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2011 1040 Forms

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2011 1040 Forms

2011 1040 forms 6. 2011 1040 forms   Basis of Assets Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Cost BasisReal Property Allocating the Basis Uniform Capitalization Rules Adjusted BasisIncreases to Basis Decreases to Basis Basis Other Than CostTaxable Exchanges Involuntary Conversions Nontaxable Exchanges Property Received as a Gift Property Transferred From a Spouse Inherited Property Property Distributed From a Partnership or Corporation Introduction Your basis is the amount of your investment in property for tax purposes. 2011 1040 forms Use basis to figure the gain or loss on the sale, exchange, or other disposition of property. 2011 1040 forms Also use basis to figure depreciation, amortization, depletion, and casualty losses. 2011 1040 forms If you use property for both business or investment purposes and for personal purposes, you must allocate the basis based on the use. 2011 1040 forms Only the basis allocated to the business or investment use of the property can be depreciated. 2011 1040 forms Your original basis in property is adjusted (increased or decreased) by certain events. 2011 1040 forms For example, if you make improvements to the property, increase your basis. 2011 1040 forms If you take deductions for depreciation, or casualty losses, or claim certain credits, reduce your basis. 2011 1040 forms Keep accurate records of all items that affect the basis of your assets. 2011 1040 forms For information on keeping records, see chapter 1. 2011 1040 forms Topics - This chapter discusses: Cost basis Adjusted basis Basis other than cost Useful Items - You may want to see: Publication 535 Business Expenses 544 Sales and Other Dispositions of Assets 551 Basis of Assets 946 How To Depreciate Property See chapter 16 for information about getting publications and forms. 2011 1040 forms Cost Basis The basis of property you buy is usually its cost. 2011 1040 forms Cost is the amount you pay in cash, debt obligations, other property, or services. 2011 1040 forms Your cost includes amounts you pay for sales tax, freight, installation, and testing. 2011 1040 forms The basis of real estate and business assets will include other items, discussed later. 2011 1040 forms Basis generally does not include interest payments. 2011 1040 forms However, see Carrying charges and Capitalized interest in chapter 4 of Publication 535. 2011 1040 forms You also may have to capitalize (add to basis) certain other costs related to buying or producing property. 2011 1040 forms Under the uniform capitalization rules, discussed later, you may have to capitalize direct costs and certain indirect costs of producing property. 2011 1040 forms Loans with low or no interest. 2011 1040 forms   If you buy property on a time-payment plan that charges little or no interest, the basis of your property is your stated purchase price minus the amount considered to be unstated interest. 2011 1040 forms You generally have unstated interest if your interest rate is less than the applicable federal rate. 2011 1040 forms See the discussion of unstated interest in Publication 537, Installment Sales. 2011 1040 forms Real Property Real property, also called real estate, is land and generally anything built on, growing on, or attached to land. 2011 1040 forms If you buy real property, certain fees and other expenses you pay are part of your cost basis in the property. 2011 1040 forms Some of these expenses are discussed next. 2011 1040 forms Lump sum purchase. 2011 1040 forms   If you buy improvements, such as buildings, and the land on which they stand for a lump sum, allocate your cost basis between the land and improvements. 2011 1040 forms Allocate the cost basis according to the respective fair market values (FMVs) of the land and improvements at the time of purchase. 2011 1040 forms Figure the basis of each asset by multiplying the lump sum by a fraction. 2011 1040 forms The numerator is the FMV of that asset and the denominator is the FMV of the whole property at the time of purchase. 2011 1040 forms Fair market value (FMV). 2011 1040 forms   FMV is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all necessary facts. 2011 1040 forms Sales of similar property on or about the same date may help in figuring the FMV of the property. 2011 1040 forms If you are not certain of the FMV of the land and improvements, you can allocate the basis according to their assessed values for real estate tax purposes. 2011 1040 forms Real estate taxes. 2011 1040 forms   If you pay the real estate taxes the seller owed on real property you bought, and the seller did not reimburse you, treat those taxes as part of your basis. 2011 1040 forms   If you reimburse the seller for taxes the seller paid for you, you generally can deduct that amount as a tax expense. 2011 1040 forms Whether or not you reimburse the seller, do not include that amount in the basis of your property. 2011 1040 forms Settlement costs. 2011 1040 forms   Your basis includes the settlement fees and closing costs for buying the property. 2011 1040 forms See Publication 551 for a detailed list of items you can and cannot include in basis. 2011 1040 forms   Do not include fees and costs for getting a loan on the property. 2011 1040 forms Also, do not include amounts placed in escrow for the future payment of items such as taxes and insurance. 2011 1040 forms Points. 2011 1040 forms   If you pay points to get a loan (including a mortgage, second mortgage, or line-of-credit), do not add the points to the basis of the related property. 2011 1040 forms You may be able to deduct the points currently or over the term of the loan. 2011 1040 forms For more information about deducting points, see Points in chapter 4 of Publication 535. 2011 1040 forms Assumption of a mortgage. 2011 1040 forms   If you buy property and assume (or buy the property subject to) an existing mortgage, your basis includes the amount you pay for the property plus the amount you owe on the mortgage. 2011 1040 forms Example. 2011 1040 forms If you buy a farm for $100,000 cash and assume a mortgage of $400,000, your basis is $500,000. 2011 1040 forms Constructing assets. 2011 1040 forms   If you build property or have assets built for you, your expenses for this construction are part of your basis. 2011 1040 forms Some of these expenses include the following costs: Land, Labor and materials, Architect's fees, Building permit charges, Payments to contractors, Payments for rental equipment, and Inspection fees. 2011 1040 forms   In addition, if you use your own employees, farm materials, and equipment to build an asset, do not deduct the following expenses. 2011 1040 forms You must capitalize them (include them in the asset's basis). 2011 1040 forms Employee wages paid for the construction work, reduced by any employment credits allowed. 2011 1040 forms Depreciation on equipment you own while it is used in the construction. 2011 1040 forms Operating and maintenance costs for equipment used in the construction. 2011 1040 forms The cost of business supplies and materials used in the construction. 2011 1040 forms    Do not include the value of your own labor, or any other labor you did not pay for, in the basis of any property you construct. 2011 1040 forms Allocating the Basis In some instances, the rules for determining basis apply to a group of assets acquired in the same transaction or to property that consists of separate items. 2011 1040 forms To determine the basis of these assets or separate items, there must be an allocation of basis. 2011 1040 forms Group of assets acquired. 2011 1040 forms   If you buy multiple assets for a lump sum, allocate the amount you pay among the assets. 2011 1040 forms Use this allocation to figure your basis for depreciation and gain or loss on a later disposition of any of these assets. 2011 1040 forms You and the seller may agree in the sales contract to a specific allocation of the purchase price among the assets. 2011 1040 forms If this allocation is based on the value of each asset and you and the seller have adverse tax interests, the allocation generally will be accepted. 2011 1040 forms Farming business acquired. 2011 1040 forms   If you buy a group of assets that makes up a farming business, there are special rules you must use to allocate the purchase price among the assets. 2011 1040 forms Generally, reduce the purchase price by any cash received. 2011 1040 forms Allocate the remaining purchase price to the other business assets received in proportion to (but not more than) their FMV and in a certain order. 2011 1040 forms See Trade or Business Acquired under Allocating the Basis in Publication 551 for more information. 2011 1040 forms Transplanted embryo. 2011 1040 forms   If you buy a cow that is pregnant with a transplanted embryo, allocate to the basis of the cow the part of the purchase price equal to the FMV of the cow without the implant. 2011 1040 forms Allocate the rest of the purchase price to the basis of the calf. 2011 1040 forms Neither the cost allocated to the cow nor the cost allocated to the calf is deductible as a current business expense. 2011 1040 forms Uniform Capitalization Rules Under the uniform capitalization rules, you must include certain direct and indirect costs in the basis of property you produce or in your inventory costs, rather than claim them as a current deduction. 2011 1040 forms You recover these costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. 2011 1040 forms Generally, you are subject to the uniform capitalization rules if you do any of the following: Produce real or tangible personal property, or Acquire property for resale. 2011 1040 forms However, this rule does not apply to personal property if your average annual gross receipts for the 3-tax-year period ending with the year preceding the current tax year are $10 million or less. 2011 1040 forms You produce property if you construct, build, install, manufacture, develop, improve, or create the property. 2011 1040 forms You are not subject to the uniform capitalization rules if the property is produced for personal use. 2011 1040 forms In a farming business, you produce property if you raise or grow any agricultural or horticultural commodity, including plants and animals. 2011 1040 forms Plants. 2011 1040 forms   A plant produced in a farming business includes the following items: A fruit, nut, or other crop-bearing tree; An ornamental tree; A vine; A bush; Sod; and The crop or yield of a plant that will have more than one crop or yield. 2011 1040 forms Animals. 2011 1040 forms   An animal produced in a farming business includes any stock, poultry or other bird, and fish or other sea life. 2011 1040 forms The direct and indirect costs of producing plants or animals include preparatory costs and preproductive period costs. 2011 1040 forms Preparatory costs include the acquisition costs of the seed, seedling, plant, or animal. 2011 1040 forms For plants, preproductive period costs include the costs of items such as irrigation, pruning, frost protection, spraying, and harvesting. 2011 1040 forms For animals, preproductive period costs include the costs of items such as feed, maintaining pasture or pen areas, breeding, veterinary services, and bedding. 2011 1040 forms Exceptions. 2011 1040 forms   In a farming business, the uniform capitalization rules do not apply to: Any animal, Any plant with a preproductive period of 2 years or less, or Any costs of replanting certain plants lost or damaged due to casualty. 2011 1040 forms   Exceptions (1) and (2) do not apply to a corporation, partnership, or tax shelter required to use an accrual method of accounting. 2011 1040 forms See Accrual Method Required under Accounting Methods in chapter 2. 2011 1040 forms   In addition, you can elect not to use the uniform capitalization rules for plants with a preproductive period of more than 2 years. 2011 1040 forms If you make this election, special rules apply. 2011 1040 forms This election cannot be made by a corporation, partnership, or tax shelter required to use an accrual method of accounting. 2011 1040 forms This election also does not apply to any costs incurred for the planting, cultivation, maintenance, or development of any citrus or almond grove (or any part thereof) within the first 4 years the trees were planted. 2011 1040 forms    If you elect not to use the uniform capitalization rules, you must use the alternative depreciation system for all property used in any of your farming businesses and placed in service in any tax year during which the election is in effect. 2011 1040 forms See chapter 7, for additional information on depreciation. 