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Turbo Tax Form 1040x

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Turbo Tax Form 1040x

Turbo tax form 1040x Publication 514 - Main Content Table of Contents Choosing To Take Credit or DeductionChoice Applies to All Qualified Foreign Taxes Making or Changing Your Choice Why Choose the Credit?Credit for Taxes Paid or Accrued Foreign Currency and Exchange Rates Foreign Tax Redetermination Who Can Take the Credit?U. Turbo tax form 1040x S. Turbo tax form 1040x Citizens Resident Aliens Nonresident Aliens What Foreign Taxes Qualify for the Credit?Tax Must Be Imposed on You You Must Have Paid or Accrued the Tax Tax Must Be the Legal and Actual Foreign Tax Liability Tax Must Be an Income Tax (or Tax in Lieu of Income Tax) Foreign Taxes for Which You Cannot Take a CreditTaxes on Excluded Income Taxes for Which You Can Only Take an Itemized Deduction Taxes on Foreign Mineral Income Taxes From International Boycott Operations Taxes on Combined Foreign Oil and Gas Income Taxes of U. Turbo tax form 1040x S. Turbo tax form 1040x Persons Controlling Foreign Corporations and Partnerships Taxes Related to a Foreign Tax Credit Splitting Event How To Figure the CreditLimit on the Credit Separate Limit Income Allocation of Foreign Taxes Foreign Taxes From a Partnership or an S Corporation Figuring the Limit Qualified Dividends Capital Gains and Losses Allocation of Foreign and U. Turbo tax form 1040x S. Turbo tax form 1040x Losses Tax Treaties Carryback and CarryoverTime Limit on Tax Assessment Claim for Refund Taxes All Credited or All Deducted Married Couples How To Claim the CreditForm 1116 Records To Keep Simple Example — Filled-In Form 1116Part I—Taxable Income or Loss From Sources Outside the United States (for Category Checked Above) Part II—Foreign Taxes Paid or Accrued Part III—Figuring the Credit Part IV—Summary of Credits From Separate Parts III Comprehensive Example — Filled-In Form 1116Foreign earned income. Turbo tax form 1040x Employee business expenses. Turbo tax form 1040x Forms 1116 Computation of Taxable Income Part I—Taxable Income or Loss From Sources Outside the United States (for Category Checked Above) Part II—Foreign Taxes Paid or Accrued Part III—Figuring the Credit Part IV—Summary of Credits From Separate Parts III Unused Foreign Taxes How To Get Tax HelpLow Income Taxpayer Clinics Choosing To Take Credit or Deduction You can choose whether to take the amount of any qualified foreign taxes paid or accrued during the year as a foreign tax credit or as an itemized deduction. Turbo tax form 1040x You can change your choice for each year's taxes. Turbo tax form 1040x To choose the foreign tax credit, in most cases you must complete Form 1116 and attach it to your U. Turbo tax form 1040x S. Turbo tax form 1040x tax return. Turbo tax form 1040x However, you may qualify for the exception that allows you to claim the foreign tax credit without using Form 1116. Turbo tax form 1040x See How To Figure the Credit , later. Turbo tax form 1040x To choose to claim the taxes as an itemized deduction, use Schedule A (Form 1040), Itemized Deductions. Turbo tax form 1040x Figure your tax both ways—claiming the credit and claiming the deduction. Turbo tax form 1040x Then fill out your return the way that benefits you more. Turbo tax form 1040x See Why Choose the Credit, later. Turbo tax form 1040x Choice Applies to All Qualified Foreign Taxes As a general rule, you must choose to take either a credit or a deduction for all qualified foreign taxes. Turbo tax form 1040x If you choose to take a credit for qualified foreign taxes, you must take the credit for all of them. Turbo tax form 1040x You cannot deduct any of them. Turbo tax form 1040x Conversely, if you choose to deduct qualified foreign taxes, you must deduct all of them. Turbo tax form 1040x You cannot take a credit for any of them. Turbo tax form 1040x See What Foreign Taxes Qualify for the Credit , later, for the meaning of qualified foreign taxes. Turbo tax form 1040x There are exceptions to this general rule, which are described next. Turbo tax form 1040x Exceptions for foreign taxes not allowed as a credit. Turbo tax form 1040x   Even if you claim a credit for other foreign taxes, you can deduct any foreign tax that is not allowed as a credit if: You paid the tax to a country for which a credit is not allowed because it provides support for acts of international terrorism, or because the United States does not have or does not conduct diplomatic relations with it or recognize its government and that government is not otherwise eligible to purchase defense articles or services under the Arms Export Control Act, You paid withholding tax on dividends from foreign corporations whose stock you did not hold for the required period of time, You paid withholding tax on income or gain (other than dividends) from property you did not hold for the required period of time, You paid withholding tax on income or gain to the extent you had to make related payments on positions in substantially similar or related property, You participated in or cooperated with an international boycott, You paid taxes in connection with the purchase or sale of oil or gas, or You paid or accrued taxes on income or gain in connection with a covered asset acquisition. Turbo tax form 1040x Covered asset acquisitions include certain acquisitions that result in a stepped-up basis for U. Turbo tax form 1040x S. Turbo tax form 1040x tax purposes. Turbo tax form 1040x For more information, see Internal Revenue Code section 901(m). Turbo tax form 1040x The IRS intends to issue guidance that will explain this provision in greater detail. Turbo tax form 1040x   For more information on these items, see Taxes for Which You Can Only Take an Itemized Deduction , later, under Foreign Taxes for Which You Cannot Take a Credit. Turbo tax form 1040x Foreign taxes that are not income taxes. Turbo tax form 1040x   In most cases, only foreign income taxes qualify for the foreign tax credit. Turbo tax form 1040x Other taxes, such as foreign real and personal property taxes, do not qualify. Turbo tax form 1040x But you may be able to deduct these other taxes even if you claim the foreign tax credit for foreign income taxes. Turbo tax form 1040x   In most cases, you can deduct these other taxes only if they are expenses incurred in a trade or business or in the production of income. Turbo tax form 1040x However, you can deduct foreign real property taxes that are not trade or business expenses as an itemized deduction on Schedule A (Form 1040). Turbo tax form 1040x Carrybacks and carryovers. Turbo tax form 1040x   There is a limit on the credit you can claim in a tax year. Turbo tax form 1040x If your qualified foreign taxes exceed the credit limit, you may be able to carry over or carry back the excess to another tax year. Turbo tax form 1040x If you deduct qualified foreign taxes in a tax year, you cannot use a carryback or carryover in that year. Turbo tax form 1040x That is because you cannot take both a deduction and a credit for qualified foreign taxes in the same tax year. Turbo tax form 1040x   For more information on the limit, see How To Figure the Credit , later. Turbo tax form 1040x For more information on carrybacks and carryovers, see Carryback and Carryover , later. Turbo tax form 1040x Making or Changing Your Choice You can make or change your choice to claim a deduction or credit at any time during the period within 10 years from the regular due date for filing the return (without regard to any extension of time to file) for the tax year in which the taxes were actually paid or accrued. Turbo tax form 1040x You make or change your choice on your tax return (or on an amended return) for the year your choice is to be effective. Turbo tax form 1040x Example. Turbo tax form 1040x You paid foreign taxes for the last 13 years and chose to deduct them on your U. Turbo tax form 1040x S. Turbo tax form 1040x income tax returns. Turbo tax form 1040x You were timely in both filing your returns and paying your U. Turbo tax form 1040x S. Turbo tax form 1040x tax liability. Turbo tax form 1040x In February 2013, you file an amended return for tax year 2002 choosing to take a credit for your 2002 foreign taxes because you now realize that the credit is more advantageous than the deduction for that year. Turbo tax form 1040x Because the regular due date of your 2002 return was April 15, 2003, this choice is timely (within 10 years). Turbo tax form 1040x Because there is a limit on the credit for your 2002 foreign tax, you have unused 2002 foreign taxes. Turbo tax form 1040x Ordinarily, you first carry back unused foreign taxes arising in 2002 to, and claim them as a credit in, the 2 preceding tax years. Turbo tax form 1040x If you are unable to claim all of them in those 2 years, you carry them forward to the 10 years following the year in which they arose. Turbo tax form 1040x Because you originally chose to deduct your foreign taxes and the 10-year period for changing the choice for 2000 and 2001 has passed, you cannot change your choice and carry the unused 2002 foreign taxes back to tax years 2000 and 2001. Turbo tax form 1040x Because the 10-year periods for changing the choice have not passed for your 2003 through 2012 income tax returns, you can still choose to claim the credit for those years and carry forward any unused 2002 foreign taxes. Turbo tax form 1040x However, you must reduce the unused 2002 foreign taxes that you carry forward by the amount that would have been allowed as a carryback if you had timely carried back the foreign tax to tax years 2000 and 2001. Turbo tax form 1040x You cannot take a credit or a deduction for foreign taxes paid on income you exclude under the foreign earned income exclusion or the foreign housing exclusion. Turbo tax form 1040x See Foreign Earned Income and Housing Exclusions under Foreign Taxes for Which You Cannot Take a Credit, later. Turbo tax form 1040x Why Choose the Credit? The foreign tax credit is intended to relieve you of a double tax burden when your foreign source income is taxed by both the United States and the foreign country. Turbo tax form 1040x In most cases, if the foreign tax rate is higher than the U. Turbo tax form 1040x S. Turbo tax form 1040x rate, there will be no U. Turbo tax form 1040x S. Turbo tax form 1040x tax on the foreign income. Turbo tax form 1040x If the foreign tax rate is lower than the U. Turbo tax form 1040x S. Turbo tax form 1040x rate, U. Turbo tax form 1040x S. Turbo tax form 1040x tax on the foreign income will be limited to the difference between the rates. Turbo tax form 1040x The foreign tax credit can only reduce U. Turbo tax form 1040x S. Turbo tax form 1040x taxes on foreign source income; it cannot reduce U. Turbo tax form 1040x S. Turbo tax form 1040x taxes on U. Turbo tax form 1040x S. Turbo tax form 1040x source income. Turbo tax form 1040x Although no one rule covers all situations, in most cases it is better to take a credit for qualified foreign taxes than to deduct them as an itemized deduction. Turbo tax form 1040x This is because: A credit reduces your actual U. Turbo tax form 1040x S. Turbo tax form 1040x income tax on a dollar-for-dollar basis, while a deduction reduces only your income subject to tax, You can choose to take the foreign tax credit even if you do not itemize your deductions. Turbo tax form 1040x You then are allowed the standard deduction in addition to the credit, and If you choose to take the foreign tax credit, and the taxes paid or accrued exceed the credit limit for the tax year, you may be able to carry over or carry back the excess to another tax year. Turbo tax form 1040x (See Limit on credit under How To Figure the Credit, later. Turbo tax form 1040x ) Example 1. Turbo tax form 1040x For 2013, you and your spouse have adjusted gross income of $80,300, including $20,000 of dividend income from foreign sources. Turbo tax form 1040x None of the dividends are qualified dividends. Turbo tax form 1040x You file a joint return and can claim two $3,900 exemptions. Turbo tax form 1040x You had to pay $2,000 in foreign income taxes on the dividend income. Turbo tax form 1040x If you take the foreign taxes as an itemized deduction, your total itemized deductions are $15,000. Turbo tax form 1040x Your taxable income then is $57,500 and your tax is $7,736. Turbo tax form 1040x If you take the credit instead, your itemized deductions are only $13,000. Turbo tax form 1040x Your taxable income then is $59,500 and your tax before the credit is $8,036. Turbo tax form 1040x After the credit, however, your tax is only $6,036. Turbo tax form 1040x Therefore, your tax is $1,700 lower ($7,736 − $6,036) by taking the credit. Turbo tax form 1040x Example 2. Turbo tax form 1040x In 2013, you receive investment income of $5,000 from a foreign country, which imposes a tax of $1,500 on that income. Turbo tax form 1040x You report on your U. Turbo tax form 1040x S. Turbo tax form 1040x return this income as well as $56,000 of U. Turbo tax form 1040x S. Turbo tax form 1040x source wages and an allowable $49,000 partnership loss from a U. Turbo tax form 1040x S. Turbo tax form 1040x partnership. Turbo tax form 1040x Your share of the partnership's gross income is $25,000 and your share of its expenses is $74,000. Turbo tax form 1040x You are single, entitled to one $3,900 exemption, and have other itemized deductions of $6,850. Turbo tax form 1040x If you deduct the foreign tax on your U. Turbo tax form 1040x S. Turbo tax form 1040x return, your taxable income is a negative $250 ($5,000 + $56,000 − $49,000 − $1,500 − $6,850 − $3,900) and your tax is $0. Turbo tax form 1040x If you take the credit instead, your taxable income is $1,250 ($5,000 + $56,000 − $49,000 − $3,900 − $6,850) and your tax before the credit is $126. Turbo tax form 1040x You can take a credit of only $113 because of limits discussed later. Turbo tax form 1040x Your tax after the credit is $13 ($126 − $113), which is $13 more than if you deduct the foreign tax. Turbo tax form 1040x If you choose the credit, you will have unused foreign taxes of $1,387 ($1,500 − $113). Turbo tax form 1040x When deciding whether to take the credit or the deduction this year, you will need to consider whether you can benefit from a carryback or carryover of that unused foreign tax. Turbo tax form 1040x Credit for Taxes Paid or Accrued You can claim the credit for a qualified foreign tax in the tax year in which you pay it or accrue it, depending on your method of accounting. Turbo tax form 1040x “Tax year” refers to the tax year for which your U. Turbo tax form 1040x S. Turbo tax form 1040x return is filed, not the tax year for which your foreign return is filed. Turbo tax form 1040x Accrual method of accounting. Turbo tax form 1040x   If you use an accrual method of accounting, you can claim the credit only in the year in which you accrue the tax. Turbo tax form 1040x You are using an accrual method of accounting if you report income when you earn it, rather than when you receive it, and you deduct your expenses when you incur them, rather than when you pay them. Turbo tax form 1040x   In most cases, foreign taxes accrue when all the events have taken place that fix the amount of the tax and your liability to pay it. Turbo tax form 1040x Generally, this occurs on the last day of the tax year for which your foreign return is filed. Turbo tax form 1040x Contesting your foreign tax liability. Turbo tax form 1040x   If you are contesting your foreign tax liability, you cannot accrue it and take a credit until the amount of foreign tax due is finally determined. Turbo tax form 1040x However, if you choose to pay the tax liability you are contesting, you can take a credit for the amount you pay before a final determination of