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

State Tax File Free

File Free Federal And State Taxes OnlineAlabama 40 Tax Forms 2012TaxFree 1040ez FilingFree Online Tax ExtensionHr Block Taxes Online1040x Tax Form For 2013Us Tax Forms 2012Irs 1040x Amended ReturnHow To File 2009 Taxes OnlineWww H&rblockfree Tax ReturnsRevised Tax ReturnFiling For Taxes As A StudentHow To File Taxes For 2010Ez TaxHow Do I Amend My TaxesIrs EfileMy 1040ezHow To Amend A ReturnHow To Do Back TaxesWww H&r BlockIrs Gov EfileFree State Tax Only E FilingFree Online State TaxAmend My 2012 Tax ReturnFiling Taxes If UnemployedState Tax ReturnsAmended Tax Return InstructionsFile Taxes For 2010 Online FreeIncome Tax Return 2013How Much To Do Back Taxes With Hr BlockFree H And R Block OnlineCan 1040x Be Filed ElectronicallyFile 2012 Taxes For Free2012 1040a1040 Easy Form 2012How To Amend Your TaxesIrs GovFile 2012 Taxes Tax PreparerFile 2010 Tax Return Online

State Tax File Free

State tax file free Publicación 4492(SP) - Main Contents Tabla de contenidos DefinicionesZona de Desastre del Huracán Katrina Zona de Desastre del Huracán Katrina con Cobertura Zona de Oportunidad del Golfo (GO) (Zona Central del Desastre) Zona de Desastre del Huracán Rita (Zona de Desastre de Rita con Cobertura) Zona GO de Rita Zona de Desastre del Huracán Wilma Zona de Desastre del Huracán Wilma con Cobertura Zona GO de Wilma Prórrogas de las Fechas de Vencimiento Tributarias Incentivos por Contribuciones CaritativasSuspensión Temporal de los Límites sobre las Contribuciones Caritativas Tasa Estándar por Milla para el Uso de Vehículos para Fines Caritativos Reembolsos de Millas a Voluntarios que Prestaron Servicios con Fines Caritativos Deducción Caritativa por Contribuciones de Inventario de Alimentos Deducción Caritativa por Contribuciones de Inventarios de Libros a Escuelas Públicas Pérdidas por Hechos Fortuitos y RobosPlazo para hacer la elección. State tax file free Período de Reposición para que las Ganancias no sean Reconocidas Pérdidas Netas de Operación Las Cuentas IRA y Otros Planes de JubilaciónDefiniciones Tributación de Distribuciones Calificadas por Motivos de un Huracán Reintegro de Distribuciones Calificadas por Motivos de un Huracán Reintegro de Distribuciones Calificadas por la Compra o Construcción de un Hogar Principal Préstamos Provenientes de Planes Calificados Alivio Tributario Adicional para Personas FísicasCrédito por Ingreso del Trabajo y Crédito Tributario por Hijos Exenciones Adicionales por la Provisión de Vivienda para Personas que Tuvieron que Abandonar sus Hogares por Causa del Huracán Katrina Créditos Tributarios por Enseñanza Superior Recuperación del Subsidio Hipotecario Federal Exclusión de Ciertas Cancelaciones de Endeudamiento por Motivos del Huracán Katrina Alivio Tributario para la Reubicación Temporal Alivio Tributario Adicional para Empresas Asignación (Descuento) Especial de Depreciación Mayor Deducción Conforme a la Sección 179 Crédito por Oportunidad de Trabajo Créditos por la Retención de Empleados Crédito por Vivienda del Huracán Katrina Costos de Reforestación Costos de Demolición y Limpieza Aumento del Crédito Tributario por Rehabilitación Solicitud de Copia o Apógrafo de la Declaración de Impuestos Cómo Obtener Ayuda con los Impuestos Definiciones En esta publicación se utilizarán las siguientes definiciones: Zona de Desastre del Huracán Katrina La zona de desastre del huracán Katrina abarca el área que el Presidente declaró zona mayor de desastre debido al huracán Katrina, antes del 14 de septiembre del 2005. State tax file free La zona de desastre del huracán Katrina abarca los estados de Alabama, Florida, Louisiana y Mississippi en su totalidad. State tax file free Zona de Desastre del Huracán Katrina con Cobertura El IRS ha designado una parte de la zona del huracán Katrina como zona de desastre con cobertura. State tax file free La zona de desastre del huracán Katrina con cobertura abarca las siguientes áreas en cuatro estados distintos: Alabama. State tax file free   Los condados de Baldwin, Bibb, Choctaw, Clarke, Colbert, Cullman, Greene, Hale, Jefferson, Lamar, Lauderdale, Marengo, Marion, Mobile, Monroe, Perry, Pickens, Sumter, Tuscaloosa, Washington, Wilcox y Winston. State tax file free Florida. State tax file free   Los condados de Bay, Broward, Collier, Escambia, Franklin, Gulf, Miami-Dade, Monroe, Okaloosa, Santa Rosa y Walton. State tax file free Louisiana. State tax file free   Todas las parroquias. State tax file free Mississippi. State tax file free   Todos los condados. State tax file free Zona de Oportunidad del Golfo (GO) (Zona Central del Desastre) La Zona GO (también denominada zona central del desastre) abarca una parte de la zona de desastre ocasionada por el huracán Katrina que la Agencia Federal para el Manejo de Emergencias (conocida por sus siglas en inglés, FEMA) determinó ser elegible para recibir ayuda individual por sí sola o para recibir ambas ayuda individual y asistencia pública de parte del gobierno federal. State tax file free La Zona GO incluye las siguientes áreas en tres estados distintos: Alabama. State tax file free   Los condados de Baldwin, Choctaw, Clarke, Greene, Hale, Marengo, Mobile, Pickens, Sumter, Tuscaloosa y Washington. State tax file free Louisiana. State tax file free   Las parroquias de Acadia, Ascension, Assumption, Calcasieu, Cameron, East Baton Rouge, East Feliciana, Iberia, Iberville, Jefferson, Jefferson Davis, Lafayette, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, St. State tax file free Bernard, St. State tax file free Charles, St. State tax file free Helena, St. State tax file free James, St. State tax file free John the Baptist, St. State tax file free Martin, St. State tax file free Mary, St. State tax file free Tammany, Tangipahoa, Terrebonne, Vermilion, Washington, West Baton Rouge y West Feliciana. State tax file free Mississippi. State tax file free   Los condados de Adams, Amite, Attala, Choctaw, Claiborne, Clarke, Copiah, Covington, Forrest, Franklin, George, Greene, Hancock, Harrison, Hinds, Holmes, Humphreys, Jackson, Jasper, Jefferson, Jefferson Davis, Jones, Kemper, Lamar, Lauderdale, Lawrence, Leake, Lincoln, Lowndes, Madison, Marion, Neshoba, Newton, Noxubee, Oktibbeha, Pearl River, Perry, Pike, Rankin, Scott, Simpson, Smith, Stone, Walthall, Warren, Wayne, Wilkinson, Winston y Yazoo. State tax file free Zona de Desastre del Huracán Rita (Zona de Desastre de Rita con Cobertura) La zona de desastre del huracán Rita (también designada por el IRS como la zona de desastre de Rita con cobertura) abarca aquella que el Presidente declaró desastre mayor antes del 6 de octubre del 2005 debido al huracán Rita. State tax file free La zona de desastre del huracán Rita con cobertura incluye los estados de Louisiana y Texas en su totalidad. State tax file free Zona GO de Rita La Zona GO de Rita abarca la parte de la zona del huracán Rita que FEMA determinó ser elegible para recibir asistencia individual por sí sola o para recibir ambas asistencia pública e individual del gobierno federal. State tax file free La Zona GO de Rita incluye las siguientes áreas en dos estados: Louisiana. State tax file free   Las parroquias de Acadia, Allen, Ascension, Beauregard, Calcasieu, Cameron, Evangeline, Iberia, Jefferson, Jefferson Davis, Lafayette, Lafourche, Livingston, Plaquemines, Sabine, St. State tax file free Landry, St. State tax file free Martin, St. State tax file free Mary, St. State tax file free Tammany, Terrebonne, Vermilion, Vernon y West Baton Rouge. State tax file free Texas. State tax file free   Los condados de Angelina, Brazoria, Chambers, Fort Bend, Galveston, Hardin, Harris, Jasper, Jefferson, Liberty, Montgomery, Nacogdoches, Newton, Orange, Polk, Sabine, San Augustine, San Jacinto, Shelby, Trinity, Tyler y Walker. State tax file free Zona de Desastre del Huracán Wilma La zona de desastre del huracán Wilma abarca aquella zona que el Presidente declaró como desastre mayor antes del 14 de noviembre del 2005 debido al huracán Wilma. State tax file free La zona de desastre del huracán Wilma abarca el estado de Florida en su totalidad. State tax file free Zona de Desastre del Huracán Wilma con Cobertura Una parte de la zona de desastre del huracán Wilma ha sido designada por el IRS como zona de desastre de Wilma con cobertura. State tax file free La zona de desastre del huracán Wilma con cobertura incluye los siguientes condados: Florida. State tax file free   Brevard, Broward, Charlotte, Collier, DeSoto, Glades, Hardee, Hendry, Highlands, Indian River, Lee, Martin, Miami-Dade, Monroe, Okeechobee, Osceola, Palm Beach, Polk, St. State tax file free Lucie y Sarasota. State tax file free Zona GO de Wilma La Zona GO de Wilma abarca la parte de la zona del huracán Wilma que FEMA determinó ser elegible para recibir asistencia individual por sí sola o para recibir ambas asistencia pública e individual del gobierno federal. State tax file free La Zona GO de Wilma incluye los siguientes condados: Florida. State tax file free   Brevard, Broward, Collier, Glades, Hendry, Indian River, Lee, Martin, Miami-Dade, Monroe, Okeechobee, Palm Beach y St. State tax file free Lucie. State tax file free Prórrogas de las Fechas de Vencimiento Tributarias El IRS ha extendido las fechas de vencimiento aplicables para presentar la declaración de impuestos, el pago de impuestos y para efectuar ciertos trámites que tengan fecha de vencimiento hasta el 28 de febrero del 2006, en el caso de contribuyentes que se vieron afectados por los huracanes Katrina, Rita o Wilma. State tax file free La prórroga es aplicable a fechas de vencimiento (fechas de vencimiento originales o prorrogadas) que ocurren durante los períodos siguientes: Después del 28 de agosto del 2005 (23 de agosto del 2005 para los contribuyentes afectados en Florida) y antes del 28 de febrero del 2006 para contribuyentes afectados por el huracán Katrina. State