2011 1040 forms Example. 2011 1040 forms You grow trees that have a preproductive period of more than 2 years. 2011 1040 forms The trees produce an annual crop. 2011 1040 forms You are an individual and the uniform capitalization rules apply to your farming business. 2011 1040 forms You must capitalize the direct costs and an allocable part of indirect costs incurred due to the production of the trees. 2011 1040 forms You are not required to capitalize the costs of producing the annual crop because its preproductive period is 2 years or less. 2011 1040 forms Preproductive period of more than 2 years. 2011 1040 forms   The preproductive period of plants grown in commercial quantities in the United States is based on their nationwide weighted average preproductive period. 2011 1040 forms Plants producing the crops or yields shown in Table 6-1 have a nationwide weighted average preproductive period of more than 2 years. 2011 1040 forms Other plants (not shown in Table 6-1) may also have a nationwide weighted average preproductive period of more than 2 years. 2011 1040 forms More information. 2011 1040 forms   For more information on the uniform capitalization rules that apply to property produced in a farming business, see Regulations section 1. 2011 1040 forms 263A-4. 2011 1040 forms Table 6-1. 2011 1040 forms Plants With a Preproductive Period of More Than 2 Years Plants producing the following crops or yields have a nationwide weighted average preproductive period of more than 2 years. 2011 1040 forms Almonds Apples Apricots Avocados Blueberries Cherries Chestnuts Coffee beans Currants Dates Figs Grapefruit Grapes Guavas Kiwifruit Kumquats Lemons Limes Macadamia nuts Mangoes Nectarines Olives Oranges Peaches Pears Pecans Persimmons Pistachio nuts Plums Pomegranates Prunes Tangelos Tangerines Tangors Walnuts Adjusted Basis Before figuring gain or loss on a sale, exchange, or other disposition of property or figuring allowable depreciation, depletion, or amortization, you must usually make certain adjustments to the cost basis or basis other than cost (discussed later) of the property. 2011 1040 forms The adjustments to the original basis are increases or decreases to the cost basis or other basis which result in the adjusted basis of the property. 2011 1040 forms Increases to Basis Increase the basis of any property by all items properly added to a capital account. 2011 1040 forms These include the cost of any improvements having a useful life of more than 1 year. 2011 1040 forms The following costs increase the basis of property. 2011 1040 forms The cost of extending utility service lines to property. 2011 1040 forms Legal fees, such as the cost of defending and perfecting title. 2011 1040 forms Legal fees for seeking a decrease in an assessment levied against property to pay for local improvements. 2011 1040 forms Assessments for items such as paving roads and building ditches that increase the value of the property assessed. 2011 1040 forms Do not deduct these expenses as taxes. 2011 1040 forms However, you can deduct as taxes amounts assessed for maintenance or repairs, or for meeting interest charges related to the improvements. 2011 1040 forms If you make additions or improvements to business property, depreciate the basis of each addition or improvement as separate depreciable property using the rules that would apply to the original property if you had placed it in service at the same time you placed the addition or improvement in service. 2011 1040 forms See chapter 7. 2011 1040 forms Deducting vs. 2011 1040 forms capitalizing costs. 2011 1040 forms   Do not add to your basis costs you can deduct as current expenses. 2011 1040 forms For example, amounts paid for incidental repairs or maintenance are deductible as business expenses and are not added to basis. 2011 1040 forms However, you can elect either to deduct or to capitalize certain other costs. 2011 1040 forms See chapter 7 in Publication 535. 2011 1040 forms Decreases to Basis The following are some items that reduce the basis of property. 2011 1040 forms Section 179 deduction. 2011 1040 forms Deductions previously allowed or allowable for amortization, depreciation, and depletion. 2011 1040 forms Alternative motor vehicle credit. 2011 1040 forms See Form 8910. 2011 1040 forms Alternative fuel vehicle refueling property credit. 2011 1040 forms See Form 8911. 2011 1040 forms Residential energy efficient property credits. 2011 1040 forms See Form 5695. 2011 1040 forms Investment credit (part or all) taken. 2011 1040 forms Casualty and theft losses and insurance reimbursements. 2011 1040 forms Payments you receive for granting an easement. 2011 1040 forms Exclusion from income of subsidies for energy conservation measures. 2011 1040 forms Certain canceled debt excluded from income. 2011 1040 forms Rebates from a manufacturer or seller. 2011 1040 forms Patronage dividends received from a cooperative association as a result of a purchase of property. 2011 1040 forms See Patronage Dividends in chapter 3. 2011 1040 forms Gas-guzzler tax. 2011 1040 forms See Form 6197. 2011 1040 forms Some of these items are discussed next. 2011 1040 forms For a more detailed list of items that decrease basis, see section 1016 of the Internal Revenue Code and Publication 551. 2011 1040 forms Depreciation and section 179 deduction. 2011 1040 forms   The adjustments you must make to the basis of the property if you take the section 179 deduction or depreciate the property are explained next. 2011 1040 forms For more information on these deductions, see chapter 7. 2011 1040 forms Section 179 deduction. 2011 1040 forms   If you take the section 179 expense deduction for all or part of the cost of qualifying business property, decrease the basis of the property by the deduction. 2011 1040 forms Depreciation. 2011 1040 forms   Decrease the basis of property by the depreciation you deducted or could have deducted on your tax returns under the method of depreciation you chose. 2011 1040 forms If you took less depreciation than you could have under the method chosen, decrease the basis by the amount you could have taken under that method. 2011 1040 forms If you did not take a depreciation deduction, reduce the basis by the full amount of the depreciation you could have taken. 2011 1040 forms   If you deducted more depreciation than you should have, decrease your basis by the amount you should have deducted plus the part of the excess depreciation you deducted that actually reduced your tax liability for any year. 2011 1040 forms   See chapter 7 for information on figuring the depreciation you should have claimed. 2011 1040 forms   In decreasing your basis for depreciation, take into account the amount deducted on your tax returns as depreciation and any depreciation you must capitalize under the uniform capitalization rules. 2011 1040 forms Casualty and theft losses. 2011 1040 forms   If you have a casualty or theft loss, decrease the basis of the property by any insurance or other reimbursement. 2011 1040 forms Also, decrease it by any deductible loss not covered by insurance. 2011 1040 forms See chapter 11 for information about figuring your casualty or theft loss. 2011 1040 forms   You must increase your basis in the property by the amount you spend on clean-up costs (such as debris removal) and repairs that restore the property to its pre-casualty condition. 2011 1040 forms To make this determination, compare the repaired property to the property before the casualty. 2011 1040 forms Easements. 2011 1040 forms   The amount you receive for granting an easement is usually considered to be proceeds from the sale of an interest in the real property. 2011 1040 forms It reduces the basis of the affected part of the property. 2011 1040 forms If the amount received is more than the basis of the part of the property affected by the easement, reduce your basis in that part to zero and treat the excess as a recognized gain. 2011 1040 forms See Easements and rights-of-way in chapter 3. 2011 1040 forms Exclusion from income of subsidies for energy conservation measures. 2011 1040 forms   You can exclude from gross income any subsidy you received from a public utility company for the purchase or installation of an energy conservation measure for a dwelling unit. 2011 1040 forms Reduce the basis of the property by the excluded amount. 2011 1040 forms Canceled debt excluded from income. 2011 1040 forms   If a debt you owe is canceled or forgiven, other than as a gift or bequest, you generally must include the canceled amount in your gross income for tax purposes. 2011 1040 forms A debt includes any indebtedness for which you are liable or which attaches to property you hold. 2011 1040 forms   You can exclude your canceled debt from income if the debt is any of the following. 2011 1040 forms Debt canceled in a bankruptcy case or when you are insolvent. 2011 1040 forms Qualified farm debt. 2011 1040 forms Qualified real property business debt (provided you are not a C corporation). 2011 1040 forms Qualified principal residence indebtedness. 2011 1040 forms Discharge of certain indebtedness of a qualified individual because of Midwestern disasters. 2011 1040 forms If you exclude canceled debt described in (1) or (2), you may have to reduce the basis of your depreciable and nondepreciable property. 2011 1040 forms If you exclude canceled debt described in (3), you must only reduce the basis of your depreciable property by the excluded amount. 2011 1040 forms   For more information about canceled debt in a bankruptcy case, see Publication 908, Bankruptcy Tax Guide. 2011 1040 forms For more information about insolvency and canceled debt that is qualified farm debt or qualified principal residence indebtedness, see chapter 3. 2011 1040 forms For more information about qualified real property business debt, see Publication 334, Tax Guide for Small Business. 2011 1040 forms For more information about canceled debt in Midwestern disaster areas, see Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas. 2011 1040 forms Basis Other Than Cost There are times when you cannot use cost as basis. 2011 1040 forms In these situations, the fair market value or the adjusted basis of property may be used. 2011 1040 forms Examples are discussed next. 2011 1040 forms Property changed from personal to business or rental use. 2011 1040 forms   When you hold property for personal use and then change it to business use or use it to produce rent, you must figure its basis for depreciation. 2011 1040 forms An example of changing property from personal to business use would be changing the use of your pickup truck that you originally purchased for your personal use to use in your farming business. 2011 1040 forms   The basis for depreciation is the lesser of: The FMV of the property on the date of the change, or Your adjusted basis on the date of the change. 2011 1040 forms   If you later sell or dispose of this property, the basis you use will depend on whether you are figuring a gain or loss. 2011 1040 forms The basis for figuring a gain is your adjusted basis in the property when you sell the property. 2011 1040 forms Figure the basis for a loss starting with the smaller of your adjusted basis or the FMV of the property at the time of the change to business or rental use. 2011 1040 forms Then make adjustments (increases and decreases) for the period after the change in the property's use, as discussed earlier under Adjusted Basis . 2011 1040 forms Property received for services. 2011 1040 forms   If you receive property for services, include the property's FMV in income. 2011 1040 forms The amount you include in income becomes your basis. 2011 1040 forms If the services were performed for a price agreed on beforehand, it will be accepted as the FMV of the property if there is no evidence to the contrary. 2011 1040 forms Example. 2011 1040 forms George Smith is an accountant and also operates a farming business. 2011 1040 forms George agreed to do some accounting work for his neighbor in exchange for a dairy cow. 2011 1040 forms The accounting work and the cow are each worth $1,500. 2011 1040 forms George must include $1,500 in income for his accounting services. 2011 1040 forms George's basis in the cow is $1,500. 2011 1040 forms Taxable Exchanges A taxable exchange is one in which the gain is taxable, or the loss is deductible. 2011 1040 forms A taxable gain or deductible loss also is known as a recognized gain or loss. 2011 1040 forms A taxable exchange occurs when you receive cash or get property that is not similar or related in use to the property exchanged. 2011 1040 forms If you receive property in exchange for other property in a taxable exchange, the basis of the property you receive is usually its FMV at the time of the exchange. 