worksheet 4-1. My1040ez Capital Loss Carryover Worksheet Cash method, Cash method taxpayers. My1040ez , Cash method. My1040ez , When To Deduct Investment Interest Reporting options for savings bond interest, Reporting options for cash method taxpayers. My1040ez Cash-settled options, Cash-settled options. My1040ez Casualty losses, Ordinary loss or casualty loss. My1040ez CDOs (Collateralized debt obligations), Collateralized Debt Obligations (CDOs) Certificates of deposit (CDs), Certificates of Deposit (CDs) Children Alaska Permanent Fund dividends, Child's Alaska Permanent Fund dividends. My1040ez Capital gain distributions, Child's capital gain distributions. My1040ez Custodian account for, Custodian account for your child. My1040ez Gifts to, Income from property given to a child. My1040ez Investment income of, Tax on unearned income of certain children. My1040ez , Investment income of child reported on parent's return. My1040ez Qualified dividends, Child's qualified dividends. My1040ez Savings account with parent as trustee, Savings account with parent as trustee. My1040ez U. My1040ez S. My1040ez savings bond owner, Child as only owner. My1040ez Clerical help, Clerical help and office rent. My1040ez Co-owners of U. My1040ez S. My1040ez savings bonds, Co-owners. My1040ez Collateralized debt obligations (CDOs), Collateralized Debt Obligations (CDOs) Collectibles, Collectibles gain or loss. My1040ez Commissions, Commissions and load charges. My1040ez Commodity futures, Commodity Futures, Commodity futures. My1040ez Community property U. My1040ez S. My1040ez savings bonds, Community property. My1040ez Constructive ownership transactions, Constructive ownership of stock. My1040ez , Gains From Certain Constructive Ownership Transactions Constructive receipt, Constructive receipt. My1040ez Constructive sales, Constructive Sales of Appreciated Financial Positions Contractors, insolvency of, Insolvency of contractor. My1040ez Conversion transactions, Conversion Transactions Convertible stocks and bonds, Convertible stocks and bonds. My1040ez Cooperatives, sales of stock to, Sales of Stock to ESOPs or Certain Cooperatives Corporate distributions, Dividends and Other Distributions Capital gain, Capital gain distributions. My1040ez , Child's capital gain distributions. My1040ez , Capital gain distributions received. My1040ez Constructive, Constructive distributions. My1040ez Dividends (see Dividends) Fractional shares, Fractional shares. My1040ez Liquidating, Liquidating Distributions, Liquidating distributions. My1040ez Nondividend, Nondividend Distributions, Nondividend distributions. My1040ez Return of capital, Basis adjustment. My1040ez Stock rights, Distributions of Stock and Stock Rights Undistributed capital gains, Undistributed capital gains of mutual funds and REITs. My1040ez Corporate reorganizations, Corporate reorganizations. My1040ez Cost basis, Cost Basis, Cost Basis Coupon bonds, Coupon bonds. My1040ez D Day traders, Special Rules for Traders in Securities Dealer equity options, Dealer equity option. My1040ez Dealer securities futures contracts, Dealer securities futures contract. My1040ez Debt instruments, retirement of, Retirement of debt instrument. My1040ez Decedents, Appreciated property you gave the decedent. My1040ez , Decedent's capital loss. My1040ez U. My1040ez S. My1040ez savings bond interest, reporting of, Decedents. My1040ez Demutualization, Demutualization of Life Insurance Companies Deposits, loss on, Deposit in Insolvent or Bankrupt Financial Institution Discount on debt instruments, Discount on Debt Instruments Certificates of deposit, Certificates of Deposit (CDs) Election to report all interest as OID, Election To Report All Interest as OID Face-amount certificates, Face-Amount Certificates Gain or loss treatment, Discounted Debt Instruments Inflation-indexed, Inflation-Indexed Debt Instruments Market discount bonds (see Market discount bonds) Original issue discount (see Original issue discount (OID)) Short-term obligations, Discount on Short-Term Obligations, Short-term government obligations. My1040ez Stripped bonds and coupons, Stripped Bonds and Coupons Discounted debt instruments, Discount on Debt Instruments Discounted tax-exempt obligations, Discounted tax-exempt obligations. My1040ez Dividends, Dividends and Other Distributions, Form 1099-DIV. My1040ez (see also Form 1099-DIV) Alaska Permanent Fund, Alaska Permanent Fund dividends. My1040ez , Child's Alaska Permanent Fund dividends. My1040ez Exempt-interest, Exempt-interest dividends. My1040ez , Exempt-interest dividends. My1040ez , Exempt-interest dividends on mutual fund stock. My1040ez Extraordinary, Extraordinary dividends. My1040ez Holding period, Holding period. My1040ez Insurance policies, Dividends on insurance policies. My1040ez Money market funds, Money Market Funds Nominees, Nominees. My1040ez , Nominees. My1040ez Ordinary, Ordinary Dividends Patronage, Patronage dividends. My1040ez Payments in lieu of, Payments in lieu of dividends. My1040ez