foreign tax liability is made. Turbo tax form 1040x Once your liability is determined, the foreign tax credit is allowable for the year to which the foreign tax relates. Turbo tax form 1040x If the amount of foreign taxes taken as a credit differs from the final foreign tax liability, you may have to adjust the credit, as discussed later under Foreign Tax Redetermination . Turbo tax form 1040x You may have to post a bond. Turbo tax form 1040x   If you claim a credit for taxes accrued but not paid, you may have to post an income tax bond to guarantee your payment of any tax due in the event the amount of foreign tax paid differs from the amount claimed. Turbo tax form 1040x   The IRS can request this bond at any time without regard to the Time Limit on Tax Assessment discussed later under Carryback and Carryover. Turbo tax form 1040x Cash method of accounting. Turbo tax form 1040x   If you use the cash method of accounting, you can choose to take the credit either in the year you pay the tax or in the year you accrue it. Turbo tax form 1040x You are using the cash method of accounting if you report income in the year you actually or constructively receive it, and deduct expenses in the year you pay them. Turbo tax form 1040x Choosing to take credit in the year taxes accrue. Turbo tax form 1040x   Even if you use the cash method of accounting, you can choose to take a credit for foreign taxes in the year they accrue. Turbo tax form 1040x You make the choice by checking the box in Part II of Form 1116. Turbo tax form 1040x Once you make that choice, you must follow it in all later years and take a credit for foreign taxes in the year they accrue. Turbo tax form 1040x   In addition, the choice to take the credit when foreign taxes accrue applies to all foreign taxes qualifying for the credit. Turbo tax form 1040x You cannot take a credit for some foreign taxes when paid and take a credit for others when accrued. Turbo tax form 1040x   If you make the choice to take the credit when foreign taxes accrue and pay them in a later year, you cannot claim a deduction for any part of the previously accrued taxes. Turbo tax form 1040x Credit based on taxes paid in earlier year. Turbo tax form 1040x   If, in earlier years, you took the credit based on taxes paid, and this year you choose to take the credit based on taxes accrued, you may be able to take the credit this year for taxes from more than one year. Turbo tax form 1040x Example. Turbo tax form 1040x Last year you took the credit based on taxes paid. Turbo tax form 1040x This year you chose to take the credit based on taxes accrued. Turbo tax form 1040x During the year you paid foreign income taxes owed for last year. Turbo tax form 1040x You also accrued foreign income taxes for this year that you did not pay by the end of the year. Turbo tax form 1040x You can base the credit on your return for this year on both last year's taxes that you paid and this year's taxes that you accrued. Turbo tax form 1040x Foreign Currency and Exchange Rates U. Turbo tax form 1040x S. Turbo tax form 1040x income tax is imposed on income expressed in U. Turbo tax form 1040x S. Turbo tax form 1040x dollars, while in most cases the foreign tax is imposed on income expressed in foreign currency. Turbo tax form 1040x Therefore, fluctuations in the value of the foreign currency relative to the U. Turbo tax form 1040x S. Turbo tax form 1040x dollar may affect the foreign tax credit. Turbo tax form 1040x Translating foreign currency into U. Turbo tax form 1040x S. Turbo tax form 1040x dollars. Turbo tax form 1040x   If you receive all or part of your income or pay some or all of your expenses in foreign currency, you must translate the foreign currency into U. Turbo tax form 1040x S. Turbo tax form 1040x dollars. Turbo tax form 1040x How and when you do this depends on your functional currency. Turbo tax form 1040x In most cases, your functional currency is the U. Turbo tax form 1040x S. Turbo tax form 1040x dollar unless you are required to use the currency of a foreign country. Turbo tax form 1040x   You must make all federal income tax determinations in your functional currency. Turbo tax form 1040x The U. Turbo tax form 1040x S. Turbo tax form 1040x dollar is the functional currency for all taxpayers except some qualified business units. Turbo tax form 1040x A qualified business unit is a separate and clearly identified unit of a trade or business that maintains separate books and records. Turbo tax form 1040x Unless you are self-employed, your functional currency is the U. Turbo tax form 1040x S. Turbo tax form 1040x dollar. Turbo tax form 1040x   Even if you are self-employed and have a qualified business unit, your functional currency is the U. Turbo tax form 1040x S. Turbo tax form 1040x dollar if any of the following apply. Turbo tax form 1040x You conduct the business primarily in dollars. Turbo tax form 1040x The principal place of business is located in the United States. Turbo tax form 1040x You choose to or are required to use the dollar as your functional currency. Turbo tax form 1040x The business books and records are not kept in the currency of the economic environment in which a significant part of the business activities is conducted. Turbo tax form 1040x   If your functional currency is the U. Turbo tax form 1040x S. Turbo tax form 1040x dollar, you must immediately translate into dollars all items of income, expense, etc. Turbo tax form 1040x , that you receive, pay, or accrue in a foreign currency and that will affect computation of your income tax. Turbo tax form 1040x If there is more than one exchange rate, use the one that most properly reflects your income. Turbo tax form 1040x In most cases, you can get exchange rates from banks and U. Turbo tax form 1040x S. Turbo tax form 1040x Embassies. Turbo tax form 1040x   If your functional currency is not the U. Turbo tax form 1040x S. Turbo tax form 1040x dollar, make all income tax determinations in your functional currency. Turbo tax form 1040x At the end of the year, translate the results, such as income or loss, into U. Turbo tax form 1040x S. Turbo tax form 1040x dollars to report on your income tax return. Turbo tax form 1040x    For more information, write to: Internal Revenue Service International Section Philadelphia, PA 19255-0725 Rate of exchange for foreign taxes paid. Turbo tax form 1040x   Use the rate of exchange in effect on the date you paid the foreign taxes to the foreign country unless you meet the exception discussed next. Turbo tax form 1040x If your tax was withheld in foreign currency, use the rate of exchange in effect for the date on which the tax was withheld. Turbo tax form 1040x If you make foreign estimated tax payments, you use the rate of exchange in effect for the date on which you made the estimated tax payment. Turbo tax form 1040x   The exchange rate rules discussed here apply even if the foreign taxes are paid or accrued with respect to a foreign tax credit splitting event (discussed later). Turbo tax form 1040x Exception. Turbo tax form 1040x   If you claim the credit for foreign taxes on an accrual basis, in most cases you must use the average exchange rate for the tax year to which the taxes relate. Turbo tax form 1040x This rule applies to accrued taxes relating to tax years beginning after 1997 and only under the following conditions. Turbo tax form 1040x The foreign taxes are paid on or after the first day of the tax year to which they relate. Turbo tax form 1040x The foreign taxes are paid not later than 2 years after the close of the tax year to which they relate. Turbo tax form 1040x The foreign tax liability is not denominated in an inflationary currency (defined in the Form 1116 instructions). Turbo tax form 1040x (This condition applies to taxes paid or accrued in tax years beginning after November 6, 2007. Turbo tax form 1040x )   For all other foreign taxes, you should use the exchange rate in effect on the date you paid them. Turbo tax form 1040x Election to use exchange rate on date paid. Turbo tax form 1040x   If you have accrued foreign taxes that you are otherwise required to convert using the average exchange rate, you may elect to use the exchange rate in effect on the date the foreign taxes are paid if the taxes are denominated in a nonfunctional foreign currency. Turbo tax form 1040x If any of the accrued taxes are unpaid, you must translate them into U. Turbo tax form 1040x S. Turbo tax form 1040x dollars using the exchange rate on the last day of the U. Turbo tax form 1040x S. Turbo tax form 1040x tax year to which those taxes relate. Turbo tax form 1040x You may make the election for all nonfunctional currency foreign income taxes or only those nonfunctional currency foreign income taxes that are attributable to qualified business units with a U. Turbo tax form 1040x S. Turbo tax form 1040x dollar functional currency. Turbo tax form 1040x Once made, the election applies to the tax year for which made and all subsequent tax years unless revoked with the consent of the IRS. Turbo tax form 1040x The election is available for tax years beginning after 2004. Turbo tax form 1040x It must be made by the due date (including extensions) for filing the tax return for the first tax year to which the election applies. Turbo tax form 1040x Make the election by attaching a statement to the applicable tax return. Turbo tax form 1040x The statement must identify whether the election is made for all foreign taxes or only for foreign taxes attributable to qualified business units with a U. Turbo tax form 1040x S. Turbo tax form 1040x dollar functional currency. Turbo tax form 1040x Foreign Tax Redetermination A foreign tax redetermination is any change in your foreign tax liability that may affect your U. Turbo tax form 1040x S. Turbo tax form 1040x foreign tax credit claimed. Turbo tax form 1040x The year in which to claim the credit remains the year to which the foreign taxes paid or accrued relate, even if the change in foreign tax liability occurs in a later year. Turbo tax form 1040x If a foreign tax redetermination occurs, a redetermination of your U. Turbo tax form 1040x S. Turbo tax form 1040x tax liability is required if any of the following conditions apply. Turbo tax form 1040x The accrued taxes when paid differ from the amounts claimed as a credit. Turbo tax form 1040x The accrued taxes you claimed as a credit in one tax year are not paid within 2 years after the end of that tax year. Turbo tax form 1040x If this applies to you, you must reduce the credit previously claimed by the amount of the unpaid taxes. Turbo tax form 1040x You will not be allowed a credit for the unpaid taxes until you pay them. Turbo tax form 1040x When you pay the accrued taxes, a new foreign tax redetermination occurs and you must translate the taxes into U. Turbo tax form 1040x S. Turbo tax form 1040x dollars using the exchange rate as of the date they were paid. Turbo tax form 1040x The foreign tax credit is allowed for the year to which the foreign tax relates. Turbo tax form 1040x See Rate of exchange for foreign taxes paid , earlier, under Foreign Currency and Exchange Rates. Turbo tax form 1040x The foreign taxes you paid are refunded in whole or in part. Turbo tax form 1040x For taxes taken into account when accrued but translated into dollars on the date of payment, the dollar value of the accrued tax differs from the dollar value of the tax paid because of fluctuations in the exchange rate between the date of accrual and the date of payment. Turbo tax form 1040x However, no redetermination is required if the change in foreign tax liability for each foreign country is solely attributable to exchange rate fluctuations and is less than the smaller of: $10,000, or 2% of the total dollar amount of the foreign tax initially accrued for that foreign country for the U. Turbo tax form 1040x S. Turbo tax form 1040x tax year. Turbo tax form 1040x In this case, you must adjust your U. Turbo tax form 1040x S. Turbo tax form 1040x tax in the tax year in which the accrued foreign taxes are paid. Turbo tax form 1040x Notice to the Internal Revenue Service (IRS) of Redetermination You are required to notify the IRS about a foreign tax credit redetermination that affects your U. Turbo tax form 1040x S. Turbo tax form 1040x tax liability for each tax year affected by the redetermination. Turbo tax form 1040x In most cases, you must file Form 1040X, Amended U. Turbo tax form 1040x S. Turbo tax form 1040x Individual Income Tax Return, with a revised Form 1116 and a statement that contains information sufficient for the IRS to redetermine your U. Turbo tax form 1040x S. Turbo tax form 1040x tax liability for the year or years affected. Turbo tax form 1040x See Contents of statement , later. Turbo tax form 1040x You are not required to attach Form 1116 for a tax year affected by a redetermination if: The amount of your creditable taxes paid or accrued during the tax year is not more than $300 ($600 if married filing a joint return) as a result of the foreign tax redetermination, and You meet the requirements listed under Exemption from foreign tax credit limit under How To Figure the Credit, later. Turbo tax form 1040x There are other exceptions to this requirement. Turbo tax form 1040x They are discussed later under Due date of notification to IRS . Turbo tax form 1040x Contents of statement. Turbo tax form 1040x   The statement must include all of the following. Turbo tax form 1040x Your name, address, and taxpayer identification number. Turbo tax form 1040x The tax year or years that are affected by the foreign tax redetermination. Turbo tax form 1040x The date or dates the foreign taxes were accrued, if applicable. Turbo tax form 1040x The date or dates the foreign taxes were paid. Turbo tax form 1040x The amount of foreign taxes paid or accrued on each date (in foreign currency) and the exchange rate used to translate each amount. Turbo tax form 1040x Information sufficient to determine any interest due from or owing to you, including the amount of any interest paid to you by the foreign government and the dates received. Turbo tax form 1040x   In the case of any foreign taxes that were not paid before the date two years after the close of the tax year to which those taxes relate, you must provide the amount of those taxes in foreign currency and the exchange rate that was used to translate that amount when originally claimed as a credit. Turbo tax form 1040x   If any foreign tax was refunded in whole or in part, you must provide the date and amount (in foreign currency) of each refund, the exchange rate that was used to translate each amount when originally claimed as a credit, and the exchange rate for the date the refund was received (for purposes of computing foreign currency gain or loss under Internal Revenue Code section 988). Turbo tax form 1040x Due date of notification to IRS. Turbo tax form 1040x   If you pay less foreign tax than you originally claimed a credit for, in most cases you must file a notification by the due date (with extensions) of your original return for your tax year in which the foreign tax redetermination occurred. Turbo tax form 1040x There is no limit on the time the IRS has to redetermine and assess the correct U. Turbo tax form 1040x S. Turbo tax form 1040x tax due. Turbo tax form 1040x If you pay more foreign tax than you originally claimed a credit for, you have 10 years to file a claim for refund of U. Turbo tax form 1040x S. Turbo tax form 1040x taxes. Turbo tax form 1040x See Time Limit on Refund Claims , later. Turbo tax form 1040x   Exceptions to this due date are explained in the next two paragraphs. Turbo tax form 1040x Multiple redeterminations of U. Turbo tax form 1040x S. Turbo tax form 1040x tax liability for same tax year. Turbo tax form 1040x   Where more than one