2011 1040 forms Example. 2011 1040 forms You trade a tract of farmland with an adjusted basis of $2,000 for a tractor that has an FMV of $6,000. 2011 1040 forms You must report a taxable gain of $4,000 for the land. 2011 1040 forms The tractor has a basis of $6,000. 2011 1040 forms Involuntary Conversions If you receive property as a result of an involuntary conversion, such as a casualty, theft, or condemnation, figure the basis of the replacement property you receive using the basis of the converted property. 2011 1040 forms Similar or related property. 2011 1040 forms   If the replacement property is similar or related in service or use to the converted property, the replacement property's basis is the same as the old property's basis on the date of the conversion. 2011 1040 forms However, make the following adjustments. 2011 1040 forms Decrease the basis by the following amounts. 2011 1040 forms Any loss you recognize on the involuntary conversion. 2011 1040 forms Any money you receive that you do not spend on similar property. 2011 1040 forms Increase the basis by the following amounts. 2011 1040 forms Any gain you recognize on the involuntary conversion. 2011 1040 forms Any cost of acquiring the replacement property. 2011 1040 forms Money or property not similar or related. 2011 1040 forms   If you receive money or property not similar or related in service or use to the converted property and you buy replacement property similar or related in service or use to the converted property, the basis of the replacement property is its cost decreased by the gain not recognized on the involuntary conversion. 2011 1040 forms Allocating the basis. 2011 1040 forms   If you buy more than one piece of replacement property, allocate your basis among the properties based on their respective costs. 2011 1040 forms Basis for depreciation. 2011 1040 forms   Special rules apply in determining and depreciating the basis of MACRS property acquired in an involuntary conversion. 2011 1040 forms For information, see Figuring the Deduction for Property Acquired in a Nontaxable Exchange under Figuring Depreciation Under MACRS in chapter 7. 2011 1040 forms For more information about involuntary conversions, see chapter 11. 2011 1040 forms Nontaxable Exchanges A nontaxable exchange is an exchange in which you are not taxed on any gain and you cannot deduct any loss. 2011 1040 forms A nontaxable gain or loss also is known as an unrecognized gain or loss. 2011 1040 forms If you receive property in a nontaxable exchange, its basis is usually the same as the basis of the property you transferred. 2011 1040 forms Like-Kind Exchanges The exchange of property for the same kind of property is the most common type of nontaxable exchange. 2011 1040 forms For an exchange to qualify as a like-kind exchange, you must hold for business or investment purposes both the property you transfer and the property you receive. 2011 1040 forms There must also be an exchange of like-kind property. 2011 1040 forms For more information, see Like-Kind Exchanges in  chapter 8. 2011 1040 forms The basis of the property you receive generally is the same as the adjusted basis of the property you gave up. 2011 1040 forms Example 1. 2011 1040 forms You traded a truck you used in your farming business for a new smaller truck to use in farming. 2011 1040 forms The adjusted basis of the old truck was $10,000. 2011 1040 forms The FMV of the new truck is $30,000. 2011 1040 forms Because this is a nontaxable exchange, you do not recognize any gain, and your basis in the new truck is $10,000, the same as the adjusted basis of the truck you traded. 2011 1040 forms Example 2. 2011 1040 forms You trade a field cultivator (adjusted basis of $8,000) for a planter (FMV of $9,000). 2011 1040 forms You use both the field cultivator and the planter in your farming business. 2011 1040 forms The basis of the planter you receive is $8,000, the same as the field cultivator traded Exchange expenses. 2011 1040 forms   Exchange expenses generally are the closing costs that you pay. 2011 1040 forms They include such items as brokerage commissions, attorney fees, and deed preparation fees. 2011 1040 forms Add them to the basis of the like-kind property you receive. 2011 1040 forms Property plus cash. 2011 1040 forms   If you trade property in a like-kind exchange and also pay money, the basis of the property you receive is the adjusted basis of the property you gave up plus the money you paid. 2011 1040 forms Example. 2011 1040 forms You trade in a truck (adjusted basis of $3,000) for another truck (FMV of $7,500) and pay $4,000. 2011 1040 forms Your basis in the new truck is $7,000 (the $3,000 adjusted basis of the old truck plus the $4,000 cash). 2011 1040 forms Special rules for related persons. 2011 1040 forms   If a like-kind exchange takes place directly or indirectly between related persons and either party disposes of the property within 2 years after the exchange, the exchange no longer qualifies for like-kind exchange treatment. 2011 1040 forms Each person must report any gain or loss not recognized on the original exchange unless the loss is not deductible under the related party rules. 2011 1040 forms Each person reports it on the tax return filed for the year in which the later disposition occurred. 2011 1040 forms If this rule applies, the basis of the property received in the original exchange will be its FMV. 2011 1040 forms For more information, see chapter 8. 2011 1040 forms Exchange of business property. 2011 1040 forms   Exchanging the property of one business for the property of another business generally is a multiple property exchange. 2011 1040 forms For information on figuring basis, see Multiple Property Exchanges in chapter 1 of Publication 544. 2011 1040 forms Basis for depreciation. 2011 1040 forms   Special rules apply in determining and depreciating the basis of MACRS property acquired in a like-kind transaction. 2011 1040 forms For information, see Figuring the Deduction for Property Acquired in a Nontaxable Exchange under Figuring Depreciation Under MACRS in chapter 7. 2011 1040 forms Partially Nontaxable Exchanges A partially nontaxable exchange is an exchange in which you receive unlike property or money in addition to like-kind property. 2011 1040 forms The basis of the property you receive is the same as the adjusted basis of the property you gave up with the following adjustments. 2011 1040 forms Decrease the basis by the following amounts. 2011 1040 forms Any money you receive. 2011 1040 forms Any loss you recognize on the exchange. 2011 1040 forms Increase the basis by the following amounts. 2011 1040 forms Any additional costs you incur. 2011 1040 forms Any gain you recognize on the exchange. 2011 1040 forms If the other party to the exchange assumes your liabilities, treat the debt assumption as money you received in the exchange. 2011 1040 forms Example 1. 2011 1040 forms You trade farmland (basis of $100,000) for another tract of farmland (FMV of $110,000) and $30,000 cash. 2011 1040 forms You realize a gain of $40,000. 2011 1040 forms This is the FMV of the land received plus the cash minus the basis of the land you traded ($110,000 + $30,000 − $100,000). 2011 1040 forms Include your gain in income (recognize gain) only to the extent of the cash received. 2011 1040 forms Your basis in the land you received is figured as follows. 2011 1040 forms Basis of land traded $100,000 Minus: Cash received (adjustment 1(a)) − 30,000   $70,000 Plus: Gain recognized (adjustment 2(b)) + 30,000 Basis of land received $100,000 Example 2. 2011 1040 forms You trade a truck (adjusted basis of $22,750) for another truck (FMV of $20,000) and $10,000 cash. 2011 1040 forms You realize a gain of $7,250. 2011 1040 forms This is the FMV of the truck received plus the cash minus the adjusted basis of the truck you traded ($20,000 + $10,000 − $22,750). 2011 1040 forms You include all the gain in your income (recognize gain) because the gain is less than the cash you received. 2011 1040 forms Your basis in the truck you received is figured as follows. 2011 1040 forms Adjusted basis of truck traded $22,750 Minus: Cash received (adjustment 1(a)) −10,000   $12,750 Plus: Gain recognized (adjustment 2(b)) + 7,250 Basis of truck received $20,000 Allocation of basis. 2011 1040 forms   If you receive like-kind and unlike properties in the exchange, allocate the basis first to the unlike property, other than money, up to its FMV on the date of the exchange. 2011 1040 forms The rest is the basis of the like-kind property. 2011 1040 forms Example. 2011 1040 forms You traded a tractor with an adjusted basis of $15,000 for another tractor that had an FMV of $12,500. 2011 1040 forms You also received $1,000 cash and a truck that had an FMV of $3,000. 2011 1040 forms The truck is unlike property. 2011 1040 forms You realized a gain of $1,500. 2011 1040 forms This is the FMV of the tractor received plus the FMV of the truck received plus the cash minus the adjusted basis of the tractor you traded ($12,500 + $3,000 + $1,000 − $15,000). 2011 1040 forms You include in income (recognize) all $1,500 of the gain because it is less than the FMV of the unlike property plus the cash received. 2011 1040 forms Your basis in the properties you received is figured as follows. 2011 1040 forms Adjusted basis of old tractor $15,000 Minus: Cash received (adjustment 1(a)) − 1,000   $14,000 Plus: Gain recognized (adjustment 2(b)) + 1,500 Total basis of properties received $15,500 Allocate the total basis of $15,500 first to the unlike property—the truck ($3,000). 2011 1040 forms This is the truck's FMV. 2011 1040 forms The rest ($12,500) is the basis of the tractor. 2011 1040 forms Sale and Purchase If you sell property and buy similar property in two mutually dependent transactions, you may have to treat the sale and purchase as a single nontaxable exchange. 2011 1040 forms Example. 2011 1040 forms You used a tractor on your farm for 3 years. 2011 1040 forms Its adjusted basis is $22,000 and its FMV is $40,000. 2011 1040 forms You are interested in a new tractor, which sells for $60,000. 2011 1040 forms Ordinarily, you would trade your old tractor for the new one and pay the dealer $20,000. 2011 1040 forms Your basis for depreciating the new tractor would then be $42,000 ($20,000 + $22,000, the adjusted basis of your old tractor). 2011 1040 forms However, you want a higher basis for depreciating the new tractor, so you agree to pay the dealer $60,000 for the new tractor if he will pay you $40,000 for your old tractor. 2011 1040 forms Because the two transactions are dependent on each other, you are treated as having exchanged your old tractor for the new one and paid $20,000 ($60,000 − $40,000). 2011 1040 forms Your basis for depreciating the new tractor is $42,000, the same as if you traded the old tractor. 2011 1040 forms Property Received as a Gift To figure the basis of property you receive as a gift, you must know its adjusted basis (defined earlier) to the donor just before it was given to you. 2011 1040 forms You also must know its FMV at the time it was given to you and any gift tax paid on it. 2011 1040 forms FMV equal to or greater than donor's adjusted basis. 2011 1040 forms   If the FMV of the property is equal to or greater than the donor's adjusted basis, your basis is the donor's adjusted basis when you received the gift. 2011 1040 forms Increase your basis by all or part of any gift tax paid, depending on the date of the gift. 2011 1040 forms   Also, for figuring gain or loss from a sale or other disposition of the property, or for figuring depreciation, depletion, or amortization deductions on business property, you must increase or decrease your basis (the donor's adjusted basis) by any required adjustments to basis while you held the property. 2011 1040 forms See Adjusted Basis , earlier. 2011 1040 forms   If you received a gift during the tax year, increase your basis in the gift (the donor's adjusted basis) by the part of the gift tax paid on it due to the net increase in value of the gift. 2011 1040 forms Figure the increase by multiplying the gift tax paid by the following fraction. 2011 1040 forms Net increase in value of the gift Amount of the gift   The net increase in value of the gift is the FMV of the gift minus the donor's adjusted basis. 2011 1040 forms The amount of the gift is its value for gift tax purposes after reduction by any annual exclusion and marital or charitable deduction that applies to the gift. 2011 1040 forms Example. 2011 1040 forms In 2013, you received a gift of property from your mother that had an FMV of $50,000. 2011 1040 forms Her adjusted basis was $20,000. 