tax file free Después del 22 de septiembre del 2005 y antes del 28 de febrero del 2006 para los contribuyentes afectados por el huracán Rita. State tax file free Después del 22 de octubre del 2005 y antes del 28 de febrero del 2006 para los contribuyentes afectados por el huracán Wilma. State tax file free Contribuyentes afectados. State tax file free   Los contribuyentes afectados elegibles para obtener una prórroga son los siguientes: Cualquier persona cuyo hogar principal está ubicado en una zona de desastre con cobertura. State tax file free Cualquier entidad comercial o empresario(a) por cuenta propia cuyo lugar principal de trabajo se encuentra en una zona de desastre con cobertura. State tax file free Cualquier individuo, entidad comercial o empresario(a) por cuenta propia cuya documentación o registros necesarios para cumplir una determinada fecha de vencimiento prorrogada se encuentran en una zona de desastre con cobertura o cuyo(a) preparador(a) de impuestos tiene su oficina en dicha zona. State tax file free El hogar principal o lugar principal de trabajo no necesariamente tiene que estar ubicado en la zona con cobertura. State tax file free Cualquier persona que haya visitado un condado o parroquia en la zona de desastre con cobertura del huracán Katrina o Rita que haya sufrido lesiones o haya perecido (y el caudal hereditario de una persona que haya perecido) como consecuencia del huracán o sus daños posteriores. State tax file free Cualquier herencia o fideicomiso cuyos registros necesarios para cumplir con una fecha de vencimiento de presentación o pago se encuentran en una zona de desastre con cobertura. State tax file free Por lo general, cualquier persona que haya trabajado en las actividades de socorro dentro de una zona de desastre con cobertura. State tax file free Sin embargo, un(a) empleado(a) que realiza tareas de socorro en la zona de desastre de Wilma no es considerado(a) un(a) contribuyente afectado(a), a menos que él o ella esté afiliado(a) con un organismo gubernamental o filantrópico reconocido dedicado a ayudar en dichas actividades de socorro. State tax file free El o la cónyuge de un(a) contribuyente afectado(a), únicamente en lo que respecta a una declaración conjunta de impuestos. State tax file free   A fin de asegurar un procesamiento correcto de la documentación, los contribuyentes afectados deben escribir la designación del desastre pertinente con tinta roja en la parte superior de cualesquier formas o documentos que presenten ante el IRS (por ejemplo: “Hurricane Katrina” (Huracán Katrina)). State tax file free Los contribuyentes afectados también pueden identificarse ante el personal del IRS o hacer preguntas relacionadas con el huracán llamando a la línea especial de emergencia en caso de desastres del IRS: 1-866-562-5227. State tax file free Actos prorrogados. State tax file free   Se han prorrogado las fechas de vencimiento para llevar a cabo lo siguiente: Presentación de declaraciones de impuestos sobre el ingreso, herencias, donaciones, traspasos entre generaciones, impuesto sobre artículos de uso y consumo o impuesto sobre la nómina. State tax file free Pago de cualquier impuesto sobre el ingreso, herencias, donaciones, traspasos entre generaciones, impuesto sobre artículos de uso y consumo o impuesto sobre la nómina. State tax file free Esto también incluye el pago de impuestos estimados. State tax file free Hacer ciertas aportaciones, distribuciones, contribuciones a las que se les ha dado un carácter diferente al que tenían o la reinversión que se hace a, o desde, un plan de jubilación calificado. State tax file free Presentar ciertas peticiones ante el Tribunal Tributario. State tax file free Presentar una reclamación de crédito o reembolso por cualquier impuesto. State tax file free Entablar una demanda sobre alguna reclamación de crédito o reembolso. State tax file free Ciertos otros actos que se describen en el Revenue Procedure 2005-27 (Procedimientos de Impuestos Internos 2005-27). State tax file free Puede encontrar estos procedimientos en la página 1050 del Internal Revenue Bulletin 2005-20 (Boletín de Impuestos Internos 2005-20) en www. State tax file free irs. State tax file free gov/pub/irs-irbs/irb05-20. State tax file free pdf. State tax file free Condonación de interés y multas. State tax file free   El IRS pudiera condonar el interés y las multas sobre cualquier impuesto sobre el ingreso, herencia, donaciones, nómina o artículos de uso y consumo que no se ha pagado en su totalidad durante el plazo de una prórroga. State tax file free Incentivos por Contribuciones Caritativas Suspensión Temporal de los Límites sobre las Contribuciones Caritativas Individuos. State tax file free   Las contribuciones calificadas no están sujetas al límite general sobre deducciones detalladas o al límite del 50% del ingreso bruto ajustado (conocido por sus siglas en inglés, AGI). State tax file free Una contribución calificada es una contribución caritativa que se ha pagado en efectivo o con cheque después del 27 de agosto del 2005 y antes del 1 de enero del 2006, a una organización con un límite del 50% (fuera de ciertas fundaciones privadas que se describen en la sección 509(a)(3)) si usted opta por dejar que el límite del 50% no sea aplicable a estas contribuciones. State tax file free   Su deducción por contribuciones calificadas está limitada a su ingreso bruto ajustado (AGI) menos su deducción por las demás aportaciones caritativas. State tax file free Puede traspasar al año siguiente cualquier contribución que no haya podido deducir en el 2005 debido a este límite. State tax file free En el año 2006, use la cantidad traspasada de sus contribuciones calificadas que no haya usado como traspaso de contribuciones sujetas al límite del 50%. State tax file free Excepción. State tax file free   Las contribuciones calificadas no incluyen a una contribución hecha a un fondo o cuenta separados para el(la) cual usted (o cualquier persona a quien usted nombre o designe) tenga o espere tener privilegios de asesoría relacionados con las distribuciones o inversiones basadas en su contribución. State tax file free Sociedades anónimas. State tax file free   Una sociedad anónima puede elegir deducir contribuciones calificadas en efectivo independientemente del límite del 10% sobre el ingreso tributable, si las contribuciones se efectuaron después del 27 de agosto del 2005 pero antes del 1 de enero del 2006 a una organización caritativa calificada (sin incluir ciertas fundaciones privadas que se describen en la sección 509(a)(3)), para ayudar en las tareas de socorro del huracán Katrina, Rita o Wilma. State tax file free La deducción de la sociedad anónima por estas contribuciones calificadas se limita al 100% del ingreso tributable (tal como se modificó para el límite del 10%) menos la deducción de dicha sociedad anónima por el resto de sus contribuciones caritativas. State tax file free Cualquier contribución calificada que sobrepase ese límite podrá traspasarse a los próximos 5 años, sujeta al límite del 10%. State tax file free Socios colectivos y accionistas. State tax file free   Cada socio(a) de una sociedad colectiva y cada accionista de una sociedad anónima de tipo "S" elige por separado no aplicar el límite correspondiente. State tax file free Más información. State tax file free   Para obtener mayor información, vea la Publicación 526, Charitable Contributions (Contribuciones Caritativas) o la Publicación 542, Corporations (Sociedades Anónimas), ambas en inglés. State tax file free La Publicación 526 incluye una hoja de trabajo que puede utilizar para determinar su deducción si es que hay algún límite que sea aplicable a sus contribuciones caritativas. State tax file free Tasa Estándar por Milla para el Uso de Vehículos para Fines Caritativos A continuación se indican las tasas estándar por milla especiales que entraron en vigencia en el 2005 y 2006 para cubrir el costo del uso de su automóvil con fines caritativos que estén únicamente relacionados con el huracán Katrina. State tax file free 29 centavos por milla durante el período del 25 al 31 de agosto del 2005. State tax file free 34 centavos por milla durante el período del 1 de septiembre al 31 de diciembre del 2005. State tax file free 32 centavos por milla durante el período del 1 de enero al 31 de diciembre del 2006. State tax file free Reembolsos de Millas a Voluntarios que Prestaron Servicios con Fines Caritativos Usted puede excluir de su ingreso cantidades de dinero que reciba como reembolso de millas por usar un automóvil de pasajeros privado a fin de beneficiar a una organización caritativa calificada que proporciona servicios de socorro relacionados con el huracán Katrina durante el período del 25 de agosto del 2005 al 31 de diciembre del 2006. State tax file free No puede reclamar una deducción o crédito por cantidades que reciba como reembolso de millas recorridas. State tax file free Usted debe mantener documentadas las millas recorridas, la hora, el lugar (o uso) y propósito del uso de esas millas. State tax file free La cantidad que puede excluir del ingreso no puede ser mayor a la tasa estándar por milla para fines laborales (que se muestra a continuación) por gastos en los que incurrió durante los siguientes períodos: 40. State tax file free 5 centavos por milla para el período del 25 al 31 de agosto del 2005. State tax file free 48. State tax file free 5 centavos por milla para el período del 1 de septiembre al 31 de diciembre del 2005. State tax file free 44. State tax file free 5 centavos por milla para el período del 1 de enero al 31 de diciembre del 2006. State tax file free Deducción Caritativa por Contribuciones de Inventario de Alimentos Cualquier contribuyente que trabaje en un oficio o negocio que es elegible para reclamar una deducción por la contribución de un inventario de “alimentos evidentemente nutritivos” a una organización caritativa calificada