Qualified, Qualified Dividends, Qualified dividends. My1040ez , Child's qualified dividends. My1040ez Qualified foreign corporation, Qualified foreign corporation. My1040ez Received in January, Dividends received in January. My1040ez Reinvestment of, Reinvested distributions. My1040ez Reinvestment plans, Dividends Used To Buy More Stock, Automatic investment service and dividend reinvestment plans. My1040ez , Dividend reinvestment plans. My1040ez Reporting requirements, Form 1099-DIV. My1040ez , How To Report Dividend Income, Stripped Preferred Stock Restricted stock, Dividends received on restricted stock. My1040ez Sale or trade vs. My1040ez , Dividend versus sale or trade. My1040ez Scrip, Scrip dividends. My1040ez Sold stock, Dividends on stock sold. My1040ez Stock, Stock dividends. My1040ez , Stock dividends. My1040ez Underreported, Underreported interest and dividends. My1040ez Veterans' insurance, Interest on VA dividends. My1040ez , Dividends on veterans' insurance. My1040ez Divorce, Property Received From Your Spouse, Transfers Between Spouses E Education Savings Bond Program, Education Savings Bond Program Interest excluded under, Interest excluded under the Education Savings Bond Program. My1040ez Recordkeeping requirements, Education Savings Bond Program Employee stock options, Reminders Employee stock ownership plans (ESOPs), sales of stock to, Sales of Stock to ESOPs or Certain Cooperatives Employer identification numbers (EINs), Identifying number. My1040ez Empowerment zone, Exclusion of Gain From DC Zone Assets Endowment contracts, Single-premium life insurance, endowment, and annuity contracts. My1040ez Enterprise zone facility bonds, Enterprise zone facility bonds. My1040ez Equity option, Equity option. My1040ez Estate income received by beneficiary, Beneficiary of an estate or trust. My1040ez Exchanges of mutual fund shares, Exchange of Shares In One Mutual Fund For Shares In Another Mutual Fund Exclusion of gain DC zone assets, Exclusion of Gain From DC Zone Assets Exempt-interest dividends on mutual fund stock, Exempt-interest dividends on mutual fund stock. My1040ez Expenses of producing income, Expenses of Producing Income F Face-amount certificates, Face-Amount Certificates Fair market value, Fair market value. My1040ez , Fair market value less than donor's adjusted basis. My1040ez , Fair market value. My1040ez Federal guarantee on bonds, Federally guaranteed bonds. My1040ez Fees to buy or sell, Fees to buy or sell. My1040ez Financial asset securitization investment trusts (FASITs), FASITs First-in first-out (FIFO), First-in first-out (FIFO). My1040ez Foreign currency transactions, Foreign currency contract. My1040ez Foreign income, Reminders Form 1040, Form 1040. My1040ez , Form 1040A or Form 1040. My1040ez Form 1040, Schedule B, Schedule B (Form 1040A or 1040). My1040ez Form 1040, Schedule D, How to report gain. My1040ez Form 1040A, Form 1040A. My1040ez Form 1040X, Filing a claim for refund. My1040ez Form 1041, Filing requirement. My1040ez Form 1065, Filing requirement. My1040ez Schedule K-1, Schedule K-1 (Form 1065). My1040ez Form 1066, Schedule Q, Schedule Q (Form 1066). My1040ez , Investment expenses from pass-through entities. My1040ez Form 1096, File Form 1099-INT with the IRS. My1040ez , File Form 1099-DIV with the IRS. My1040ez , File Form 1099-B or Form 1099-S with the IRS. My1040ez Form 1099-B, Form 1099-B. My1040ez , Form 1099-B transactions. My1040ez , File Form 1099-B or Form 1099-S with the IRS. My1040ez Form 1099-CAP, Form 1099-CAP transactions. My1040ez Form 1099-DIV, General Information, Form 1099-DIV. My1040ez , Form 1099-DIV. My1040ez , File Form 1099-DIV with the IRS. My1040ez Form 1099-INT, General Information, Form 1099-INT. My1040ez , Form 1099-INT for U. My1040ez S. My1040ez savings bond interest. My1040ez , Form 1099-INT. My1040ez , File Form 1099-INT with the IRS. My1040ez , Forms 1099-INT and 1099-OID. My1040ez , Forms 1099-INT and 1099-OID. My1040ez Form 1099-MISC, Form 1099-MISC. My1040ez , Reporting Substitute Payments Form 1099-OID, Form 1099-OID. My1040ez , Form 1099-OID, Form 1099-OID. My1040ez , Forms 1099-INT and 1099-OID. My1040ez , Forms 1099-INT and 1099-OID. My1040ez Form 1099-S, Form 1099-S transactions. My1040ez , File Form 1099-B or Form 1099-S with the IRS. My1040ez Form 1120, Filing requirement. My1040ez Form 2439, Undistributed capital gains of mutual funds and REITs. My1040ez Form 3115, Change from method 2. My1040ez , Choosing To Amortize, How To Make the Mark-to-Market Election Form 4684, Ordinary loss or casualty loss. My1040ez Form 4797, How to report. My1040ez , Losses on Section 1244 (Small Business) Stock, How to report. My1040ez Form 4952, Form 4952 Form 6198, At-risk rules. My1040ez Form 6781, Form 6781. My1040ez , How to report. My1040ez , How To Report Gains and Losses (Form 6781), Section 1256 contracts and straddles. My1040ez Form 8275, Negligence or disregard of rules or regulations. My1040ez Form 8275-R, Negligence or disregard of rules or regulations. My1040ez