2011 1040 forms The amount of the gift for gift tax purposes was $36,000 ($50,000 minus the $14,000 annual exclusion). 2011 1040 forms She paid a gift tax of $7,320. 2011 1040 forms Your basis, $26,076, is figured as follows. 2011 1040 forms Fair market value $50,000 Minus: Adjusted basis −20,000 Net increase in value $30,000 Gift tax paid $7,320 Multiplied by ($30,000 ÷ $36,000) × . 2011 1040 forms 83 Gift tax due to net increase in value $6,076 Adjusted basis of property to your mother +20,000 Your basis in the property $26,076 Note. 2011 1040 forms If you received a gift before 1977, your basis in the gift (the donor's adjusted basis) includes any gift tax paid on it. 2011 1040 forms However, your basis cannot exceed the FMV of the gift when it was given to you. 2011 1040 forms FMV less than donor's adjusted basis. 2011 1040 forms   If the FMV of the property at the time of the gift is less than the donor's adjusted basis, your basis depends on whether you have a gain or a loss when you dispose of the property. 2011 1040 forms Your basis for figuring gain is the donor's adjusted basis plus or minus any required adjustments to basis while you held the property. 2011 1040 forms Your basis for figuring loss is its FMV when you received the gift plus or minus any required adjustments to basis while you held the property. 2011 1040 forms (See Adjusted Basis , earlier. 2011 1040 forms )   If you use the donor's adjusted basis for figuring a gain and get a loss, and then use the FMV for figuring a loss and get a gain, you have neither gain nor loss on the sale or other disposition of the property. 2011 1040 forms Example. 2011 1040 forms You received farmland as a gift from your parents when they retired from farming. 2011 1040 forms At the time of the gift, the land had an FMV of $80,000. 2011 1040 forms Your parents' adjusted basis was $100,000. 2011 1040 forms After you received the land, no events occurred that would increase or decrease your basis. 2011 1040 forms If you sell the land for $120,000, you will have a $20,000 gain because you must use the donor's adjusted basis at the time of the gift ($100,000) as your basis to figure a gain. 2011 1040 forms If you sell the land for $70,000, you will have a $10,000 loss because you must use the FMV at the time of the gift ($80,000) as your basis to figure a loss. 2011 1040 forms If the sales price is between $80,000 and $100,000, you have neither gain nor loss. 2011 1040 forms For instance, if the sales price was $90,000 and you tried to figure a gain using the donor's adjusted basis ($100,000), you would get a $10,000 loss. 2011 1040 forms If you then tried to figure a loss using the FMV ($80,000), you would get a $10,000 gain. 2011 1040 forms Business property. 2011 1040 forms   If you hold the gift as business property, your basis for figuring any depreciation, depletion, or amortization deductions is the same as the donor's adjusted basis plus or minus any required adjustments to basis while you hold the property. 2011 1040 forms Property Transferred From a Spouse The basis of property transferred to you or transferred in trust for your benefit by your spouse is the same as your spouse's adjusted basis. 2011 1040 forms The same rule applies to a transfer by your former spouse if the transfer is incident to divorce. 2011 1040 forms However, for property transferred in trust, adjust your basis for any gain recognized by your spouse or former spouse if the liabilities assumed plus the liabilities to which the property is subject are more than the adjusted basis of the property transferred. 2011 1040 forms The transferor must give you the records needed to determine the adjusted basis and holding period of the property as of the date of the transfer. 2011 1040 forms For more information, see Property Settlements in Publication 504, Divorced or Separated Individuals. 2011 1040 forms Inherited Property Your basis in property you inherited from a decedent, who died before January 1, 2010, or after December 31, 2010, is generally one of the following: The FMV of the property at the date of the decedent's death. 2011 1040 forms If a federal estate return is filed, you can use its appraised value. 2011 1040 forms The FMV on the alternate valuation date, if the personal representative for the estate elects to use alternate valuation. 2011 1040 forms For information on the alternate valuation, see the Instructions for Form 706. 2011 1040 forms The decedent's adjusted basis in land to the extent of the value that is excluded from the decedent's taxable estate as a qualified conservation easement. 2011 1040 forms If a federal estate tax return does not have to be filed, your basis in the inherited property is its appraised value at the date of death for state inheritance or transmission taxes. 2011 1040 forms Special-use valuation method. 2011 1040 forms   Under certain conditions, when a person dies, the executor or personal representative of that person's estate may elect to value qualified real property at other than its FMV. 2011 1040 forms If so, the executor or personal representative values the qualified real property based on its use as a farm or other closely held business. 2011 1040 forms If the executor or personal representative elects this method of valuation for estate tax purposes, this value is the basis of the property for the qualified heirs. 2011 1040 forms The qualified heirs should be able to get the necessary value from the executor or personal representative of the estate. 2011 1040 forms   If you are a qualified heir who received special-use valuation property, increase your basis by any gain recognized by the estate or trust because of post-death appreciation. 2011 1040 forms Post-death appreciation is the property's FMV on the date of distribution minus the property's FMV either on the date of the individual's death or on the alternate valuation date. 2011 1040 forms Figure all FMVs without regard to the special-use valuation. 2011 1040 forms   You may be liable for an additional estate tax if, within 10 years after the death of the decedent, you transfer the property or the property stops being used as a farm. 2011 1040 forms This tax does not apply if you dispose of the property in a like-kind exchange or in an involuntary conversion in which all of the proceeds are reinvested in qualified replacement property. 2011 1040 forms The tax also does not apply if you transfer the property to a member of your family and certain requirements are met. 2011 1040 forms   You can elect to increase your basis in special-use valuation property if it becomes subject to the additional estate tax. 2011 1040 forms To increase your basis, you must make an irrevocable election and pay interest on the additional estate tax figured from the date 9 months after the decedent's death until the date of payment of the additional estate tax. 2011 1040 forms If you meet these requirements, increase your basis in the property to its FMV on the date of the decedent's death or the alternate valuation date. 2011 1040 forms The increase in your basis is considered to have occurred immediately before the event that resulted in the additional estate tax. 2011 1040 forms   You make the election by filing, with Form 706-A, United States Additional Estate Tax Return, a statement that: Contains your (and the estate's) name, address, and taxpayer identification number; Identifies the election as an election under section 1016(c) of the Internal Revenue Code; Specifies the property for which you are making the election; and Provides any additional information required by the Form 706-A instructions. 2011 1040 forms   For more information, see Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-A, and the related instructions. 2011 1040 forms Property inherited from a decedent who died in 2010. 2011 1040 forms   If you inherited property from a decedent who died in 2010, different rules may apply. 2011 1040 forms See Publication 4895, Tax Treatment of Property Acquired From a Decendent Dying in 2010, for details. 2011 1040 forms Property Distributed From a Partnership or Corporation The following rules apply to determine a partner's basis and a shareholder's basis in property distributed respectively from a partnership to the partner with respect to the partner's interest in the partnership and from a corporation to the shareholder with respect to the shareholder's ownership of stock in the corporation. 2011 1040 forms Partner's basis. 2011 1040 forms   Unless there is a complete liquidation of a partner's interest, the basis of property (other than money) distributed by a partnership to the partner is its adjusted basis to the partnership immediately before the distribution. 2011 1040 forms However, the basis of the property to the partner cannot be more than the adjusted basis of his or her interest in the partnership reduced by any money received in the same transaction. 2011 1040 forms For more information, see Partner's Basis for Distributed Property in Publication 541, Partnerships. 2011 1040 forms Shareholder's basis. 2011 1040 forms   The basis of property distributed by a corporation to a shareholder is its fair market value. 2011 1040 forms For more information about corporate distributions, see Distributions to Shareholders in Publication 542, Corporations. 2011 1040 forms Prev  Up  Next   Home   More Online Publications
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IRS VITA Grant Program

The Volunteer Income Tax Assistance (VITA) Grant Program is an IRS initiative designed to promote and support free tax preparation service for the underserved, in both urban and non-urban locations. Service is targeted to low-to-moderate income individuals, persons with disabilities, the elderly, and limited English speaking. IRS awards matching grants each year to organizations that offer free tax preparation services during the tax filing season at locations in all 50 states and the District of Columbia. Congress appropriates this funding to support the Volunteer Income Tax Assistance Program.

This Grant Program is intended to provide direct funds to organizations to:

  • Enable VITA Programs to extend services to underserved populations in hardest-to-reach areas, both urban and non-urban;
  • Increase the capacity to file returns electronically;
  • Heighten quality control;
  • Enhance volunteer training; and
  • Significantly improve the accuracy rate of returns prepared at volunteer sites.

This webpage serves as a resource for organizations interested in applying for a VITA Grant as well as for organizations who have been awarded a grant.

Select from the following categories to get started:

 

Contact the VITA Grant Program at Grant.Program.Office@irs.gov.

Page Last Reviewed or Updated: 07-Nov-2013

The 2011 1040 Forms

2011 1040 forms Publication 536 - Main Content Table of Contents NOL Steps How To Figure an NOLNonbusiness deductions (line 6). 2011 1040 forms Nonbusiness income (line 7). 2011 1040 forms Nonbusiness capital losses. 2011 1040 forms Business capital losses. 2011 1040 forms Illustrated Form 1045, Schedule A When To Use an NOLExceptions to 2-Year Carryback Rule Waiving the Carryback Period How To Carry an NOL Back or Forward How To Claim an NOL DeductionDeducting a Carryback Deducting a Carryforward Change in Marital Status Change in Filing Status Illustrated Form 1045 How To Figure an NOL CarryoverIllustrated Form 1045, Schedule B NOL Carryover From 2013 to 2014Worksheet Instructions How To Get Tax HelpLow Income Taxpayer Clinics NOL Steps Follow Steps 1 through 5 to figure and use your NOL. 2011 1040 forms Step 1. 2011 1040 forms   Complete your tax return for the year. 2011 1040 forms You may have an NOL if a negative figure appears on the line below: Individuals — Form 1040, line 41, or Form 1040NR, line 39. 2011 1040 forms Estates and trusts — Form 1041, line 22. 2011 1040 forms   If the amount on that line is not negative, stop here — you do not have an NOL. 2011 1040 forms Step 2. 2011 1040 forms   Determine whether you have an NOL and its amount. 2011 1040 forms See How To Figure an NOL , later. 2011 1040 forms If you do not have an NOL, stop here. 2011 1040 forms Step 3. 2011 1040 forms   Decide whether to carry the NOL back to a past year or to waive the carryback period and instead carry the NOL forward to a future year. 2011 1040 forms See When To Use an NOL , later. 2011 1040 forms Step 4. 2011 1040 forms   Deduct the NOL in the carryback or carryforward year. 2011 1040 forms See How To Claim an NOL Deduction , later. 2011 1040 forms If your NOL deduction is equal to or less than your taxable income without the deduction, stop here — you have used up your NOL. 2011 1040 forms Step 5. 