descrita en la sección 501(c)(3) (a excepción de fundaciones privadas de carácter no operacional) después del 27 de agosto del 2005 y antes del 1 de enero del 2006. State tax file free Los “alimentos evidentemente nutritivos” son aquellos que reúnen las normas de calidad y contenido de etiquetas que imponen las leyes y reglamentos federales, estatales y locales, aunque es posible que los alimentos no estén listos para la comercialización debido a su apariencia, punto de maduración, frescura, categoría, tamaño, excedente u otras condiciones. State tax file free La deducción es equivalente al menor de uno de los siguientes: La base de los alimentos donados, más la mitad de la ganancia que se hubiera obtenido si dichos alimentos se hubieran vendido al valor normal en el mercado en la fecha de donación o Dos veces la base de los alimentos donados. State tax file free El(La) contribuyente debe recibir una certificación de parte del donatario que establezca lo siguiente: Que los alimentos donados se relacionan con la finalidad o la función de la base para exención del donatario conforme a la sección 501(c)(3) y han de usarse únicamente para fines de cuidado de personas enfermas, necesitadas o niños de corta edad y Que los alimentos no se proporcionaron a cambio de dinero, de otra propiedad o servicios algunos. State tax file free En el caso de un(a) contribuyente que no sea una sociedad anónima de tipo "C", la deducción se limita al 10% del ingreso total neto del(la) contribuyente de todas las actividades comerciales o empresariales de las cuales se efectuaron las contribuciones (calculada sin considerar la deducción por contribuciones caritativas). State tax file free Por ejemplo, si un(a) contribuyente es un(a) empresario(a) por cuenta propia, un(a) accionista de una sociedad anónima de tipo "S" y además es socio(a) de una sociedad colectiva y cada una de estas entidades efectuó una contribución de inventario de alimentos evidentemente nutritivos, la deducción del(la) contribuyente está limitada al 10% del ingreso total neto de su empresa por cuenta propia, sociedad anónima de tipo "S" y sociedad colectiva (calculada sin considerar la deducción por contribuciones caritativas). State tax file free Deducción Caritativa por Contribuciones de Inventarios de Libros a Escuelas Públicas A una sociedad anónima (que no sea una sociedad anónima de tipo "S") se le pudiera permitir tomar una deducción caritativa por alguna contribución calificada de libros que haya efectuado después del 27 de agosto del 2005 y antes del 1 de enero del 2006 a una escuela pública que: Imparte una educación primaria o secundaria (kinder hasta el grado número 12, inclusive) y Normalmente mantiene un profesorado docente y un programa de estudios normal y cuenta con estudiantes que asisten al lugar donde las actividades educativas se realizan de manera habitual. State tax file free La deducción es equivalente al menor de una de las siguientes: La base de los libros donados, más la mitad de la ganancia que se hubiera realizado si dichos libros donados se hubieran vendido al valor normal en el mercado en la fecha de donación o Dos veces la base de los libros donados. State tax file free La sociedad anónima debe recibir certificación por escrito de la escuela que establezca que los libros donados son adecuados para los programas educativos que imparte la institución y que se utilizarán para esos programas. State tax file free Pérdidas por Hechos Fortuitos y Robos Los siguientes párrafos explican los cambios realizados a las pérdidas por hechos fortuitos y robos ocasionadas por el huracán Katrina, Rita o Wilma. State tax file free Para mayor información, vea la Publicación 547(SP), en español. State tax file free Límites sobre las pérdidas personales por hechos fortuitos o robos ocasionadas por el huracán Katrina, Rita o Wilma. State tax file free   Las siguientes pérdidas de bienes de uso personal no están sujetas a los límites del 100% o del 10% del ingreso bruto ajustado: Las pérdidas que surgieron en la zona de desastre del huracán Katrina después del 24 de agosto del 2005 y que fueron causadas por el huracán Katrina. State tax file free Las pérdidas que surgieron en la zona de desastre del huracán Rita después del 22 de septiembre del 2005 y que fueron causadas por el huracán Rita. State tax file free Las pérdidas que surgieron en la zona de desastre del huracán Wilma después del 22 de octubre del 2005 y que fueron causadas por el huracán Wilma. State tax file free Las pérdidas calificadas incluyen aquellas por inundaciones u otros hechos fortuitos y por robo que se hayan originado en la zona de desastre del huracán y que fueron provocadas por éste. State tax file free Instrucciones especiales para personas que eligen reclamar una pérdida por hechos fortuitos o robos a causa del huracán Katrina, Rita o Wilma para el 2004. State tax file free   Las pérdidas por hechos fortuitos y robos por lo general se deducen sólo en el año en el cual el hecho fortuito ocurrió o se descubrió el robo. State tax file free Sin embargo, los huracanes Katrina, Rita y Wilma son desastres declarados por el Presidente. State tax file free Por lo tanto, en su declaración de impuestos del año anterior, puede elegir deducir las pérdidas que sufrió debido a estos huracanes. State tax file free Si decide hacerlo, utilice las instrucciones siguientes para llenar sus formas. State tax file free   Las personas que presentan o enmiendan su declaración de impuestos del 2004 cuyas únicas pérdidas por hecho fortuito o robo de sus bienes personales que incluyeron en esa declaración fueron ocasionadas por el huracán Katrina, Rita o Wilma deben anotar lo siguiente en la parte superior de la Forma 1040 ó 1040X: “Hurricane Katrina”, “Hurricane Rita” o “Hurricane Wilma”. State tax file free También han de completar y adjuntar la Forma 4684, en inglés y escribir “Hurricane Katrina”, “Hurricane Rita” o “Hurricane Wilma” en la línea de puntos junto a la línea 11 y anote -0- en las líneas 11 y 17. State tax file free   Las personas que presentan o enmiendan su declaración de impuestos del 2004 y que también hayan sufrido una pérdida de sus bienes personales por hecho fortuito o robo no relacionada con los huracanes Katrina, Rita o Wilma, no deben tomar en cuenta la precaución para otros contribuyentes que aparece por encima de la línea 13, la cual estipula que se use una sola Forma 4684, sino que deben completar las líneas de la 13 a la 18 en dos Formas 4684, en inglés. State tax file free La Forma 1040 ó 1040X y la primera Forma 4684 deben prepararse como se explica anteriormente sólo para pérdidas provocadas por el huracán Katrina, Rita o Wilma. State tax file free La segunda Forma 4684 debe ser preparada de la manera acostumbrada para todas las ganancias y para aquellas pérdidas que no sean relacionadas con el huracán Katrina, Rita o Wilma. State tax file free Si ambas Formas 4684 muestran una pérdida en la línea 18, deben incorporar las pérdidas combinadas de esa línea en la línea 19 del Anexo A (Forma 1040). State tax file free Si en la segunda Forma 4684 hay alguna ganancia en la línea 15, no tome en cuenta las instrucciones de anotar dicha ganancia en el Anexo D (Forma 1040) sino que anote en la línea 19 del Anexo A (Forma 1040) el excedente de la pérdida de la primera Forma 4684 sobre la ganancia proveniente de la línea 15 de la segunda Forma 4684. State tax file free Plazo para hacer la elección. State tax file free   Usted debe hacer la elección de reclamar su pérdida por hecho fortuito o robo en el 2004, en la fecha más tardía de entre las siguientes: La fecha de vencimiento (sin prórrogas) para presentar su declaración de impuestos sobre el ingreso del 2005. State tax file free La fecha de vencimiento (con prórrogas) para presentar su declaración de impuestos sobre el ingreso del 2004. State tax file free Ejemplo 1. State tax file free Ejemplo. State tax file free Si usted es un(a) contribuyente de año calendario, tiene hasta el 17 de abril del 2006 para enmendar su declaración de impuestos del 2004, si desea reclamar una pérdida por hechos fortuitos o robo que haya ocurrido durante el 2005. State tax file free Período de Reposición para que las Ganancias no sean Reconocidas Por lo general, una conversión involuntaria ocurre cuando los bienes han sido dañados, destruidos, robados, incautados (confiscados), requisados o expropiados (condenados) y usted recibe otros bienes o dinero en pago, como por ejemplo, una indemnización que recibió del seguro o una indemnización por expropiación (condenación). State tax file free Por lo general, no es necesario que declare una ganancia (si la existe) si reemplaza la propiedad dentro de 2 años (4 años en el caso de un hogar principal ubicado en una zona de desastre declarada por el Presidente). State tax file free Sin embargo, si los bienes fueron convertidos involuntariamente después del 24 de agosto del 2005 debido al huracán Katrina, se aplicará un plazo de reposición de 5 años si la mayor parte del uso de los bienes de reposición se encuentra en la zona de desastre del huracán Katrina. State tax file free Para obtener mayor información, vea las Instrucciones para la Forma 4684, en inglés. State tax file free Pérdidas Netas de Operación Pérdida calificada en una Zona GO. State tax file free   Por lo general, usted puede traspasar una pérdida neta de operación (conocida por sus siglas en inglés, NOL) a los 2 años tributarios anteriores al año de dicha NOL. State tax file free Sin embargo, la porción de una NOL que es una pérdida calificada de la Zona GO puede traspasarse a los 5 años tributarios anteriores al año de dicha NOL. State tax file free Asimismo, el límite del 90% sobre la deducción por el impuesto alternativo del NOL (conocido por sus siglas en inglés, ATNOLD) no aplica a dicha porción de ATNOLD. State tax file free   Una pérdida calificada de la Zona GO es la menor de una de las siguientes: La