foreign tax redetermination requires a redetermination of U. Turbo tax form 1040x S. Turbo tax form 1040x tax liability for the same tax year and those redeterminations occur in the same tax year or within two consecutive tax years, you can file for that tax year one notification (Form 1040X with a Form 1116 and the required statement) that reflects all those tax redeterminations. Turbo tax form 1040x If you choose to file one notification, the due date for that notification is the due date of the original return (with extensions) for the year in which the first foreign tax redetermination that reduced your foreign tax liability occurred. Turbo tax form 1040x However, foreign tax redeterminations with respect to the tax year for which a redetermination of U. Turbo tax form 1040x S. Turbo tax form 1040x tax liability is required may occur after the due date for providing that notification. Turbo tax form 1040x In this situation, you may have to file more than one Form 1040X for that tax year. Turbo tax form 1040x Additional U. Turbo tax form 1040x S. Turbo tax form 1040x tax due eliminated by foreign tax credit carryback or carryover. Turbo tax form 1040x   If a foreign tax redetermination requires a redetermination of U. Turbo tax form 1040x S. Turbo tax form 1040x tax liability that would otherwise result in an additional amount of U. Turbo tax form 1040x S. Turbo tax form 1040x tax due, but the additional tax is eliminated by a carryback or carryover of an unused foreign tax, you do not have to amend your tax return for the year affected by the redetermination. Turbo tax form 1040x Instead, you can notify the IRS by attaching a statement to the original return for the tax year in which the foreign tax redetermination occurred. Turbo tax form 1040x You must file the statement by the due date (with extensions) of that return. Turbo tax form 1040x The statement must show the amount of the unused foreign taxes paid or accrued and a detailed schedule showing the computation of the carryback or carryover (including the amounts carried back or over to the year for which a redetermination on U. Turbo tax form 1040x S. Turbo tax form 1040x tax liability is required). Turbo tax form 1040x Failure-to-notify penalty. Turbo tax form 1040x   If you fail to notify the IRS of a foreign tax redetermination and cannot show reasonable cause for the failure, you may have to pay a penalty. Turbo tax form 1040x   For each month, or part of a month, that the failure continues, you pay a penalty of 5% of the tax due resulting from a redetermination of your U. Turbo tax form 1040x S. Turbo tax form 1040x tax. Turbo tax form 1040x This penalty cannot be more than 25% of the tax due. Turbo tax form 1040x Foreign tax refund. Turbo tax form 1040x   If you receive a foreign tax refund without interest from the foreign government, you will not have to pay interest on the amount of tax due resulting from the adjustment to your U. Turbo tax form 1040x S. Turbo tax form 1040x tax for the time before the date of the refund. Turbo tax form 1040x   However, if you receive a foreign tax refund with interest, you must pay interest to the IRS up to the amount of the interest paid to you by the foreign government. Turbo tax form 1040x The interest you must pay cannot be more than the interest you would have had to pay on taxes that were unpaid for any other reason for the same period. Turbo tax form 1040x Interest also is owed from the time you receive a refund until you pay the additional tax due. Turbo tax form 1040x Foreign tax imposed on foreign refund. Turbo tax form 1040x   If your foreign tax refund is taxed by the foreign country, you cannot take a separate credit or deduction for this additional foreign tax. Turbo tax form 1040x However, when you refigure the foreign tax credit taken for the original foreign tax, reduce the amount of the refund by the foreign tax paid on the refund. Turbo tax form 1040x Example. Turbo tax form 1040x You paid a foreign income tax of $3,000 in 2011, and received a foreign tax refund of $500 in 2013 on which a foreign tax of $100 was imposed. Turbo tax form 1040x When you refigure your credit for 2011, you must reduce the $3,000 you paid by $400. Turbo tax form 1040x Time Limit on Refund Claims You have 10 years to file a claim for refund of U. Turbo tax form 1040x S. Turbo tax form 1040x tax if you find that you paid or accrued a larger foreign tax than you claimed a credit for. Turbo tax form 1040x The 10-year period begins the day after the regular due date for filing the return (without extensions) for the year in which the taxes were actually paid or accrued. Turbo tax form 1040x You have 10 years to file your claim regardless of whether you claim the credit for taxes paid or taxes accrued. Turbo tax form 1040x The 10-year period applies to claims for refund or credit based on: Fixing math errors in figuring qualified foreign taxes, Reporting qualified foreign taxes not originally reported on the return, or Any other change in the size of the credit (including one caused by correcting the foreign tax credit limit). Turbo tax form 1040x The special 10-year period also applies to making or changing your choice to claim a deduction or credit for foreign taxes. Turbo tax form 1040x See Making or Changing Your Choice discussed earlier under Choosing To Take Credit or Deduction. Turbo tax form 1040x Who Can Take the Credit? U. Turbo tax form 1040x S. Turbo tax form 1040x citizens, resident aliens, and nonresident aliens who paid foreign income tax and are subject to U. Turbo tax form 1040x S. Turbo tax form 1040x tax on foreign source income may be able to take a foreign tax credit. Turbo tax form 1040x U. Turbo tax form 1040x S. Turbo tax form 1040x Citizens If you are a U. Turbo tax form 1040x S. Turbo tax form 1040x citizen, you are taxed by the United States on your worldwide income wherever you live. Turbo tax form 1040x You are normally entitled to take a credit for foreign taxes you pay or accrue. Turbo tax form 1040x Resident Aliens If you are a resident alien of the United States, you can take a credit for foreign taxes subject to the same general rules as U. Turbo tax form 1040x S. Turbo tax form 1040x citizens. Turbo tax form 1040x If you are a bona fide resident of Puerto Rico for the entire tax year, you also come under the same rules. Turbo tax form 1040x Usually, you can take a credit only for those foreign taxes imposed on income you actually or constructively received while you had resident alien status. Turbo tax form 1040x For information on alien status, see Publication 519. Turbo tax form 1040x Nonresident Aliens If you are a nonresident alien, you cannot take the credit in most cases. Turbo tax form 1040x However, you may be able to take the credit if: You were a bona fide resident of Puerto Rico during your entire tax year, or You pay or accrue tax to a foreign country or U. Turbo tax form 1040x S. Turbo tax form 1040x possession on income from foreign sources that is effectively connected with a trade or business in the United States. Turbo tax form 1040x But if you must pay tax to a foreign country or U. Turbo tax form 1040x S. Turbo tax form 1040x possession on income from U. Turbo tax form 1040x S. Turbo tax form 1040x sources only because you are a citizen or a resident of that country or U. Turbo tax form 1040x S. Turbo tax form 1040x possession, do not use that tax in figuring the amount of your credit. Turbo tax form 1040x For information on alien status and effectively connected income, see Publication 519. Turbo tax form 1040x What Foreign Taxes Qualify for the Credit? In most cases, the following four tests must be met for any foreign tax to qualify for the credit. Turbo tax form 1040x The tax must be imposed on you. Turbo tax form 1040x You must have paid or accrued the tax. Turbo tax form 1040x The tax must be the legal and actual foreign tax liability. Turbo tax form 1040x The tax must be an income tax (or a tax in lieu of an income tax). Turbo tax form 1040x Certain foreign taxes do not qualify for the credit even if the four tests are met. Turbo tax form 1040x See Foreign Taxes for Which You Cannot Take a Credit, later. Turbo tax form 1040x Tax Must Be Imposed on You You can claim a credit only for foreign taxes that are imposed on you by a foreign country or U. Turbo tax form 1040x S. Turbo tax form 1040x possession. Turbo tax form 1040x For example, a tax that is deducted from your wages is considered to be imposed on you. Turbo tax form 1040x You cannot shift the right to claim the credit by contract or other means. Turbo tax form 1040x Foreign country. Turbo tax form 1040x   A foreign country includes any foreign state and its political subdivisions. Turbo tax form 1040x Income, war profits, and excess profits taxes paid or accrued to a foreign city or province qualify for the foreign tax credit. Turbo tax form 1040x U. Turbo tax form 1040x S. Turbo tax form 1040x possessions. Turbo tax form 1040x   For foreign tax credit purposes, all qualified taxes paid to U. Turbo tax form 1040x S. Turbo tax form 1040x possessions are considered foreign taxes. Turbo tax form 1040x For this purpose, U. Turbo tax form 1040x S. Turbo tax form 1040x possessions include Puerto Rico and American Samoa. Turbo tax form 1040x   When the term “foreign country” is used in this publication, it includes U. Turbo tax form 1040x S. Turbo tax form 1040x possessions unless otherwise stated. Turbo tax form 1040x You Must Have Paid or Accrued the Tax In most cases, you can claim the credit only if you paid or accrued the foreign tax to a foreign country or U. Turbo tax form 1040x S. Turbo tax form 1040x possession. Turbo tax form 1040x However, the paragraphs that follow describe some instances in which you can claim the credit even if you did not directly pay or accrue the tax yourself. Turbo tax form 1040x Joint return. Turbo tax form 1040x   If you file a joint return, you can claim the credit based on the total foreign income taxes paid or accrued by you and your spouse. Turbo tax form 1040x Combined income. Turbo tax form 1040x   If foreign tax is imposed on the combined income of two or more persons (for example, spouses), the tax is allocated among, and considered paid by, these persons on a pro rata basis in proportion to each person's portion of the combined income, as determined under foreign law and Regulations section 1. Turbo tax form 1040x 901-2(f)(3)(iii). Turbo tax form 1040x Combined income with respect to each foreign tax that is imposed on a combined basis (and combined income subject to tax exemption or preferential tax rates) is computed separately, and the tax on that combined income is allocated separately. Turbo tax form 1040x   These rules apply to foreign taxes paid or accrued in tax years beginning after February 14, 2012. Turbo tax form 1040x However, you can choose to apply the new rules to foreign taxes paid or accrued in tax years beginning after December 31, 2010, and before February 15, 2012. Turbo tax form 1040x For more details, see paragraphs (f) and (h) of Regulations section 1. Turbo tax form 1040x 901-2. Turbo tax form 1040x For similar rules applicable to prior tax years, see Regulations section 1. Turbo tax form 1040x 901-2 (revised as of April 1, 2011). Turbo tax form 1040x Example. Turbo tax form 1040x You and your spouse reside in Country X, which imposes income tax on your combined incomes. Turbo tax form 1040x Both of you use the “u” as your functional currency. Turbo tax form 1040x Country X apportions tax based on income. Turbo tax form 1040x You had income of 30,000u and your spouse had income of 20,000u. Turbo tax form 1040x Your filing status on your U. Turbo tax form 1040x S. Turbo tax form 1040x income tax return is married filing separately. Turbo tax form 1040x You can claim only 60% (30,000u/50,000u) of the foreign taxes imposed on your income on your U. Turbo tax form 1040x S income tax return. Turbo tax form 1040x Your spouse can claim only 40% (20,000u/50,000u). Turbo tax form 1040x Partner or S corporation shareholder. Turbo tax form 1040x   If you are a member of a partnership, or a shareholder in an S corporation, you can claim the credit based on your proportionate share of the foreign income taxes paid or accrued by the partnership or the S corporation. Turbo tax form 1040x These amounts will be shown on the Schedule K-1 you receive from the partnership or S corporation. Turbo tax form 1040x However, if you are a shareholder in an S corporation that in turn owns stock in a foreign corporation, you cannot claim a credit for your share of foreign taxes paid by the foreign corporation. Turbo tax form 1040x Beneficiary. Turbo tax form 1040x   If you are a beneficiary of an estate or trust, you may be able to claim the credit based on your proportionate share of foreign income taxes paid or accrued by the estate or trust. Turbo tax form 1040x This amount will be shown on the Schedule K-1 you receive from the estate or trust. Turbo tax form 1040x However, you must show that the tax was imposed on income of the estate and not on income received by the decedent. Turbo tax form 1040x Mutual fund shareholder. Turbo tax form 1040x   If you are a shareholder of a mutual fund or other regulated investment company (RIC), you may be able to claim the credit based on your share of foreign income taxes paid by the fund if it chooses to pass the credit on to its shareholders. Turbo tax form 1040x You should receive from the mutual fund or other RIC a Form 1099-DIV, or similar statement, showing your share of the foreign income, and your share of the foreign taxes paid. Turbo tax form 1040x If you do not receive this information, you will need to contact the fund. Turbo tax form 1040x Controlled foreign corporation shareholder. Turbo tax form 1040x   If you are a shareholder of a controlled foreign corporation and choose to be taxed at corporate rates on the amount you must include in gross income from that corporation, you can claim the credit based on your share of foreign taxes paid or accrued by the controlled foreign corporation. Turbo tax form 1040x If you make this election, you must claim the credit by filing Form 1118, Foreign Tax Credit—Corporations. Turbo tax form 1040x Controlled foreign corporation. Turbo tax form 1040x   A controlled foreign corporation is a foreign corporation in which U. Turbo tax form 1040x S. Turbo tax form 1040x shareholders own more than 50% of the voting power or value of the stock. Turbo tax form 1040x You are considered a U. Turbo tax form 1040x S. Turbo tax form 1040x shareholder if you own, directly or indirectly, 10% or more of the total voting power of all classes of the foreign corporation's stock. Turbo tax form 1040x See Internal Revenue Code sections 951(b) and 958(b) for more information. Turbo tax form 1040x Tax Must Be the Legal and Actual Foreign Tax Liability The amount of foreign tax that qualifies is not necessarily the amount of tax withheld by the foreign country. Turbo tax form 1040x Only the legal and actual foreign tax liability that you paid or accrued during the year qualifies for the credit. Turbo tax form 1040x Foreign tax refund. Turbo tax form 1040x   You cannot take a foreign tax credit for income taxes paid to a foreign country if it is reasonably certain the amount would be refunded, credited, rebated, abated, or forgiven if you made a claim. Turbo tax form 1040x   For example, the United States has tax treaties with many countries allowing U. Turbo tax form 1040x S. Turbo tax form 1040x citizens and residents reductions in the rates of tax of those foreign countries. Turbo tax form 1040x However, some treaty countries require U. Turbo tax form 1040x S. Turbo tax form 1040x citizens and residents to pay the tax figured without regard to the lower treaty rates and then claim a refund for the amount by