2011 1040 forms   Determine the amount of your unused NOL. 2011 1040 forms See How To Figure an NOL Carryover , later. 2011 1040 forms Carry over the unused NOL to the next carryback or carryforward year and begin again at Step 4. 2011 1040 forms Note. 2011 1040 forms   If your NOL deduction includes more than one NOL amount, apply Step 5 separately to each NOL amount, starting with the amount from the earliest year. 2011 1040 forms How To Figure an NOL If your deductions for the year are more than your income for the year, you may have an NOL. 2011 1040 forms There are rules that limit what you can deduct when figuring an NOL. 2011 1040 forms In general, the following items are not allowed when figuring an NOL. 2011 1040 forms Any deduction for personal exemptions. 2011 1040 forms Capital losses in excess of capital gains. 2011 1040 forms The section 1202 exclusion of the gain from the sale or exchange of qualified small business stock. 2011 1040 forms Nonbusiness deductions in excess of nonbusiness income. 2011 1040 forms The net operating loss deduction. 2011 1040 forms The domestic production activities deduction. 2011 1040 forms Form 1045, Schedule A. 2011 1040 forms   Use Form 1045, Schedule A, to figure an NOL. 2011 1040 forms The following discussion explains Schedule A and includes an illustrated example. 2011 1040 forms   First, complete Form 1045, Schedule A, line 1, using amounts from your return. 2011 1040 forms If line 1 is a negative amount, you may have an NOL. 2011 1040 forms   Next, complete the rest of Form 1045, Schedule A, to figure your NOL. 2011 1040 forms Nonbusiness deductions (line 6). 2011 1040 forms   Enter on line 6 deductions that are not connected to your trade or business or your employment. 2011 1040 forms Examples of deductions not related to your trade or business are: Alimony paid, Deductions for contributions to an IRA or a self-employed retirement plan, Health savings account deduction, Archer medical savings account deduction, Most itemized deductions (except for casualty and theft losses, state income tax on trade and business income, and any employee business expenses), and The standard deduction. 2011 1040 forms   Do not include on line 6 the deduction for personal exemptions for you, your spouse, or your dependents. 2011 1040 forms   Do not enter business deductions on line 6. 2011 1040 forms These are deductions that are connected to your trade or business. 2011 1040 forms They include the following. 2011 1040 forms State income tax on income attributable to trade or business (including wages, salary, and unemployment compensation). 2011 1040 forms Moving expenses. 2011 1040 forms Educator expenses. 2011 1040 forms The deduction for the deductible part of self-employed health insurance. 2011 1040 forms Domestic production activities deduction. 2011 1040 forms Rental losses. 2011 1040 forms Loss on the sale or exchange of business real estate or depreciable property. 2011 1040 forms Your share of a business loss from a partnership or an S corporation. 2011 1040 forms Ordinary loss on the sale or exchange of stock in a small business corporation or a small business investment company. 2011 1040 forms If you itemize your deductions, casualty and theft losses (even if they involve nonbusiness property) and employee business expenses (such as union dues, uniforms, tools, education expenses, and travel and transportation expenses). 2011 1040 forms Loss on the sale of accounts receivable (if you use an accrual method of accounting). 2011 1040 forms Interest and litigation expenses on state and federal income taxes related to your business. 2011 1040 forms Unrecovered investment in a pension or annuity claimed on a decedent's final return. 2011 1040 forms Payment by a federal employee to buy back sick leave used in an earlier year. 2011 1040 forms Nonbusiness income (line 7). 2011 1040 forms   Enter on line 7 only income that is not related to your trade or business or your employment. 2011 1040 forms For example, enter your annuity income, dividends, and interest on investments. 2011 1040 forms Also, include your share of nonbusiness income from partnerships and S corporations. 2011 1040 forms   Do not include on line 7 the income you receive from your trade or business or your employment. 2011 1040 forms This includes salaries and wages, self-employment income, unemployment compensation included in your gross income, and your share of business income from partnerships and S corporations. 2011 1040 forms Also, do not include rental income or ordinary gain from the sale or other disposition of business real estate or depreciable business property. 2011 1040 forms Adjustment for section 1202 exclusion (line 17). 2011 1040 forms   Enter on line 17 any gain you excluded under section 1202 on the sale or exchange of qualified small business stock. 2011 1040 forms Adjustments for capital losses (lines 19–22). 2011 1040 forms   The amount deductible for capital losses is limited based on whether the losses are business capital losses or nonbusiness capital losses. 2011 1040 forms Nonbusiness capital losses. 2011 1040 forms   You can deduct your nonbusiness capital losses (line 2) only up to the amount of your nonbusiness capital gains without regard to any section 1202 exclusion (line 3). 2011 1040 forms If your nonbusiness capital losses are more than your nonbusiness capital gains without regard to any section 1202 exclusion, you cannot deduct the excess. 2011 1040 forms Business capital losses. 2011 1040 forms   You can deduct your business capital losses (line 11) only up to the total of: Your nonbusiness capital gains that are more than the total of your nonbusiness capital losses and excess nonbusiness deductions (line 10), and Your total business capital gains without regard to any section 1202 exclusion (line 12). 2011 1040 forms Domestic production activities deduction (line 23). 2011 1040 forms   You cannot take the domestic production activities deduction when figuring your NOL. 2011 1040 forms Enter on line 23 any domestic production activities deduction claimed on your return. 2011 1040 forms NOLs from other years (line 24). 2011 1040 forms   You cannot deduct any NOL carryovers or carrybacks from other years. 2011 1040 forms Enter the total amount of your NOL deduction for losses from other years. 2011 1040 forms Illustrated Form 1045, Schedule A The following example illustrates how to figure an NOL. 2011 1040 forms It includes filled-in pages 1 and 2 of Form 1040 and Form 1045, Schedule A. 2011 1040 forms Example. 2011 1040 forms Glenn Johnson is in the retail record business. 2011 1040 forms He is single and has the following income and deductions on his Form 1040 for 2013. 2011 1040 forms See the illustrated Form 1040 , later. 2011 1040 forms INCOME   Wages from part-time job $1,225 Interest on savings 425 Net long-term capital gain on sale of real estate used in business 2,000 Glenn's total income $3,650 DEDUCTIONS   Net loss from business (gross income of $67,000 minus expenses of $72,000) $5,000 Net short-term capital loss on sale of stock 1,000 Standard deduction 6,100 Personal exemption 3,900 Glenn's total deductions $16,000 Glenn's deductions exceed his income by $12,350 ($16,000 − $3,650). 2011 1040 forms However, to figure whether he has an NOL, certain deductions are not allowed. 2011 1040 forms He uses Form 1045, Schedule A, to figure his NOL. 2011 1040 forms See the Illustrated Form 1045, Schedule A , later. 2011 1040 forms The following items are not allowed on Form 1045, Schedule A. 2011 1040 forms Nonbusiness net short-term capital loss $1,000 Nonbusiness deductions (standard deduction, $6,100) minus nonbusiness income (interest, $425) 5,675 Deduction for personal exemption 3,900 Total adjustments to net loss $10,575     Therefore, Glenn's NOL for 2013 is figured as follows: Glenn's total 2013 income $3,650 Less:     Glenn's original 2013 total deductions $16,000   Reduced by the disallowed items − 10,575 − 5,425 Glenn's NOL for 2013 $1,775 This image is too large to be displayed in the current screen. 2011 1040 forms Please click the link to view the image. 2011 1040 forms Form 1040, page 1 This image is too large to be displayed in the current screen. 2011 1040 forms Please click the link to view the image. 2011 1040 forms Form 1040, page 2 This image is too large to be displayed in the current screen. 2011 1040 forms Please click the link to view the image. 2011 1040 forms Form 1045, page 2 When To Use an NOL Generally, if you have an NOL for a tax year ending in 2013, you must carry back the entire amount of the NOL to the 2 tax years before the NOL year (the carryback period), and then carry forward any remaining NOL for up to 20 years after the NOL year (the carryforward period). 2011 1040 forms You can, however, choose not to carry back an NOL and only carry it forward. 2011 1040 forms See Waiving the Carryback Period , later. 2011 1040 forms You cannot deduct any part of the NOL remaining after the 20-year carryforward period. 2011 1040 forms NOL year. 2011 1040 forms   This is the year in which the NOL occurred. 2011 1040 forms Exceptions to 2-Year Carryback Rule Eligible losses, farming losses, qualified disaster losses, and specified liability losses, all defined next, qualify for longer carryback periods. 2011 1040 forms Eligible loss. 2011 1040 forms   The carryback period for eligible losses is 3 years. 2011 1040 forms Only the eligible loss portion of the NOL can be carried back 3 years. 2011 1040 forms An eligible loss is any part of an NOL that: Is from a casualty or theft, or Is attributable to a federally declared disaster for a qualified small business or certain qualified farming businesses. 2011 1040 forms Qualified small business. 2011 1040 forms   A qualified small business is a sole proprietorship or a partnership that has average annual gross receipts (reduced by returns and allowances) of $5 million or less during the 3-year period ending with the tax year of the NOL. 2011 1040 forms If the business did not exist for this entire 3-year period, use the period the business was in existence. 2011 1040 forms   An eligible loss does not include a farming loss or a qualified disaster loss. 2011 1040 forms Farming loss. 2011 1040 forms   The carryback period for a farming loss is 5 years. 2011 1040 forms Only the farming loss portion of the NOL can be carried back 5 years. 2011 1040 forms A farming loss is the smaller of: The amount that would be the NOL for the tax year if only income and deductions attributable to farming businesses were taken into account, or The NOL for the tax year. 2011 1040 forms Farming business. 2011 1040 forms   A farming business is a trade or business involving cultivation of land or the raising or harvesting of any agricultural or horticultural commodity. 2011 1040 forms A farming business can include operating a nursery or sod farm or raising or harvesting most ornamental trees or trees bearing fruit, nuts, or other crops. 2011 1040 forms The raising, shearing, feeding, caring for, training, and management of animals is also considered a farming business. 2011 1040 forms   A farming business does not include contract harvesting of an agricultural or horticultural commodity grown or raised by someone else. 2011 1040 forms It also does not include a business in which you merely buy or sell plants or animals grown or raised entirely by someone else. 2011 1040 forms Waiving the 5-year carryback. 2011 1040 forms   You can choose to figure the carryback period for a farming loss without regard to the special 5-year carryback rule. 2011 1040 forms To make this choice for 2013, attach to your 2013 income tax return filed by the due date (including extensions) a statement that you are choosing to treat any 2013 farming losses without regard to the special 5-year carryback rule. 2011 1040 forms If you filed your original return on time but did not file the statement with it, you can make this choice on an amended return filed within 6 months after the due date of the return (excluding extensions). 2011 1040 forms Attach an election statement to your amended return, and write “Filed pursuant to section 301. 2011 1040 forms 9100-2” at the top of the statement. 2011 1040 forms Once made, this choice is irrevocable. 2011 1040 forms Qualified disaster loss. 2011 1040 forms   The carryback period for a qualified disaster loss is 5 years. 2011 1040 forms Only the qualified disaster loss portion of the NOL can be carried back 5 years. 2011 1040 forms A qualified disaster loss is the smaller of: The sum of: Any losses attributable to a federally declared disaster and occurring before January 1, 2010, in the disaster area, plus Any allowable qualified disaster expenses (even if you did not choose to treat those expenses as deductions in the current year), or The NOL for the tax year. 2011 1040 forms Qualified disaster expenses. 