pérdida neta de operación (NOL) en exceso de ese año sobre una pérdida de responsabilidad específica de ese año a la cual aplica un traspaso de 10 años. State tax file free El total de las siguientes deducciones (hasta el punto en que se tomen en consideración al calcular la NOL para ese año tributario): Pérdida calificada por hechos fortuitos de la Zona GO (según se define a continuación), Los gastos de mudanza que se hayan pagado o en los que haya incurrido después del 27 de agosto del 2005 y antes del 1 de enero del 2008, por emplear a una persona cuyo hogar principal se encontraba ubicado en la Zona GO antes del 28 de agosto del 2005 y que no pudo permanecer en esa vivienda a causa del huracán Katrina y cuya ubicación laboral principal (después de esa mudanza) se encuentra en la Zona GO, Gastos temporales de vivienda que haya pagado o en los que haya incurrido después del 27 de agosto del 2005 y antes del 1 de enero del 2008, para albergar a empleados del(la) contribuyente cuya ubicación laboral principal se encontraba en la Zona GO, La depreciación o amortización permisible para cualquier propiedad de la Zona GO por el año en que fue puesta en servicio (aún si decidió no reclamar el descuento por depreciación especial de la Zona GO para dicha propiedad en esa zona) y Gastos de reparación (incluyendo aquellos para la remoción de escombros) que haya pagado o en los que haya incurrido después del 27 de agosto del 2005 y antes del 1 de enero del 2008 por cualquier daño que haya causado el huracán Katrina a la propiedad ubicada en la Zona GO. State tax file free Pérdida por hechos fortuitos calificada en una Zona GO. State tax file free   Una pérdida por hechos fortuitos calificada por hechos fortuitos en la Zona GO es cualquier pérdida de propiedad deducible bajo la sección 1231 que se encuentra ubicada en la Zona GO si dicha pérdida fue ocasionada por el huracán Katrina. State tax file free Para estos fines, la cantidad de la pérdida se reduce a partir de cualquier ganancia reconocida de una conversión involuntaria de propiedad ubicada en la Zona GO a causa del huracán Katrina. State tax file free Esa pérdida que se consideró al calcular su pérdida calificada para la Zona GO no reúne las condiciones necesarias para la opción de ser considerada pérdida ocurrida durante el año tributario previo. State tax file free Traspaso a 5 años de NOL por ciertas pérdidas en actividades madereras. State tax file free   Por lo general, usted puede traspasar una parte de una pérdida neta de operación (NOL) debida al ingreso y a las deducciones atribuibles a una actividad agrícola a los 5 años tributarios anteriores al año de dicha pérdida. State tax file free Usted puede tratar el ingreso y las deducciones atribuibles a propiedad maderera calificada como atribuibles a una empresa agrícola si cualquier parte de la propiedad se encuentra ubicada en la Zona GO, la Zona GO Rita o la Zona GO Wilma y el ingreso y deducciones son asignables a la parte de su año tributario posterior a la fecha siguiente que corresponda: El 27 de agosto del 2005 si cualquier parte de la propiedad se encuentra ubicada en la Zona GO. State tax file free El 22 de septiembre del 2005 si cualquier parte de la propiedad se encuentra ubicada en la Zona GO de Rita (pero no en la Zona GO). State tax file free El 22 de octubre del 2005 si cualquier parte de la propiedad se encuentra ubicada en la Zona GO de Wilma (pero no en la Zona GO o en la Zona GO de Rita). State tax file free   Estas reglas no serán aplicables después del 2006. State tax file free   Sin embargo, estas reglas sólo serán aplicables a un productor maderero que cumpla con lo siguiente: Tiene propiedad de producción maderera calificada (según se define en la Publicación 535, Business Expenses (Gastos de Negocio), en inglés) en la fecha correspondiente a continuación: El 28 de agosto del 2005 si cualquier parte de la propiedad se encuentra ubicada en la Zona GO, El 23 de septiembre del 2005 si cualquier parte de la propiedad se encuentra ubicada en la Zona GO de Rita (pero no en la Zona GO) o El 23 de octubre del 2005 si cualquier parte de la propiedad se encuentra ubicada en la Zona GO de Wilma (pero no en la Zona GO o en la Zona GO de Rita); No sea una sociedad anónima con transacción pública de acciones en un mercado de valores establecido; No sea un fideicomiso para la inversión en bienes inmuebles; No sea dueño(a) de más de 500 acres de propiedad de actividad maderera calificada en las fechas anteriores que correspondan. State tax file free Más información. State tax file free   Para obtener mayor información sobre las pérdidas netas de operación, vea la Publicación 536, Net Operating Losses (Pérdidas Netas de Operación) o la Publicación 542, Corporations (Sociedades Anónimas), ambas en inglés. State tax file free Las Cuentas IRA y Otros Planes de Jubilación Nuevas reglas permiten retiros de dinero favorecidos por los impuestos, pagos de reintegro y préstamos de ciertos planes de jubilación para aquellos contribuyentes que sufrieron pérdidas económicas como consecuencia del huracán Katrina, Rita o Wilma. State tax file free Definiciones Distribución calificada por motivos del huracán. State tax file free   La distribución calificada por motivos de un huracán es cualquier distribución que haya recibido de un plan si lo siguiente es aplicable: La distribución se efectuó en las siguientes fechas: Después del 24 de agosto del 2005 y antes del 1 de enero del 2007 en el caso del huracán Katrina; Después del 22 de septiembre del 2005 y antes del 1 de enero del 2007 en el caso del huracán Rita o Después del 22 de octubre del 2005 y antes del 1 de enero del 2007 en el caso del huracán Wilma. State tax file free Su hogar principal se encontraba ubicado en una zona de desastre del huracán que aparece a continuación en la fecha determinada como se indica: El 28 de agosto del 2005 para la zona de desastre del huracán Katrina. State tax file free El 23 de septiembre del 2005 para la zona de desastre del huracán Rita. State tax file free El 23 de octubre del 2005 para la zona de desastre del huracán Wilma. State tax file free Usted sostuvo una pérdida económica debido al huracán Katrina, Rita o Wilma y su hogar principal se encontraba en esa zona de desastre en la fecha indicada en la sección 2) anterior. State tax file free Algunos ejemplos de pérdida económica incluyen, pero no se limita a: La pérdida, el daño o la destrucción de bienes inmuebles o personales debido a un incendio, inundación, saqueo, vandalismo, robo, viento u otras causas; La pérdida por haber quedado desamparado(a) (sin hogar) o La pérdida de medios de manutención (sostenimiento) propia debido a desempleo temporal o despidos permanentes. State tax file free   Si son aplicables las secciones de la 1) a la 3), por lo general, usted puede designar cualquier distribución (incluyendo los pagos periódicos y distribuciones mínimas requeridas) de un plan de jubilación elegible, independientemente de si esa distribución se efectuó a cuenta del huracán Katrina, Rita o Wilma. State tax file free Las distribuciones calificadas del huracán son permitidas sin tomar en cuenta la necesidad o cantidad real de su pérdida económica. State tax file free   El total de sus distribuciones calificadas de todos los planes está limitada a $100,000. State tax file free Si tiene distribuciones que superan los $100,000 a través de más de una clase de plan, como por ejemplo, un plan 401(k) y una cuenta IRA, usted puede asignar el límite de $100,000 entre esos planes según prefiera. State tax file free   Una reducción o compensación del balance de su cuenta (después del 24 de agosto del 2005 en el caso de Katrina; después del 22 de septiembre del 2005 en el caso de Rita; o después del 22 de octubre del 2005 para Wilma) en un plan de jubilación elegible para poder pagar un préstamo también puede designarse como distribución calificada por motivos del huracán. State tax file free Plan de jubilación elegible. State tax file free   Un plan de jubilación elegible puede ser cualquiera de los siguientes: Un plan calificado de pensión, de participación en las ganancias o de participación (bonificación) en acciones (incluyendo un plan 401(k)). State tax file free Un plan de anualidad calificado. State tax file free Un contrato de anualidad con abrigo tributario. State tax file free Un plan de compensación diferida gubernamental bajo la sección 457. State tax file free Una cuenta IRA de tipo SEP, SIMPLE o Roth. State tax file free Hogar principal. State tax file free   Por lo general, su hogar principal es el lugar donde usted vive la mayor parte del tiempo. State tax file free Una ausencia temporal debido a circunstancias especiales, tales como una enfermedad, educación, negocios, servicio militar, evacuación o vacaciones no cambiará su lugar principal de residencia u hogar principal. State tax file free Tributación de Distribuciones Calificadas por Motivos de un Huracán Las distribuciones calificadas por motivo de un huracán se incluyen en el ingreso en cantidades iguales durante un período de tres años. State tax file free Sin embargo, si así lo elige, puede incluir el total de la distribución en su ingreso para el año en que la recibió. State tax file free Las distribuciones calificadas por motivos del huracán no están sujetas al impuesto del 10% adicional (o el impuesto del 25% adicional en el caso de ciertas distribuciones de una cuenta SIMPLE IRA) sobre distribuciones tempranas provenientes de planes de jubilación calificados (incluyendo a cuentas IRA). State tax file free Sin embargo, cualquier distribución que usted reciba en exceso del límite de distribución calificado de $100,000 por motivos de un huracán puede estar sujeta al impuesto adicional sobre las distribuciones tempranas. State tax file free Para obtener más información, vea la Forma 8915, Qualified Hurricane Retirement Plan Distributions and Repayments (Distribuciones