Form 8582, Form 8582. My1040ez Form 8615, Tax on unearned income of certain children. My1040ez Form 8815, Form 8815. My1040ez , Figuring the interest part of the proceeds (Form 8815, line 6). My1040ez , Interest excluded under the Education Savings Bond Program. My1040ez Form 8824, How to report. My1040ez Form 8832, Clubs formed before 1997. My1040ez Form 8886, Reportable Transaction Disclosure Statement, Negligence or disregard of rules or regulations. My1040ez Form 8949 Bad debts, How to report bad debts. My1040ez Basis adjustment, Basis adjustment. My1040ez Capital Gains, Reporting Capital Gains and Losses Capital Losses, Reporting Capital Gains and Losses Cooperative, sale to certain, Sales of Stock to ESOPs or Certain Cooperatives Copyrights in musical works, Capital asset treatment for self-created musical works. My1040ez Employee stock ownership plan, sale to, Sales of Stock to ESOPs or Certain Cooperatives Empowerment Zone Assets, Exclusion of Gain From DC Zone Assets Exempt-interest dividends, Exempt-interest dividends on mutual fund stock. My1040ez Form 1099-B, Form 1099-B. My1040ez , Form 1099-B transactions. My1040ez Form 1099-CAP, Form 1099-CAP transactions. My1040ez Form 1099-S, Form 1099-S transactions. My1040ez Fractional shares, Fractional shares. My1040ez Gain, qualified small business stock, How to report gain. My1040ez How to fill in, generally, Reporting Capital Gains and Losses Long-term gains and losses, Long-term gains and losses. My1040ez Marked-to-market election, Mark-to-market election made. My1040ez Market discount bonds, Market discount bonds. My1040ez , Market discount bonds. My1040ez Musical compositions, Capital asset treatment for self-created musical works. My1040ez Nominees, Nominees. My1040ez Nonbusiness bad debt, Nonbusiness bad debt. My1040ez Nondividend distributions, Nondividend distributions. My1040ez Option, How to report. My1040ez Property bought at various times, Sale of property bought at various times. My1040ez Rollover, publicly traded securities, Rollover of Gain From Publicly Traded Securities Rollover, qualified small business stock, How to report gain. My1040ez Sale expenses, Sale expenses. My1040ez Short-term gains and losses, Short-term gains and losses. My1040ez Software, Stocks and Bonds Worthless securities, How to report loss. My1040ez Form SS-4, Identifying number. My1040ez Form W-8BEN, Nonresident aliens. My1040ez Form W-9, Certification. My1040ez Fractional shares, Fractional shares. My1040ez , Automatic investment service. My1040ez Free tax services, Free help with your tax return. My1040ez Frozen deposits, Interest income on frozen deposits. My1040ez , Frozen deposits. My1040ez Futures contracts Regulated, Regulated futures contract. My1040ez Securities, Securities futures contract. My1040ez , Securities futures contract to sell. My1040ez , Securities Futures Contracts Futures, commodity, Commodity Futures, Commodity futures. My1040ez Wash sales, Options and futures contracts. My1040ez G Gains on qualified small business stock, Gains on Qualified Small Business Stock Gains on sales or trades, How To Figure Gain or Loss, Gain on Sale or Trade of Depreciable Property, Property received from a related party. My1040ez (see also Capital gains and losses) Gifts, What's New, Income from property given to a child. My1040ez , Property Received as a Gift, Property received as a gift. My1040ez Gifts of shares, Shares received as gift. My1040ez Government obligations, Government obligations. My1040ez H Hedging transactions, Hedging exception. My1040ez , Hedging Transactions, Hedging transaction. My1040ez Help (see Tax help) Holding period Investment property, Holding Period Replacement stock, Holding period of replacement stock. My1040ez Shares acquired by reinvestment, Reinvested distributions. My1040ez Straddles, Holding Period and Loss Treatment Rules I Income from sources outside U. My1040ez S. My1040ez , Reminders Income tax treaties (Table 1-3), Qualified Dividends Indian tribal government, Indian tribal government. My1040ez Individual retirement arrangements (IRAs) Interest income, Individual retirement arrangements (IRAs). My1040ez Inflation-indexed debt instruments, Inflation-Indexed Debt Instruments, Stripped inflation-indexed debt instruments. My1040ez Inherited property Basis, Property Received as Inheritance Holding period, Inherited property. My1040ez Transfer by inheritance, Transfer by inheritance. My1040ez Insolvency of contractors, Insolvency of contractor. My1040ez Installment sales, Installment sales. My1040ez Insurance Borrowing on, Borrowing on insurance. My1040ez Dividends, interest on, Interest on insurance dividends. My1040ez , Dividends on insurance policies. My1040ez Interest option on, Interest option on insurance. My1040ez Life insurance companies, demutualization, Demutualization of Life Insurance Companies Life, paid to beneficiary, Insurance Prepaid premiums, Prepaid insurance premiums. My1040ez Single-premium life, Single-premium life insurance, endowment, and