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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Oregon Tax Return Form 1040ez

State Taxes Free E File2012 Ez Tax Form2013 1040ez Tax FormIrs Free Tax ReturnAmmended Tax Return2010 Tax ReturnFederal Ez FormIrs Tax Return1040ez 2012How Do I File Self Employment TaxesForgot To File 2012 Taxes1040x 2010How Long Does An Amended Tax Return TakeFile Extension 2012 TaxesIrs 2012 Tax Forms 1040ezForms For Filing State Tax ReturnsEzformFile Free Federal And State Tax ReturnIrs ProblemsUnemployment Tax ReturnHow Do I File An Amended Tax Return1040formForm 1040x InstructionsFile Taxes Online Free 2012Tax FormsFree Federal And State Tax E FileFile Corporate Tax Extension OnlineForm1040ezEfile 2011 TaxBlank Printable 1040ez FormTaxFederal 1040x InstructionsFile A Tax ReturnH R Block Free FileFiling 2010 Taxes Online FreeFree 1040ezFile My State Taxes For Free OnlineTax Forms 2011 FederalFree TaxFile For Extension 2011 Taxes Free

Oregon Tax Return Form 1040ez

Oregon tax return form 1040ez 6. Oregon tax return form 1040ez   Catch-Up Contributions Table of Contents The most that can be contributed to your 403(b) account is the lesser of your limit on annual additions or your limit on elective deferrals. Oregon tax return form 1040ez If you will be age 50 or older by the end of the year, you may also be able to make additional catch-up contributions. Oregon tax return form 1040ez These additional contributions cannot be made with after-tax employee contributions. Oregon tax return form 1040ez You are eligible to make catch-up contributions if: You will have reached age 50 by the end of the year, and The maximum amount of elective deferrals that can be made to your 403(b) account have been made for the plan year. Oregon tax return form 1040ez The maximum amount of catch-up contributions is the lesser of: $5,500 for 2013 and unchanged for 2014, or The excess of your compensation for the year, over the elective deferrals that are not catch-up contributions. Oregon tax return form 1040ez Figuring catch-up contributions. Oregon tax return form 1040ez   When figuring allowable catch-up contributions, combine all catch-up contributions made by your employer on your behalf to the following plans. Oregon tax return form 1040ez Qualified retirement plans. Oregon tax return form 1040ez (To determine if your plan is a qualified plan, ask your plan administrator. Oregon tax return form 1040ez ) 403(b) plans. Oregon tax return form 1040ez Simplified employee pension (SEP) plans. Oregon tax return form 1040ez SIMPLE plans. Oregon tax return form 1040ez   The total amount of the catch-up contributions on your behalf to all plans maintained by your employer cannot be more than the annual limit. Oregon tax return form 1040ez For 2013 the limit is $5,500, unchanged for 2014. Oregon tax return form 1040ez    If you are eligible for both the 15-year rule increase in elective deferrals and the age 50 catch-up, allocate amounts first under the 15-year rule and next as an age 50 catch-up. Oregon tax return form 1040ez    Catch-up contributions do not affect your MAC. Oregon tax return form 1040ez Therefore, the maximum amount that you are allowed to have contributed to your 403(b) account is your MAC plus your allowable catch-up contribution. Oregon tax return form 1040ez You can use Worksheet C in chapter 9 to figure your limit on catch-up contributions. Oregon tax return form 1040ez Prev  Up  Next   Home   More Online Publications
Español

Federal Retirement Thrift Investment Board

The Federal Retirement Thrift Investment Board administers the Thrift Savings Plan, a tax-deferred retirement account similar to a 401(k).

Contact the Agency or Department

Website: Federal Retirement Thrift Investment Board

Address: Thrift Savings Plan
PO Box 385021

Birmingham, AL 35238

Phone Number: (404) 233-4400 (for international callers who cannot call toll free)

Toll-free: (877) 968-3778

TTY: (877) 847-4385

The Oregon Tax Return Form 1040ez

Oregon tax return form 1040ez Publication 523 - Main Content Table of Contents Main HomeVacant land. Oregon tax return form 1040ez Factors used to determine main home. Oregon tax return form 1040ez Figuring Gain or LossSelling Price Amount Realized Adjusted Basis Amount of Gain or Loss Dispositions Other Than Sales Determining BasisCost As Basis Basis Other Than Cost Adjusted Basis Excluding the GainMaximum Exclusion Ownership and Use Tests Reduced Maximum Exclusion Nonqualified Use Business Use or Rental of HomeUnrecaptured section 1250 gain. Oregon tax return form 1040ez Property Used Partly for Business or Rental Reporting the SaleSeller-financed mortgage. Oregon tax return form 1040ez Individual taxpayer identification number (ITIN). Oregon tax return form 1040ez More information. Oregon tax return form 1040ez Comprehensive Examples Special SituationsException for sales to related persons. Oregon tax return form 1040ez Deducting Taxes in the Year of SaleForm 1099-S. Oregon tax return form 1040ez More information. Oregon tax return form 1040ez Recapturing (Paying Back) a Federal Mortgage Subsidy Recapture of First-Time Homebuyer CreditExample. Oregon tax return form 1040ez Worksheets How To Get Tax HelpLow Income Taxpayer Clinics Main Home This section explains the term “main home. Oregon tax return form 1040ez ” Usually, the home you live in most of the time is your main home and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. Oregon tax return form 1040ez To exclude gain under the rules in this publication, you in most cases must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale. Oregon tax return form 1040ez Land. Oregon tax return form 1040ez   If you sell the land on which your main home is located, but not the house itself, you cannot exclude any gain you have from the sale of the land. Oregon tax return form 1040ez Example. Oregon tax return form 1040ez You buy a piece of land and move your main home to it. Oregon tax return form 1040ez Then, you sell the land on which your main home was located. Oregon tax return form 1040ez This sale is not considered a sale of your main home, and you cannot exclude any gain on the sale of the land. Oregon tax return form 1040ez Vacant land. Oregon tax return form 1040ez   The sale of vacant land is not a sale of your main home unless: The vacant land is adjacent to land containing your home, You owned and used the vacant land as part of your main home, The separate sale of your home satisfies the requirements for exclusion and occurs within 2 years before or 2 years after the date of the sale of the vacant land, and The other requirements for excluding gain from the sale of a main home have been satisfied with respect to the vacant land. Oregon tax return form 1040ez If these requirements are met, the sale of the home and the sale of the vacant land are treated as one sale and only one maximum exclusion can be applied to any gain. Oregon tax return form 1040ez See Excluding the Gain , later. Oregon tax return form 1040ez The destruction of your home is treated as a sale of your home. Oregon tax return form 1040ez As a result, you may be able to meet these requirements if you sell vacant land used as a part of your main home within 2 years from the date of the destruction of your main home. Oregon tax return form 1040ez For information, see Publication 547. Oregon tax return form 1040ez More than one home. Oregon tax return form 1040ez   If you have more than one home, you can exclude gain only from the sale of your main home. Oregon tax return form 1040ez You must include in income the gain from the sale of any other home. Oregon tax return form 1040ez If you have two homes and live in each of them, your main home is ordinarily the one you live in most of the time during the year. Oregon tax return form 1040ez Example 1. Oregon tax return form 1040ez You own two homes, one in New York and one in Florida. Oregon tax return form 1040ez From 2009 through 2013, you live in the New York home for 7 months and in the Florida residence for 5 months of each year. Oregon tax return form 1040ez In the absence of facts and circumstances indicating otherwise, the New York home is your main home. Oregon tax return form 1040ez You would be eligible to exclude the gain from the sale of the New York home but not of the Florida home in 2013. Oregon tax return form 1040ez Example 2. Oregon tax return form 1040ez You own a house, but you live in another house that you rent. Oregon tax return form 1040ez The rented house is your main home. Oregon tax return form 1040ez Example 3. Oregon tax return form 1040ez You own two homes, one in Virginia and one in New Hampshire. Oregon tax return form 1040ez In 2009 and 2010, you lived in the Virginia home. Oregon tax return form 1040ez In 2011 and 2012, you lived in the New Hampshire home. Oregon tax return form 1040ez In 2013, you lived again in the Virginia home. Oregon tax return form 1040ez Your main home in 2009, 2010, and 2013 is the Virginia home. Oregon tax return form 1040ez Your main home in 2011 and 2012 is the New Hampshire home. Oregon tax return form 1040ez You would be eligible to exclude gain from the sale of either home (but not both) in 2013. Oregon tax return form 1040ez Factors used to determine main home. Oregon tax return form 1040ez   In addition to the amount of time you live in each home, other factors are relevant in determining which home is your main home. Oregon tax return form 1040ez Those factors include the following. Oregon tax return form 1040ez Your place of employment. Oregon tax return form 1040ez The location of your family members' main home. Oregon tax return form 1040ez Your mailing address for bills and correspondence. Oregon tax return form 1040ez The address listed on your: Federal and state tax returns, Driver's license, Car registration, and Voter registration card. Oregon tax return form 1040ez The location of the banks you use. Oregon tax return form 1040ez The location of recreational clubs and religious organizations of which you are a member. Oregon tax return form 1040ez Property used partly as your main home. Oregon tax return form 1040ez   If you use only part of the property as your main home, the rules discussed in this publication apply only to the gain or loss on the sale of that part of the property. Oregon tax return form 1040ez For details, see Business Use or Rental of Home , later. Oregon tax return form 1040ez Figuring Gain or Loss To figure the gain or loss on the sale of your main home, you must know the selling price, the amount realized, and the adjusted basis. Oregon tax return form 1040ez Subtract the adjusted basis from the amount realized to get your gain or loss. Oregon tax return form 1040ez     Selling price     − Selling expenses       Amount realized     − Adjusted basis       Gain or loss   Gain. Oregon tax return form 1040ez   Gain is the excess of the amount realized over the adjusted basis of the property. Oregon tax return form 1040ez Loss. Oregon tax return form 1040ez   Loss is the excess of the adjusted basis over the amount realized for the property. Oregon tax return form 1040ez Selling Price The selling price is the total amount you receive for your home. Oregon tax return form 1040ez It includes money and the fair market value of any other property or any other services you receive and all notes, mortgages or other debts assumed by the buyer as part of the sale. Oregon tax return form 1040ez Personal property. Oregon tax return form 1040ez   The selling price of your home does not include amounts you received for personal property sold with your home. Oregon tax return form 1040ez Personal property is property that is not a permanent part of the home. Oregon tax return form 1040ez Examples are furniture, draperies, rugs, a washer and dryer, and lawn equipment. Oregon tax return form 1040ez Separately stated amounts you received for these items should not be shown on Form 1099-S (discussed later). Oregon tax return form 1040ez Any gains from sales of personal property must be included in your income, but not as part of the sale of your home. Oregon tax return form 1040ez Payment by employer. Oregon tax return form 1040ez   You may have to sell your home because of a job transfer. Oregon tax return form 1040ez If your employer pays you for a loss on the sale or for your selling expenses, do not include the payment as part of the selling price. Oregon tax return form 1040ez Your employer will include it as wages in box 1 of your Form W-2 and you will include it in your income on Form 1040, line 7, or on Form 1040NR, line 8. Oregon tax return form 1040ez Option to buy. Oregon tax return form 1040ez   If you grant an option to buy your home and the option is exercised, add the amount you receive for the option to the selling price of your home. Oregon tax return form 1040ez If the option is not exercised, you must report the amount as ordinary income in the year the option expires. Oregon tax return form 1040ez Report this amount on Form 1040, line 21, or on Form 1040NR, line 21. Oregon tax return form 1040ez Form 1099-S. Oregon tax return form 1040ez   If you received Form 1099-S, box 2 (gross proceeds) should show the total amount you received for your home. Oregon tax return form 1040ez   However, box 2 will not include the fair market value of any services or property other than cash or notes you received or will receive. Oregon tax return form 1040ez Instead, box 4 will be checked to indicate your receipt or expected receipt of these items. Oregon tax return form 1040ez Amount Realized The amount realized is the selling price minus selling expenses. Oregon tax return form 1040ez Selling expenses. Oregon tax return form 1040ez   Selling expenses include: Commissions, Advertising fees, Legal fees, and Loan charges paid by the seller, such as loan placement fees or “points. Oregon tax return form 1040ez ” Adjusted Basis While you owned your home, you may have made adjustments (increases or decreases) to the basis. Oregon tax return form 1040ez This adjusted basis must be determined before you can figure gain or loss on the sale of your home. Oregon tax return form 1040ez For information on how to figure your home's adjusted basis, see Determining Basis , later. Oregon tax return form 1040ez Amount of Gain or Loss To figure the amount of gain or loss, compare the amount realized to the adjusted basis. Oregon tax return form 1040ez Gain on sale. Oregon tax return form 1040ez   If the amount realized is more than the adjusted basis, the difference is a gain and, except for any part you can exclude, generally is taxable. Oregon tax return form 1040ez Loss on sale. Oregon tax return form 1040ez   If the amount realized is less than the adjusted basis, the difference is a loss. Oregon tax return form 1040ez Generally, a loss on the sale of your main home cannot be deducted. Oregon tax return form 1040ez Jointly owned home. Oregon tax return form 1040ez   If you and your spouse sell your jointly owned home and file a joint return, you figure your gain or loss as one taxpayer. Oregon tax return form 1040ez Separate returns. Oregon tax return form 1040ez   If you file separate returns, each of you must figure your own gain or loss according to your ownership interest in the home. Oregon tax return form 1040ez Your ownership interest is generally determined by state law. Oregon tax return form 1040ez Joint owners not married. Oregon tax return form 1040ez   If you and a joint owner other than your spouse sell your jointly owned home, each of you must figure your own gain or loss according to your ownership interest in the home. Oregon tax return form 1040ez Each of you applies the rules discussed in this publication on an individual basis. Oregon tax return form 1040ez Dispositions Other Than Sales Some special rules apply to other dispositions of your main home. Oregon tax return form 1040ez Foreclosure or repossession. Oregon tax return form 1040ez   If your home was foreclosed on or repossessed, you have a disposition. Oregon tax return form 1040ez See Publication 4681 to determine if you have ordinary income, gain, or loss. Oregon tax return form 1040ez More information. Oregon tax return form 1040ez   If part of a home is used for business or rental purposes, see Foreclosures and Repossessions in chapter 1 of Publication 544 for more information. Oregon tax return form 1040ez Publication 544 has examples of how to figure gain or loss on a foreclosure or repossession. Oregon tax return form 1040ez Abandonment. Oregon tax return form 1040ez   If you abandon your home, see Publication 4681 to determine if you have ordinary income, gain, or loss. Oregon tax return form 1040ez Trading (exchanging) homes. Oregon tax return form 1040ez   If you trade your home for another home, treat the trade as a sale and a purchase. Oregon tax return form 1040ez Example. Oregon tax return form 1040ez You owned and lived in a home with an adjusted basis of $41,000. Oregon tax return form 1040ez A real estate dealer accepted your old home as a trade-in and allowed you $50,000 toward a new home priced at $80,000. Oregon tax return form 1040ez This is treated as a sale of your old home for $50,000 with a gain of $9,000 ($50,000 − $41,000). Oregon tax return form 1040ez If the dealer had allowed you $27,000 and assumed your unpaid mortgage of $23,000 on your old home, your sales price would still be $50,000 (the $27,000 trade-in allowed plus the $23,000 mortgage assumed). Oregon tax return form 1040ez Transfer to spouse. Oregon tax return form 1040ez   If you transfer your home to your spouse or you transfer it to your former spouse incident to your divorce, you in most cases have no gain or loss (unless the Exception, discussed next, applies). Oregon tax return form 1040ez This is true even if you receive cash or other consideration for the home. Oregon tax return form 1040ez As a result, the rules explained in this publication do not apply. Oregon tax return form 1040ez   If you owned your home jointly with your spouse and transfer your interest in the home to your spouse, or to your former spouse incident to your divorce, the same rule applies. Oregon tax return form 1040ez You have no gain or loss. Oregon tax return form 1040ez Exception. Oregon tax return form 1040ez   These transfer rules do not apply if your spouse or former spouse is a nonresident alien. Oregon tax return form 1040ez In that case, you generally will have a gain or loss. Oregon tax return form 1040ez More information. Oregon tax return form 1040ez    See Property Settlements in Publication 504, Divorced or Separated Individuals, for more information. Oregon tax return form 1040ez Involuntary conversion. Oregon tax return form 1040ez   You have a disposition when your home is destroyed or condemned and you receive other property or money in payment, such as insurance or a condemnation award. Oregon tax return form 1040ez This is treated as a sale and you may be able to exclude all or part of any gain from the destruction or condemnation of your home, as explained later under Special Situations (see Home destroyed or condemned ). Oregon tax return form 1040ez Determining Basis You need to know your basis in your home to figure any gain or loss when you sell it. Oregon tax return form 1040ez Your basis in your home is determined by how you got the home. Oregon tax return form 1040ez Generally, your basis is its cost if you bought it or built it. Oregon tax return form 1040ez If you got it in some other way (inheritance, gift, etc. Oregon tax return form 1040ez ), your basis is generally either its fair market value when you received it or the adjusted basis of the previous owner. Oregon tax return form 1040ez While you owned your home, you may have made adjustments (increases or decreases) to your home's basis. Oregon tax return form 1040ez The result of these adjustments is your home's adjusted basis, which is used to figure gain or loss on the sale of your home. Oregon tax return form 1040ez To figure your adjusted basis, you can use Worksheet 1, near the end of this publication. Oregon tax return form 1040ez Filled-in examples of that worksheet are included in the Comprehensive Examples , later. Oregon tax return form 1040ez Cost As Basis The cost of property is the amount you paid for it in cash, debt obligations, other property, or services. Oregon tax return form 1040ez Purchase. Oregon tax return form 1040ez   If you bought your home, your basis is its cost to you. Oregon tax return form 1040ez This includes the purchase price and certain settlement or closing costs. Oregon tax return form 1040ez In most cases, your purchase price includes your down payment and any debt, such as a first or second mortgage or notes you gave the seller in payment for the home. Oregon tax return form 1040ez If you build, or contract to build, a new home, your purchase price can include costs of construction, as discussed later. Oregon tax return form 1040ez Seller-paid points. Oregon tax return form 1040ez   If the person who sold you your home paid points on your loan, you may have to reduce your home's basis by the amount of the points, as shown in the following chart. Oregon tax return form 1040ez    IF you bought your home. Oregon tax return form 1040ez . Oregon tax return form 1040ez . Oregon tax return form 1040ez THEN reduce your home's basis by the seller-paid points. Oregon tax return form 1040ez . Oregon tax return form 1040ez . Oregon tax return form 1040ez after 1990 