y Devoluciones (Reintegros) de Pagos Calificados de Planes de Jubilación a Causa de un Huracán), en inglés. State tax file free Reintegro de Distribuciones Calificadas por Motivos de un Huracán Si así lo escoge, por lo general, puede reintegrar cualquier porción de una distribución calificada hecha como consecuencia de un huracán que es elegible para ser reinvertida libre de impuestos en un plan de jubilación elegible. State tax file free Asimismo, también puede reintegrar una distribución calificada por motivo de un huracán proveniente de un plan de jubilación que se haya efectuado a causa de una situación grave (infortunio). State tax file free Sin embargo, para averiguar más sobre las distribuciones calificadas hechas como consecuencia de un huracán que no puede reintegrar, vea, Excepciones, a continuación. State tax file free Usted tiene tres años a partir del día siguiente a la fecha en que recibió la distribución para reintegrarla. State tax file free Las cantidades que usted reintegra se consideran una reinversión calificada y no se incluyen en su ingreso. State tax file free Del mismo modo, para propósitos de la limitación de realizar una sola reinversión por año que tienen las cuentas IRA, un reintegro a una cuenta IRA no se considera una reinversión calificada. State tax file free Para obtener mayor información sobre cómo declarar los reintegros, vea la Forma 8915, en inglés. State tax file free Excepciones. State tax file free   Usted no puede reintegrar los siguientes tipos de distribuciones: Distribuciones calificadas debido al huracán que haya recibido como beneficiario(a) (que no sea un(a) cónyuge sobreviviente). State tax file free Distribuciones mínimas requeridas. State tax file free Pagos periódicos (que no sean de aquellos de una cuenta IRA) que son para: Un período de 10 años o más, Su vida o su expectativa de vida o El período de vida conjunta o expectativas de vida conjunta para usted y su beneficiario(a). State tax file free Reintegro de Distribuciones Calificadas por la Compra o Construcción de un Hogar Principal Si recibe una distribución calificada para comprar o construir un hogar principal en la zona de desastre del huracán Katrina, Rita o Wilma, usted puede hacer los reintegros de esa distribución antes del 1 de marzo del 2006 a un plan de jubilación elegible después del 24 de agosto del 2005 (Katrina); después del 22 de septiembre del 2005 (Rita); o después del 22 de octubre del 2005 (Wilma). State tax file free Para estos propósitos, un plan de jubilación elegible es aquel plan, anualidad o cuenta IRA en el cual se puede efectuar una reinversión. State tax file free Para que una distribución sea calificada, ésta debe cumplir con los requisitos siguientes: La distribución es una distribución hecha como consecuencia de una situación grave (infortunio) de un plan 401(k), de un contrato de anualidad con abrigo tributario o la distribución de una cuenta IRA para una persona que por primera vez compra una vivienda. State tax file free La distribución se recibió en el año 2005 después del 28 de febrero y antes de las siguientes fechas: El 29 de agosto en el caso del huracán Katrina. State tax file free El 24 de septiembre en el caso del huracán Rita. State tax file free El 24 de octubre en el caso del huracán Wilma. State tax file free La distribución se iba a utilizar para comprar o construir un hogar principal en la zona de desastre del huracán Katrina, Rita o Wilma que no fue adquirido o construido debido a estos huracanes. State tax file free Las cantidades que se reintegren antes del 1 de marzo del 2006 se considerarán reinversión calificada y no se incluirán en el ingreso. State tax file free Del mismo modo, y para propósitos de la limitación de una sola reinversión por año que corresponde a las cuentas IRA, un reintegro a una cuenta IRA no se considerará reinversión calificada. State tax file free Las distribuciones calificadas que no se reintegren antes del 1 de marzo del 2006 pueden estar sujetas a impuestos para el 2005 y al impuesto del 10% adicional sobre las distribuciones tempranas (o al impuesto del 25% adicional en el caso de ciertos planes de cuentas SIMPLE IRA). State tax file free Usted debe presentar la Forma 8915, en inglés, si recibió alguna distribución calificada que haya reintegrado, en su totalidad o en parte, antes del 1 de marzo del 2006. State tax file free Préstamos Provenientes de Planes Calificados Los siguientes beneficios se encuentran disponibles para personas calificadas: Aumentos a los límites de distribución que se tratan como préstamos de planes provistos por el(la) patrono(a) o empleador(a). State tax file free Una suspensión de un año para pagos que vencen sobre préstamos a través de algún plan. State tax file free Persona calificada. State tax file free   Usted es una persona calificada si son aplicables cualesquiera de las siguientes condiciones: El 28 de agosto del 2005 su hogar principal se encontraba en la zona de desastre del huracán Katrina y tuvo una pérdida económica debido a este huracán. State tax file free El 23 de septiembre del 2005 su hogar principal se encontraba en la zona de desastre del huracán Rita y tuvo una pérdida económica debido a este huracán. State tax file free El 23 de octubre del 2005 su hogar principal se encontraba en la zona de desastre del huracán Wilma y tuvo una pérdida económica debido a este huracán. State tax file free Ejemplos de pérdida económica incluyen, pero no se limitan a: La pérdida, daño o destrucción de bienes inmuebles o personales debido a un incendio, inundación, saqueo, vandalismo, robo, viento u otra causa; La pérdida por haber quedado desamparado(a) (sin hogar) o La pérdida de los medios de manutención (sostenimiento) debido a despidos temporales o permanentes. State tax file free Límites sobre los préstamos de planes. State tax file free   El límite de $50,000 para distribuciones que se consideran préstamos de un plan se ha aumentado a $100,000. State tax file free Además, el límite basado en el 50% de sus beneficios acumulados protegidos se ha aumentado al 100% de dichos beneficios. State tax file free Los límites más altos son únicamente aplicables a préstamos recibidos durante el siguiente período: Si su hogar principal estaba ubicado en la zona de desastre del huracán Katrina, el período comenzó el 24 de septiembre del 2005 y termina el 31 de diciembre del 2006. State tax file free Si su hogar principal estaba ubicado en la zona de desastre del huracán Rita o Wilma, el período comenzó el 21 de diciembre del 2005 y termina el 31 de diciembre del 2006. State tax file free Si usted es una persona calificada según las condiciones para el caso del huracán Katrina y según otro huracán, utilice el período basado en el huracán Katrina. State tax file free Suspensión de un año de los pagos de préstamos. State tax file free   El(La) administrador(a) de un plan puede suspender por un año los pagos de préstamos de aquel plan con vencimiento antes del 2007. State tax file free Para calificar para esta suspensión, la fecha de vencimiento de cualquier pago de esos préstamos debe ocurrir durante el período que comienza: El 25 de agosto del 2005 si su hogar principal se encontraba ubicado en la zona de desastre del huracán Katrina. State tax file free El 23 de septiembre del 2005 si su hogar principal se encontraba ubicado en la zona de desastre del huracán Rita. State tax file free El 23 de octubre del 2005 si su hogar principal se encontraba ubicado en la zona de desastre del huracán Wilma. State tax file free Si es una persona calificada por motivo de más de un huracán, utilice el período con la fecha de inicio más temprana. State tax file free Alivio Tributario Adicional para Personas Físicas Crédito por Ingreso del Trabajo y Crédito Tributario por Hijos Usted puede elegir usar su ingreso del trabajo del 2004 para calcular su crédito por ingreso del trabajo (conocido por sus siglas en inglés, EIC) del 2005 y el crédito tributario adicional por hijos si cumple con lo siguiente: Su ingreso del trabajo del 2005 es menor a su ingreso del trabajo del 2004 y Por lo menos una de las siguientes aseveraciones es cierta: El 25 de agosto del 2005 su hogar principal se encontraba en la Zona de Oportunidad del Golfo (GO). State tax file free El 25 de agosto del 2005 su hogar principal se encontraba en la zona de desastre del huracán Katrina y tuvo que abandonar esa vivienda a causa del huracán Katrina. State tax file free El 23 de septiembre del 2005 su hogar principal se encontraba en la Zona GO de Rita. State tax file free El 23 de septiembre del 2005 su hogar principal se encontraba en la zona de desastre del huracán Rita y tuvo que abandonar esa vivienda a causa del huracán Rita. State tax file free El 23 de octubre del 2005 su hogar principal se encontraba en la Zona GO de Wilma. State tax file free El 23 de octubre del 2005 su hogar principal se encontraba en la zona de desastre del huracán Wilma y usted tuvo que abandonar esa vivienda por causa del huracán Wilma. State tax file free Ingreso del trabajo. State tax file free   Para propósitos de esta elección, su ingreso del trabajo tanto para el EIC como para el crédito tributario adicional por hijos es la cantidad de ingreso del trabajo que se utiliza para calcular su EIC, aún si no reclamó el EIC y aun cuando esa cantidad sea distinta a su ingreso del trabajo para el crédito tributario adicional por hijos. State tax file free Si está reclamando sólo el crédito tributario adicional por hijos, usted debe calcular la cantidad de su ingreso del trabajo para propósitos del EIC a fin de determinar si es elegible para hacer la elección y determinar la cantidad del crédito. State tax file free Declaraciones conjuntas. State tax file free   Si presenta una declaración de impuestos conjuntamente con su cónyuge, usted califica para hacer esta elección aún si sólo un(a) cónyuge satisface los requisitos. State tax file free Si hace