which the tax actually paid is more than the amount of tax figured using the lower treaty rate. Turbo tax form 1040x The qualified foreign tax is the amount figured using the lower treaty rate and not the amount actually paid, because the excess tax is refundable. Turbo tax form 1040x Subsidy received. Turbo tax form 1040x   Tax payments a foreign country returns to you in the form of a subsidy do not qualify for the foreign tax credit. Turbo tax form 1040x This rule applies even if the subsidy is given to a person related to you, or persons who participated with you in a transaction or a related transaction. Turbo tax form 1040x A subsidy can be provided by any means but must be determined, directly or indirectly, in relation to the amount of tax, or to the base used to figure the tax. Turbo tax form 1040x   The term “subsidy” includes any type of benefit. Turbo tax form 1040x Some ways of providing a subsidy are refunds, credits, deductions, payments, or discharges of obligations. Turbo tax form 1040x Shareholder receiving refund for corporate tax in integrated system. Turbo tax form 1040x   Under some foreign tax laws and treaties, a shareholder is considered to have paid part of the tax that is imposed on the corporation. Turbo tax form 1040x You may be able to claim a refund of these taxes from the foreign government. Turbo tax form 1040x You must include the refund (including any amount withheld) in your income in the year received. Turbo tax form 1040x Any tax withheld from the refund is a qualified foreign tax. Turbo tax form 1040x Example. Turbo tax form 1040x You are a shareholder of a French corporation. Turbo tax form 1040x You receive a $100 refund of the tax paid to France by the corporation on the earnings distributed to you as a dividend. Turbo tax form 1040x The French government imposes a 15% withholding tax ($15) on the refund you received. Turbo tax form 1040x You receive a check for $85. Turbo tax form 1040x You include $100 in your income. Turbo tax form 1040x The $15 of tax withheld is a qualified foreign tax. Turbo tax form 1040x Tax Must Be an Income Tax (or Tax in Lieu of Income Tax) In most cases, only income, war profits, and excess profits taxes (income taxes) qualify for the foreign tax credit. Turbo tax form 1040x Foreign taxes on wages, dividends, interest, and royalties qualify for the credit in most cases. Turbo tax form 1040x Furthermore, foreign taxes on income can qualify even though they are not imposed under an income tax law if the tax is in lieu of an income, war profits, or excess profits tax. Turbo tax form 1040x See Taxes in Lieu of Income Taxes , later. Turbo tax form 1040x Income Tax Simply because the levy is called an income tax by the foreign taxing authority does not make it an income tax for this purpose. Turbo tax form 1040x A foreign levy is an income tax only if it meets both of the following requirements. Turbo tax form 1040x It is a tax; that is, you have to pay it and you get no specific economic benefit (discussed below) from paying it. Turbo tax form 1040x The predominant character of the tax is that of an income tax in the U. Turbo tax form 1040x S. Turbo tax form 1040x sense. Turbo tax form 1040x A foreign levy may meet these requirements even if the foreign tax law differs from U. Turbo tax form 1040x S. Turbo tax form 1040x tax law. Turbo tax form 1040x The foreign law may include in income items that U. Turbo tax form 1040x S. Turbo tax form 1040x law does not include, or it may allow certain exclusions or deductions that U. Turbo tax form 1040x S. Turbo tax form 1040x law does not allow. Turbo tax form 1040x Specific economic benefit. Turbo tax form 1040x   In most cases, you get a specific economic benefit if you receive, or are considered to receive, an economic benefit from the foreign country imposing the levy, and: If there is a generally imposed income tax, the economic benefit is not available on substantially the same terms to all persons subject to the income tax, or If there is no generally imposed income tax, the economic benefit is not available on substantially the same terms to the population of the foreign country in general. Turbo tax form 1040x   You are considered to receive a specific economic benefit if you have a business transaction with a person who receives a specific economic benefit from the foreign country and, under the terms and conditions of the transaction, you receive directly or indirectly all or part of the benefit. Turbo tax form 1040x   However, see the exception discussed later under Pension, unemployment, and disability fund payments . Turbo tax form 1040x Economic benefits. Turbo tax form 1040x   Economic benefits include the following. Turbo tax form 1040x Goods. Turbo tax form 1040x Services. Turbo tax form 1040x Fees or other payments. Turbo tax form 1040x Rights to use, acquire, or extract resources, patents, or other property the foreign country owns or controls. Turbo tax form 1040x Discharges of contractual obligations. Turbo tax form 1040x   In most cases, the right or privilege merely to engage in business is not an economic benefit. Turbo tax form 1040x Dual-capacity taxpayers. Turbo tax form 1040x   If you are subject to a foreign country's levy and you also receive a specific economic benefit from that foreign country, you are a “dual-capacity taxpayer. Turbo tax form 1040x ” As a dual-capacity taxpayer, you cannot claim a credit for any part of the foreign levy, unless you establish that the amount paid under a distinct element of the foreign levy is a tax, rather than a compulsory payment for a direct or indirect specific economic benefit. Turbo tax form 1040x    For more information on how to establish amounts paid under separate elements of a levy, write to: Internal Revenue Service International Section Philadelphia, PA 19255-0725 Pension, unemployment, and disability fund payments. Turbo tax form 1040x   A foreign tax imposed on an individual to pay for retirement, old-age, death, survivor, unemployment, illness, or disability benefits, or for substantially similar purposes, is not payment for a specific economic benefit if the amount of the tax does not depend on the age, life expectancy, or similar characteristics of that individual. Turbo tax form 1040x    No deduction or credit is allowed, however, for social security taxes paid or accrued to a foreign country with which the United States has a social security agreement. Turbo tax form 1040x For more information about these agreements, see Publication 54. Turbo tax form 1040x Soak-up taxes. Turbo tax form 1040x   A foreign tax is not predominantly an income tax and does not qualify for credit to the extent it is a soak-up tax. Turbo tax form 1040x A tax is a soak-up tax to the extent that liability for it depends on the availability of a credit for it against income tax imposed by another country. Turbo tax form 1040x This rule applies only if and to the extent that the foreign tax would not be imposed if the credit were not available. Turbo tax form 1040x Penalties and interest. Turbo tax form 1040x   Amounts paid to a foreign government to satisfy a liability for interest, fines, penalties, or any similar obligation are not taxes and do not qualify for the credit. Turbo tax form 1040x Taxes not based on income. Turbo tax form 1040x   Foreign taxes based on gross receipts or the number of units produced, rather than on realized net income, do not qualify unless they are imposed in lieu of an income tax, as discussed next. Turbo tax form 1040x Taxes based on assets, such as property taxes, do not qualify for the credit. Turbo tax form 1040x Taxes in Lieu of Income Taxes A tax paid or accrued to a foreign country qualifies for the credit if it is imposed in lieu of an income tax otherwise generally imposed. Turbo tax form 1040x A foreign levy is a tax in lieu of an income tax only if: It is not payment for a specific economic benefit as discussed earlier, and The tax is imposed in place of, and not in addition to, an income tax otherwise generally imposed. Turbo tax form 1040x A tax in lieu of an income tax does not have to be based on realized net income. Turbo tax form 1040x A foreign tax imposed on gross income, gross receipts or sales, or the number of units produced or exported can qualify for the credit. Turbo tax form 1040x In most cases, a soak-up tax (discussed earlier) does not qualify as a tax in lieu of an income tax. Turbo tax form 1040x However, if the foreign country imposes a soak-up tax in lieu of an income tax, the amount that does not qualify for foreign tax credit is the lesser of the following amounts. Turbo tax form 1040x The soak-up tax. Turbo tax form 1040x The foreign tax you paid that is more than the amount you would have paid if you had been subject to the generally imposed income tax. Turbo tax form 1040x Foreign Taxes for Which You Cannot Take a Credit This part discusses the foreign taxes for which you cannot take a credit. Turbo tax form 1040x These are: Taxes on excluded income, Taxes for which you can only take an itemized deduction, Taxes on foreign mineral income, Taxes from international boycott operations, A portion of taxes on combined foreign oil and gas income, Taxes of U. Turbo tax form 1040x S. Turbo tax form 1040x persons controlling foreign corporations and partnerships who fail to file required information returns, and Taxes related to a foreign tax splitting event. Turbo tax form 1040x Taxes on Excluded Income You cannot take a credit for foreign taxes paid or accrued on certain income that is excluded from U. Turbo tax form 1040x S. Turbo tax form 1040x gross income. Turbo tax form 1040x Foreign Earned Income and Housing Exclusions You must reduce your foreign taxes available for the credit by the amount of those taxes paid or accrued on income that is excluded from U. Turbo tax form 1040x S. Turbo tax form 1040x income under the foreign earned income exclusion or the foreign housing exclusion. Turbo tax form 1040x See Publication 54 for more information on the foreign earned income and housing exclusions. Turbo tax form 1040x Wages completely excluded. Turbo tax form 1040x   If your wages are completely excluded, you cannot take a credit for any of the foreign taxes paid or accrued on these wages. Turbo tax form 1040x Wages partly excluded. Turbo tax form 1040x   If only part of your wages is excluded, you cannot take a credit for the foreign income taxes allocable to the excluded part. Turbo tax form 1040x You find the amount allocable to your excluded wages by multiplying the foreign tax paid or accrued on foreign earned income received or accrued during the tax year by a fraction. Turbo tax form 1040x   The numerator of the fraction is your foreign earned income and housing amounts excluded under the foreign earned income and housing exclusions for the tax year minus otherwise deductible expenses definitely related and properly apportioned to that income. Turbo tax form 1040x Deductible expenses do not include the foreign housing deduction. Turbo tax form 1040x   The denominator is your total foreign earned income received or accrued during the tax year minus all deductible expenses allocable to that income (including the foreign housing deduction). Turbo tax form 1040x If the foreign law taxes foreign earned income and some other income (for example, earned income from U. Turbo tax form 1040x S. Turbo tax form 1040x sources or a type of income not subject to U. Turbo tax form 1040x S. Turbo tax form 1040x tax), and the taxes on the other income cannot be segregated, the denominator of the fraction is the total amount of income subject to the foreign tax minus deductible expenses allocable to that income. Turbo tax form 1040x Example. Turbo tax form 1040x You are a U. Turbo tax form 1040x S. Turbo tax form 1040x citizen and a cash basis taxpayer, employed by Company X and living in Country A. Turbo tax form 1040x Your records show the following: Foreign earned income received $125,000 Unreimbursed business travel expenses 20,000 Income tax paid to Country A 30,000 Exclusion of foreign earned  income and housing allowance 97,600     Because you can exclude part of your wages, you cannot claim a credit for part of the foreign taxes. Turbo tax form 1040x To find that part, do the following. Turbo tax form 1040x First, find the amount of business expenses allocable to excluded wages and therefore not deductible. Turbo tax form 1040x To do this, multiply the otherwise deductible expenses by a fraction. Turbo tax form 1040x That fraction is the excluded wages over your foreign earned income. Turbo tax form 1040x   $20,000 × $97,600 $125,000 = $15,616             Next, find the numerator of the fraction by which you will multiply the foreign taxes paid. Turbo tax form 1040x To do this, subtract business expenses allocable to excluded wages ($15,616) from excluded wages ($97,600). Turbo tax form 1040x The result is $81,984. Turbo tax form 1040x Then, find the denominator of the fraction by subtracting all your deductible expenses from all your foreign earned income ($125,000 − $20,000 = $105,000). Turbo tax form 1040x Finally, multiply the foreign tax you paid by the resulting fraction. Turbo tax form 1040x   $30,000 × $81,984  $105,000 = $23,424 The amount of Country A tax you cannot take a credit for is $23,424. Turbo tax form 1040x Taxes on Income From Puerto Rico Exempt From U. Turbo tax form 1040x S. Turbo tax form 1040x Tax If you have income from Puerto Rican sources that is not taxable, you must reduce your foreign taxes paid or accrued by the taxes allocable to the exempt income. Turbo tax form 1040x For information on figuring the reduction, see Publication 570. Turbo tax form 1040x Possession Exclusion If you are a bona fide resident of American Samoa and exclude income from sources in American Samoa, you cannot take a credit for the taxes you pay or accrue on the excluded income. Turbo tax form 1040x For more information on this exclusion, see Publication 570. Turbo tax form 1040x Extraterritorial Income Exclusion You cannot take a credit for taxes you pay on qualifying foreign trade income excluded on Form 8873, Extraterritorial Income Exclusion. Turbo tax form 1040x However, see Internal Revenue Code section 943(d) for an exception for certain withholding taxes. Turbo tax form 1040x Taxes for Which You Can Only Take an Itemized Deduction You cannot claim a foreign tax credit for foreign income taxes paid or accrued under the following circumstances. Turbo tax form 1040x However, you can claim an itemized deduction for these taxes. Turbo tax form 1040x See Choosing To Take Credit or Deduction , earlier. Turbo tax form 1040x Taxes Imposed By Sanctioned Countries (Section 901(j) Income) You cannot claim a foreign tax credit for income taxes paid or accrued to any country if the income giving rise to the tax is for a period (the sanction period) during which: The Secretary of State has designated the country as one that repeatedly provides support for acts of international terrorism, The United States has severed or does not conduct diplomatic relations with the country, or The United States does not recognize the country's government, and that government is not otherwise eligible to purchase defense articles or services under the Arms Export Control Act. Turbo tax form 1040x The following countries meet this description for 2013. Turbo tax form 1040x Income taxes paid or accrued to these countries in 2013 do not qualify for the credit. Turbo tax form 1040x Cuba. Turbo tax form 1040x Iran. Turbo tax form 1040x Libya (but see Note later). Turbo tax form 1040x North Korea. Turbo tax form 1040x Sudan. Turbo tax form 1040x Syria. Turbo tax form 1040x Waiver of denial of the credit. Turbo tax form 1040x   A waiver can be granted to a sanctioned country if the President of the United States determines that