but before April 4, 1994 only if you deducted them as home mortgage interest in the year paid. Oregon tax return form 1040ez after April 3, 1994 even if you did not deduct them. Oregon tax return form 1040ez Settlement fees or closing costs. Oregon tax return form 1040ez   When you bought your home, you may have paid settlement fees or closing costs in addition to the contract price of the property. Oregon tax return form 1040ez You can include in your basis some of the settlement fees and closing costs you paid for buying the home, but not the fees and costs for getting a mortgage loan. Oregon tax return form 1040ez A fee paid for buying the home is any fee you would have had to pay even if you paid cash for the home (that is, without the need for financing). Oregon tax return form 1040ez   Settlement fees do not include amounts placed in escrow for the future payment of items such as taxes and insurance. Oregon tax return form 1040ez   Some of the settlement fees or closing costs that you can include in your basis are: Abstract fees (abstract of title fees), Charges for installing utility services, Legal fees (including fees for the title search and preparing the sales contract and deed), Recording fees, Survey fees, Transfer or stamp taxes, Owner's title insurance, and Any amounts the seller owes that you agree to pay, such as: Certain real estate taxes (discussed later), Back interest, Recording or mortgage fees, Charges for improvements or repairs, and Sales commissions. Oregon tax return form 1040ez   Some settlement fees and closing costs you cannot include in your basis are: Fire insurance premiums, Rent for occupancy of the house before closing, Charges for utilities or other services related to occupancy of the house before closing, Any fee or cost that you deducted as a moving expense (allowed for certain fees and costs before 1994), Charges connected with getting a mortgage loan, such as: Mortgage insurance premiums (including funding fees connected with loans guaranteed by the Department of Veterans Affairs), Loan assumption fees, Cost of a credit report, Fee for an appraisal required by a lender, and Fees for refinancing a mortgage. Oregon tax return form 1040ez Real estate taxes. Oregon tax return form 1040ez   Real estate taxes for the year you bought your home may affect your basis, as shown in the following chart. Oregon tax return form 1040ez    IF. Oregon tax return form 1040ez . Oregon tax return form 1040ez . Oregon tax return form 1040ez AND. Oregon tax return form 1040ez . Oregon tax return form 1040ez . Oregon tax return form 1040ez THEN the taxes. Oregon tax return form 1040ez . Oregon tax return form 1040ez . Oregon tax return form 1040ez you pay taxes that the seller owed on the home up to the date of sale the seller does not reimburse you are added to the basis of your home. Oregon tax return form 1040ez the seller reimburses you do not affect the basis of your home. Oregon tax return form 1040ez the seller pays taxes for you (taxes owed beginning on the date of sale) you do not reimburse the seller are subtracted from the basis of your home. Oregon tax return form 1040ez you reimburse the seller do not affect the basis of your home. Oregon tax return form 1040ez Construction. Oregon tax return form 1040ez   If you contracted to have your house built on land you own, your basis is: The cost of the land, plus The amount it cost you to complete the house, including: The cost of labor and materials, Any amounts paid to a contractor, Any architect's fees, Building permit charges, Utility meter and connection charges, and Legal fees directly connected with building the house. Oregon tax return form 1040ez   Your cost includes your down payment and any debt such as a first or second mortgage or notes you gave the seller or builder. Oregon tax return form 1040ez It also includes certain settlement or closing costs. Oregon tax return form 1040ez You may have to reduce your basis by points the seller paid for you. Oregon tax return form 1040ez For more information, see Seller-paid points and Settlement fees or closing costs , earlier. Oregon tax return form 1040ez Built by you. Oregon tax return form 1040ez   If you built all or part of your house yourself, its basis is the total amount it cost you to complete it. Oregon tax return form 1040ez Do not include in the cost of the house: The value of your own labor, or The value of any other labor you did not pay for. Oregon tax return form 1040ez Temporary housing. Oregon tax return form 1040ez   If a builder gave you temporary housing while your home was being finished, you must reduce your basis by the part of the contract price that was for the temporary housing. Oregon tax return form 1040ez To figure the amount of the reduction, multiply the contract price by a fraction. Oregon tax return form 1040ez The numerator is the value of the temporary housing, and the denominator is the sum of the value of the temporary housing plus the value of the new home. Oregon tax return form 1040ez Cooperative apartment. Oregon tax return form 1040ez   If you are a tenant-stockholder in a cooperative housing corporation, your basis in the cooperative apartment used as your home is usually the cost of your stock in the corporation. Oregon tax return form 1040ez This may include your share of a mortgage on the apartment building. Oregon tax return form 1040ez Condominium. Oregon tax return form 1040ez   To determine your basis in a condominium apartment used as your home, use the same rules as for any other home. Oregon tax return form 1040ez Basis Other Than Cost You must use a basis other than cost, such as adjusted basis or fair market value, if you received your home as a gift, inheritance, a trade, or from your spouse. Oregon tax return form 1040ez These situations are discussed in the following pages. Oregon tax return form 1040ez Also, the instructions for Worksheet 1 (near the end of the publication) address each of these issues. Oregon tax return form 1040ez Other special rules may apply in certain situations. Oregon tax return form 1040ez If you converted the property, or some part of it, to business or rental use, see Property Changed to Business or Rental Use, in Publication 551. Oregon tax return form 1040ez Home received as gift. Oregon tax return form 1040ez   Use the following chart to find the basis of a home you received as a gift. Oregon tax return form 1040ez IF the donor's adjusted basis at the time of the gift was. Oregon tax return form 1040ez . Oregon tax return form 1040ez . Oregon tax return form 1040ez THEN your basis is. Oregon tax return form 1040ez . Oregon tax return form 1040ez . Oregon tax return form 1040ez more than the fair market value of the home at that time the same as the donor's adjusted basis at the time of the gift. Oregon tax return form 1040ez   Exception: If using the donor's adjusted basis results in a loss when you sell the home, you must use the fair market value of the home at the time of the gift as your basis. Oregon tax return form 1040ez If using the fair market value results in a gain, you have neither gain nor loss. Oregon tax return form 1040ez equal to or less than the fair market value at that time, and you received the gift before 1977 the smaller of the: • donor's adjusted basis, plus  any federal gift tax paid on  the gift, or • the home's fair market value  at the time of the gift. Oregon tax return form 1040ez equal to or less than the fair market value at that time, and you received the gift after 1976 the same as the donor's adjusted basis, plus the part of any federal gift tax paid that is due to the net increase in value of the home (explained next). Oregon tax return form 1040ez Fair market value. Oregon tax return form 1040ez   The fair market value of property at the time of the gift is the value of the property as appraised for purposes of the federal gift tax. Oregon tax return form 1040ez If the gift was not subject to the federal gift tax, the fair market value is the value as appraised for the purposes of a state gift tax. Oregon tax return form 1040ez Part of federal gift tax due to net increase in value. Oregon tax return form 1040ez   Figure the part of the federal gift tax paid that is due to the net increase in value of the home by multiplying the total federal gift tax paid by a fraction. Oregon tax return form 1040ez The numerator of the fraction is the net increase in the value of the home, and the denominator is the value of the home for gift tax purposes after reduction by any annual exclusion and marital or charitable deduction that applies to the gift. Oregon tax return form 1040ez The net increase in the value of the home is its fair market value minus the donor's adjusted basis immediately before the gift. Oregon tax return form 1040ez Home acquired from a decedent who died before or after 2010. Oregon tax return form 1040ez   If you inherited your home from a decedent who died before or after 2010, your basis is the fair market value of the property on the date of the decedent's death (or the later alternate valuation date chosen by the personal representative of the estate). Oregon tax return form 1040ez If an estate tax return was filed or required to be filed, the value of the property listed on the estate tax return is your basis. Oregon tax return form 1040ez If a federal estate tax return did not have to be filed, your basis in the home is the same as its appraised value at the date of death, for purposes of state inheritance or transmission taxes. Oregon tax return form 1040ez Surviving spouse. Oregon tax return form 1040ez   If you are a surviving spouse and you owned your home jointly, your basis in the home will change. Oregon tax return form 1040ez The new basis for the interest your spouse owned will be its fair market value on the date of death (or alternate valuation date). Oregon tax return form 1040ez The basis in your interest will remain the same. Oregon tax return form 1040ez Your new basis in the home is the total of these two amounts. Oregon tax return form 1040ez   If you and your spouse owned the home either as tenants by the entirety or as joint tenants with right of survivorship, you will each be considered to have owned one-half of the home. Oregon tax return form 1040ez Example. Oregon tax return form 1040ez Your jointly owned home (owned as joint tenants with right of survivorship) had an adjusted basis of $50,000 on the date of your spouse's death, and the fair market value on that date was $100,000. Oregon tax return form 1040ez Your new basis in the home is $75,000 ($25,000 for one-half of the adjusted basis plus $50,000 for one-half of the fair market value). Oregon tax return form 1040ez Community property. Oregon tax return form 1040ez   