esta elección, su ingreso del trabajo del 2004 es la suma de su ingreso del trabajo y el de su cónyuge durante el 2004. State tax file free Cómo hacer la elección. State tax file free   Si decide usar su ingreso del trabajo del 2004, esta elección es aplicable para calcular su EIC y su crédito tributario adicional por hijos. State tax file free Sin embargo, puede elegir este último crédito aún si no ha elegido reclamar el EIC. State tax file free   Si elige usar su ingreso del trabajo del 2004, esto puede aumentar o disminuir su EIC. State tax file free Siga los siguientes pasos para decidir si va a hacer esa elección o no: Calcule su EIC del 2005 utilizando su ingreso del trabajo del 2004. State tax file free Calcule su crédito tributario adicional por hijos del 2005 utilizando su ingreso del trabajo del 2004 para propósitos del EIC. State tax file free Sume los resultados de (1) y (2). State tax file free Calcule su EIC del 2005 utilizando su ingreso del trabajo del 2005. State tax file free Calcule su crédito tributario adicional por hijos utilizando su ingreso del trabajo del 2005 para propósitos del crédito tributario adicional por hijos. State tax file free Sume los resultados de (4) y (5). State tax file free Compare los resultados de los números (3) y (6). State tax file free Si la cantidad de (3) es mayor que la de (6), será a beneficio suyo hacer esta elección. State tax file free Si la cantidad de (3) es igual o menor que la de (6), no le ayudará hacer esta elección. State tax file free   Si elige utilizar su ingreso del trabajo del 2004 y está reclamando el EIC, escriba “PYEI” y la cantidad de su ingreso del trabajo del 2004 sobre la línea de puntos junto a la línea 66a de la Forma 1040, en la línea directamente al lado de la línea 41a de la Forma 1040A o en el espacio a la izquierda de la línea 8a de la Forma 1040EZ. State tax file free   Si elige utilizar su ingreso del trabajo del 2004 y está reclamando el crédito tributario adicional por hijos, anote su ingreso del trabajo del 2004 para fines del EIC (aún si no reclamó el EIC) en la línea 4a de la Forma 8812, Additional Child Tax Credit (Crédito Tributario Adicional por Hijos), en inglés y marque el encasillado correspondiente en esa línea. State tax file free   Debido a que la Forma 8812 se publicó antes de que entrara en vigencia la legislación de la Zona GO, las instrucciones se refieren únicamente a personas cuyo hogar principal estaba en la zona de desastre del huracán Katrina. State tax file free Cuando llene la línea 4a de la Forma 8812, utilice las reglas anteriores para poder determinar si es elegible para hacer esa elección (en lugar de las instrucciones de la Forma 8812). State tax file free Cómo obtener la información de su declaración de impuestos para el 2004. State tax file free   Si usted no tiene los registros de sus impuestos del 2004, puede obtener la cantidad de ingreso del trabajo que se usó para calcular su EIC del 2004 llamando al número 1-866-562-5227. State tax file free También puede obtener esta información en el cibersitio del IRS en www. State tax file free irs. State tax file free gov. State tax file free   Si prefiere calcular usted mismo(a) su ingreso del trabajo para el 2004, copias o apógrafos de sus declaraciones de impuestos presentadas y procesadas le pueden servir para reconstruir sus registros tributarios. State tax file free Vea, Solicitud de Copia o Apógrafo de la Declaración de Impuestos, en la página 19. State tax file free Exenciones Adicionales por la Provisión de Vivienda para Personas que Tuvieron que Abandonar sus Hogares por Causa del Huracán Katrina Es posible que pueda reclamar una exención adicional de $500 por cada persona desamparada a causa del huracán Katrina y que usted haya albergado en su hogar principal. State tax file free Puede reclamar esta exención adicional en la nueva Forma 8914, Exemption Amount for Taxpayers Housing Individuals Displaced by Hurricane Katrina (Cantidad de la Exención para Contribuyentes dando Alojamiento a Personas Desplazadas por el Huracán Katrina), disponible en inglés. State tax file free La cantidad de la exención adicional es permisible una vez por contribuyente en el caso de una persona determinada en el año 2005 ó 2006, pero no en ambos años. State tax file free La cantidad de la exención adicional máxima que usted puede reclamar por todas las personas desamparadas es de $2,000 ($1,000 si es casado(a) que presenta por separado). State tax file free La cantidad de la exención adicional que reclame por personas desamparadas en el 2005 reducirá el máximo de $2,000 para el 2006. State tax file free Si dos o más contribuyentes viven en el mismo hogar, sólo uno(a) de ellos puede reclamar la exención adicional por una persona desamparada a quien haya albergado. State tax file free Si es casado(a) que presenta por separado, sólo un(a) cónyuge puede pedir esa exención adicional por una persona determinada que haya sido desamparada. State tax file free Para que a usted se le pueda considerar que proporcionó vivienda, tiene que tener un interés legal en el hogar principal (es decir, que usted sea el(la) dueño(a) o que alquile). State tax file free Para calificar como una persona desamparada, la persona: Debe haber tenido su hogar principal en la zona de desastre del huracán Katrina el 28 de agosto del 2005 y debe haber quedado desamparado(a) (sin hogar). State tax file free Si el hogar principal del individuo se encontraba fuera de la zona central del desastre, ese hogar debe haber sufrido daños por el huracán Katrina o la persona debe haber sido evacuada de esa vivienda debido al huracán Katrina, Se le debió haber provisto vivienda en su hogar principal durante un período de por lo menos 60 días consecutivos que concluya durante el año tributario para el cual se reclama la exención y No puede ser su cónyuge o dependiente. State tax file free Usted no puede reclamar la exención adicional si recibe alquiler (u otra cantidad) de cualquier fuente por alojamiento. State tax file free Se le permite recibir pagos o reembolsos que no estén relacionados con los costos normales de vivienda, entre ellos: Alimentos, ropa o artículos personales que consume o usa la persona desamparada. State tax file free Reembolso por el costo de cualquier llamada de larga distancia que haya hecho la persona desamparada. State tax file free Reembolso por el costo de la gasolina de su automóvil si la persona desamparada lo utilizó. State tax file free Sin embargo, no puede reclamar la exención adicional si recibió un reembolso por los gastos adicionales de calefacción, electricidad o agua utilizada por esa persona desamparada. State tax file free Asimismo, usted debe declarar en la Forma 8914, en inglés, el número de seguro social o número de identificación del contribuyente de la persona a quien usted dio alojamiento para poder reclamar una exención adicional. State tax file free Para obtener más información, vea la Forma 8914, en inglés. State tax file free Créditos Tributarios por Enseñanza Superior Los créditos por enseñanza superior se han ampliado para cualquier año tributario que comience en el 2005 ó 2006 en el caso de aquellos estudiantes que asisten a una institución educacional elegible ubicada en la Zona de Oportunidad del Golfo (estudiantes de GOZ). State tax file free El crédito Hope para un(a) estudiante de GOZ se aumenta al 100% de los primeros $2,000 en gastos calificados de educación y al 50% de los $2,000 siguientes en gastos calificados de educación, para lograr un crédito máximo de $3,000 por estudiante. State tax file free La tasa del crédito perpetuo (vitalicio) por aprendizaje en el caso de un(a) estudiante de GOZ se aumenta del 20% al 40%. State tax file free También se ha ampliado la definición de gastos calificados de educación para un(a) estudiante de GOZ. State tax file free Además de la matrícula y los cargos que se requieren para que el(la) estudiante se matricule o asista a una institución educacional elegible, los gastos educativos calificados para un(a) estudiante de GOZ incluirán lo siguiente: Libros, materiales y equipo requeridos para la matrícula o la asistencia a una institución educacional elegible. State tax file free En el caso de un(a) estudiante con necesidades especiales, los gastos que sean necesarios para la matrícula o asistencia de la persona a una institución de educación elegible. State tax file free Para un(a) estudiante que asiste por lo menos a tiempo parcial, los costos razonables de alojamiento y gastos relacionados, pero sólo en la medida en que los costos no excedan la cantidad mayor de las siguientes dos cantidades: La asignación para alojamiento y gastos relacionados de un(a) estudiante, según la determine la institución educacional elegible, que se incluyó en los costos de asistencia a clases (para propósitos de ayuda financiera federal) para un período académico determinado y los arreglos de alojamiento particulares del(la) estudiante. State tax file free La cantidad real que se cobra si el(la) estudiante reside en un dormitorio propiedad de la institución educacional elegible o en un dormitorio administrado por dicha institución. State tax file free Tendrá que comunicarse con la institución educacional elegible para saber cuáles son los costos calificados de alojamiento y gastos relacionados. State tax file free Para obtener más información, vea la Forma 8863, Education Credits (Hope and Lifetime Learning Credits) (Créditos por Enseñanza Superior (Crédito Hope y Crédito Perpetuo (Vitalicio) por Aprendizaje)), en inglés. State tax file free Recuperación del Subsidio Hipotecario Federal Por lo general, si usted financió su hogar a través de un programa de subsidio federal (préstamos de bonos hipotecarios calificados exentos de impuesto o préstamos con certificados de crédito hipotecario), es posible que tenga que recuperar todo o parte del beneficio que recibió de ese programa cuando venda o de