granting the waiver is in the national interest of the United States and will expand trade and investment opportunities for U. Turbo tax form 1040x S. Turbo tax form 1040x companies in the sanctioned country. Turbo tax form 1040x The President must report to Congress his intentions to grant the waiver and his reasons for granting the waiver not less than 30 days before the date on which the waiver is granted. Turbo tax form 1040x Note. Turbo tax form 1040x Effective December 10, 2004, the President granted a waiver to Libya. Turbo tax form 1040x Income taxes arising on or after this date qualify for the credit if they meet the other requirements in this publication. Turbo tax form 1040x Limit on credit. Turbo tax form 1040x   In figuring the foreign tax credit limit, discussed later, income from a sanctioned country is a separate category of foreign income unless a Presidential waiver is granted. Turbo tax form 1040x You must fill out a separate Form 1116 for this income. Turbo tax form 1040x This will prevent you from claiming a credit for foreign taxes paid or accrued to the sanctioned country. Turbo tax form 1040x Example. Turbo tax form 1040x You lived and worked in Iran until August, when you were transferred to Italy. Turbo tax form 1040x You paid taxes to each country on the income earned in that country. Turbo tax form 1040x You cannot claim a foreign tax credit for the foreign taxes paid on the income earned in Iran. Turbo tax form 1040x Because the income earned in Iran is a separate category of foreign income, you must fill out a separate Form 1116 for that income. Turbo tax form 1040x You cannot take a credit for taxes paid on the income earned in Iran, but that income is taxable by the United States. Turbo tax form 1040x Figuring the credit when a sanction ends. Turbo tax form 1040x    Table 1 lists the countries for which sanctions have ended or for which a Presidential waiver has been granted. Turbo tax form 1040x For any of these countries, you can claim a foreign tax credit for the taxes paid or accrued to that country on the income for the period that begins after the end of the sanction period or the date the Presidential waiver was granted. Turbo tax form 1040x Example. Turbo tax form 1040x The sanctions against Country X ended on July 31. Turbo tax form 1040x On August 19, you receive a distribution from a mutual fund of Country X income. Turbo tax form 1040x The fund paid Country X income tax for you on the distribution. Turbo tax form 1040x Because the distribution was made after the sanction ended, you may include the foreign tax paid on the distribution to compute your foreign tax credit. Turbo tax form 1040x Amounts for the nonsanctioned period. Turbo tax form 1040x   If a sanction period ends (or a Presidential waiver is granted) during your tax year and you are not able to determine the actual income and taxes for that period, you can allocate amounts to that period based on the number of days in the period that fall in your tax year. Turbo tax form 1040x Multiply the income or taxes for the year by the following fraction to determine the amounts allocable to that period. Turbo tax form 1040x   Number of nonsanctioned days in year  Number of days in year Example. Turbo tax form 1040x You are a calendar year filer and received $20,000 of income from Country X in 2013 on which you paid tax of $4,500. Turbo tax form 1040x Sanctions against Country X ended on July 11, 2013. Turbo tax form 1040x You are unable to determine how much of the income or tax is for the nonsanctioned period. Turbo tax form 1040x Because your tax year starts on January 1, and the Country X sanction ended on July 11, 2013, 173 days of your tax year are in the nonsanctioned period. Turbo tax form 1040x You would compute the income for the nonsanctioned period as follows. Turbo tax form 1040x 173 365 × $20,000 = $9,479             You would figure the tax for the nonsanctioned period as follows. Turbo tax form 1040x 173 365 × $4,500 = $2,133 To figure your foreign tax credit, you would use $9,479 as the income from Country X and $2,133 as the tax. Turbo tax form 1040x Further information. Turbo tax form 1040x   The rules for figuring the foreign tax credit after a country's sanction period ends are more fully explained in Revenue Ruling 92-62, Cumulative Bulletin 1992-2, page 193. Turbo tax form 1040x This Cumulative Bulletin can be found in many libraries and IRS offices. Turbo tax form 1040x Table 1. Turbo tax form 1040x Countries Removed From the Sanction List or Granted Presidential Waiver   Sanction Period Country Starting Date Ending Date Iraq February 1, 1991 June 27, 2004 Libya January 1, 1987 December 9, 2004* *Presidential waiver granted for qualified income taxes arising after December 9, 2004. Turbo tax form 1040x Taxes Imposed on Certain Dividends You cannot claim a foreign tax credit for withholding tax (defined later ) on dividends paid or accrued if either of the following applies to the dividends. Turbo tax form 1040x The dividends are on stock you held for less than 16 days during the 31-day period that begins 15 days before the ex-dividend date (defined later). Turbo tax form 1040x The dividends are for a period or periods totaling more than 366 days on preferred stock you held for less than 46 days during the 91-day period that begins 45 days before the ex-dividend date. Turbo tax form 1040x If the dividend is not for more than 366 days, rule (1) applies to the preferred stock. Turbo tax form 1040x When figuring how long you held the stock, count the day you sold it, but do not count the day you acquired it or any days on which you were protected from risk of loss. Turbo tax form 1040x Regardless of how long you held the stock, you cannot claim the credit to the extent you have an obligation under a short sale or otherwise to make payments related to the dividend for positions in substantially similar or related property. Turbo tax form 1040x Withholding tax. Turbo tax form 1040x   For this purpose, withholding tax includes any tax determined on a gross basis. Turbo tax form 1040x It does not include any tax which is in the nature of a prepayment of a tax imposed on a net basis. Turbo tax form 1040x Ex-dividend date. Turbo tax form 1040x   The ex-dividend date is the first date following the declaration of a dividend on which the purchaser of a stock is not entitled to receive the next dividend payment. Turbo tax form 1040x Example 1. Turbo tax form 1040x You bought common stock from a foreign corporation on November 3. Turbo tax form 1040x You sold the stock on November 19. Turbo tax form 1040x You received a dividend on this stock because you owned it on the ex-dividend date of November 5. Turbo tax form 1040x To claim the credit, you must have held the stock for at least 16 days within the 31-day period that began on October 21 (15 days before the ex-dividend date). Turbo tax form 1040x Because you held the stock for 16 days, from November 4 until November 19, you are entitled to the credit. Turbo tax form 1040x Example 2. Turbo tax form 1040x The facts are the same as in Example 1 except that you sold the stock on November 14. Turbo tax form 1040x You held the stock for only 11 days. Turbo tax form 1040x You are not entitled to the credit. Turbo tax form 1040x Exception. Turbo tax form 1040x   If you are a securities dealer who actively conducts business in a foreign country, you may be able to claim a foreign tax credit for qualified taxes paid on dividends regardless of how long you held the stock or whether you were obligated to make payments for positions in substantially similar or related property. Turbo tax form 1040x See section 901(k)(4) of the Internal Revenue Code for more information. Turbo tax form 1040x Taxes Withheld on Income or Gain (Other Than Dividends) For income or gain (other than dividends) paid or accrued on property, you cannot claim a foreign tax credit for withholding tax (defined later): If you have not held the property for at least 16 days during the 31-day period that begins 15 days before the date on which the right to receive the payment arises, or To the extent you have to make related payments on positions in substantially similar or related property. Turbo tax form 1040x When figuring how long you held the property, count the day you sold it, but do not count the day you acquired it or any days on which you were protected from risk of loss. Turbo tax form 1040x Withholding tax. Turbo tax form 1040x   For this purpose, withholding tax includes any tax determined on a gross basis. Turbo tax form 1040x It does not include any tax which is in the nature of a prepayment of a tax imposed on a net basis. Turbo tax form 1040x Exception for dealers. Turbo tax form 1040x   If you are a dealer in property who actively conducts business in a foreign country, you may be able to claim a foreign tax credit for qualified taxes withheld on income or gain from that property regardless of how long you held it or whether you have to make related payments on positions in substantially similar or related property. Turbo tax form 1040x See section 901(I)(2) of the Internal Revenue Code for more information. Turbo tax form 1040x Covered Asset Acquisition ???You cannot take a credit for the disqualified portion of any foreign tax paid or accrued in connection with a covered asset acquisition. Turbo tax form 1040x A covered asset acquisition includes certain acquisitions that result in a stepped-up basis for U. Turbo tax form 1040x S. Turbo tax form 1040x tax purposes but not for foreign tax purposes. Turbo tax form 1040x For more information, see Internal Revenue Code section 901(m). Turbo tax form 1040x The IRS intends to issue guidance that will explain this provision in greater detail. Turbo tax form 1040x Taxes in Connection With the Purchase or Sale of Oil or Gas You cannot claim a foreign tax credit for taxes paid or accrued to a foreign country in connection with the purchase or sale of oil or gas extracted in that country if you do not have an economic interest in the oil or gas, and the purchase price or sales price is different from the fair market value of the oil or gas at the time of purchase or sale. Turbo tax form 1040x Taxes on Foreign Mineral Income You must reduce any taxes paid or accrued to a foreign country or possession on mineral income from that country or possession if you were allowed a deduction for percentage depletion for any part of the mineral income. Turbo tax form 1040x For details, see Regulations section 1. Turbo tax form 1040x 901-3. Turbo tax form 1040x Taxes From International Boycott Operations If you participate in or cooperate with an international boycott during the tax year, your foreign taxes resulting from boycott activities will reduce the total taxes available for credit. Turbo tax form 1040x See the instructions for line 12 in the Form 1116 instructions to figure this reduction. Turbo tax form 1040x In most cases, this rule does not apply to employees with wages who are working and living in boycotting countries, or to retirees with pensions who are living in these countries. Turbo tax form 1040x List of boycotting countries. Turbo tax form 1040x   A list of the countries which may require participation in or cooperation with an international boycott is published by the Department of the Treasury. Turbo tax form 1040x As of November 2013, the following countries are listed. Turbo tax form 1040x Iraq. Turbo tax form 1040x Kuwait. Turbo tax form 1040x Lebanon. Turbo tax form 1040x Libya. Turbo tax form 1040x Qatar. Turbo tax form 1040x Saudi Arabia. Turbo tax form 1040x Syria. Turbo tax form 1040x United Arab Emirates. Turbo tax form 1040x Yemen. Turbo tax form 1040x    For information concerning changes to the list, write to: Internal Revenue Service International Section Philadelphia, PA 19255-0725 Determinations of whether the boycott rule applies. Turbo tax form 1040x   You may request a determination from the Internal Revenue Service as to whether a particular operation constitutes participation in or cooperation with an international boycott. Turbo tax form 1040x The procedures for obtaining a determination from the Service are outlined in Revenue Procedure 77-9 in Cumulative Bulletin 1977-1. Turbo tax form 1040x Cumulative Bulletins are available in most IRS offices and you are welcome to read them there. Turbo tax form 1040x Public inspection. Turbo tax form 1040x   A determination and any related background file is open to public inspection. Turbo tax form 1040x However, your identity and certain other information will remain confidential. Turbo tax form 1040x Reporting requirements. Turbo tax form 1040x   You must file a report with the IRS if you or any of the following persons have operations in or related to a boycotting country or with the government, a company, or a national of a boycotting country. Turbo tax form 1040x A foreign corporation in which you own 10% or more of the voting power of all voting stock but only if you own the stock of the foreign corporation directly or through foreign entities. Turbo tax form 1040x A partnership in which you are a partner. Turbo tax form 1040x A trust you are treated as owning. Turbo tax form 1040x Form 5713 required. Turbo tax form 1040x   If you have to file a report, you must use Form 5713, International Boycott Report, and attach all supporting schedules. Turbo tax form 1040x See the Instructions for Form 5713 for information on when and where to file the form. Turbo tax form 1040x Penalty for failure to file. Turbo tax form 1040x   If you willfully fail to make a report, in addition to other penalties, you may be fined $25,000 or imprisoned for no more than one year, or both. Turbo tax form 1040x Taxes on Combined Foreign Oil and Gas Income You must reduce your foreign taxes by a portion of any foreign taxes imposed on combined foreign oil and gas income. Turbo tax form 1040x The amount of the reduction is the amount by which your foreign oil and gas taxes exceed the amount of your combined foreign oil and gas income multiplied by a fraction equal to your pre-credit U. Turbo tax form 1040x S. Turbo tax form 1040x tax liability (Form 1040, line 44) divided by your worldwide taxable income. Turbo tax form 1040x You may be entitled to carry over to other years taxes reduced under this rule. Turbo tax form 1040x See Internal Revenue Code section 907(f). Turbo tax form 1040x Combined foreign oil and gas income means the sum of foreign oil related income and foreign oil and gas extraction income. Turbo tax form 1040x Foreign oil and gas taxes are the sum of foreign oil and gas extraction taxes and foreign oil related taxes. Turbo tax form 1040x Taxes of U. Turbo tax form 1040x S. Turbo tax form 1040x Persons Controlling Foreign Corporations and Partnerships If you had control of a foreign corporation or a foreign partnership for the annual accounting period of that corporation or partnership that ended with or within your tax year, you may have to file an annual information return. Turbo tax form 1040x If you do not file the required information return, you may have to reduce the foreign taxes that may be used for the foreign tax credit. Turbo tax form 1040x See Penalty for not filing Form 5471 or Form 8865 , later. Turbo tax form 1040x U. Turbo tax form 1040x S. Turbo tax form 1040x persons controlling foreign corporations. Turbo tax form 1040x   If you are a U. Turbo tax form 1040x S. Turbo tax form 1040x citizen or resident who had control of a foreign corporation for an uninterrupted period of at least 30 days during the annual accounting period of that corporation, you may have to file an annual information return on Form 5471, Information Return of U. Turbo tax form 1040x S. Turbo tax form 1040x Persons With Respect To Certain Foreign Corporations. Turbo tax form 1040x Under this rule, you generally had control of a foreign corporation if at any time during your tax year you owned: Stock possessing more than 50% of the total combined voting power of all classes of stock entitled to vote, or More than 50% of the total value of shares of all classes of stock of the foreign corporation. Turbo tax form 1040x U. Turbo tax form 1040x S. Turbo tax form 1040x persons controlling foreign partnerships. Turbo tax form 1040x   If you are a U. Turbo tax form 1040x S. Turbo tax form 1040x citizen or resident who had control of a foreign partnership at any time during the partnership's tax year, you may have to file