In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), each spouse is usually considered to own half of the community property. Oregon tax return form 1040ez When either spouse dies, the total fair market value of the community property becomes the basis of the entire property, including the part belonging to the surviving spouse. Oregon tax return form 1040ez For this to apply, at least half the value of the community property interest must be includible in the decedent's gross estate, whether or not the estate must file a return. Oregon tax return form 1040ez   For more information about community property, see Publication 555, Community Property. Oregon tax return form 1040ez    If you are selling a home in which you acquired an interest from a decedent who died in 2010, see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, to determine your basis. Oregon tax return form 1040ez Home received as trade. Oregon tax return form 1040ez   If you acquired your home as a trade for other property, in most cases, the basis of your home is the fair market value (at the time of the trade) of the property you gave up. Oregon tax return form 1040ez If you traded one home for another, you have made a sale and purchase. Oregon tax return form 1040ez In that case, you may have a gain. Oregon tax return form 1040ez See Trading (exchanging) homes under Dispositions Other Than Sales, earlier, for an example of figuring the gain. Oregon tax return form 1040ez Home received from spouse. Oregon tax return form 1040ez   If you received your home from your spouse or from your former spouse incident to your divorce, your basis in the home depends on the date of the transfer. Oregon tax return form 1040ez Transfers after July 18, 1984. Oregon tax return form 1040ez   If you received the home after July 18, 1984, there was no gain or loss on the transfer. Oregon tax return form 1040ez In most cases, your basis in this home is the same as your spouse's (or former spouse's) adjusted basis just before you received it. Oregon tax return form 1040ez This rule applies even if you received the home in exchange for cash, the release of marital rights, the assumption of liabilities, or other considerations. Oregon tax return form 1040ez   If you owned a home jointly with your spouse and your spouse transferred his or her interest in the home to you, in most cases, your basis in the half interest received from your spouse is the same as your spouse's adjusted basis just before the transfer. Oregon tax return form 1040ez This also applies if your former spouse transferred his or her interest in the home to you incident to your divorce. Oregon tax return form 1040ez Your basis in the half interest you already owned does not change. Oregon tax return form 1040ez Your new basis in the home is the total of these two amounts. Oregon tax return form 1040ez Transfers before July 19, 1984. Oregon tax return form 1040ez   If you received your home before July 19, 1984, in exchange for your release of marital rights, in most cases, your basis in the home is generally its fair market value at the time you received it. Oregon tax return form 1040ez More information. Oregon tax return form 1040ez   For more information on property received from a spouse or former spouse, see Property Settlements in Publication 504. Oregon tax return form 1040ez Involuntary conversion. Oregon tax return form 1040ez   If your home is destroyed or condemned, you may receive insurance proceeds or a condemnation award. Oregon tax return form 1040ez If you acquired a replacement home with these proceeds, the basis is its cost decreased by any gain not recognized on the conversion under the rules explained in: Publication 547, in the case of a home that was destroyed, or Chapter 1 of Publication 544, in the case of a home that was condemned. Oregon tax return form 1040ez Example. Oregon tax return form 1040ez A fire destroyed your home that you owned and used for only 6 months. Oregon tax return form 1040ez The home had an adjusted basis of $80,000 and the insurance company paid you $130,000 for the loss. Oregon tax return form 1040ez Your gain is $50,000 ($130,000 − $80,000). Oregon tax return form 1040ez You bought a replacement home for $100,000. Oregon tax return form 1040ez The part of your gain that is taxable is $30,000 ($130,000 − $100,000), the unspent part of the payment from the insurance company. Oregon tax return form 1040ez The rest of the gain ($20,000) is not taxable, so that amount reduces your basis in the new home. Oregon tax return form 1040ez The basis of the new home is figured as follows. Oregon tax return form 1040ez Cost of replacement home $100,000 Minus: Gain not recognized 20,000 Basis of the replacement home $80,000 More information. Oregon tax return form 1040ez   For more information about basis, see Publication 551. Oregon tax return form 1040ez Adjusted Basis Adjusted basis is your cost or other basis increased or decreased by certain amounts. Oregon tax return form 1040ez To figure your adjusted basis, you can use Worksheet 1, found toward the end of this publication. Oregon tax return form 1040ez Filled-in examples of that worksheet are included in Comprehensive Examples , later. Oregon tax return form 1040ez Recordkeeping. Oregon tax return form 1040ez You should keep records to prove your home's adjusted basis. Oregon tax return form 1040ez Ordinarily, you must keep records for 3 years after the due date for filing your return for the tax year in which you sold your home. Oregon tax return form 1040ez But if you sold a home before May 7, 1997, and postponed tax on any gain, the basis of that home affects the basis of the new home you bought. Oregon tax return form 1040ez Keep records proving the basis of both homes as long as they are needed for tax purposes. Oregon tax return form 1040ez The records you should keep include: Proof of the home's purchase price and purchase expenses; Receipts and other records for all improvements, additions, and other items that affect the home's adjusted basis; Any worksheets or other computations you used to figure the adjusted basis of the home you sold, the gain or loss on the sale, the exclusion, and the taxable gain; Any Form 982 you filed to exclude any discharge of qualified principal residence indebtedness; Any Form 2119, Sale of Your Home, you filed to postpone gain from the sale of a previous home before May 7, 1997; and Any worksheets you used to prepare Form 2119, such as the Adjusted Basis of Home Sold Worksheet or the Capital Improvements Worksheet from the Form 2119 instructions, or other source of computations. Oregon tax return form 1040ez Increases to Basis These include the following. Oregon tax return form 1040ez Additions and other improvements that have a useful life of more than 1 year. Oregon tax return form 1040ez Special assessments for local improvements. Oregon tax return form 1040ez Amounts you spent after a casualty to restore damaged property. Oregon tax return form 1040ez Improvements. Oregon tax return form 1040ez   These add to the value of your home, prolong its useful life, or adapt it to new uses. Oregon tax return form 1040ez You add the cost of additions and other improvements to the basis of your property. Oregon tax return form 1040ez   The following chart lists some other examples of improvements. Oregon tax return form 1040ez Examples of Improvements That Increase Basis Additions Bedroom Bathroom Deck Garage Porch Patio Heating & Air Conditioning Heating system Central air conditioning Furnace Duct work Central humidifier Filtration system Lawn & Grounds Landscaping Driveway Walkway Fence  Retaining wall Sprinkler system Swimming pool  Miscellaneous Storm windows, doors New roof Central vacuum Wiring upgrades Satellite dish Security system  Plumbing Septic system Water heater Soft water system Filtration system  Interior Improvements Built-in appliances  Kitchen modernization  Flooring Wall-to-wall carpeting  Insulation Attic Walls Floors Pipes and duct work Improvements no longer part of home. Oregon tax return form 1040ez   Your home's adjusted basis does not include the cost of any improvements that are replaced and are no longer part of the home. Oregon tax return form 1040ez Example. Oregon tax return form 1040ez You put wall-to-wall carpeting in your home 15 years ago. Oregon tax return form 1040ez Later, you replaced that carpeting with new wall-to-wall carpeting. Oregon tax return form 1040ez The cost of the old carpeting you replaced is no longer part of your home's adjusted basis. Oregon tax return form 1040ez Repairs. Oregon tax return form 1040ez   These maintain your home in good condition but do not add to its value or prolong its life. Oregon tax return form 1040ez You do not add their cost to the basis of your property. Oregon tax return form 1040ez Examples. Oregon tax return form 1040ez Repainting your house inside or outside, fixing your gutters or floors, repairing leaks or plastering, and replacing broken window panes are examples of repairs. Oregon tax return form 1040ez Exception. Oregon tax return form 1040ez   The entire job is considered an improvement if items that would otherwise be considered repairs are done as part of an extensive remodeling or restoration of your home. Oregon tax return form 1040ez For example, if you have a casualty and your home is damaged, increase your basis by the amount you spend on repairs that restore the property to its pre-casualty condition. Oregon tax return form 1040ez Decreases to Basis These include the following. Oregon tax return form 1040ez Discharge of qualified principal residence indebtedness that was excluded from income (but not below zero). Oregon tax return form 1040ez For details, see Publication 4681. Oregon tax return form 1040ez Some or all of the cancellation of debt income that was excluded due to your bankruptcy or insolvency. Oregon tax return form 1040ez For details, see Publication 4681. Oregon tax return form 1040ez Gain you postponed from the sale of a previous home before May 7, 1997. Oregon tax return form 1040ez Deductible casualty losses. Oregon tax return form 1040ez Insurance payments you received or expect to receive for casualty losses. Oregon tax return form 1040ez Payments you received for granting an easement or right-of-way. Oregon tax return form 1040ez Depreciation allowed or allowable if you used your home for business or rental purposes. Oregon tax return form 1040ez Energy-related credits allowed for expenditures made on the residence. Oregon tax return form 1040ez (Reduce the increase in basis otherwise allowable for expenditures on the residence by the amount of credit allowed for those expenditures. Oregon tax return form 1040ez ) Adoption credit you claimed