2011 1040 forms   A qualified disaster expense is any capital expense paid or incurred in connection with a trade or business or with business-related property which is: For the abatement or control of hazardous substances that were released as a result of a federally declared disaster occurring before January 1, 2010, For the removal of debris from, or the demolition of structures on, real property which is business-related property damaged or destroyed as a result of a federally declared disaster occurring before January 1, 2010, or For the repair of business-related property damaged as a result of a federally declared disaster occurring before January 1, 2010. 2011 1040 forms Business-related property is property held for use in a trade or business, property held for the production of income, or inventory property. 2011 1040 forms Note. 2011 1040 forms Section 198A allows taxpayers to treat certain capital expenses (qualified disaster expenses) as deductions in the year the expenses were paid or incurred. 2011 1040 forms Excluded losses. 2011 1040 forms   A qualified disaster loss does not include any losses from property used in connection with any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, or any store for which the principal business is the sale of alcoholic beverages for consumption off premises. 2011 1040 forms   A qualified disaster loss also does not include any losses from any gambling or animal racing property. 2011 1040 forms Gambling or animal racing property is any equipment, furniture, software, or other property used directly in connection with gambling, the racing of animals, or the on-site viewing of such racing, and the portion of any real property (determined by square footage) that is dedicated to gambling, the racing of animals, or the on-site viewing of such racing, unless this portion is less than 100 square feet. 2011 1040 forms Specified liability loss. 2011 1040 forms   The carryback period for a specified liability loss is 10 years. 2011 1040 forms Only the specified liability loss portion of the NOL can be carried back 10 years. 2011 1040 forms Generally, a specified liability loss is a loss arising from: Product liability and expenses incurred in the investigation or settlement of, or opposition to, product liability claims, or An act (or failure to act) that occurred at least 3 years before the beginning of the loss year and resulted in a liability under a federal or state law requiring: Reclamation of land, Dismantling of a drilling platform, Remediation of environmental contamination, or Payment under any workers compensation act. 2011 1040 forms   Any loss from a liability arising from (1) through (4) above can be taken into account as a specified liability loss only if you used an accrual method of accounting throughout the period in which the act (or failure to act) occurred. 2011 1040 forms For details, see section 172(f). 2011 1040 forms Waiving the 10-year carryback. 2011 1040 forms   You can choose to figure the carryback period for a specified liability loss without regard to the special 10-year carryback rule. 2011 1040 forms To make this choice for 2013 attach to your 2013 income tax return filed by the due date (including extensions) a statement that you are choosing to treat any 2013 specified liability losses without regard to the special 10-year carryback rule. 2011 1040 forms If you filed your original return on time but did not file the statement with it, you can make this choice on an amended return filed within 6 months after the due date of the return (excluding extensions). 2011 1040 forms Attach a statement to your amended return and write “Filed pursuant to section 301. 2011 1040 forms 9100-2” at the top of the statement. 2011 1040 forms Once made, this choice is irrevocable. 2011 1040 forms Waiving the Carryback Period You can choose not to carry back your NOL. 2011 1040 forms If you make this choice, then you can use your NOL only in the 20-year carryforward period. 2011 1040 forms (This choice means you also choose not to carry back any alternative tax NOL. 2011 1040 forms ) To make this choice, attach a statement to your original return filed by the due date (including extensions) for the NOL year. 2011 1040 forms This statement must show that you are choosing to waive the carryback period under section 172(b)(3). 2011 1040 forms If you filed your original return on time but did not file the statement with it, you can make this choice on an amended return filed within 6 months of the due date of the return (excluding extensions). 2011 1040 forms Attach a statement to your amended return, and write “Filed pursuant to section 301. 2011 1040 forms 9100-2” at the top of the statement. 2011 1040 forms Once you choose to waive the carryback period, it generally is irrevocable. 2011 1040 forms If you choose to waive the carryback period for more than one NOL, you must make a separate choice and attach a separate statement for each NOL year. 2011 1040 forms If you do not file this statement on time, you cannot waive the carryback period. 2011 1040 forms How To Carry an NOL Back or Forward If you choose to carry back the NOL, you must first carry the entire NOL to the earliest carryback year. 2011 1040 forms If your NOL is not used up, you can carry the rest to the next earliest carryback year, and so on. 2011 1040 forms If you waive the carryback period or do not use up the NOL in the carryback period, carry forward what remains of the NOL to the 20 tax years following the NOL year. 2011 1040 forms Start by carrying it to the first tax year after the NOL year. 2011 1040 forms If you do not use it up, carry the unused part to the next year. 2011 1040 forms Continue to carry any unused part of the NOL forward until the NOL is used up or you complete the 20-year carryforward period. 2011 1040 forms Example 1. 2011 1040 forms You started your business as a sole proprietor in 2013 and had a $42,000 NOL for the year. 2011 1040 forms No part of the NOL qualifies for the 3-year, 5-year, or 10-year carryback. 2011 1040 forms You begin using your NOL in 2011, the second year before the NOL year, as shown in the following chart. 2011 1040 forms Year   Carryback/  Carryover Unused  Loss 2011 $42,000 $40,000 2012 40,000 37,000 2013 (NOL year)     2014 37,000 31,500 2015 31,500 22,500 2016 22,500 12,700 2017 12,700 4,000 2018 4,000 -0- If your loss were larger, you could carry it forward until the year 2033. 2011 1040 forms If you still had an unused 2013 carryforward after the year 2033, you would not be allowed to deduct it. 2011 1040 forms Example 2. 2011 1040 forms Assume the same facts as in Example 1 , except that $4,000 of the NOL is attributable to a casualty loss and this loss qualifies for a 3-year carryback period. 2011 1040 forms You begin using the $4,000 in 2010. 2011 1040 forms As shown in the following chart, $3,000 of this NOL is used in 2010. 2011 1040 forms The remaining $1,000 is carried to 2011 with the $38,000 NOL that you must begin using in 2011. 2011 1040 forms Year   Carryback/  Carryover Unused  Loss 2010 $4,000 $1,000 2011 39,000 37,000 2012 37,000 34,000 2013 (NOL year)     2014 34,000 28,500 2015 28,500 19,500 2016 19,500 9,700 2017 9,700 1,000 2018 1,000 -0- How To Claim an NOL Deduction If you have not already carried the NOL to an earlier year, your NOL deduction is the total NOL. 2011 1040 forms If you carried the NOL to an earlier year, your NOL deduction is the carried over NOL minus the NOL amount you used in the earlier year or years. 2011 1040 forms If you carry more than one NOL to the same year, your NOL deduction is the total of these carrybacks and carryovers. 2011 1040 forms NOL resulting in no taxable income. 2011 1040 forms   If your NOL is more than the taxable income of the year you carry it to (figured before deducting the NOL), you generally will have an NOL carryover to the next year. 2011 1040 forms See How To Figure an NOL Carryover , later, to determine how much NOL you have used and how much you carry to the next year. 2011 1040 forms Deducting a Carryback If you carry back your NOL, you can use either Form 1045 or Form 1040X. 2011 1040 forms You can get your refund faster by using Form 1045, but you have a shorter time to file it. 2011 1040 forms You can use Form 1045 to apply an NOL to all carryback years. 2011 1040 forms If you use Form 1040X, you must use a separate Form 1040X for each carryback year to which you apply the NOL. 2011 1040 forms Estates and trusts that do not file Form 1045 must file an amended Form 1041 (instead of Form 1040X) for each carryback year to which NOLs are applied. 2011 1040 forms Use a copy of the appropriate year's Form 1041, check the “Amended return” box, and follow the Form 1041 instructions for amended returns. 2011 1040 forms Include the NOL deduction with other deductions not subject to the 2% limit (line 15a). 2011 1040 forms Also, see the special procedures for filing an amended return due to an NOL carryback, explained under Form 1040X , later. 2011 1040 forms Form 1045. 2011 1040 forms   You can apply for a quick refund by filing Form 1045. 2011 1040 forms This form results in a tentative adjustment of tax in the carryback year. 2011 1040 forms See the Illustrated Form 1045 . 2011 1040 forms at the end of this discussion. 2011 1040 forms   If the IRS refunds or credits an amount to you from Form 1045 and later determines that the refund or credit is too much, the IRS may assess and collect the excess immediately. 2011 1040 forms   Generally, you must file Form 1045 on or after the date you file your tax return for the NOL year, but not later than one year after the end of the NOL year. 2011 1040 forms If the last day of the NOL year falls on a Saturday, Sunday, or holiday, the form will be considered timely if postmarked on the next business day. 2011 1040 forms For example, if you are a calendar year taxpayer with a carryback from 2013 to 2011, you must file Form 1045 on or after the date you file your tax return for 2013, but no later than December 31, 2014. 2011 1040 forms Form 1040X. 2011 1040 forms   If you do not file Form 1045, you can file Form 1040X to get a refund of tax because of an NOL carryback. 2011 1040 forms File Form 1040X within 3 years after the due date, including extensions, for filing the return for the NOL year. 2011 1040 forms For example, if you are a calendar year taxpayer and filed your 2011 return by the April 15, 2012, due date, you must file a claim for refund of 2008 tax because of an NOL carryback from 2011 by April 15, 2015. 2011 1040 forms   Attach a computation of your NOL using Form 1045, Schedule A, and, if it applies, your NOL carryover using Form 1045, Schedule B, discussed later . 2011 1040 forms Refiguring your tax. 2011 1040 forms   To refigure your total tax liability for a carryback year, first refigure your adjusted gross income for that year. 2011 1040 forms (On Form 1045, use lines 10 and 11 and the “After carryback” column for the applicable carryback year. 2011 1040 forms ) Use your adjusted gross income after applying the NOL deduction to refigure income or deduction items that are based on, or limited to, a percentage of your adjusted gross income. 2011 1040 forms Refigure the following items. 2011 1040 forms The special allowance for passive activity losses from rental real estate activities. 2011 1040 forms Taxable social security and tier 1 railroad retirement benefits. 2011 1040 forms IRA deductions. 2011 1040 forms Excludable savings bond interest. 2011 1040 forms Excludable employer-provided adoption benefits. 2011 1040 forms The student loan interest deduction. 2011 1040 forms The tuition and fees deduction. 2011 1040 forms   If more than one of these items apply, refigure them in the order listed above, using your adjusted gross income after applying the NOL deduction and any previous item. 2011 1040 forms (Enter your NOL deduction on Form 1045, line 10. 2011 1040 forms On line 11, using the “After carryback” column, enter your adjusted gross income refigured after applying the NOL deduction and after refiguring any above items. 2011 1040 forms )   Next, refigure your taxable income. 2011 1040 forms (On Form 1045, use lines 12 through 15 and the “After carryback” column. 2011 1040 forms ) Use your refigured adjusted gross income (Form 1045, line 11, using the “After carryback” column) to refigure certain deductions and other items that are based on or limited to a percentage of your adjusted gross income. 2011 1040 forms Refigure the following items. 2011 1040 forms The itemized deduction for medical expenses. 2011 1040 forms The itemized deduction for qualified mortgage insurance premiums. 