otro modo se deshaga de su vivienda. State tax file free Sin embargo, no tendrá que recuperar beneficio alguno si su préstamo hipotecario estaba calificado para mejoras del hogar no superiores a los $15,000. State tax file free Esta cantidad se aumentará a $150,000 si el préstamo se otorgó antes del año 2011 y se usó para los siguientes fines: Reparaciones debidas a daños ocasionados por el huracán Katrina a una residencia dentro de la zona de desastre de dicho huracán o Cambios, reparaciones o mejoras a una residencia existente ocupada por su dueño(a) que se encuentra ubicada en la Zona GO, la Zona GO de Rita o la Zona GO de Wilma. State tax file free Exclusión de Ciertas Cancelaciones de Endeudamiento por Motivos del Huracán Katrina Por lo general, el pago de deudas no empresariales realizado después del 24 de agosto del 2005 y antes del 1 de enero del 2007 (tales como las hipotecas), se excluyen del ingreso de aquellas personas cuyo hogar principal se encontraba ubicado en la zona de desastre del huracán Katrina el 25 de agosto del 2005. State tax file free Si el hogar principal de la persona estaba fuera de la zona central del desastre, la persona también debe haber tenido pérdida económica a causa del huracán Katrina. State tax file free Entre los ejemplos de pérdida económica se incluyen, pero no se limitan a: La pérdida, daño o destrucción de bienes inmuebles o personales debido a un incendio, inundación, saqueo, vandalismo, robo, viento u otra causa; La pérdida por haber quedado desamparado(a) (sin hogar) o La pérdida de los medios de manutención (sostenimiento) debido a despidos temporales o permanentes. State tax file free Esta ayuda no aplica a cualquier deuda asegurada por bienes inmuebles ubicados fuera de la zona de desastre del huracán Katrina. State tax file free Es posible que también tenga que reducir ciertos atributos tributarios por la cantidad excluida. State tax file free Para obtener mayor información al respecto, vea la Forma 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis of Adjustment) (Reducción de Atributos Tributarios Debida a la Cancelación de Endeudamiento (y el Ajuste a la Base bajo la Sección 1082)), en inglés. State tax file free Alivio Tributario para la Reubicación Temporal Conforme a la Gulf Opportunity Zone Act of 2005 (Ley de la Zona de Oportunidad del Golfo del 2005), el IRS puede adaptar las leyes de impuestos internos para asegurar que los contribuyentes no pierdan alguna deducción o crédito o tengan un cambio en su estado civil para efectos de la declaración a causa de alguna reubicación temporal debida al huracán Katrina, Rita o Wilma. State tax file free Sin embargo, cualquier ajuste de este tipo debe asegurar que un individuo no sea considerado para los mismos beneficios tributarios a través de más de un(a) contribuyente. State tax file free El IRS ha ejercido esta autoridad de la manera siguiente: Al determinar si usted proporcionó más de la mitad del costo de la manutención (sostenimiento) de un hogar, puede excluir del total de los costos del hogar cualquier asistencia que haya recibido del gobierno o de organizaciones caritativas debido a que a usted se le reubicó temporalmente a causa del huracán Katrina, Rita o Wilma. State tax file free Al determinar si proporcionó más de la mitad del sostenimiento de una persona, usted puede no tomar en cuenta cualquier ayuda del gobierno o de organizaciones caritativas debido a que a usted se le reubicó temporalmente a causa del huracán Katrina, Rita o Wilma. State tax file free Usted puede tratar como estudiante a un individuo que se haya matriculado en una institución educativa antes del 25 de agosto del 2005 y que no pueda asistir a clases debido al huracán Katrina, por cada mes durante el período de matrícula en que dicha persona no puede asistir a clases según lo planificado, a causa del huracán Katrina. State tax file free Usted puede tratar como estudiante a un individuo que se haya matriculado en una institución educativa antes del 23 de septiembre del 2005 y que no pueda asistir a clases debido al huracán Rita, por cada mes durante el período de matrícula en que dicha persona no puede asistir a clases según lo planificado, a causa del huracán Rita. State tax file free Usted puede tratar como estudiante a un individuo que se haya matriculado en una institución educativa antes del 23 de octubre del 2005 y que no pueda asistir a clases debido al huracán Wilma, por cada mes durante el período de matrícula en que dicha persona no puede asistir a clases según lo planificado, a causa del huracán Wilma. State tax file free Alivio Tributario Adicional para Empresas Asignación (Descuento) Especial de Depreciación Usted puede usar una asignación (descuento) especial por depreciación de una propiedad ubicada en la Zona de Oportunidad del Golfo (GO) (definida más adelante) que haya comenzado a usar después del 27 de agosto del 2005. State tax file free Esta asignación (descuento) representa una deducción adicional del 50% de la base depreciable de dicha propiedad (después de haber aplicado una deducción bajo la sección 179 y antes de calcular su deducción por depreciación normal). State tax file free La asignación (descuento) especial es aplicable únicamente para el primer año en que la propiedad se comenzó a utilizar. State tax file free La asignación (descuento) se puede deducir tanto para el impuesto normal como para el impuesto alternativo mínimo (conocido por sus siglas en inglés, AMT). State tax file free No se requiere un ajuste del AMT para cualquier depreciación que aparezca en la base restante de la propiedad. State tax file free Usted puede elegir por no deducir la asignación (el descuento) especial por depreciación en la Zona GO de alguna propiedad que esté calificada. State tax file free Si elige hacer esto para cualquier propiedad, entonces esto será aplicable a toda propiedad que se encuentre en la misma categoría y que haya comenzado a usar durante el año. State tax file free Propiedad calificada de la Zona GO. State tax file free   La propiedad que califica para la asignación (el descuento) especial por depreciación de la Zona GO incluye a las siguientes: Propiedad tangible depreciada conforme al sistema acelerado y modificado de recuperación de costos (conocido por sus siglas en inglés, MACRS) con un período de recuperación de 20 años o menos. State tax file free Propiedad de servicios de agua potable. State tax file free Programas de computación que se encuentran a disponibilidad inmediata para la compra del público en general, que están sujetos a una licencia no exclusiva y que no se hayan modificado considerablemente. State tax file free (El costo de algunos programas de computación se trata como parte del costo de la maquinaria (hardware) y es depreciado conforme al sistema MACRS). State tax file free Propiedad calificada para mejoras con fines de arrendamiento. State tax file free Bienes inmuebles no residenciales y bienes muebles residenciales de alquiler. State tax file free   Para mayor información, vea la Publicación 946, How to Depreciate Property (Cómo Depreciar los Bienes), en inglés. State tax file free Otras pruebas con las que se debe cumplir. State tax file free   Para calificar como bienes de la Zona GO, dichos bienes también deben satisfacer las pruebas siguientes: Usted debe haber adquirido la propiedad, a través de la compra, después del 27 de agosto del 2005, pero sólo si no existía un contrato obligatorio por escrito vigente para esa adquisición antes del 28 de agosto del 2005. State tax file free La propiedad se debe haber comenzado a usar antes del 2008 (2009 en el caso de bienes inmuebles no residenciales y bienes muebles residenciales de alquiler). State tax file free Substancialmente todo el uso de la propiedad debe ocurrir en la Zona GO y durante actividades comerciales y empresariales en operación en la Zona GO. State tax file free Usted debe ser quien utiliza por primera vez los bienes o propiedad en la Zona GO después del 27 de agosto del 2005. State tax file free Los bienes usados pueden calificar como propiedad de la Zona GO si no han sido usados previamente en la Zona GO. State tax file free Asimismo, los gastos de capital adicionales en los que haya incurrido después del 27 de agosto del 2005 con el fin de reacondicionar o reconstruir su propiedad satisfacen la prueba de uso original si fue usted quien comenzó a usar orginalmente esa propiedad en la Zona GO. State tax file free Propiedad excluida (sin cobertura). State tax file free   La propiedad calificada de la Zona GO no incluye las situaciones siguientes: Propiedad que se requiere ser depreciada utilizando el sistema alternativo de depreciación (conocido por sus siglas en inglés, ADS). State tax file free Cualquier parte de una propiedad que sea financiada con las ganancias de una obligación exenta de impuesto conforme a la sección 103. State tax file free Propiedad por la cual reclama una deducción por revitalización comercial. State tax file free Cualquier propiedad utilizada en conexión con cualquier centro de golf, club campestre, salón de masajes, establecimiento de baños de belleza y establecimientos de bronceado o cualesquier establecimientos, privados o comerciales, cuya actividad comercial principal sea la venta de bebidas alcohólicas para el consumo fuera de los locales. State tax file free Cualquier propiedad para las apuestas de juego o de carreras de animales (según se define más adelante). State tax file free Propiedad dentro de la misma categoría que aquella por la cual optó por no reclamar una asignación (descuento) especial por depreciación de la Zona GO. State tax file free   Una propiedad o bien dedicado a las apuestas o a las carreras de animales se define como: Cualquier equipo, mueble, programa de computación u otros bienes utilizados directamente en actividades de juego con apuestas, carreras de animales o para ver dichas carreras en un estableci
Español