for improvements added to the basis of your home. Oregon tax return form 1040ez Nontaxable payments from an adoption assistance program of your employer you used for improvements you added to the basis of your home. Oregon tax return form 1040ez Energy conservation subsidy excluded from your gross income because you received it (directly or indirectly) from a public utility after 1992 to buy or install any energy conservation measure. Oregon tax return form 1040ez An energy conservation measure is an installation or modification primarily designed either to reduce consumption of electricity or natural gas or to improve the management of energy demand for a home. Oregon tax return form 1040ez District of Columbia first-time homebuyer credit allowed on the purchase of a principal residence in the District of Columbia. Oregon tax return form 1040ez General sales taxes claimed as an itemized deduction on Schedule A (Form 1040) that were imposed on the purchase of personal property, such as a houseboat used as your home or a mobile home. Oregon tax return form 1040ez Discharges of qualified principal residence indebtedness. Oregon tax return form 1040ez   You may be able to exclude from gross income a discharge of qualified principal residence indebtedness. Oregon tax return form 1040ez This exclusion applies to discharges made after 2006 and before 2014. Oregon tax return form 1040ez If you choose to exclude this income, you must reduce (but not below zero) the basis of your principal residence by the amount excluded from gross income. Oregon tax return form 1040ez   File Form 982 with your tax return. Oregon tax return form 1040ez See the form's instructions for detailed information. Oregon tax return form 1040ez    A decrease in basis due to a discharge of qualified principal residence indebtedness that is excluded from income occurs only if you retain ownership of the principal residence after a discharge. Oregon tax return form 1040ez In most cases, this would occur in a refinancing or a restructuring of the mortgage. Oregon tax return form 1040ez Excluding the Gain You may qualify to exclude from your income all or part of any gain from the sale of your main home. Oregon tax return form 1040ez This means that, if you qualify, you will not have to pay tax on the gain up to the limit described under Maximum Exclusion , next. Oregon tax return form 1040ez To qualify, you must meet the ownership and use tests described later. Oregon tax return form 1040ez You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. Oregon tax return form 1040ez This choice can be made (or revoked) at any time before the expiration of a 3-year period beginning on the due date of your return (not including extensions) for the year of the sale. Oregon tax return form 1040ez You can use Worksheet 2 (near the end of this publication) to figure the amount of your exclusion and your taxable gain, if any. Oregon tax return form 1040ez If you have any taxable gain from the sale of your home, you may have to increase your withholding or make estimated tax payments. Oregon tax return form 1040ez See Publication 505, Tax Withholding and Estimated Tax. Oregon tax return form 1040ez Maximum Exclusion You can exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. Oregon tax return form 1040ez You meet the ownership test. Oregon tax return form 1040ez You meet the use test. Oregon tax return form 1040ez During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. Oregon tax return form 1040ez For details on gain allocated to periods of nonqualified use, see Nonqualified Use , later. Oregon tax return form 1040ez If you and another person owned the home jointly but file separate returns, each of you can exclude up to $250,000 of gain from the sale of your interest in the home if each of you meets the three conditions just listed. Oregon tax return form 1040ez You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . Oregon tax return form 1040ez Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. Oregon tax return form 1040ez This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). Oregon tax return form 1040ez Exception. Oregon tax return form 1040ez   If you owned and lived in the property as your main home for less than 2 years, you can still claim an exclusion in some cases. Oregon tax return form 1040ez However, the maximum amount you may be able to exclude will be reduced. Oregon tax return form 1040ez See Reduced Maximum Exclusion , later. Oregon tax return form 1040ez Example 1—home owned and occupied for at least 2 years. Oregon tax return form 1040ez Mya bought and moved into her main home in September 2011. Oregon tax return form 1040ez She sold the home at a gain in October 2013. Oregon tax return form 1040ez During the 5-year period ending on the date of sale in October 2013, she owned and lived in the home for more than 2 years. Oregon tax return form 1040ez She meets the ownership and use tests. Oregon tax return form 1040ez Example 2—ownership test met but use test not met. Oregon tax return form 1040ez Ayden bought a home, lived in it for 6 months, moved out, and never occupied the home again. Oregon tax return form 1040ez He later sold the home for a gain in June 2013. Oregon tax return form 1040ez He owned the home during the entire 5-year period ending on the date of sale. Oregon tax return form 1040ez He meets the ownership test but not the use test. Oregon tax return form 1040ez He cannot exclude any part of his gain on the sale unless he qualified for a reduced maximum exclusion (explained later). Oregon tax return form 1040ez Period of Ownership and Use The required 2 years of ownership and use during the 5-year period ending on the date of the sale do not have to be continuous nor do they both have to occur at the same time. Oregon tax return form 1040ez You meet the tests if you can show that you owned and lived in the property as your main home for either 24 full months or 730 days (365 × 2) during the 5-year period ending on the date of sale. Oregon tax return form 1040ez Example. Oregon tax return form 1040ez Naomi bought and moved into a house in July 2009. Oregon tax return form 1040ez She lived there for 13 months and then moved in with a friend. Oregon tax return form 1040ez She later moved back into her house and lived there for 12 months until she sold it in August 2013. Oregon tax return form 1040ez Naomi meets the ownership and use tests because, during the 5-year period ending on the date of sale, she owned the house for more than 2 years and lived in it for a total of 25 (13 + 12) months. Oregon tax return form 1040ez Temporary absence. Oregon tax return form 1040ez   Short temporary absences for vacations or other seasonal absences, even if you rent out the property during the absences, are counted as periods of use. Oregon tax return form 1040ez The following examples assume that the reduced maximum exclusion (discussed later) does not apply to the sales. Oregon tax return form 1040ez Example 1. Oregon tax return form 1040ez David Johnson, who is single, bought and moved into his home on February 1, 2011. Oregon tax return form 1040ez Each year during 2011 and 2012, David left his home for a 2-month summer vacation. Oregon tax return form 1040ez David sold the house on March 1, 2013. Oregon tax return form 1040ez Although the total time David lived in his home is less than 2 years (21 months), he meets the use requirement and may exclude gain. Oregon tax return form 1040ez The 2-month vacations are short temporary absences and are counted as periods of use in determining whether David used the home for the required 2 years. Oregon tax return form 1040ez Example 2. Oregon tax return form 1040ez Professor Paul Beard, who is single, bought and moved into a house in December 2010, went abroad for a 1-year sabbatical leave in January 2012, returned to the house in January 2013, and sold it at a gain in February 2013. Oregon tax return form 1040ez Because his leave was not a short temporary absence, he cannot include the period of leave to meet the 2-year use test. Oregon tax return form 1040ez He cannot exclude any part of his gain because he did not use the residence for the required 2 years. Oregon tax return form 1040ez Ownership and use tests met at different times. Oregon tax return form 1040ez   You can meet the ownership and use tests during different 2-year periods. Oregon tax return form 1040ez However, you must meet both tests during the 5-year period ending on the date of the sale. Oregon tax return form 1040ez Example. Oregon tax return form 1040ez Beginning in 2002, Helen Jones lived in a rented apartment. Oregon tax return form 1040ez The apartment building was later converted to condominiums, and she bought her same apartment on December 3, 2010. Oregon tax return form 1040ez In 2011, Helen became ill and on April 14 of that year she moved to her daughter's home. Oregon tax return form 1040ez On July 12, 2013, while still living in her daughter's home, she sold her condominium. Oregon tax return form 1040ez Helen can exclude gain on the sale of her condominium because she met the ownership and use tests during the 5-year period from July 13, 2008, to July 12, 2013, the date she sold the condominium. Oregon tax return form 1040ez She owned her condominium from December 3, 2010, to July 12, 2013 (more than 2 years). Oregon tax return form 1040ez She lived in the property from July 13, 2008 (the beginning of the 5-year period), to April 14, 2011 (more than 2 years). Oregon tax return form 1040ez The time Helen lived in her daughter's home during the 5-year period can be counted toward her period of ownership, and the time she lived in her rented apartment during the 5-year period can be counted toward her period of use. Oregon tax return form 1040ez Cooperative apartment. Oregon tax return form 1040ez   If you sold stock as a tenant-shareholder in a cooperative housing corporation, the ownership and use tests are met if, during the 5-year period ending on the date of sale, you: Owned the stock for at least 2 years, and Lived in the house or apartment that the stock entitled you to occupy as your main home for at least 2 years. Oregon tax return form 1040ez Exceptions to Ownership and Use Tests The following sections contain exceptions to the ownership and use tests for certain taxpayers. Oregon tax return form 1040ez Exception for individuals with a disability. Oregon tax return form 1040ez   There is an exception to the use test if: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year during the 5-year period before the sale of your home. Oregon tax return form 1040ez Under this exception, you are considered to live in your home during any time within the 5-year period that you own the home