2011 1040 forms The itemized deduction for casualty losses. 2011 1040 forms Miscellaneous itemized deductions subject to the 2% limit. 2011 1040 forms The overall limit on itemized deductions (do not apply to carryback years beginning after December 31, 2009). 2011 1040 forms The phaseout of the deduction for exemptions (do not apply to carryback years beginning after December 31, 2009). 2011 1040 forms Qualified motor vehicle tax (do not apply to carryback years beginning after December 31, 2009). 2011 1040 forms    Do not refigure the itemized deduction for charitable contributions. 2011 1040 forms   Finally, use your refigured taxable income (Form 1045, line 15, using the “After carryback” column) to refigure your total tax liability. 2011 1040 forms Refigure your income tax, your alternative minimum tax, and any credits that are based on or limited by your adjusted gross income (AGI), modified adjusted gross income (MAGI), or tax liability. 2011 1040 forms (On Form 1045, use lines 16 through 25, and the “After carryback” column. 2011 1040 forms ) The earned income credit, for example, may be affected by changes to adjusted gross income or the amount of tax (or both) and, therefore, must be recomputed. 2011 1040 forms If you become eligible for a credit because of the carryback, complete the form for that specific credit (such as the EIC Worksheet) for that year. 2011 1040 forms   While it is necessary to refigure your income tax, alternative minimum tax, and credits, do not refigure your self-employment tax. 2011 1040 forms Deducting a Carryforward If you carry forward your NOL to a tax year after the NOL year, list your NOL deduction as a negative figure on the “Other income” line of Form 1040 or Form 1040NR (line 21 for 2013). 2011 1040 forms Estates and trusts include an NOL deduction on Form 1041 with other deductions not subject to the 2% limit (line 15a for 2013). 2011 1040 forms You must attach a statement that shows all the important facts about the NOL. 2011 1040 forms Your statement should include a computation showing how you figured the NOL deduction. 2011 1040 forms If you deduct more than one NOL in the same year, your statement must cover each of them. 2011 1040 forms Change in Marital Status If you and your spouse were not married to each other in all years involved in figuring NOL carrybacks and carryovers, only the spouse who had the loss can take the NOL deduction. 2011 1040 forms If you file a joint return, the NOL deduction is limited to the income of that spouse. 2011 1040 forms For example, if your marital status changes because of death or divorce, and in a later year you have an NOL, you can carry back that loss only to the part of the income reported on the joint return (filed with your former spouse) that was related to your taxable income. 2011 1040 forms After you deduct the NOL in the carryback year, the joint rates apply to the resulting taxable income. 2011 1040 forms Refund limit. 2011 1040 forms   If you are not married in the NOL year (or are married to a different spouse), and in the carryback year you were married and filed a joint return, your refund for the overpaid joint tax may be limited. 2011 1040 forms You can claim a refund for the difference between your share of the refigured tax and your contribution toward the tax paid on the joint return. 2011 1040 forms The refund cannot be more than the joint overpayment. 2011 1040 forms Attach a statement showing how you figured your refund. 2011 1040 forms Figuring your share of a joint tax liability. 2011 1040 forms   There are five steps for figuring your share of the refigured joint tax liability. 2011 1040 forms Figure your total tax as though you had filed as married filing separately. 2011 1040 forms Figure your spouse's total tax as though your spouse had also filed as married filing separately. 2011 1040 forms Add the amounts in (1) and (2). 2011 1040 forms Divide the amount in (1) by the amount in (3). 2011 1040 forms Multiply the refigured tax on your joint return by the amount figured in (4). 2011 1040 forms This is your share of the joint tax liability. 2011 1040 forms Figuring your contribution toward tax paid. 2011 1040 forms   Unless you have an agreement or clear evidence of each spouse's contributions toward the payment of the joint tax liability, figure your contribution by adding the tax withheld on your wages and your share of joint estimated tax payments or tax paid with the return. 2011 1040 forms If the original return for the carryback year resulted in an overpayment, reduce your contribution by your share of the tax refund. 2011 1040 forms Figure your share of a joint payment or refund by the same method used in figuring your share of the joint tax liability. 2011 1040 forms Use your taxable income as originally reported on the joint return in steps (1) and (2) above, and substitute the joint payment or refund for the refigured joint tax in step (5). 2011 1040 forms Change in Filing Status If you and your spouse were married and filed a joint return for each year involved in figuring NOL carrybacks and carryovers, figure the NOL deduction on a joint return as you would for an individual. 2011 1040 forms However, treat the NOL deduction as a joint NOL. 2011 1040 forms If you and your spouse were married and filed separate returns for each year involved in figuring NOL carrybacks and carryovers, the spouse who sustained the loss may take the NOL deduction on a separate return. 2011 1040 forms Special rules apply for figuring the NOL carrybacks and carryovers of married people whose filing status changes for any tax year involved in figuring an NOL carryback or carryover. 2011 1040 forms Separate to joint return. 2011 1040 forms   If you and your spouse file a joint return for a carryback or carryforward year, and were married but filed separate returns for any of the tax years involved in figuring the NOL carryback or carryover, treat the separate carryback or carryover as a joint carryback or carryover. 2011 1040 forms Joint to separate returns. 2011 1040 forms   If you and your spouse file separate returns for a carryback or carryforward year, but filed a joint return for any or all of the tax years involved in figuring the NOL carryover, figure each of your carryovers separately. 2011 1040 forms Joint return in NOL year. 2011 1040 forms   Figure each spouse's share of the joint NOL through the following steps. 2011 1040 forms Figure each spouse's NOL as if he or she filed a separate return. 2011 1040 forms See How To Figure an NOL , earlier. 2011 1040 forms If only one spouse has an NOL, stop here. 2011 1040 forms All of the joint NOL is that spouse's NOL. 2011 1040 forms If both spouses have an NOL, multiply the joint NOL by a fraction, the numerator of which is spouse A's NOL figured in (1) and the denominator of which is the total of the spouses' NOLs figured in (1). 2011 1040 forms The result is spouse A's share of the joint NOL. 2011 1040 forms The rest of the joint NOL is spouse B's share. 2011 1040 forms Example 1. 2011 1040 forms Mark and Nancy are married and file a joint return for 2013. 2011 1040 forms They have an NOL of $5,000. 2011 1040 forms They carry the NOL back to 2011, a year in which Mark and Nancy filed separate returns. 2011 1040 forms Figured separately, Nancy's 2013 deductions were more than her income, and Mark's income was more than his deductions. 2011 1040 forms Mark does not have any NOL to carry back. 2011 1040 forms Nancy can carry back the entire $5,000 NOL to her 2011 separate return. 2011 1040 forms Example 2. 2011 1040 forms Assume the same facts as in Example 1 , except that both Mark and Nancy had deductions in 2013 that were more than their income. 2011 1040 forms Figured separately, his NOL is $1,800 and her NOL is $3,000. 2011 1040 forms The sum of their separate NOLs ($4,800) is less than their $5,000 joint NOL because his deductions included a $200 net capital loss that is not allowed in figuring his separate NOL. 2011 1040 forms The loss is allowed in figuring their joint NOL because it was offset by Nancy's capital gains. 2011 1040 forms Mark's share of their $5,000 joint NOL is $1,875 ($5,000 × $1,800/$4,800) and Nancy's is $3,125 ($5,000 − $1,875). 2011 1040 forms Joint return in previous carryback or carryforward year. 2011 1040 forms   If only one spouse had an NOL deduction on the previous year's joint return, all of the joint carryover is that spouse's carryover. 2011 1040 forms If both spouses had an NOL deduction (including separate carryovers of a joint NOL, figured as explained in the previous discussion ), figure each spouse's share of the joint carryover through the following steps. 2011 1040 forms Figure each spouse's modified taxable income as if he or she filed a separate return. 2011 1040 forms See Modified taxable income under How To Figure an NOL Carryover , later. 2011 1040 forms Multiply the joint modified taxable income you used to figure the joint carryover by a fraction, the numerator of which is spouse A's modified taxable income figured in (1) and the denominator of which is the total of the spouses' modified taxable incomes figured in (1). 2011 1040 forms This is spouse A's share of the joint modified taxable income. 2011 1040 forms Subtract the amount figured in (2) from the joint modified taxable income. 2011 1040 forms This is spouse B's share of the joint modified taxable income. 2011 1040 forms Reduce the amount figured in (3), but not below zero, by spouse B's NOL deduction. 2011 1040 forms Add the amounts figured in (2) and (4). 2011 1040 forms Subtract the amount figured in (5) from spouse A's NOL deduction. 2011 1040 forms This is spouse A's share of the joint carryover. 2011 1040 forms The rest of the joint carryover is spouse B's share. 2011 1040 forms Example. 2011 1040 forms Sam and Wanda filed a joint return for 2011 and separate returns for 2012 and 2013. 2011 1040 forms In 2013, Sam had an NOL of $18,000 and Wanda had an NOL of $2,000. 2011 1040 forms They choose to carry back both NOLs 2 years to their 2011 joint return and claim a $20,000 NOL deduction. 2011 1040 forms Their joint modified taxable income (MTI) for 2011 is $15,000, and their joint NOL carryover to 2012 is $5,000 ($20,000 – $15,000). 2011 1040 forms Sam and Wanda each figure their separate MTI for 2011 as if they had filed separate returns. 2011 1040 forms Then they figure their shares of the $5,000 carryover as follows. 2011 1040 forms Step 1. 2011 1040 forms   Sam's separate MTI $9,000 Wanda's separate MTI + 3,000 Total MTI $12,000 Step 2. 2011 1040 forms   Joint MTI $15,000 Sam's MTI ÷ total MTI ($9,000 ÷ $12,000) × . 2011 1040 forms 75 Sam's share of joint MTI $11,250 Step 3. 2011 1040 forms   Joint MTI $15,000 Sam's share of joint MTI − 11,250 Wanda's share of joint MTI $3,750 Step 4. 2011 1040 forms   Wanda's share of joint MTI $3,750 Wanda's NOL deduction − 2,000 Wanda's remaining share $1,750 Step 5. 2011 1040 forms   Sam's share of joint MTI $11,250 Wanda's remaining share + 1,750 Joint MTI to be offset $13,000 Step 6. 2011 1040 forms   Sam's NOL deduction $18,000 Joint MTI to be offset − 13,000 Sam's carryover to 2012 $5,000 Joint carryover to 2012 $5,000 Sam's carryover − 5,000 Wanda's carryover to 2012 $-0- Wanda's $2,000 NOL deduction offsets $2,000 of her $3,750 share of the joint modified taxable income and is completely used up. 2011 1040 forms She has no carryover to 2012. 2011 1040 forms Sam's $18,000 NOL deduction offsets all of his $11,250 share of joint modified taxable income and the remaining $1,750 of Wanda's share. 2011 1040 forms His carryover to 2012 is $5,000. 2011 1040 forms Illustrated Form 1045 The following example illustrates how to use Form 1045 to claim an NOL deduction in a carryback year. 2011 1040 forms It includes a filled-in page 1 of Form 1045. 2011 1040 forms Example. 2011 1040 forms Martha Sanders is a self-employed contractor. 2011 1040 forms Martha's 2013 deductions are more than her 2013 income because of a business loss. 2011 1040 forms She uses Form 1045 to carry back her NOL 2 years and claim an NOL deduction in 2011. 2011 1040 forms Her filing status in both years was single. 2011 1040 forms See the filled-in Form 1045 later. 2011 1040 forms Martha figures her 2013 NOL on Form 1045, Schedule A (not shown). 2011 1040 forms (For an example using Form 1045, Schedule A, see Illustrated Form 1045, Schedule A under How To Figure an NOL , earlier. 2011 1040 forms ) She enters the $10,000 NOL from Form 1045, Schedule A, line 25, on Form 1045, line 1a. 2011 1040 forms Martha completes lines 10 through 25, using the “Before carryback” column under the column for the second preceding tax year ended 12/31/11 on page 1 of Form 1045 using the following amounts from her 2011 return. 