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The Turbo Tax Form 1040x

Turbo tax form 1040x 13. Turbo tax form 1040x   Base de Bienes Table of Contents Introduction Useful Items - You may want to see: Base de CostoBienes Raíces Base AjustadaAumentos a la Base Disminuciones a la Base Base Distinta al CostoBienes Recibidos por Servicios Intercambios Sujetos a Impuestos Conversiones Involuntarias Intercambios no Sujetos a Impuestos Bienes Traspasados de un Cónyuge Bienes Recibidos como Donación Bienes Heredados Bienes de Uso Personal Cambiados a Uso Comercial o de Alquiler Acciones y Bonos Introduction Este capítulo explica cómo calcular la base de bienes. Turbo tax form 1040x Se divide en las siguientes secciones: Base de costo. Turbo tax form 1040x Base ajustada. Turbo tax form 1040x Base distinta al costo. Turbo tax form 1040x Su base es la cantidad de inversión en bienes para propósitos no sujetos a impuestos. Turbo tax form 1040x Use la base para calcular las pérdidas o ganancias provenientes de la venta, intercambio u otra enajenación de bienes. Turbo tax form 1040x Además, use la base para calcular las deducciones por depreciación, amortización, agotamiento y pérdidas fortuitas. Turbo tax form 1040x Si usa bienes para propósitos tanto comerciales como de inversión y personales, tiene que distribuir la base de acuerdo con el uso. Turbo tax form 1040x Sólo se puede depreciar la base asignada al uso comercial o de inversión de los bienes. Turbo tax form 1040x Su base original de los bienes se ajusta (aumenta o disminuye) según ciertos hechos. Turbo tax form 1040x Por ejemplo, si realiza mejoras a los bienes, aumente la base. Turbo tax form 1040x Si hace deducciones por depreciación o pérdidas fortuitas, o reclama ciertos créditos, reduzca la base. Turbo tax form 1040x Mantenga documentación precisa de todos los artículos que afecten la base de sus bienes. Turbo tax form 1040x Para más información sobre cómo mantener dicha documentación, consulte el capítulo 1 . Turbo tax form 1040x Useful Items - You may want to see: Publicación 15-B Employer's Tax Guide to Fringe Benefits (Guía tributaria sobre beneficios marginales para empleadores), en inglés 525 Taxable and Nontaxable Income (Ingresos sujetos a impuestos y no sujetos a impuestos), en inglés 535 Business Expenses (Gastos de negocio), en inglés 537 Installment Sales (Ventas a plazos), en inglés 544 Sales and Other Dispositions of Assets (Ventas y otras enajenaciones de activos), en inglés 550 Investment Income and Expenses (Ingresos y gastos de inversión), en inglés 551 Basis of Assets (Base de activos), en inglés 946 How To Depreciate Property (Cómo depreciar los bienes), en inglés Base de Costo La base de los bienes comprados normalmente es el costo de dichos bienes. Turbo tax form 1040x El costo es la cantidad que usted paga en efectivo, obligaciones de deuda, otros bienes o servicios. Turbo tax form 1040x Éste también puede incluir cantidades que paga por los siguientes artículos: Impuesto sobre ventas, Flete, Instalación y pruebas, Impuestos sobre artículos de uso y consumo, Honorarios legales y contables (cuando se tienen que capitalizar), Timbres de recaudación de impuestos, Costos de registro e Impuestos sobre bienes raíces (si usted los asume por el vendedor). Turbo tax form 1040x Además, la base de activos de bienes raíces y de negocios puede incluir otros artículos. Turbo tax form 1040x Préstamos con intereses bajos o sin intereses. Turbo tax form 1040x    Si compra bienes con un plan de pago a plazos con bajos intereses o sin intereses, la base de los bienes es el precio de compra establecido menos las cantidades consideradas intereses no establecidos. Turbo tax form 1040x Por lo general, se tienen intereses no establecidos si la tasa de interés es menor que la tasa federal correspondiente. Turbo tax form 1040x   Para obtener más información, consulte Unstated Interest and Original Issue Discount (OID) (Intereses no establecidos y descuento de la emisión original (OID, por sus siglas en inglés)) en la Publicación 537, en inglés. Turbo tax form 1040x Bienes Raíces Los bienes raíces, conocidos también como bienes inmuebles, consisten en tierra y, normalmente, todo lo que esté construido sobre esta tierra, lo que crezca en ella y todo lo instalado en ésta. Turbo tax form 1040x Si compra bienes raíces, algunos honorarios y otros gastos que usted pague son parte de la base de costo de los bienes. Turbo tax form 1040x Compra por suma global. Turbo tax form 1040x   Si compra edificios junto con la tierra por una suma global, asigne la base del costo entre la tierra y los edificios. Turbo tax form 1040x Asigne el costo según los valores justos de mercado (FMV, por sus siglas en inglés) respectivos de la tierra y los edificios al momento de la compra. Turbo tax form 1040x Calcule la base de cada uno de los activos multiplicando la suma global por una fracción. Turbo tax form 1040x El numerador es el valor justo de mercado de dicho activo y el denominador es el valor justo de mercado de los bienes en su totalidad al momento de la compra. Turbo tax form 1040x    Si no está seguro del valor justo de mercado de la tierra y los edificios, puede asignar la base de dichos bienes conforme a sus valores tasados para propósitos del impuesto sobre bienes raíces. Turbo tax form 1040x Valor justo de mercado (FMV). Turbo tax form 1040x   El valor justo de mercado (FMV, por sus siglas en inglés) es el precio por el cual los bienes cambian de propietario entre un comprador y un vendedor, cuando ninguno tiene la obligación de comprar o vender y cuando ambos tienen conocimiento razonable de todo hecho necesario. Turbo tax form 1040x Las ventas de bienes similares alrededor de la misma fecha pueden ser útiles para calcular el valor justo de mercado de los bienes. Turbo tax form 1040x Asunción de hipoteca. Turbo tax form 1040x   Si compra bienes y asume una hipoteca existente sobre los bienes (o si compra bienes sujetos a hipoteca), su base incluye la cantidad que paga por los bienes más la cantidad que se tiene que pagar sobre la hipoteca. Turbo tax form 1040x Cargos de liquidación. Turbo tax form 1040x   Su base incluye los cargos de liquidación y los costos de cierre que pagó por comprar los bienes. Turbo tax form 1040x Un cargo por comprar bienes es un costo que se tiene que pagar aun si compra los bienes en efectivo. Turbo tax form 1040x No incluya en su base cargos ni costos por obtener un préstamo sobre los bienes. Turbo tax form 1040x   Los siguientes son algunos de los cargos por liquidación o costos de cierre que puede incluir en la base de los bienes: Cargos por investigación del título de propiedad. Turbo tax form 1040x Cargos por conexión de servicios públicos. Turbo tax form 1040x Cargos por trámites legales (incluyendo cargos por la búsqueda del título y la preparación del contrato de compraventa y la escritura). Turbo tax form 1040x Costos de registro. Turbo tax form 1040x Cargos por estudios topográficos. Turbo tax form 1040x Impuestos de traspaso. Turbo tax form 1040x Seguro de título de la propiedad. Turbo tax form 1040x Cantidades que adeuda el vendedor y que usted acuerda pagar, como impuestos o intereses atrasados, costos de registro y cargos hipotecarios, cargos por mejoras o reparaciones y comisiones por ventas. Turbo tax form 1040x   Los costos de liquidación no incluyen cantidades puestas en depósito para el pago futuro de gastos como impuestos y seguro. Turbo tax form 1040x   Los siguientes son algunos de los cargos por liquidación y costos de cierre que no puede incluir en la base de los bienes: Primas de un seguro contra hechos fortuitos. Turbo tax form 1040x Alquiler por ocupación de la propiedad antes del cierre. Turbo tax form 1040x Cargos por servicios públicos u otros servicios relacionados con la ocupación de la propiedad antes del cierre. Turbo tax form 1040x Cargos relacionados con la obtención de un préstamo, tales como puntos (puntos de descuento, costos originarios del préstamo), primas de seguro hipotecario, cargos por asunción del préstamo, costo de un informe de crédito y cargos por una tasación que sea requisito del prestamista. Turbo tax form 1040x Cargos por refinanciamiento de una hipoteca. Turbo tax form 1040x Impuestos sobre bienes raíces. Turbo tax form 1040x   Si paga los impuestos sobre bienes raíces que el vendedor adeudaba sobre los bienes raíces que usted compró y el vendedor no se los reembolsa, considere estos impuestos como parte de su base. Turbo tax form 1040x No puede deducirlos como gasto. Turbo tax form 1040x    Si le reembolsa al vendedor los impuestos que éste pagó por usted, normalmente puede deducir la cantidad como gasto en el año de la compra. Turbo tax form 1040x No incluya esta cantidad en la base de bienes. Turbo tax form 1040x Si no se los reembolsa al vendedor, tiene que restar esos impuestos de su base. Turbo tax form 1040x Puntos. Turbo tax form 1040x   Si paga puntos para obtener un préstamo (incluyendo una hipoteca, una segunda hipoteca, una línea de crédito o un préstamo sobre el valor neto de la vivienda), no sume los puntos a la base de los bienes correspondientes. Turbo tax form 1040x Normalmente, los puntos se deducen a lo largo del plazo del préstamo. Turbo tax form 1040x Para más información sobre cómo deducir puntos, consulte el capítulo 23 . Turbo tax form 1040x Puntos de hipoteca de vivienda. Turbo tax form 1040x   Le pueden corresponder reglas especiales sobre los puntos que usted y el vendedor paguen cuando usted obtenga una hipoteca para comprar su vivienda principal. Turbo tax form 1040x Si se cumplen ciertos requisitos, puede deducir los puntos en su totalidad para el año en que se pagaron. Turbo tax form 1040x Reduzca la base de su vivienda por los puntos que pagó el vendedor. Turbo tax form 1040x Base Ajustada Antes de calcular las pérdidas o ganancias de una venta, intercambio u otra enajenación de bienes o de calcular la depreciación, agotamiento o amortización permisibles, por regla general, tiene que realizar ciertos ajustes (aumentos o disminuciones) a la base del costo o base distinta al costo (explicadas más adelante) de los bienes. Turbo tax form 1040x El resultado de estos ajustes a la base es la base ajustada. Turbo tax form 1040x Aumentos a la Base Aumente la base de los bienes por todos los artículos correctamente sumados a una cuenta de capital. Turbo tax form 1040x Ejemplos de artículos que aumentan la base se encuentran en la Tabla 13-1. Turbo tax form 1040x Algunos de estos artículos se explican a continuación. Turbo tax form 1040x Mejoras. Turbo tax form 1040x   Sume a su base de los bienes el costo de las mejoras que tengan vida útil de más de 1 año, si éstas aumentan el valor de los bienes, prolongan su vida útil o los adaptan para un uso diferente. Turbo tax form 1040x Por ejemplo, las mejoras incluyen la instalación de una sala de recreación en un sótano no terminado, la construcción de un baño o dormitorio adicional, la colocación de una cerca, la instalación de nueva plomería o cableado, la instalación de un nuevo tejado o la pavimentación de la entrada de autos. Turbo tax form 1040x Gravámenes por mejoras locales. Turbo tax form 1040x   Sume a la base de los bienes los cargos por mejoras como calles y aceras o banquetas, si éstas aumentan el valor de los bienes. Turbo tax form 1040x No deduzca dichos cargos como impuestos. Turbo tax form 1040x Sin embargo, puede deducir como impuestos los cargos por mantenimiento, reparaciones o cargos de intereses relacionados con las mejoras. Turbo tax form 1040x Ejemplo. Turbo tax form 1040x El ayuntamiento transforma la calle ubicada frente a su tienda en un paseo peatonal y le tasa un gravamen a la propiedad de usted y a las de otros propietarios afectados por el costo del cambio de la calle. Turbo tax form 1040x Sume dicho cargo a la base de sus bienes. Turbo tax form 1040x En este ejemplo, el cargo es un activo depreciable. Turbo tax form 1040x Disminuciones a la Base Reduzca la base de bienes por todo lo que represente un rendimiento de capital en el período durante el cual tuvo los bienes. Turbo tax form 1040x Los ejemplos de artículos que reducen la base se encuentran en la Tabla 13-1. Turbo tax form 1040x Algunos de estos artículos se explican a continuación. Turbo tax form 1040x Tabla 13-1. Turbo tax form 1040x Ejemplos de Ajustes a la Base Aumentos a la Base Disminuciones a la Base • Mejoras de capital: • Exclusión en los ingresos de subsidios  por sistemas de ahorro de energía   Ampliación de la vivienda     Instalación de un tejado completo     Pavimentación de la entrada de autos • Deducciones por pérdidas fortuitas o  por robo y reembolsos de seguros   Instalación de aire acondicionado central     Cambio del cableado en la vivienda         • Gravámenes por mejoras locales: • Ganancia aplazada de la venta de una  vivienda   Conexiones de agua     Extensión de cables de servicios públicos   hasta la propiedad • Crédito por vehículos con motor  alternativo (Formulario 8910)   Banquetas o aceras     Calles       • Crédito por bienes para recargar  vehículos de combustible alternativo   (Formulario 8911)             • Pérdidas por hechos fortuitos:  Restauración de bienes dañados   • Créditos por energía eficaz  residencial (Formulario 5695)         • Depreciación y deducción conforme a  la sección 179       • Honorarios legales: • Distribuciones de sociedades  anónimas no sujetos a impuestos   Costo de defender y perfeccionar un título   de propiedad     Honorarios por obtener la reducción de un   gravamen del ayuntamiento • Determinadas deudas canceladas  excluidas de los ingresos       • Costos de zonificación • Servidumbres (derechos de acceso  a la propiedad)         • Beneficios tributarios por adopción Pérdidas por hecho fortuito y robo. Turbo tax form 1040x   Si tiene pérdidas por hecho fortuito o por robo, reste de la base de los bienes el dinero del seguro u otros reembolsos y las pérdidas deducibles no cubiertas por el seguro. Turbo tax form 1040x    Tiene que aumentar la base de los bienes por la cantidad que gaste en reparaciones que restauren los bienes a su condición previa al hecho fortuito. Turbo tax form 1040x   Para obtener más información acerca de las pérdidas fortuitas y por robo, consulte el capítulo 25 . Turbo tax form 1040x Depreciación y deducción conforme a la sección 179. Turbo tax form 1040x   Reste de la base de la propiedad comercial calificada las deducciones que haya declarado conforme a la sección 179 y la depreciación que haya deducido, o pudo haber deducido (incluyendo todo descuento especial por depreciación), en la declaración de impuestos según el método de depreciación que seleccionó. Turbo tax form 1040x   Para obtener más información acerca de la depreciación y la deducción conforme a la sección 179, consulte la Publicación 946 y las Instrucciones del Formulario 4562, ambas en inglés. Turbo tax form 1040x Ejemplo. Turbo tax form 1040x Usted fue propietario de un dúplex usado como vivienda de alquiler que le costó $40,000, de los cuales $35,000 fueron asignados al edificio y $5,000 al terreno. Turbo tax form 1040x Hizo una ampliación al dúplex que costó $10,000. Turbo tax form 1040x En febrero del año pasado, el dúplex sufrió daños por un incendio. Turbo tax form 