and live in a facility (including a nursing home) licensed by a state or political subdivision to care for persons in your condition. Oregon tax return form 1040ez   If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. Oregon tax return form 1040ez Previous home destroyed or condemned. Oregon tax return form 1040ez   For the ownership and use tests, you add the time you owned and lived in a previous home that was destroyed or condemned to the time you owned and lived in the replacement home on whose sale you wish to exclude gain. Oregon tax return form 1040ez This rule applies if any part of the basis of the home you sold depended on the basis of the destroyed or condemned home (see Involuntary Conversions in Publication 551). Oregon tax return form 1040ez Otherwise, you must have owned and lived in the same home for 2 of the 5 years before the sale to qualify for the exclusion. Oregon tax return form 1040ez Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps. Oregon tax return form 1040ez   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve on qualified official extended duty (defined later) as a member of the uniformed services or Foreign Service of the United States, or as an employee of the intelligence community. Oregon tax return form 1040ez You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve outside the United States either as an employee of the Peace Corps on qualified official extended duty (defined later) or as an enrolled volunteer or volunteer leader of the Peace Corps. Oregon tax return form 1040ez This means that you may be able to meet the 2-year use test even if, because of your service, you did not actually live in your home for at least the required 2 years during the 5-year period ending on the date of sale. Oregon tax return form 1040ez   If this helps you qualify to exclude gain, you can choose to have the 5-year test period suspended by filing a return for the year of sale that does not include the gain. Oregon tax return form 1040ez Example. Oregon tax return form 1040ez John bought and moved into a home in 2005. Oregon tax return form 1040ez He lived in it as his main home for 2½ years. Oregon tax return form 1040ez For the next 6 years, he did not live in it because he was on qualified official extended duty with the Army. Oregon tax return form 1040ez He then sold the home at a gain in 2013. Oregon tax return form 1040ez To meet the use test, John chooses to suspend the 5-year test period for the 6 years he was on qualified official extended duty. Oregon tax return form 1040ez This means he can disregard those 6 years. Oregon tax return form 1040ez Therefore, John's 5-year test period consists of the 5 years before he went on qualified official extended duty. Oregon tax return form 1040ez He meets the ownership and use tests because he owned and lived in the home for 2½ years during this test period. Oregon tax return form 1040ez Period of suspension. Oregon tax return form 1040ez   The period of suspension cannot last more than 10 years. Oregon tax return form 1040ez Together, the 10-year suspension period and the 5-year test period can be as long as, but no more than, 15 years. Oregon tax return form 1040ez You cannot suspend the 5-year period for more than one property at a time. Oregon tax return form 1040ez You can revoke your choice to suspend the 5-year period at any time. Oregon tax return form 1040ez Example. Oregon tax return form 1040ez Mary bought a home on April 1, 1997. Oregon tax return form 1040ez She used it as her main home until August 31, 2000. Oregon tax return form 1040ez On September 1, 2000, she went on qualified official extended duty with the Navy. Oregon tax return form 1040ez She did not live in the house again before selling it on July 31, 2013. Oregon tax return form 1040ez Mary chooses to use the entire 10-year suspension period. Oregon tax return form 1040ez Therefore, the suspension period would extend back from July 31, 2013, to August 1, 2003, and the 5-year test period would extend back to August 1, 1998. Oregon tax return form 1040ez During that period, Mary owned the house all 5 years and lived in it as her main home from August 1, 1998, until August 31, 2000, a period of more than 24 months. Oregon tax return form 1040ez She meets the ownership and use tests because she owned and lived in the home for at least 2 years during this test period. Oregon tax return form 1040ez Uniformed services. Oregon tax return form 1040ez   The uniformed services are: The Armed Forces (the Army, Navy, Air Force, Marine Corps, and Coast Guard), The commissioned corps of the National Oceanic and Atmospheric Administration, and The commissioned corps of the Public Health Service. Oregon tax return form 1040ez Foreign Service member. Oregon tax return form 1040ez   For purposes of the choice to suspend the 5-year test period for ownership and use, you are a member of the Foreign Service if you are any of the following. Oregon tax return form 1040ez A Chief of mission. Oregon tax return form 1040ez An Ambassador at large. Oregon tax return form 1040ez A member of the Senior Foreign Service. Oregon tax return form 1040ez A Foreign Service officer. Oregon tax return form 1040ez Part of the Foreign Service personnel. Oregon tax return form 1040ez Employee of the intelligence community. Oregon tax return form 1040ez   For purposes of the choice to suspend the 5-year test period for ownership and use, you are an employee of the intelligence community if you are an employee of any of the following. Oregon tax return form 1040ez The Office of the Director of National Intelligence. Oregon tax return form 1040ez The Central Intelligence Agency. Oregon tax return form 1040ez The National Security Agency. Oregon tax return form 1040ez The Defense Intelligence Agency. Oregon tax return form 1040ez The National Geospatial-Intelligence Agency. Oregon tax return form 1040ez The National Reconnaissance Office and any other office within the Department of Defense for the collection of specialized national intelligence through reconnaissance programs. Oregon tax return form 1040ez Any of the intelligence elements of the Army, the Navy, the Air Force, the Marine Corps, the Federal Bureau of Investigation, the Department of Treasury, the Department of Energy, and the Coast Guard. Oregon tax return form 1040ez The Bureau of Intelligence and Research of the Department of State. Oregon tax return form 1040ez Any of the elements of the Department of Homeland Security concerned with the analyses of foreign intelligence information. Oregon tax return form 1040ez Qualified official extended duty. Oregon tax return form 1040ez   You are on qualified official extended duty if you are on extended duty while: Serving at a duty station at least 50 miles from your main home, or Living in Government quarters under Government orders. Oregon tax return form 1040ez   You are on extended duty when you are called or ordered to active duty for a period of more than 90 days or for an indefinite period. Oregon tax return form 1040ez Married Persons If you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use tests, you can exclude up to $250,000 of the gain. Oregon tax return form 1040ez (But see Special rules for joint returns, next. Oregon tax return form 1040ez ) Special rules for joint returns. Oregon tax return form 1040ez   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. Oregon tax return form 1040ez You are married and file a joint return for the year. Oregon tax return form 1040ez Either you or your spouse meets the ownership test. Oregon tax return form 1040ez Both you and your spouse meet the use test. Oregon tax return form 1040ez During the 2-year period ending on the date of the sale, neither you nor your spouse excluded gain from the sale of another home. Oregon tax return form 1040ez If either spouse does not satisfy all these requirements, the maximum exclusion that can be claimed by the couple is the total of the maximum exclusions that each spouse would qualify for if not married and the amounts were figured separately. Oregon tax return form 1040ez For this purpose, each spouse is treated as owning the property during the period that either spouse owned the property. Oregon tax return form 1040ez Example 1—one spouse sells a home. Oregon tax return form 1040ez Emily sells her home in June 2013 for a gain of $300,000. Oregon tax return form 1040ez She marries Jamie later in the year. Oregon tax return form 1040ez She meets the ownership and use tests, but Jamie does not. Oregon tax return form 1040ez Emily can exclude up to $250,000 of gain on a separate or joint return for 2013. Oregon tax return form 1040ez The $500,000 maximum exclusion for certain joint returns does not apply because Jamie does not meet the use test. Oregon tax return form 1040ez Example 2—each spouse sells a home. Oregon tax return form 1040ez The facts are the same as in Example 1 except that Jamie also sells a home in 2013 for a gain of $200,000 before he marries Emily. Oregon tax return form 1040ez He meets the ownership and use tests on his home, but Emily does not. Oregon tax return form 1040ez Emily can exclude $250,000 of gain and Jamie can exclude $200,000 of gain on the respective sales of their individual homes. Oregon tax return form 1040ez However, Emily cannot use Jamie's unused exclusion to exclude more than $250,000 of gain. Oregon tax return form 1040ez Therefore, Emily and Jamie must recognize $50,000 of gain on the sale of Emily's home. Oregon tax return form 1040ez The $500,000 maximum exclusion for certain joint returns does not apply because Emily and Jamie do not both meet the use test for the same home. Oregon tax return form 1040ez Sale of main home by surviving spouse. Oregon tax return form 1040ez   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. Oregon tax return form 1040ez   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home. Oregon tax return form 1040ez The sale or exchange took place after 2008. Oregon tax return form 1040ez The sale or exchange took place no more than 2 years after the date of death of your spouse. Oregon tax return form 1040ez You have not remarried. Oregon tax return form 1040ez You and your spouse met the use test at the time of your spouse's death. Oregon tax return form 1040ez You or your spouse met the ownership test at the time of your spouse's death. Oregon tax return form 1040ez Neither you nor your spouse excluded gain from the sale of another home during the last 2 years before the date of death. Oregon tax return form 1040ez The ownership and use tests were described earlier. Oregon tax return form 1040ez Example. Oregon tax return form 1040ez Harry owned and used a house as his main home since 2009. Oregon tax return