If you need an attorney to advise or represent you, ask friends and family for recommendations. You can also contact the Lawyer Referral Service of your state, county, or city bar association listed in your local phone directory.

Websites such as abalawinfo.org (American Bar Association), uslaw.com, thelaw.com, freeadvice.com, and nolo.com can help you with answers to general legal questions.

Tips For Choosing An Attorney

Many lawyers who primarily serve individuals and families are general practitioners with experience in frequently needed legal services such as divorce and family matters; wills and probate; bankruptcy and debt problems; real estate; criminal and/or personal injury. Some have a narrower focus. Be sure the lawyer you are considering has experience in the area for which you are seeking help.

Once you've identified some candidates:

  • Call each attorney on the telephone, describe your legal issue, and find out if he or she handles your situation.
  • Ask if you will be charged for an initial consultation.
  • Ask for an estimate of what is usually charged to handle your kind of case.
  • Ask whether there are hourly charges or whether your attorney would accept a percentage of the settlement as a fee contingency.

The initial consultation is an opportunity for you and the lawyer to get to know each other. After listening to the description of your case, the lawyer should be able to outline your rights and liabilities, as well as alternative courses of action. The initial consultation is the lawyer's opportunity to explain what he or she can do for you and how much it will cost. You should not hesitate to ask about the attorney's experience in handling matters such as yours. Also, do not hesitate to ask about the lawyer's fees and the likely results. If you are considering going beyond the initial consultation and hiring the lawyer, request a written fee agreement before proceeding.

What If You Can't Afford A Lawyer?

If you cannot afford a lawyer, you may qualify for free legal help from a Legal Aid or Legal Services Corporation (LSC) office. These offices generally offer legal assistance about such things as landlord-tenant relations, credit, utilities, family matters (e.g., divorce and adoption), foreclosure, home equity fraud, social security, welfare, unemployment, and workers' compensation. If the Legal Aid office in your area does not handle your type of case, it may refer you to other local, state or national organizations that can provide help. Additional resources may be found at lawhelp.org or freeadvice.com.

To find the Legal Aid office nearest to you, check a local telephone directory or contact:
National Legal Aid and Defender Association
1625 K Street, NW, 8th Floor
Washington, DC 20006
Phone: 202-452-0620
E-mail: info@nlada.org

To find the LSC office nearest you, check a local telephone directory or contact:
LSC Public Affairs
3333 K St., NW, 3rd Floor
Washington, DC 20007
Phone: 202-295-1500

Free assistance could also be available from a law school program where students, supervised by attorneys, handle a variety of legal matters. Some of these programs are open to all. Others limit their service to specific groups, such as senior citizens or low-income persons. Contact a law school in your area to find out if such a program is available.

The State Tax File Free

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