1040x Hasta ese momento, usted había descontado una depreciación de $23,000. Turbo tax form 1040x Vendió algunos materiales rescatados del siniestro por $1,300 y cobró $19,700 de la compañía de seguros. Turbo tax form 1040x Dedujo una pérdida fortuita de $1,000 en su declaración de impuestos sobre el ingreso del año pasado. Turbo tax form 1040x Gastó $19,000 del dinero del seguro para la restauración del dúplex, que se completó este año. Turbo tax form 1040x Tiene que usar la base ajustada del dúplex después de la restauración para determinar la depreciación para el resto del período de recuperación de la propiedad. Turbo tax form 1040x Calcule la base ajustada del dúplex de la siguiente manera: Costo original del dúplex $35,000 Ampliación hecha al dúplex 10,000 Costo total del dúplex $45,000 Menos: Depreciación 23,000 Base ajustada antes del hecho fortuito $22,000 Menos: Dinero del seguro $19,700     Pérdida fortuita deducida 1,000     Materiales rescatados 1,300 22,000 Base ajustada después del hecho fortuito $-0- Sume: Costo de restauración del dúplex 19,000 Base ajustada después de la restauración $19,000 Nota: La base del terreno es el costo original de $5,000. Turbo tax form 1040x Servidumbres (derechos de acceso a la propiedad). Turbo tax form 1040x   La cantidad recibida por otorgar una servidumbre normalmente se considera ganancia de la venta de una participación en bienes raíces. Turbo tax form 1040x Esto reduce la base de la parte afectada de los bienes. Turbo tax form 1040x Si la cantidad recibida es mayor que la base de la parte de la propiedad afectada por la servidumbre, reduzca su base de esa parte a cero y considere el remanente como una ganancia reconocida. Turbo tax form 1040x   Si la ganancia es sobre bienes de capital, consulte el capítulo 16 para obtener más información acerca de cómo declararla. Turbo tax form 1040x Si la ganancia es sobre bienes usados en una ocupación o negocio, consulte la Publicación 544, en inglés, para obtener información acerca de cómo declararla. Turbo tax form 1040x Exclusión de subsidios por sistemas de ahorro de energía. Turbo tax form 1040x   Puede excluir del ingreso bruto todo subsidio recibido de una compañía de servicios públicos por la compra o instalación de un sistema de ahorro de energía para una vivienda. Turbo tax form 1040x De la base de los bienes para los cuales recibió el subsidio, reste la cantidad excluida. Turbo tax form 1040x Para obtener más información acerca de este subsidio, consulte el capítulo 12 . Turbo tax form 1040x Ganancia aplazada de la venta de una vivienda. Turbo tax form 1040x    Si aplazó la ganancia de la venta de su vivienda principal según las reglas en vigencia antes del 7 de mayo de 1997, tiene que restar la ganancia aplazada de la base de la vivienda que adquirió como reposición. Turbo tax form 1040x Para obtener más información acerca de las reglas sobre la venta de una vivienda, vea el capítulo 15 . Turbo tax form 1040x Base Distinta al Costo En muchas ocasiones, no puede usar el costo como base. Turbo tax form 1040x En estos casos, se puede usar el valor justo de mercado o la base ajustada de los bienes. Turbo tax form 1040x El valor justo de mercado y la base ajustada se explican en secciones anteriores. Turbo tax form 1040x Bienes Recibidos por Servicios Si recibe bienes por sus servicios, incluya el valor justo de mercado de dichos bienes en los ingresos. Turbo tax form 1040x La cantidad que incluye en los ingresos es la base. Turbo tax form 1040x Si los servicios se prestaron por un precio acordado con anticipación, éste se aceptará como el valor justo de mercado de los bienes si no existen pruebas de lo contrario. Turbo tax form 1040x Bienes restringidos. Turbo tax form 1040x   Si recibe bienes por sus servicios y los bienes están sujetos a ciertas restricciones, la base de los bienes es el valor justo de mercado en el momento en que estén sustancialmente establecidos sus derechos a dichos bienes. Turbo tax form 1040x Sin embargo, esta regla no corresponde si elige incluir en los ingresos el valor justo de mercado de los bienes en el momento en que se le traspasen dichos bienes, menos la cantidad que pagó por éstos. Turbo tax form 1040x Su derecho sobre esos bienes están sustancialmente establecidos cuando dichos bienes se pueden traspasar o cuando no están sujetos a un riesgo importante de pérdida (es decir, usted tiene pocas probabilidades de perderlos). Turbo tax form 1040x Para obtener más información, consulte Restricted Property (Bienes restringidos) en la Publicación 525, en inglés. Turbo tax form 1040x Compra por valor inferior. Turbo tax form 1040x   Una compra por valor inferior es una compra de un artículo por un valor menor que su valor justo de mercado. Turbo tax form 1040x Si, como compensación por servicios, compra productos u otros bienes por un valor menor al valor justo de mercado, incluya en su ingreso la diferencia entre el precio de compra y el valor justo de mercado de los bienes. Turbo tax form 1040x La base de los bienes es el valor justo de mercado (precio de compra más la cantidad que se incluye en los ingresos). Turbo tax form 1040x   Si la diferencia entre el precio de compra y el valor justo de mercado es un descuento al empleado, no incluya la diferencia en los ingresos. Turbo tax form 1040x Sin embargo, la base de los bienes sigue siendo el valor justo de mercado. Turbo tax form 1040x Consulte Employee Discounts (Descuentos del empleado) en la Publicación 15-B, en inglés. Turbo tax form 1040x Intercambios Sujetos a Impuestos Un intercambio sujeto a impuestos es aquel intercambio en el que la ganancia está sujeta a impuestos o la pérdida es deducible. Turbo tax form 1040x Una ganancia sujeta a impuestos o pérdida deducible también se conoce como ganancia o pérdida reconocida. Turbo tax form 1040x Si recibe bienes como intercambio por otros bienes a través de un intercambio sujeto a impuestos, normalmente la base de los bienes que recibe es el valor justo de mercado al momento del intercambio. Turbo tax form 1040x Conversiones Involuntarias Si recibe bienes de reposición como resultado de una conversión involuntaria, tal como un hecho fortuito, robo o expropiación forzosa, calcule la base de los bienes de reposición usando la base de los bienes convertidos. Turbo tax form 1040x Bienes similares o afines. Turbo tax form 1040x   Si recibe bienes de reposición similares o afines en servicio o uso a los bienes convertidos, la base de los bienes de reposición es la misma que la base de los bienes convertidos en la fecha de la conversión, con los siguientes ajustes: Reduzca la base por lo siguiente: Toda pérdida que reconozca en la conversión involuntaria. Turbo tax form 1040x Todo dinero que reciba y que no gaste en bienes afines. Turbo tax form 1040x Aumente la base por lo siguiente: Toda ganancia que reconozca en la conversión involuntaria. Turbo tax form 1040x Todo costo de adquisición de los bienes de reposición. Turbo tax form 1040x Dinero o bienes no similares ni afines. Turbo tax form 1040x    Si recibe dinero o bienes no similares o no afines en servicio o uso a los bienes convertidos y compra bienes de reposición similares o afines en servicio o uso a los bienes convertidos, la base de los bienes de reposición es el costo menos la ganancia no reconocida en la conversión. Turbo tax form 1040x Ejemplo. Turbo tax form 1040x El estado expropió sus bienes. Turbo tax form 1040x La base ajustada de los bienes era $26,000 y el estado le pagó $31,000 por éstos. Turbo tax form 1040x Usted obtuvo una ganancia de $5,000 ($31,000 − $26,000). Turbo tax form 1040x Por $29,000 compró bienes de reposición similares en uso a los bienes convertidos. Turbo tax form 1040x Obtiene una ganancia de $2,000 ($31,000 − $29,000), la parte no gastada del pago que recibió del estado. Turbo tax form 1040x Su ganancia no reconocida es $3,000, la diferencia entre los $5,000 de ganancia obtenida y los $2,000 de ganancia reconocida. Turbo tax form 1040x La base de los bienes de reposición se calcula de la siguiente manera: Costo de los bienes de reposición $29,000 Menos: Ganancia no reconocida 3,000 Base de los bienes de reposición $26,000 Cómo distribuir la base. Turbo tax form 1040x   Si compra más de una propiedad de reposición, distribuya la base entre los bienes de acuerdo con los costos respectivos. Turbo tax form 1040x Base de depreciación. Turbo tax form 1040x   Hay reglas especiales para determinar y depreciar la base de los bienes MACRS (Sistema modificado de recuperación acelerada de costos) adquiridos en una conversión involuntaria. Turbo tax form 1040x Para información, vea What Is the Basis of Your Depreciable Property? (¿Cuál es la base de los bienes depreciables?), en el capítulo 1 de la Publicación 946, en inglés. Turbo tax form 1040x Intercambios no Sujetos a Impuestos Un intercambio no sujeto a impuestos es aquel intercambio en el que no se gravan las ganancias y no se pueden deducir las pérdidas. Turbo tax form 1040x Si recibe bienes por intercambio no sujetos a impuestos, normalmente la base es la misma que la base de los bienes que traspasó. Turbo tax form 1040x Consulte Canjes no Sujetos a Impuestos en el capítulo 14. Turbo tax form 1040x Intercambios de Bienes del Mismo Tipo El intercambio de bienes del mismo tipo es la clase más común de intercambio no sujeto a impuestos. Turbo tax form 1040x Para considerarse intercambio de bienes del mismo tipo, tanto los bienes canjeados como los bienes recibidos tienen que ser los siguientes: Bienes calificados. Turbo tax form 1040x Bienes del mismo tipo. Turbo tax form 1040x La base de los bienes que recibe normalmente es la misma que la base ajustada de los bienes que traspase. Turbo tax form 1040x Si canjea los bienes en un intercambio de bienes del mismo tipo y también paga dinero, la base de los bienes recibidos es la base ajustada de los bienes que entregó más el dinero que pagó. Turbo tax form 1040x Bienes calificados. Turbo tax form 1040x   En un intercambio de bienes del mismo tipo, tiene que mantener para inversión o uso productivo en su ocupación o negocio tanto los bienes que traspase como los bienes que reciba. Turbo tax form 1040x Bienes del mismo tipo. Turbo tax form 1040x   Tiene que haber un intercambio de bienes del mismo tipo. Turbo tax form 1040x Los bienes del mismo tipo son bienes de la misma naturaleza o carácter, aun si son de grado o calidad diferente. Turbo tax form 1040x El intercambio de bienes raíces por bienes raíces, o de bienes muebles por bienes muebles similares, es un intercambio de bienes del mismo tipo. Turbo tax form 1040x Ejemplo. Turbo tax form 1040x Usted canjea un camión viejo que usó en su negocio con una base ajustada de $1,700 por un camión nuevo que tiene un costo de $6,800. Turbo tax form 1040x El concesionario le hace un descuento de $2,000 por el camión viejo y usted paga $4,800. Turbo tax form 1040x Esto es un ejemplo de un intercambio de bienes del mismo tipo. Turbo tax form 1040x La base del camión nuevo es $6,500 (la base ajustada del camión viejo, $1,700, más la cantidad que pagó, $4,800). Turbo tax form 1040x Si vende el camión viejo a un tercero por $2,000, en lugar de hacer un canje y luego comprar un camión nuevo a un concesionario, usted tiene una ganancia sujeta a impuestos de $300 sobre la venta (el precio de venta de $2,000 menos la base ajustada de $1,700). Turbo tax form 1040x La base del camión nuevo es el precio que paga al concesionario. Turbo tax form 1040x Intercambios parcialmente no sujetos a impuestos. Turbo tax form 1040x   Un intercambio parcialmente no sujeto a impuestos es un intercambio en el que usted recibe bienes que no son del mismo tipo o dinero, además de bienes del mismo tipo. Turbo tax form 1040x La base de los bienes que recibe es igual a la base ajustada total de los bienes que traspasó, con los siguientes ajustes: Reduzca la base por lo siguiente: Todo el dinero que reciba. Turbo tax form 1040x Todas las pérdidas que reconozca en el intercambio. Turbo tax form 1040x Aumente la base por lo siguiente: Todos los costos adicionales en los que incurra. Turbo tax form 1040x Todas las ganancias que reconozca en el intercambio. Turbo tax form 1040x Si la otra parte implicada en el intercambio asume las deudas que le pertenecen a usted, trate la asunción de deuda como dinero que usted recibió en el intercambio. Turbo tax form 1040x Asignación de la base. Turbo tax form 1040x   Si recibe tanto bienes del mismo tipo como bienes que no son del mismo tipo en el intercambio, asigne la base primero a los bienes que no sean del mismo tipo, excepto dinero, hasta su valor justo de mercado en la fecha del intercambio. Turbo tax form 1040x El resto es la base de los bienes del mismo tipo. Turbo tax form 1040x Información adicional. Turbo tax form 1040x   Para obtener más información, consulte Like-Kind Exchanges (Intercambios de bienes del mismo tipo) en el capítulo 1 de la Publicación 544, en inglés. Turbo tax form 1040x Base de depreciación. Turbo tax form 1040x   Hay reglas especiales para determinar y depreciar la base de los bienes MACRS adquiridos en un intercambio de bienes del mismo tipo. Turbo tax form 1040x Para información, vea What Is the Basis of Your Depreciable Property? (¿Cuál es la base de los bienes depreciables?), en el capítulo 1 de la Publicación 946, en inglés. Turbo tax form 1040x Bienes Traspasados de un Cónyuge La base de los bienes traspasados a usted o traspasados en fideicomiso para su beneficio por su cónyuge es la misma base que la base ajustada de su cónyuge. Turbo tax form 1040x Se aplica la misma regla a un traspaso efectuado por su ex cónyuge en relación con su divorcio. Turbo tax form 1040x Sin embargo, para bienes traspasados en fideicomiso, ajuste la base según las ganancias reconocidas por su cónyuge o ex cónyuge si las obligaciones asumidas, más las obligaciones a las que están sujetos los bienes, son mayores que la base ajustada de los bienes traspasados. Turbo tax form 1040x Si los bienes que le son traspasados son bonos de ahorros estadounidenses de la serie E, serie EE o serie I, el cesionario tiene que incluir en el ingreso los intereses devengados a la fecha del traspaso. Turbo tax form 1040x Su base en los bonos, inmediatamente después del traspaso, es igual a la base del cesionario más el ingreso de intereses que se pueda incluir en el ingreso del cesionario. Turbo tax form 1040x Para obtener más información acerca de estos bonos, consulte el capítulo 7 . Turbo tax form 1040x Al momento del traspaso, el cesionario tiene que entregarle la documentación necesaria para determinar la base ajustada y el período de tenencia de los bienes a partir de la fecha de traspaso. Turbo tax form 1040x Para obtener más información acerca del traspaso de bienes de un cónyuge, consulte el capítulo 14 . Turbo tax form 1040x Bienes Recibidos como Donación Para calcular la base de una propiedad recibida como donación, tiene que conocer la base ajustada del donante justo antes de la donación, el valor justo de mercado de esta propiedad al momento en que se dona y los impuestos sobre donaciones pagados por dicha propiedad. Turbo tax form 1040x Valor justo de mercado menor que la base ajustada del donante. Turbo tax form 1040x   Si el valor justo de mercado de los bienes al momento de la donación es menor que la base ajustada del donante, la base depende de si usted tiene ganancias o pérdidas cuando enajene los bienes. Turbo tax form 1040x Su base para calcular ganancias es la misma que la base ajustada del donante más o menos los ajustes requeridos a la base mientras usted tenía los bienes. Turbo tax form 1040x Su base para calcular pérdidas es el valor justo de mercado cuando recibió la donación más o menos los ajustes requeridos a la base mientras usted tenía los bienes. Turbo tax form 1040x Vea Base Ajustada , anteriormente. Turbo tax form 1040x Ejemplo. Turbo tax form 1040x