annuity contracts. My1040ez Trades, Insurance Policies and Annuities Veterans' dividends, interest on, Interest on VA dividends. My1040ez , Dividends on veterans' insurance. My1040ez Interest expenses Allocation of, Allocation of Interest Expense Investment interest, Investment Interest Limit on, Limit on interest deduction for market discount bonds. My1040ez , Limit on Deduction When to deduct, When To Deduct Investment Interest Margin accounts, Interest on margin accounts. My1040ez Paid in advance, Interest paid in advance. My1040ez Straddles, Interest expense and carrying charges on straddles. My1040ez Interest income, Interest Income Annuity contracts, Interest on annuity contract. My1040ez Bonds traded flat, Bonds traded flat. My1040ez Certificates of deposits, Certificates of deposit and other deferred interest accounts. My1040ez Condemnation awards, Interest on condemnation award. My1040ez Deferred interest accounts, Certificates of deposit and other deferred interest accounts. My1040ez Dividends on deposit or share accounts, Dividends that are actually interest. My1040ez Frozen deposits, Interest income on frozen deposits. My1040ez , Frozen deposits. My1040ez Gift for opening account, Gift for opening account. My1040ez Individual retirement arrangements (IRAs), Individual retirement arrangements (IRAs). My1040ez Installment sale payments, Installment sale payments. My1040ez Insurance dividends, Interest on insurance dividends. My1040ez Money market funds, Money market funds. My1040ez Nominee distributions, Nominees. My1040ez Prepaid insurance premiums, Prepaid insurance premiums. My1040ez Reporting, When To Report Interest Income, Penalty on early withdrawal of savings. My1040ez Seller-financed mortgage, Form 1040A. My1040ez , Interest on seller-financed mortgage. My1040ez Tax refunds, Interest on tax refunds. My1040ez Tax-exempt, Tax-Exempt Interest, Reporting tax-exempt interest. My1040ez Taxable, Taxable Interest — General, Bonds traded flat. My1040ez , Taxation of interest. My1040ez , Taxable Interest U. My1040ez S. My1040ez savings bonds, person responsible for tax (Table 1-2), Table 1-2. My1040ez Who Pays the Tax on U. My1040ez S. My1040ez Savings Bond Interest Underreported, Underreported interest and dividends. My1040ez Unstated, Unstated interest. My1040ez Usurious interest, Usurious interest. My1040ez VA insurance dividends, Interest on VA dividends. My1040ez Investment clubs, Investment Clubs, Filing requirement. My1040ez Investment counsel and advice, Investment counsel and advice. My1040ez Investment expenses, Investment Expenses Allocated, Allocated investment expenses. My1040ez At-risk rules, At-risk rules. My1040ez Deductible, Expenses of Producing Income Interest, Investment interest deducted. My1040ez Limits on deductions, Limits on Deductions Nondeductible, Nondeductible Expenses Pass-through entities, Investment expenses from pass-through entities. My1040ez Reporting requirements, How To Report Investment Expenses Investment income, Investment Income Children, Tax on unearned income of certain children. My1040ez , Investment income of child reported on parent's return. My1040ez General Information, General Information Net income, Net Investment Income Records to keep, General Information Reporting of (Table 1-1), Table 1-1. My1040ez Where To Report Common Types of Investment Income Investment property, Investment property. My1040ez Basis, Basis of Investment Property Definition, Investment property. My1040ez Gain or loss treatment, Investment property. My1040ez Gift, received as, Property Received as a Gift Holding period, Holding Period Liquidation, received in, Investment property received in liquidation. My1040ez Nontaxable trades, received in, Property Received in Nontaxable Trades Sales and trades, Sales and Trades of Investment Property Services, received for, Property Received for Services Spouse, received from, Property Received From Your Spouse Taxable trades, received in, Property Received in Taxable Trades J Joint accounts, Joint accounts. My1040ez Joint and separate returns, Joint return. My1040ez , Joint and separate returns. My1040ez L Life insurance companies demutualization, Demutualization of Life Insurance Companies Like-kind exchanges, Like-Kind Exchanges, Like-Kind Exchanges Basis of property received, Basis of property received. My1040ez Reporting requirements, How to report. My1040ez Liquidating distributions, Liquidating Distributions, Investment property received in liquidation. My1040ez Listed options, Listed option. My1040ez Load charges, Commissions and load charges. My1040ez Loans Below-market, Below-Market Loans, Effective dates. My1040ez Gift and demand, Gift and demand loans. My1040ez Guarantees, Loan guarantees. My1040ez Term, Term loans. My1040ez Local government obligations (see State or local government obligations) Long-term capital gains and losses, Short-Term or Long-Term Capital Gain or Loss, Long-term gains and losses. My1040ez Long-term debt instruments, Long-term debt