form 1040ez Harry and Wilma married on July 1, 2013, and from that date they used Harry's house as their main home. Oregon tax return form 1040ez Harry died on August 15, 2013, and Wilma inherited the property. Oregon tax return form 1040ez Wilma sold the property on September 1, 2013, at which time she had not remarried. Oregon tax return form 1040ez Although Wilma owned and used the house for less than 2 years, Wilma is considered to have satisfied the ownership and use tests because her period of ownership and use includes the period that Harry owned and used the property before death. Oregon tax return form 1040ez Home transferred from spouse. Oregon tax return form 1040ez   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. Oregon tax return form 1040ez Use of home after divorce. Oregon tax return form 1040ez   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. Oregon tax return form 1040ez Reduced Maximum Exclusion If you fail to meet the requirements to qualify for the $250,000 or $500,000 exclusion, you may still qualify for a reduced exclusion. Oregon tax return form 1040ez This applies to those who: Fail to meet the ownership and use tests, or Have used the exclusion within 2 years of selling their current home. Oregon tax return form 1040ez In both cases, to qualify for a reduced exclusion, the sale of your main home must be due to one of the following reasons. Oregon tax return form 1040ez A change in place of employment. Oregon tax return form 1040ez Health. Oregon tax return form 1040ez Unforeseen circumstances. Oregon tax return form 1040ez Qualified individual. Oregon tax return form 1040ez   For purposes of the reduced maximum exclusion, a qualified individual is any of the following. Oregon tax return form 1040ez You. Oregon tax return form 1040ez Your spouse. Oregon tax return form 1040ez A co-owner of the home. Oregon tax return form 1040ez A person whose main home is the same as yours. Oregon tax return form 1040ez Primary reason for sale. Oregon tax return form 1040ez   One of the three reasons above will be considered to be the primary reason you sold your home if either (1) or (2) is true. Oregon tax return form 1040ez You qualify under a “safe harbor. Oregon tax return form 1040ez ” This is a specific set of facts and circumstances that, if applicable, qualifies you to claim a reduced maximum exclusion. Oregon tax return form 1040ez Safe harbors corresponding to the reasons listed above are described later. Oregon tax return form 1040ez A safe harbor does not apply, but you can establish, based on facts and circumstances, that the primary reason for the sale is a change in place of employment, health, or unforeseen circumstances. Oregon tax return form 1040ez  Factors that may be relevant in determining your primary reason for sale include whether: Your sale and the circumstances causing it were close in time, The circumstances causing your sale occurred during the time you owned and used the property as your main home, The circumstances causing your sale were not reasonably foreseeable when you began using the property as your main home, Your financial ability to maintain the property became materially impaired, The suitability of the property as your main home materially changed, and During the time you owned the property, you used it as your home. Oregon tax return form 1040ez Change in Place of Employment You may qualify for a reduced exclusion if the primary reason for the sale of your main home is a change in the location of employment of a qualified individual. Oregon tax return form 1040ez Employment. Oregon tax return form 1040ez   For this purpose, employment includes the start of work with a new employer or continuation of work with the same employer. Oregon tax return form 1040ez It also includes the start or continuation of self-employment. Oregon tax return form 1040ez Distance safe harbor. Oregon tax return form 1040ez   A change in place of employment is considered to be the reason you sold your home if: The change occurred during the period you owned and used the property as your main home, and The new place of employment is at least 50 miles farther from the home you sold than was the former place of employment (or, if there was no former place of employment, the distance between your new place of employment and the home sold is at least 50 miles). Oregon tax return form 1040ez Example. Oregon tax return form 1040ez Justin was unemployed and living in a townhouse in Florida he had owned and used as his main home since 2012. Oregon tax return form 1040ez He got a job in North Carolina and sold his townhouse in 2013. Oregon tax return form 1040ez Because the distance between Justin's new place of employment and the home he sold is at least 50 miles, the sale satisfies the conditions of the distance safe harbor. Oregon tax return form 1040ez Justin's sale of his home is considered to be because of a change in place of employment, and he is entitled to claim a reduced maximum exclusion of gain from the sale. Oregon tax return form 1040ez Health The sale of your main home is because of health if your primary reason for the sale is: To obtain, provide, or facilitate the diagnosis, cure, mitigation, or treatment of disease, illness, or injury of a qualified individual, or To obtain or provide medical or personal care for a qualified individual suffering from a disease, illness, or injury. Oregon tax return form 1040ez The sale of your home is not because of health if the sale merely benefits a qualified individual's general health or well-being. Oregon tax return form 1040ez For purposes of this reason, a qualified individual includes, in addition to the individuals listed earlier under Qualified individual , any of the following family members of these individuals. Oregon tax return form 1040ez Parent, grandparent, stepmother, stepfather. Oregon tax return form 1040ez Child, grandchild, stepchild, adopted child, eligible foster child. Oregon tax return form 1040ez Brother, sister, stepbrother, stepsister, half-brother, half-sister. Oregon tax return form 1040ez Mother-in-law, father-in-law, brother-in-law, sister-in-law, son-in-law, or daughter-in-law. Oregon tax return form 1040ez Uncle, aunt, nephew, niece, or cousin. Oregon tax return form 1040ez Example. Oregon tax return form 1040ez In 2012, Chase and Lauren, spouses, bought a house that they used as their main home. Oregon tax return form 1040ez Lauren's father has a chronic disease and is unable to care for himself. Oregon tax return form 1040ez In 2013, Chase and Lauren sold their home in order to move into Lauren's father's house to provide care for him. Oregon tax return form 1040ez Because the primary reason for the sale of their home was to provide care for Lauren's father, Chase and Lauren are entitled to a reduced maximum exclusion. Oregon tax return form 1040ez Doctor's recommendation safe harbor. Oregon tax return form 1040ez   Health is considered to be the reason you sold your home if, for one or more of the reasons listed at the beginning of this discussion, a doctor recommends a change of residence. Oregon tax return form 1040ez Unforeseen Circumstances The sale of your main home is because of an unforeseen circumstance if your primary reason for the sale is the occurrence of an event that you could not reasonably have anticipated before buying and occupying that home. Oregon tax return form 1040ez You are not considered to have an unforeseen circumstance if the primary reason you sold your home was that you preferred to get a different home or because your finances improved. Oregon tax return form 1040ez Specific event safe harbors. Oregon tax return form 1040ez   Unforeseen circumstances are considered to be the reason for selling your home if any of the following events occurred while you owned and used the property as your main home. Oregon tax return form 1040ez An involuntary conversion of your home, such as when your home is destroyed or condemned. Oregon tax return form 1040ez Natural or man-made disasters or acts of war or terrorism resulting in a casualty to your home, whether or not your loss is deductible. Oregon tax return form 1040ez In the case of qualified individuals (listed earlier under Qualified individual ): Death, Unemployment (if the individual is eligible for unemployment compensation), A change in employment or self-employment status that results in the individual's inability to pay reasonable basic living expenses (listed under Reasonable basic living expenses , later) for his or her household, Divorce or legal separation under a decree of divorce or separate maintenance, or Multiple births resulting from the same pregnancy. Oregon tax return form 1040ez An event the IRS determined to be an unforeseen circumstance in published guidance of general applicability. Oregon tax return form 1040ez For example, the IRS determined the September 11, 2001, terrorist attacks to be an unforeseen circumstance. Oregon tax return form 1040ez Reasonable basic living expenses. Oregon tax return form 1040ez   Reasonable basic living expenses for your household include the following. Oregon tax return form 1040ez Amounts spent for food. Oregon tax return form 1040ez Amounts spent for clothing. Oregon tax return form 1040ez Housing and related expenses. Oregon tax return form 1040ez Medical expenses. Oregon tax return form 1040ez Transportation expenses. Oregon tax return form 1040ez Tax payments. Oregon tax return form 1040ez Court-ordered payments. Oregon tax return form 1040ez Expenses reasonably necessary to produce income. Oregon tax return form 1040ez   Any of these amounts spent to maintain an affluent or luxurious standard of living are not reasonable basic living expenses. Oregon tax return form 1040ez Nonqualified Use Gain from the sale or exchange of the main home is not excludable from income if it is allocable to periods of nonqualified use. Oregon tax return form 1040ez Nonqualified use means any period after 2008 where neither you nor your spouse (or your former spouse) used the property as a main home, with certain exceptions (see next). Oregon tax return form 1040ez Exceptions. Oregon tax return form 1040ez   A period of nonqualified use does not include: Any portion of the 5-year period ending on the date of the sale or exchange after the last date you (or your spouse) use the property as a main home; Any period (not to exceed an aggregate period of 10 years) during which you (or your spouse) are serving on qualified official extended duty: As a member of the uniformed services; As a member of the Foreign Service of the United States; or As an employee of the intelligence community; and Any other period of temporary absence (not to exceed an aggregate period of 2 years) due