Usted recibió un acre de terreno como donación. Turbo tax form 1040x Al momento de la donación, el terreno tenía un valor justo de mercado de $8,000. Turbo tax form 1040x La base ajustada del donante era $10,000. Turbo tax form 1040x Después de recibir los bienes, no sucedió nada que aumentara ni disminuyera la base de los mismos. Turbo tax form 1040x Si posteriormente usted vende los bienes por $12,000, tendrá una ganancia de $2,000 porque tiene que usar la base ajustada del donante al momento de la donación ($10,000) como base para calcular la ganancia. Turbo tax form 1040x Si vende los bienes por $7,000, tendrá una pérdida de $1,000 porque tiene que usar el valor justo de mercado al momento de la donación ($8,000) como base para calcular la pérdida. Turbo tax form 1040x Si el precio de venta está entre $8,000 y $10,000, no tiene ganancias ni pérdidas. Turbo tax form 1040x Bienes comerciales. Turbo tax form 1040x   Si mantiene la donación como bienes comerciales, su base para calcular deducciones por depreciación, agotamiento o amortización es la misma que la base del donante más o menos los ajustes requeridos a la base mientras usted tiene los bienes. Turbo tax form 1040x Valor justo de mercado igual o mayor que la base ajustada del donante. Turbo tax form 1040x   Si el valor justo de mercado de los bienes es igual o mayor que la base ajustada del donante, la base es la base ajustada del donante al momento en que usted recibió la donación. Turbo tax form 1040x Aumente la base por la totalidad o parte de los impuestos sobre donaciones pagados, según la fecha de donación, como se explica más adelante. Turbo tax form 1040x   Además, para calcular las pérdidas o ganancias de una venta u otra enajenación o para calcular deducciones por depreciación, agotamiento o amortización sobre bienes comerciales, tiene que aumentar o reducir la base (la base ajustada del donante) por los ajustes requeridos a la base mientras usted tuvo los bienes. Turbo tax form 1040x Vea Base Ajustada , anteriormente. Turbo tax form 1040x   Si recibió una donación durante el año tributario, aumente la base de la donación (la base ajustada del donante) por la parte del impuesto sobre donaciones pagado sobre esta donación debido al aumento neto en valor de la donación. Turbo tax form 1040x Calcule el aumento multiplicando el impuesto pagado sobre la donación por la siguiente fracción. Turbo tax form 1040x El numerador de la fracción es el aumento neto del valor de la donación y el denominador es la cantidad de la donación. Turbo tax form 1040x   El aumento neto del valor de la donación es el valor justo de mercado de la donación menos la base ajustada del donante. Turbo tax form 1040x La cantidad de la donación es el valor para fines del impuesto sobre la donación después de haber sido reducida por toda exclusión anual y deducción conyugal o caritativa que corresponda a la donación. Turbo tax form 1040x Ejemplo. Turbo tax form 1040x En el año 2013, usted recibió una donación de bienes de su madre que tenía un valor justo de mercado de $50,000. Turbo tax form 1040x La base ajustada de su madre era $20,000. Turbo tax form 1040x La cantidad de la donación para propósitos del impuesto sobre donaciones era $36,000 ($50,000 menos la exclusión anual de $14,000). Turbo tax form 1040x Su madre pagó un impuesto sobre donaciones de $7,320 sobre los bienes. Turbo tax form 1040x La base de usted es $26,076, calculada de la siguiente manera: Valor justo de mercado. Turbo tax form 1040x $50,000 Menos: Base ajustada −20,000 Aumento neto en valor $30,000     Impuesto sobre la donación pagado $7,320 Multiplicado por ($30,000 ÷ $36,000) × 0. Turbo tax form 1040x 83 Impuesto sobre la donación debido al aumento neto en valor $6,076 Base ajustada de los bienes para su madre +20,000 La base de los bienes para usted $26,076 Nota: Si recibió una donación antes de 1977, la base de la donación para usted (la base ajustada del donante) incluye todos los impuestos sobre donaciones pagados sobre ésta. Turbo tax form 1040x Sin embargo, la base no puede ser mayor que el valor justo de mercado de la donación al momento en que se le dio a usted. Turbo tax form 1040x Bienes Heredados Su base en bienes heredados de un difunto que falleció antes del 1 de enero de 2010 o después del 31 de diciembre de 2010, es normalmente uno de los siguientes: El valor justo de mercado de los bienes en la fecha de muerte del difunto. Turbo tax form 1040x El valor justo de mercado en la fecha de valuación alternativa si el representante personal del caudal hereditario elige usar una valuación alternativa. Turbo tax form 1040x El valor según el método de valuación de uso especial para bienes raíces usados en actividades agrícolas o en el ejercicio de un negocio estrechamente controlado por pocos accionistas si se elige para propósitos del impuesto sobre la herencia. Turbo tax form 1040x La base ajustada del terreno del difunto hasta el valor excluido de la herencia sujeto a impuestos del difunto como una servidumbre de conservación calificada. Turbo tax form 1040x Si no hay que presentar una declaración del impuesto federal sobre la herencia, la base de los bienes heredados es el valor tasado en la fecha de fallecimiento para los impuestos estatales sobre la herencia o la transmisión. Turbo tax form 1040x Para obtener más información, consulte las Instrucciones del Formulario 706, United States Estate (and Generation-Skipping Transfer) Tax Return (Declaración del impuesto sobre el patrimonio (y transferencia con salto de generación) de los Estados Unidos), en inglés. Turbo tax form 1040x Bienes heredados de un difunto que falleció en 2010. Turbo tax form 1040x   Si heredó bienes de un difunto que falleció en 2010, pueden aplicarse requisitos especiales. Turbo tax form 1040x Para más información, vea la Publicación 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010 (Trato tributario de bienes adquiridos de un difunto que falleció en 2010), en inglés. Turbo tax form 1040x Bienes gananciales. Turbo tax form 1040x   En las jurisdicciones donde rigen las leyes de la comunidad de bienes gananciales (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington y Wisconsin), se considera generalmente que cada cónyuge posee la mitad de los bienes gananciales. Turbo tax form 1040x Al fallecer cualquiera de los cónyuges, el total del valor de los bienes gananciales, aún la parte que le pertenece al cónyuge sobreviviente, normalmente se convierte en la base de la totalidad de los bienes. Turbo tax form 1040x Para que esta regla corresponda, por lo menos la mitad del valor de los bienes gananciales tiene que poderse incluir en el patrimonio bruto del difunto, independientemente de si se tiene que presentar o no una declaración sobre la herencia. Turbo tax form 1040x Ejemplo. Turbo tax form 1040x   Usted y su cónyuge tenían bienes gananciales cuya base era $80,000. Turbo tax form 1040x Cuando su cónyuge falleció, la mitad del valor justo de mercado de los bienes gananciales era incluible en el patrimonio de su cónyuge. Turbo tax form 1040x El valor justo de mercado de los intereses de los bienes gananciales era $100,000. Turbo tax form 1040x La base de su mitad de los bienes después de la muerte de su cónyuge es $50,000 (la mitad del valor justo de mercado de $100,000). Turbo tax form 1040x La base de la otra mitad que se pasa a los herederos de su cónyuge también es $50,000. Turbo tax form 1040x   Para más información, vea la Publicación 555, Community Property (Comunidad de bienes gananciales), en inglés. Turbo tax form 1040x Bienes de Uso Personal Cambiados a Uso Comercial o de Alquiler Si tiene bienes para uso personal y luego los cambia a uso comercial o los usa para producir ingresos de alquiler, puede empezar a depreciar dichos bienes al momento del cambio. Turbo tax form 1040x Para hacerlo, tiene que calcular la base para propósitos de depreciación al momento del cambio. Turbo tax form 1040x Un ejemplo de un cambio de bienes de uso personal a uso comercial o de alquiler sería alquilar su antigua vivienda personal. Turbo tax form 1040x Base para propósitos de depreciación. Turbo tax form 1040x   La base para depreciación es la menor de las siguientes cantidades: El valor justo de mercado de los bienes en la fecha del cambio. Turbo tax form 1040x La base ajustada en la fecha del cambio. Turbo tax form 1040x Ejemplo. Turbo tax form 1040x Hace varios años, usted pagó $160,000 por construir su casa en un terreno que costó $25,000. Turbo tax form 1040x Pagó $20,000 por mejoras permanentes a la vivienda y declaró una deducción por pérdidas fortuitas de $2,000 por daños a la vivienda antes de cambiar los bienes a uso de alquiler el año pasado. Turbo tax form 1040x Como el terreno no es depreciable, usted incluye sólo el costo de la vivienda al calcular la base para propósitos de determinar depreciación. Turbo tax form 1040x Su base ajustada en la vivienda, cuando cambió su uso, era $178,000 ($160,000 + $20,000 − $2,000). Turbo tax form 1040x En la misma fecha, su propiedad tenía un valor justo de mercado de $180,000, del cual $15,000 correspondían al terreno y $165,000 a la vivienda. Turbo tax form 1040x La base para calcular la depreciación de la vivienda es el valor justo de mercado en la fecha del cambio ($165,000) ya que es menor que la base ajustada ($178,000). Turbo tax form 1040x Venta de bienes. Turbo tax form 1040x   Si en el futuro usted vende o enajena los bienes cambiados a uso comercial o de alquiler, la base que use dependerá de si calcula pérdidas o ganancias. Turbo tax form 1040x Ganancia. Turbo tax form 1040x   La base para calcular una ganancia es la base ajustada de los bienes en el momento de la venta. Turbo tax form 1040x Ejemplo. Turbo tax form 1040x Suponga los mismos hechos que en el ejemplo anterior, excepto que usted vende los bienes obteniendo una ganancia después de descontar $37,500 por concepto de deducciones por depreciación. Turbo tax form 1040x Su base ajustada para calcular la ganancia es $165,500 ($178,000 + $25,000 (terreno) − $37,500). Turbo tax form 1040x Pérdida. Turbo tax form 1040x   Calcule la base para una pérdida empezando con la base ajustada o el valor justo de mercado de los bienes al momento del cambio a uso comercial o de alquiler, el que sea menor. Turbo tax form 1040x Luego haga ajustes (aumentos y reducciones) para el período después del cambio de uso de los bienes, como se explicó anteriormente bajo Base Ajustada . Turbo tax form 1040x Ejemplo. Turbo tax form 1040x Suponga los mismos hechos que en el ejemplo anterior, excepto que usted vende los bienes con pérdida después de descontar $37,500 por concepto de deducciones por depreciación. Turbo tax form 1040x En este caso, empezaría con el valor justo de mercado en la fecha del cambio a uso de alquiler ($180,000), ya que es menor que la base ajustada de $203,000 ($178,000 + $25,000 (terreno)) en esa fecha. Turbo tax form 1040x Reste de esa cantidad ($180,000) las deducciones por depreciación ($37,500). Turbo tax form 1040x La base para pérdidas es $142,500 ($180,000 − $37,500). Turbo tax form 1040x Acciones y Bonos La base de acciones o bonos que usted compre, por lo general, es el precio de compra más los costos de la compra, como comisiones y costos de registro o de traspaso. Turbo tax form 1040x Si obtiene acciones o bonos por un medio que no sea la compra, la base suele determinarse por el valor justo de mercado o la base ajustada del propietario anterior, como se explica anteriormente. Turbo tax form 1040x Tiene que ajustar la base de las acciones según ciertos hechos que sucedan después de la compra. Turbo tax form 1040x Por ejemplo, si recibe acciones adicionales de dividendos de acciones no sujetas a impuestos o divisiones de acciones, reduzca la base para cada acción, dividiendo la base ajustada de las acciones antiguas entre el número de acciones antiguas y nuevas. Turbo tax form 1040x Esta regla se aplica sólo cuando el número de acciones adicionales recibidas es idéntico al número de acciones tenidas. Turbo tax form 1040x Además, reduzca la base cuando reciba distribuciones no sujetas a impuestos. Turbo tax form 1040x Son un rendimiento de capital. Turbo tax form 1040x Ejemplo. Turbo tax form 1040x En el año 2011, compró 100 acciones de XYZ por $1,000, o sea, a $10 por acción. Turbo tax form 1040x En el año 2012, compró 100 acciones de XYZ por $1,600, o sea, a $16 por acción. Turbo tax form 1040x En el año 2013, XYZ declaró una división de acciones de 2 por 1. Turbo tax form 1040x Ahora tiene 200 acciones con una base de $5 por acción y 200 acciones con una base de $8 por acción. Turbo tax form 1040x Otras bases. Turbo tax form 1040x   Existen otras maneras de calcular la base de acciones o bonos, según cómo los adquirió. Turbo tax form 1040x Para obtener información más detallada, consulte Stocks and Bonds (Acciones y bonos) bajo Basis of Investment Property (Base de bienes de inversión) en el capítulo 4 de la Publicación 550, en inglés. Turbo tax form 1040x Cómo identificar acciones o bonos vendidos. Turbo tax form 1040x   Si puede identificar correctamente las acciones o los bonos que vendió, entonces la base de éstos es el costo u otra base de las acciones o bonos específicos. Turbo tax form 1040x Si compra y vende valores en fechas distintas y en cantidades distintas y no puede identificar correctamente las acciones vendidas, entonces la base de los valores que venda es la base de los valores que adquirió primero. Turbo tax form 1040x Para obtener más información sobre cómo identificar los valores que venda, consulte Stocks and Bonds (Acciones y bonos) bajo Basis of Investment Property (Base de bienes de inversión) en el capítulo 4 de la Publicación 550, en inglés. Turbo tax form 1040x Acciones de fondos mutuos. Turbo tax form 1040x   Si vende acciones de fondos mutuos que adquirió en fechas distintas y a precios distintos, y que dejó en depósito en una cuenta mantenida por un custodio o agente, puede optar por usar una base promedio. Turbo tax form 1040x Para obtener más información, consulte la Publicación 550, en inglés. Turbo tax form 1040x Prima de bonos. Turbo tax form 1040x   Si compra un bono sujeto a impuestos con prima (o sea, a un precio que excede su valor nominal) y elige amortizarla, reste de la base del bono la prima amortizada que deduzca cada año. Turbo tax form 1040x Para obtener más información, consulte Bond Premium Amortization (Amortización de primas de bonos) en el capítulo 3 de la Publicación 550, en inglés. Turbo tax form 1040x Aunque no puede deducir la prima sobre un bono exento de impuestos, tiene que amortizar la prima cada año y restar la cantidad amortizada de la base del bono. Turbo tax form 1040x Descuento de la emisión original (OID) sobre instrumentos de deuda. Turbo tax form 1040x   Tiene que aumentar la base de un instrumento de deuda de un descuento de la emisión original (OID, por sus siglas en inglés) por el OID que incluya en sus ingresos por ese instrumento. Turbo tax form 1040x Consulte Descuento de la emisión original (OID) en el capítulo 7 y la Publicación 1212, Guide to Original Issue Discount (OID) Instruments (Guía de instrumentos del descuento de la emisión original (OID)), en inglés. Turbo tax form 1040x Obligaciones exentas de impuestos. Turbo tax form 1040x    Por lo general, el OID sobre las obligaciones exentas de impuestos no está sujeto a impuestos. Turbo tax form 1040x Sin embargo, cuando enajene una obligación exenta de impuestos emitida después del 3 de septiembre de 1982 y comprada después del 1 de marzo de 1984, tiene que acumular el OID sobre la obligación para determinar su base ajustada. Turbo tax form 1040x El OID acumulado se suma a la base de la obligación para determinar su pérdida o ganancia. Turbo tax form 1040x Consulte el cápitulo 4 de la Publicación 550, en inglés. Turbo tax form 1040x Prev  Up  Next   Home   More Online Publications