instruments issued after 1954 and before May 28, 1969 (or before July 2, 1982, if a government instrument). My1040ez Losses on sales or trades, Property received from a related party. My1040ez (see also Capital gains and losses) Amount calculation, How To Figure Gain or Loss Carryback election, Loss carryback election. My1040ez , Loss carryback election. My1040ez Mutual fund or REIT stock held 6 months or less, Loss on mutual fund or REIT stock held 6 months or less. My1040ez Passive activities, Passive activity losses. My1040ez , Passive activity losses. My1040ez , Passive activity losses and credits. My1040ez , Losses from passive activities. My1040ez Related parties, Losses on Sales or Trades of Property Section 1244 (small business) stock, Losses on Section 1244 (Small Business) Stock Small business investment company stock, Losses on Small Business Investment Company Stock Wash sales, Coordination of Loss Deferral Rules and Wash Sale Rules M Mark-to-market election, Mark-to-market election made. My1040ez Marked-to-market rules, Marked-to-Market Rules, Mark-to-market election made. My1040ez Market discount bonds, Market discount. My1040ez , Market Discount Bonds, Partial principal payments. My1040ez , Limit on interest deduction for market discount bonds. My1040ez , Market discount on bonds. My1040ez , Market discount bonds. My1040ez , Market discount bonds. My1040ez Accrued market discount, Accrued market discount. My1040ez Maximum rate of capital gains (Table 4-4), Table 4-4. My1040ez What Is Your Maximum Capital Gain Rate? Mechanics' and suppliers' liens, Mechanics' and suppliers' liens. My1040ez Meetings, expenses of attending, Stockholders' meetings. My1040ez Missing children, photographs of, Reminders Mixed straddles, Mixed straddles. My1040ez , Mixed straddles. My1040ez Money market funds, Money Market Funds Interest income, Money market funds. My1040ez Mortgages Revenue bonds, Mortgage revenue bonds. My1040ez Secondary liability on home, Secondary liability on home mortgage. My1040ez Seller-financed, Interest on seller-financed mortgage. My1040ez Municipal bonds, State or Local Government Obligations, Reporting tax-exempt interest. My1040ez , Tax-exempt state and local government bonds. My1040ez (see also State or local government obligations) Mutual funds, Capital Gain Distributions, Other income (nonpassive income). My1040ez , Choosing to include net capital gain. My1040ez , Including mutual fund or REMIC expenses in income. My1040ez , Shares in a mutual fund or REIT. My1040ez , Special Rules for Mutual Funds, Loss on mutual fund or REIT stock held 6 months or less. My1040ez Individual retirement arrangements (IRAs), Qualified retirement plans and IRAs. My1040ez publicly offered, Publicly-offered mutual funds. My1040ez N Net Investment Income Tax, What's New, Net investment income tax (NIIT). My1040ez New York Liberty bonds, New York Liberty bonds. My1040ez NIIT, What's New, Net investment income tax (NIIT). My1040ez Nominee distributions Dividends, Nominees. My1040ez , Nominees. My1040ez Interest income, Nominees. My1040ez , Nominee distributions. My1040ez Original issue discount, Nominee. My1040ez Nonbusiness bad debts, Nonbusiness bad debt. My1040ez , Nonbusiness Bad Debts Noncapital assets, Capital Assets and Noncapital Assets Nondeductible investment expenses, Nondeductible Expenses Nondividend distributions, Nondividend Distributions Nonequity options, Nonequity option. My1040ez Nonqualified preferred stock, Nonqualified preferred stock. My1040ez Nonresident aliens Backup withholding, Nonresident aliens. My1040ez Nontaxable return of capital, Basis adjustment. My1040ez Nontaxable stock rights, Nontaxable stock rights. My1040ez Nontaxable trades, Nontaxable Trades, Nontaxable trades. My1040ez Notes Individuals, bought at discount, Notes of individuals. My1040ez U. My1040ez S. My1040ez Treasury (see U. My1040ez S. My1040ez Treasury bills, notes, and bonds) O Office expenses, Clerical help and office rent. My1040ez Options, Options Calls and puts, Puts and Calls Cash settlement, Cash-settled options. My1040ez , Cash settlement option. My1040ez Dealer equity, Dealer equity option. My1040ez Deep-in-the-money, Qualified covered call options and optioned stock. My1040ez Employee stock, Reminders Equity, Equity option. My1040ez Gain or loss, Options, Qualified covered call options and optioned stock. My1040ez Holding period, Option exercised. My1040ez Listed, Listed option. My1040ez Nonequity, Nonequity option. My1040ez Qualified covered call, Qualified covered call options and optioned stock. My1040ez Reporting requirements, How to report. My1040ez Section 1256 contracts, Section 1256 Contracts Marked to Market, Section 1256 contract options. My1040ez Wash sales, Options and futures contracts. My1040ez Ordinary gains and losses, Capital or Ordinary Gain or Loss, Ordinary loss or casualty loss. My1040ez Original issue discount (OID), Original issue discount. My1040ez , Original Issue Discount (OID), Stripped tax-exempt obligations. My1040ez , Original issue discount (OID) on debt instruments. My1040ez Adjustment to, Original issue discount (OID) adjustment. My1040ez Reporting requirements, Exceptions to reporting OID. My1040ez , Form 1099-OID Rules, Applying the OID Rules P Pass-through entities Rollover of gain, Pass-through entity. My1040ez Passive activities Gains and losses, Passive activity losses. My1040ez , Passive activity losses. My1040ez , Passive activity losses and credits. My1040ez , Losses from passive activities. My1040ez , Passive activity gains and losses. My1040ez Patronage dividends, Patronage dividends. My1040ez Penalties Accuracy-related, Accuracy-related penalty. My1040ez , Accuracy-related penalties. My1040ez Backup withholding, Penalties. My1040ez Civil fraud, Civil fraud penalty. My1040ez Early withdrawal, Interest subject to penalty for early withdrawal. My1040ez , Penalty on early withdrawal of savings. My1040ez Failure to pay tax, Failure to pay tax. My1040ez Failure to supply SSN, Penalty for failure to supply SSN. My1040ez Substantial understatement, Substantial understatement of tax. My1040ez Valuation misstatement, Substantial valuation misstatement. My1040ez Political parties Debts owed by, Debts owed by political parties. My1040ez Preferred stock Nonqualified, Nonqualified preferred stock. My1040ez Redeemable at a premium, Preferred stock redeemable at a premium. My1040ez Stripped, Stripped Preferred Stock Premiums on bonds, Bond premium. My1040ez , Premiums on bonds. My1040ez Private activity bonds, Private activity bonds. My1040ez Public utility stock reinvestment, Public utilities. My1040ez Publications (see Tax help) Puts and calls, Puts and Calls Table 4-3, Table 4-3. My1040ez Puts and Calls Q Qualified dividends, Qualified dividends. My1040ez Qualified small business stock, Qualified small business stock. My1040ez , Qualified small business stock. My1040ez , Gains on Qualified Small Business Stock Gains on, Gains on Qualified Small Business Stock R Real estate investment trusts (REITs), Undistributed capital gains of mutual funds and REITs. My1040ez , Shares in a mutual fund or REIT. My1040ez , Loss on mutual fund or REIT stock held 6 months or less. My1040ez Real estate mortgage investment conduits (REMICs), REMICs, Expenses. My1040ez , Including mutual fund or REMIC expenses in income. My1040ez Regular interest, Regular Interest Residual interest, Residual Interest, Residual interests in a REMIC. My1040ez Recordkeeping requirements Education Savings Bond Program, Education Savings Bond Program Investment income, General Information Small business stock, Losses on Section 1244 (Small Business) Stock Redemption of stock, Redemption of stock. My1040ez Redemption or retirement of bonds, Redemption or retirement of bonds. My1040ez Regulated futures contract, Regulated futures contract. My1040ez Reinvestment rights, Commissions and load charges. My1040ez REITs (see Real estate investment trusts (REITs)) Related party transactions, Unpaid expenses owed to related party. My1040ez , Related Party Transactions, Property received from a related party. My1040ez Related persons, Related persons. My1040ez REMICs (see Real estate mortgage investment conduits (REMICs)) Reorganizations, corporate, Corporate reorganizations. My1040ez Reporting requirements Bad debts, How to report bad debts. My1040ez Bond premium amortization, How To Report Amortization Capital gains and losses, How To Report Gains and Losses (Form 6781), How to report gain. My1040ez , Reporting Capital Gains and Losses Dividend income, How To Report Dividend Income Exempt-interest dividends, Information reporting requirement. My1040ez Interest on U. My1040ez S. My1040ez savings bonds, Reporting options for cash method taxpayers. My1040ez , Choice to report interest each year. My1040ez Investment expenses, How To Report Investment Expenses Like-kind exchanges, How to report. My1040ez Options, How to report. My1040ez Original issue discount, Form 1099-OID S corporation income, deductions, and credits, Reporting S corporation income, deductions, and credits. My1040ez Section 1256 contracts, How To Report State or local government obligations, Information reporting requirement. My1040ez Straddles, Section 1256 contracts and straddles. My1040ez Substitute payments, Reporting Substitute Payments Tax-exempt interest income, Reporting tax-exempt interest. My1040ez Trades, How To Report Repossession of real property, Real property repossessed. My1040ez Restricted property, Restricted property. My1040ez Restricted stock, Dividends received on restricted stock. My1040ez Retirement of debt instrument, Retirement of debt instrument. My1040ez Return of capital (see Nondividend distributions) Revocable trust, trustee's commissions for, Trustee's commissions for revocable trust. My1040ez Rollover of gain from sale Securities, Rollover of Gain From Publicly Traded Securities, Rollover of Gain S S corporations, S Corporations, S corporation stock. My1040ez Safe deposit box, Safe deposit box