to change of employment, health conditions, or such other unforeseen circumstances as may be specified by the IRS. Oregon tax return form 1040ez Calculation. Oregon tax return form 1040ez   To figure the portion of the gain allocated to the period of nonqualified use, multiply the gain (net of any depreciation allowed or allowable on the property for periods after May 6, 1997) by the following fraction:   Total nonqualified use during the period of ownership after 2008     Total period of ownership     This calculation can be found in Worksheet 2, line 10, later in this publication. Oregon tax return form 1040ez   For examples of this calculation, see Business Use or Rental of Home , next. Oregon tax return form 1040ez Business Use or Rental of Home You may be able to exclude gain from the sale of a home you have used for business or to produce rental income if you meet the ownership and use tests. Oregon tax return form 1040ez Example 1. Oregon tax return form 1040ez On May 23, 2007, Amy, who is unmarried for all years in this example, bought a house. Oregon tax return form 1040ez She moved in on that date and lived in it until May 31, 2009, when she moved out of the house and put it up for rent. Oregon tax return form 1040ez The house was rented from June 1, 2009, to March 31, 2011. Oregon tax return form 1040ez Amy claimed depreciation deductions in 2009 through 2011 totaling $10,000. Oregon tax return form 1040ez Amy moved back into the house on April 1, 2011, and lived there until she sold it on January 31, 2013, for a gain of $200,000. Oregon tax return form 1040ez During the 5-year period ending on the date of the sale (January 31, 2008–January 31, 2013), Amy owned and lived in the house for more than 2 years as shown in the following table. Oregon tax return form 1040ez Five-Year Period Used as Home Used as Rental 1/31/08 – 5/31/09 16 months   6/01/09 – 3/31/11   22 months 4/01/11 – 1/31/13 22 months     38 months 22 months       During the period Amy owned the house (2,080 days), her period of nonqualified use was 668 days. Oregon tax return form 1040ez Because the gain attributable to periods of nonqualified use is $60,990, Amy can exclude $129,010 of her gain, as shown on Worksheet 2. Oregon tax return form 1040ez Example 2. Oregon tax return form 1040ez William owned and used a house as his main home from 2007 through 2010. Oregon tax return form 1040ez On January 1, 2011, he moved to another state. Oregon tax return form 1040ez He rented his house from that date until April 30, 2013, when he sold it. Oregon tax return form 1040ez During the 5-year period ending on the date of sale (May 1, 2008-April 30, 2013), William owned and lived in the house for more than 2 years. Oregon tax return form 1040ez Because it was rental property at the time of the sale, he must report the sale on Form 4797. Oregon tax return form 1040ez Because the period of nonqualified use does not include any part of the 5-year period after the last date William lived in the house, he has no period of nonqualified use. Oregon tax return form 1040ez Because he met the ownership and use tests, he can exclude gain up to $250,000. Oregon tax return form 1040ez However, he cannot exclude the part of the gain equal to the depreciation he claimed or could have claimed for renting the house, as explained next. Oregon tax return form 1040ez Depreciation after May 6, 1997. Oregon tax return form 1040ez   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. Oregon tax return form 1040ez If you can show by adequate records or other evidence that the depreciation allowed was less than the amount allowable, then you may limit the amount of gain recognized to the depreciation allowed. Oregon tax return form 1040ez Unrecaptured section 1250 gain. Oregon tax return form 1040ez   This is the part of any long-term capital gain from the sale of your home that is due to depreciation and cannot be excluded. Oregon tax return form 1040ez To figure the amount of unrecaptured section 1250 gain to be reported on Schedule D (Form 1040), you must also take into account certain gains or losses from the sale of property other than your home. Oregon tax return form 1040ez Use the Unrecaptured Section 1250 Gain Worksheet in the Schedule D instructions for this purpose. Oregon tax return form 1040ez Worksheet 2. Oregon tax return form 1040ez Taxable Gain on Sale of Home—Completed Example 1 for Amy Part 1. Oregon tax return form 1040ez Gain or (Loss) on Sale       1. Oregon tax return form 1040ez   Selling price of home 1. Oregon tax return form 1040ez     2. Oregon tax return form 1040ez   Selling expenses (including commissions, advertising and legal fees, and seller-paid loan charges) 2. Oregon tax return form 1040ez     3. Oregon tax return form 1040ez   Subtract line 2 from line 1. Oregon tax return form 1040ez This is the amount realized 3. Oregon tax return form 1040ez     4. Oregon tax return form 1040ez   Adjusted basis of home sold (from Worksheet 1, line 13) 4. Oregon tax return form 1040ez     5. Oregon tax return form 1040ez   Gain or (loss) on the sale. Oregon tax return form 1040ez Subtract line 4 from line 3. Oregon tax return form 1040ez If this is a loss, stop here 5. Oregon tax return form 1040ez 200,000   Part 2. Oregon tax return form 1040ez Exclusion and Taxable Gain       6. Oregon tax return form 1040ez   Enter any depreciation allowed or allowable on the property for periods after May 6, 1997. Oregon tax return form 1040ez If none, enter -0- 6. Oregon tax return form 1040ez 10,000   7. Oregon tax return form 1040ez   Subtract line 6 from line 5. Oregon tax return form 1040ez If the result is less than zero, enter -0- 7. Oregon tax return form 1040ez 190,000   8. Oregon tax return form 1040ez   Aggregate number of days of nonqualified use after 2008. Oregon tax return form 1040ez If none, enter -0-. Oregon tax return form 1040ez  If line 8 is equal to zero, skip to line 12 and enter the amount from line 7 on line 12 8. Oregon tax return form 1040ez 668   9. Oregon tax return form 1040ez   Number of days taxpayer owned the property 9. Oregon tax return form 1040ez 2,080   10. Oregon tax return form 1040ez   Divide the amount on line 8 by the amount on line 9. Oregon tax return form 1040ez Enter the result as a decimal (rounded to at least 3 places). Oregon tax return form 1040ez But do not enter an amount greater than 1. Oregon tax return form 1040ez 00 10. Oregon tax return form 1040ez 0. Oregon tax return form 1040ez 321   11. Oregon tax return form 1040ez   Gain allocated to nonqualified use. Oregon tax return form 1040ez (Line 7 multiplied by line 10) 11. Oregon tax return form 1040ez 60,990   12. Oregon tax return form 1040ez   Gain eligible for exclusion. Oregon tax return form 1040ez Subtract line 11 from line 7 12. Oregon tax return form 1040ez 129,010   13. Oregon tax return form 1040ez   If you qualify to exclude gain on the sale, enter your maximum exclusion (see Maximum Exclusion ). Oregon tax return form 1040ez  If you qualify for a reduced maximum exclusion, enter the amount from Worksheet 3, line 7. Oregon tax return form 1040ez If you do  not qualify to exclude gain, enter -0- 13. Oregon tax return form 1040ez 250,000   14. Oregon tax return form 1040ez   Exclusion. Oregon tax return form 1040ez Enter the smaller of line 12 or line 13 14. Oregon tax return form 1040ez 129,010   15. Oregon tax return form 1040ez   Taxable gain. Oregon tax return form 1040ez Subtract line 14 from line 5. Oregon tax return form 1040ez Report your taxable gain as described under Reporting the Sale . Oregon tax return form 1040ez If the amount on line 6 is more than zero, complete line 16 15. Oregon tax return form 1040ez 70,990   16. Oregon tax return form 1040ez   Enter the smaller of line 6 or line 15. Oregon tax return form 1040ez Enter this amount on line 12 of the Unrecaptured Section 1250 Gain  Worksheet in the instructions for Schedule D (Form 1040) 16. Oregon tax return form 1040ez 10,000 Property Used Partly for Business or Rental If you use property partly as a home and partly for business or to produce rental income, the treatment of any gain on the sale depends partly on whether the business or rental part of the property is part of your home or separate from it. Oregon tax return form 1040ez Part of Home Used for Business or Rental If the part of your property used for business or to produce rental income is within your home, such as a room used as a home office for a business, you do not need to allocate gain on the sale of the property between the business part of the property and the part used as a home. Oregon tax return form 1040ez In addition, you do not need to report the sale of the business or rental part on Form 4797. Oregon tax return form 1040ez This is true whether or not you were entitled to claim any depreciation. Oregon tax return form 1040ez However, you cannot exclude the part of any gain equal to any depreciation allowed or allowable after May 6, 1997. Oregon tax return form 1040ez See Depreciation after May 6, 1997, earlier. Oregon tax return form 1040ez Example 1. Oregon tax return form 1040ez Ray sold his main home in 2013 at a $30,000 gain. Oregon tax return form 1040ez He has no gains or losses from the sale of property other than the gain from the sale of his home. Oregon tax return form 1040ez He meets the ownership and use tests to exclude the gain from his income. Oregon tax return form 1040ez However, he used part of the home as a business office in 2012 and claimed $500 depreciation. Oregon tax return form 1040ez Because the business office was part of his home (not separate from it), he does not have to allocate the gain on the sale between the business part of the property and the part used as a home. Oregon tax return form 1040ez In addition, he does not have to report any part of the gain on Form 4797. Oregon tax return form 1040ez Because Ray was entitled to take a depreciation deduction, he must recognize $500 of the gain as unrecaptured section 1250 gain. Oregon tax return form 1040ez He reports his gain, exclusion, and the taxable gain of $500 on Form 8949 and Schedule D (Form 1040). Oregon tax return form 1040ez Example 2. Oregon tax return form 1040ez The facts are the same as in Example 1 except that Ray was not entitled to claim depreciation for the business use of his home. Oregon tax return form 1040ez Since Ray did not claim any depreciation, he can exclude the entire $30,000 gain. Oregon tax return form 1040ez Separate Part of Property Used for Business or Rental You may have used part of your property as your home and a separate part of it for business or to produce rental income. Oregon tax return form 1040ez Examples are: A working farm on which your house was located, A duplex in w