rent. My1040ez Sales and trades of investment property, Sales and Trades of Investment Property Definition, What Is a Sale or Trade? Savings bonds (see U. My1040ez S. My1040ez savings bonds) SBIC stock (see Small business investment company stock) Scrip dividends, Scrip dividends. My1040ez Section 1202 gain, Section 1202 Exclusion, Gain on qualified small business stock. My1040ez Section 1244 stock, Losses on Section 1244 (Small Business) Stock Section 1250 gain, Unrecaptured section 1250 gain. My1040ez Section 1256 contracts, Section 1256 Contracts Marked to Market, Section 1256 contracts. My1040ez , Section 1256 contract options. My1040ez , Section 1256 contracts and straddles. My1040ez Net gain on, Net section 1256 contracts gain. My1040ez Net loss on, Net section 1256 contracts loss. My1040ez Reporting requirements, How To Report Securities Holding period, Holding Period Installment sales, Installment sales. My1040ez Lost, stolen, etc. My1040ez , cost of replacing, Cost of replacing missing securities. My1040ez Rollover of gain from sale, Rollover of Gain From Publicly Traded Securities, Rollover of Gain Traders in, Special Rules for Traders in Securities Worthless, Worthless Securities, Worthless securities. My1040ez Securities futures contracts, Dealer securities futures contract. My1040ez , Securities futures contract. My1040ez , Securities Futures Contracts Self-employment income, Self-Employment Income Self-employment tax, Self-employment tax. My1040ez Seller-financed mortgages, Interest on seller-financed mortgage. My1040ez Short sales, Short Sales, Extraordinary dividends. My1040ez Adjusted basis, Short sales. My1040ez Expenses of, Short-sale expenses. My1040ez Extraordinary dividends, Extraordinary dividends. My1040ez Puts, Put option as short sale. My1040ez Small business investment company stock, Short sale. My1040ez Short-term capital gains and losses, Short-Term or Long-Term Capital Gain or Loss, Short-term gains and losses. My1040ez Short-term obligations, Discount on Short-Term Obligations, Choosing to include accrued discount and other interest in current income. My1040ez , Acquisition discount on short-term obligations. My1040ez , Short-term government obligations. My1040ez Interest deduction, limit on, Limit on interest deduction for short-term obligations. My1040ez Sixty/forty (60/40) rule, 60/40 rule. My1040ez Small business investment company stock, Losses on Small Business Investment Company Stock, SSBIC stock. My1040ez Reporting requirements, How to report. My1040ez Small business stock, Qualified small business stock. My1040ez , Losses on Section 1244 (Small Business) Stock, Qualified small business stock. My1040ez , Gains on Qualified Small Business Stock Social security number (SSN) Custodial accounts, Custodian account for your child. My1040ez Joint accounts, SSN for joint account. My1040ez Requirement to give, Social security number (SSN). My1040ez Specialized small business investment company stock, Specialized small business investment company stock or partnership interest. My1040ez , SSBIC stock. My1040ez Spouses Transfers between, Property Received From Your Spouse, Transfers Between Spouses (see also Related party transactions) State or local government obligations, State or Local Government Obligations, Taxable Interest Market discount bonds (see Market discount bonds) Private activity bonds, Private activity bonds. My1040ez Registration requirement, Registration requirement. My1040ez Tax-exempt interest, Tax-Exempt Interest Taxable interest, Taxable Interest Stock Basis, Basis adjustment. My1040ez , Basis adjustment. My1040ez , Basis. My1040ez , Stocks and Bonds, Basis of replacement stock. My1040ez Capital asset, Stocks, stock rights, and bonds. My1040ez Constructive ownership, Constructive ownership of stock. My1040ez Convertible, Convertible stocks and bonds. My1040ez Corporate, Corporate Stocks Dividends (see Dividends) Fractional shares, Fractional shares. My1040ez , Automatic investment service. My1040ez Identification, Identifying stock or bonds sold. My1040ez Installment sales, Installment sales. My1040ez Nonqualified preferred stock, Nonqualified preferred stock. My1040ez Options for employees, Reminders Public utility, reinvestment, Public utilities. My1040ez Redemption of, Redemption of stock. My1040ez Replacement stock, Basis of replacement stock. My1040ez Restricted stock, Dividends received on restricted stock. My1040ez Rights, Distributions of Stock and Stock Rights, Stock rights. My1040ez , Nontaxable stock rights. My1040ez S corporations, S corporation stock. My1040ez Sales to ESOPs or cooperatives, Sales of Stock to ESOPs or Certain Cooperatives Small business, Qualified small business stock. My1040ez , Qualified small business stock. My1040ez Specialized small business investment company, Specialized small business investment company stock or partnership interest. My1040ez Splits, Stock splits. My1040ez Straddles (see Straddles) Stripped preferred stock, Stripped Preferred Stock Surrender of, Surrender of stock. My1040ez Trades, Stock for stock of the same corporation. My1040ez Trust instruments treated as, Certain trust instruments treated as stock. My1040ez Straddles, Straddles, Interest expense and carrying charges relating to mixed straddle account positions. My1040ez Holding period, Holding Period and Loss Treatment Rules Interest expense and carrying charges, Interest expense and carrying charges on straddles. My1040ez Loss deferral rules, Loss Deferral Rules Mixed, Mixed straddles. My1040ez , Mixed straddles. My1040ez , Mixed Straddle Elections Reporting requirements, Section 1256 contracts and straddles. My1040ez Stripped bonds and coupons, Stripped bonds or coupons. My1040ez , Stripped Bonds and Coupons, Stripped tax-exempt obligation. My1040ez Stripped preferred stock, Stripped Preferred Stock Substitute payments, Reporting Substitute Payments T Tables Capital gains maximum rate (Table 4-4), Table 4-4. My1040ez What Is Your Maximum Capital Gain Rate? Income tax treaties (Table 1-3), Qualified Dividends Investment income, reporting of (Table 1-1), Table 1-1. My1040ez Where To Report Common Types of Investment Income Puts and calls (Table 4-3), Table 4-3. My1040ez Puts and Calls U. My1040ez S. My1040ez savings bonds, person responsible for tax (Table 1-2), Table 1-2. My1040ez Who Pays the Tax on U. My1040ez S. My1040ez Savings Bond Interest Tax credit bonds, Tax credit bonds. My1040ez Tax help, How To Get Tax Help Tax rates, What's New Capital gain and losses, Capital Gain Tax Rates Tax refunds Interest on, Interest on tax refunds. My1040ez Tax shelters, Tax Shelters and Other Reportable Transactions, Whether To Invest Penalties, Penalties Reporting requirements, Investor Reporting Rules to curb abuse, Rules To Curb Abusive Tax Shelters Tax-exempt bonds, Tax-exempt state and local government bonds. My1040ez Tax-exempt income Expenses of, Tax-exempt income. My1040ez Interest, Tax-Exempt Interest, Reporting tax-exempt interest. My1040ez Tax-exempt obligations, Tax-Exempt Interest, Stripped tax-exempt obligations. My1040ez , Discounted tax-exempt obligations. My1040ez Taxable income, expenses of, Expenses for both tax-exempt and taxable income. My1040ez Taxes State and local transfer, State and local transfer taxes. My1040ez State income, State income taxes. My1040ez Term loans, Term loans. My1040ez Trade or business, Passive activity. My1040ez Traders in securities, Special Rules for Traders in Securities Trades Insurance, Insurance Policies and Annuities Investment property, Sales and Trades of Investment Property Like-kind, Like-Kind Exchanges, Like-Kind Exchanges Nontaxable, Property Received in Nontaxable Trades, Nontaxable Trades, Nontaxable trades. My1040ez Reporting requirements, How To Report Stock, Stock for stock of the same corporation. My1040ez Taxable, Property Received in Taxable Trades U. My1040ez S. My1040ez Treasury notes or bonds, U. My1040ez S. My1040ez Treasury Notes or Bonds Treasury bills, notes, and bonds (see U. My1040ez S. My1040ez Treasury bills, notes, and bonds) Treasury inflation-indexed securities, Inflation-Indexed Debt Instruments Treasury inflation-protected securities (TIPS), Treasury inflation-protected securities (TIPS). My1040ez , Inflation-Indexed Debt Instruments Treaties, income tax (Table 1-3), Qualified Dividends Trust income received by beneficiary, Beneficiary of an estate or trust. My1040ez Trustee's commission for revocable trust, Trustee's commissions for revocable trust. My1040ez U U. My1040ez S. My1040ez savings bonds, U. My1040ez S. My1040ez obligations. My1040ez , U. My1040ez S. My1040ez Savings Bonds Reporting interest on, U. My1040ez S. My1040ez obligations. My1040ez , U. My1040ez S. My1040ez Savings Bonds Retirement or profit-sharing plan, distributed from, Savings bonds distributed from a retirement or profit-sharing plan. My1040ez Worksheet, Worksheet for savings bonds distributed from a retirement or profit-sharing plan. My1040ez Tax, responsible person (Table 1-2), Table 1-2. My1040ez Who Pays the Tax on U. My1040ez S. My1040ez Savings Bond Interest U. My1040ez S. My1040ez Treasury bills, notes, and bonds, U. My1040ez S. My1040ez obligations. My1040ez , U. My1040ez S. My1040ez Treasury Bills, Notes, and Bonds, U. My1040ez S. My1040ez Treasury Notes or Bonds, U. My1040ez S. My1040ez Treasury notes and bonds. My1040ez Undistributed capital gains, Undistributed capital gains. My1040ez Usurious interest, Usurious interest. My1040ez V Veterans' insurance Dividends on, Dividends on veterans' insurance. My1040ez W Warrants, Warrants. My1040ez Wash sales, Wash Sales, Securities Futures Contracts Holding period, Wash sales. My1040ez Loss deferral rules, straddles, Coordination of Loss Deferral Rules and Wash Sale Rules Withholding, backup, Backup withholding. My1040ez Worksheets Capital loss carryover, Worksheet 4-1. My1040ez Capital Loss Carryover Worksheet Worthless securities, Worthless Securities, Worthless securities. My1040ez Prev  Up     Home   More Online Publications