2011 1040 forms 2011 Adjusted gross income $50,000 Itemized deductions:     Medical expenses [$6,000 − ($50,000 × 7. 2011 1040 forms 5%)] $2,250   State income tax + 2,000   Real estate tax + 4,000   Home mortgage interest + 5,000   Total itemized deductions $13,250 Exemption $3,700 Income tax $4,550 Self-employment tax $6,120   Martha refigures her taxable income for 2011 after carrying back her 2013 NOL as follows: 2011 Adjusted gross income $50,000 Less:     NOL from 2013 −10,000 2011 Adjusted gross income after carryback $40,000 Less:     Itemized deductions:     Medical expenses [$6,000 − ($40,000 × 7. 2011 1040 forms 5%)] $3,000   State income tax + 2,000   Real estate tax + 4,000   Home mortgage interest + 5,000   Total itemized deductions −14,000 Less:     Exemption − 3,700 2011 Taxable income after carryback $22,300 Martha then completes lines 10 through 25, using the “After carryback” column under the column for the second preceding tax year ended 12/31/11. 2011 1040 forms On line 10, Martha enters her $10,000 NOL deduction. 2011 1040 forms Her new adjusted gross income on line 11 is $40,000 ($50,000 − $10,000). 2011 1040 forms To complete line 12, she must refigure her medical expense deduction using her new adjusted gross income. 2011 1040 forms Her refigured medical expense deduction is $3,000 [$6,000 − ($40,000 × 7. 2011 1040 forms 5%)]. 2011 1040 forms This increases her total itemized deductions to $14,000 [$13,250 + ($3,000 − $2,250)]. 2011 1040 forms Martha uses her refigured taxable income ($22,300) from line 15, and the tax tables in her 2011 Form 1040 instructions to find her income tax. 2011 1040 forms She enters the new amount, $2,924, on line 16, and her new total tax liability, $9,044, on line 25. 2011 1040 forms Martha used up her $10,000 NOL in 2011 so she does not complete a column for the first preceding tax year ended 12/31/2012. 2011 1040 forms The decrease in tax because of her NOL deduction (line 27) is $1,612. 2011 1040 forms Martha files Form 1045 after filing her 2013 return, but no later than December 31, 2014. 2011 1040 forms She mails it to the Internal Revenue Service Center for the place where she lives as shown in the 2013 instructions for Form 1040 and attaches a copy of her 2013 return (including the applicable forms and schedules). 2011 1040 forms This image is too large to be displayed in the current screen. 2011 1040 forms Please click the link to view the image. 2011 1040 forms Form 1045, page 1 How To Figure an NOL Carryover If your NOL is more than your taxable income for the year to which you carry it (figured before deducting the NOL), you may have an NOL carryover. 2011 1040 forms You must make certain modifications to your taxable income to determine how much NOL you will use up in that year and how much you can carry over to the next tax year. 2011 1040 forms Your carryover is the excess of your NOL deduction over your modified taxable income for the carryback or carryforward year. 2011 1040 forms If your NOL deduction includes more than one NOL, apply the NOLs against your modified taxable income in the same order in which you incurred them, starting with the earliest. 2011 1040 forms Modified taxable income. 2011 1040 forms   Your modified taxable income is your taxable income figured with the following changes. 2011 1040 forms You cannot claim an NOL deduction for the NOL carryover you are figuring or for any later NOL. 2011 1040 forms You cannot claim a deduction for capital losses in excess of your capital gains. 2011 1040 forms Also, you must increase your taxable income by the amount of any section 1202 exclusion. 2011 1040 forms You cannot claim the domestic production activities deduction. 2011 1040 forms You cannot claim a deduction for your exemptions for yourself, your spouse, or dependents. 2011 1040 forms You must figure any item affected by the amount of your adjusted gross income after making the changes in (1), (2), and (3), above, and certain other changes to your adjusted gross income that result from (1), (2), and (3). 2011 1040 forms This includes income and deduction items used to figure adjusted gross income (for example, IRA deductions), as well as certain itemized deductions. 2011 1040 forms To figure a charitable contribution deduction, do not include deductions for NOL carrybacks in the change in (1) but do include deductions for NOL carryforwards from tax years before the NOL year. 2011 1040 forms   Your taxable income as modified cannot be less than zero. 2011 1040 forms Form 1045, Schedule B. 2011 1040 forms   You can use Form 1045, Schedule B, to figure your modified taxable income for carryback years and your carryover from each of those years. 2011 1040 forms Do not use Form 1045, Schedule B, for a carryforward year. 2011 1040 forms If your 2013 return includes an NOL deduction from an NOL year before 2013 that reduced your taxable income to zero (to less than zero, if an estate or trust), see NOL Carryover From 2013 to 2014 , later. 2011 1040 forms Illustrated Form 1045, Schedule B The following example illustrates how to figure an NOL carryover from a carryback year. 2011 1040 forms It includes a filled-in Form 1045, Schedule B. 2011 1040 forms Example. 2011 1040 forms Ida Brown runs a small clothing shop. 2011 1040 forms In 2013, she has an NOL of $36,000 that she carries back to 2011. 2011 1040 forms She has no other carrybacks or carryforwards to 2011. 2011 1040 forms Ida's adjusted gross income in 2011 was $35,000, consisting of her salary of $36,000 minus a $1,000 capital loss deduction. 2011 1040 forms She is single and claimed only one personal exemption of $3,700. 2011 1040 forms During that year, she gave $1,450 in charitable contributions. 2011 1040 forms Her medical expenses were $3,000. 2011 1040 forms She also deducted $1,650 in taxes and $3,125 in home mortgage interest. 2011 1040 forms Her deduction for charitable contributions was not limited because her contributions, $1,450, were less than 50% of her adjusted gross income. 2011 1040 forms The deduction for medical expenses was limited to expenses over 7. 2011 1040 forms 5% of adjusted gross income (. 2011 1040 forms 075 × $35,000 = $2,625; $3,000 − $2,625 = $375). 2011 1040 forms The deductions for taxes and home mortgage interest were not subject to any limits. 2011 1040 forms She was able to claim $6,600 ($1,450 + $375 + $1,650 + $3,125) in itemized deductions and a personal exemption deduction of $3,700 for 2011. 2011 1040 forms She had no other deductions in 2011 (except the NOL deduction). 2011 1040 forms Her taxable income (figured without the NOL deduction) for the year was $24,700. 2011 1040 forms Ida's adjusted gross income in 2012 was $9,325, consisting of net business income from the clothing shop of $12,325 and a net capital loss of $3,000. 2011 1040 forms She did not itemize her deductions in 2012. 2011 1040 forms She deducted the standard deduction of $5,950 and the personal exemption deduction of $3,800. 2011 1040 forms She had no other deductions in 2012 (other than the NOL deduction). 2011 1040 forms Her taxable income, therefore, was ($425). 2011 1040 forms Ida's $36,000 carryback will result in her having 2011 taxable income of zero. 2011 1040 forms She then completes the column for the second preceding tax year ended 12/31/11 on Form 1045, Schedule B, to figure how much of her NOL she uses up in 2011 and how much she can carry over to 2012. 2011 1040 forms She completes the column for the first preceding tax year ended 12/31/12. 2011 1040 forms See the illustrated Form 1045, Schedule B , shown later. 2011 1040 forms Column 1, line 1. 2011 1040 forms Ida enters $36,000, her 2013 net operating loss, on line 1. 2011 1040 forms Column 1, line 2. 2011 1040 forms She enters $24,700, her 2011 taxable income (figured without the NOL deduction), on line 2. 2011 1040 forms Column 1, line 3. 2011 1040 forms Ida enters her net capital loss deduction of $1,000 on line 3. 2011 1040 forms Column 1, lines 4 and 5. 2011 1040 forms Ida had no section 1202 exclusion or domestic production activities deduction in 2011. 2011 1040 forms She enters zero on lines 4 and 5. 2011 1040 forms Column 1, line 6. 2011 1040 forms Although Ida's entry on line 3 modifies her adjusted gross income, that does not affect any other items included in her adjusted gross income. 2011 1040 forms Ida enters zero on line 6. 2011 1040 forms Column 1, line 7. 2011 1040 forms Ida had itemized deductions and entered $1,000 on line 3, so she completes lines 11 through 38 to figure her adjustment to itemized deductions. 2011 1040 forms On line 7, she enters the total adjustment from line 38. 2011 1040 forms Column 1, line 8. 2011 1040 forms Ida enters the deduction for her personal exemption of $3,700 for 2011. 2011 1040 forms Column 1, line 9. 2011 1040 forms After combining lines 2 through 8, Ida's modified taxable income is $29,475. 2011 1040 forms Column 1, line 10. 2011 1040 forms Ida figures her carryover to 2012 by subtracting her modified taxable income (line 9) from her NOL deduction (line 1). 2011 1040 forms She enters the $6,525 carryover on line 10. 2011 1040 forms She also enters the $6,525 as her NOL deduction for 2012 on Form 1045, page 1, line 10, in the “After carryback” column under the column for the first preceding tax year ended 12/31/12. 2011 1040 forms (For an illustrated example of page 1 of Form 1045, see Illustrated Form 1045 under How To Claim an NOL Deduction , earlier. 2011 1040 forms ) Next, Ida completes column 2 for the first preceding tax year ended 12/31/12. 2011 1040 forms Column 1, line 11. 2011 1040 forms Ida's adjusted gross income for 2011 was $35,000. 2011 1040 forms Column 1, line 12. 2011 1040 forms She adds lines 3 through 6 and enters $1,000 on line 12. 2011 1040 forms (This is her net capital loss deduction added back, which modifies her adjusted gross income. 2011 1040 forms ) Column 1, line 13. 2011 1040 forms Her modified adjusted gross income for 2011 is now $36,000. 2011 1040 forms Column 1, line 14. 2011 1040 forms On her 2011 tax return, she deducted $375 as medical expenses. 2011 1040 forms Column 1, line 15. 2011 1040 forms Her actual medical expenses were $3,000. 2011 1040 forms Column 1, line 16. 2011 1040 forms She multiplies her modified adjusted gross income, $36,000, by . 2011 1040 forms 075. 2011 1040 forms She enters $2,700 on line 16. 2011 1040 forms Column 1, line 17. 2011 1040 forms She substracts $2,700 from her actual medical expenses, $3,000. 2011 1040 forms She enters $300 on line 17. 2011 1040 forms This is her modified medical deduction. 2011 1040 forms Column 1, line 18. 2011 1040 forms The difference between her medical deduction and her modified medical deduction is $75. 2011 1040 forms She enters this on line 18. 2011 1040 forms Column 1, lines 19 through 21. 2011 1040 forms Ida had no deduction for qualified mortgage insurance premiums in 2011. 2011 1040 forms She skips lines 19 and 20 and enters zero on line 21. 2011 1040 forms Column 1, line 22. 2011 1040 forms She enters her modified adjusted gross income of $36,000 on line 22. 2011 1040 forms Column 1, line 23. 2011 1040 forms She had no other carrybacks to 2011 and enters zero on line 23. 2011 1040 forms Column 1, line 24. 2011 1040 forms Her modified adjusted gross income remains $36,000. 2011 1040 forms Column 1, line 25. 2011 1040 forms Her actual contributions for 2011 were $1,450, which she enters on line 25. 2011 1040 forms Column 1, line 26. 2011 1040 forms She now refigures her charitable contributions based on her modified adjusted gross income. 2011 1040 forms Her contributions are well below the 50% limit, so she enters $1,450 on line 26. 2011 1040 forms Column 1, line 27. 2011 1040 forms The difference is zero. 2011 1040 forms Column 1, lines 28 through 37. 2011 1040 forms Ida had no casualty losses or deductions for miscellaneous items in 2011. 2011 1040 forms She skips lines 28 through 31 and lines 33 through 36. 2011 1040 forms Ida enters zero on lines 32 and 37. 2011 1040 forms Column 1, line 38. 2011 1040 forms She combines lines 18, 21, 27, 32, and 37 and enters $75 on line 38. 2011 1040 forms She carries this figure to line 7. 2011 1040 forms Column 2, line 1. 2011 1040 forms Ida enters $6,525, the carryback of her 2013 NOL to 2012, from column 1, line 10, on line 1. 2011 1040 forms Column 2, line 2. 2011 1040 forms She enters ($425), her 2012 taxable income, on line 2. 2011 1040 forms Column 2, line 3. 2011 1040 forms Ida enters her net capital loss deduction of $3,000 on line 3. 2011 1040 forms Column 2, lines 4 and 5. 2011 1040 forms Ida had no section 1202 exclusion or domestic production activities deduction in 2012. 2011 1040 forms She enters zero on lines 4 and 5. 2011 1040 forms Column 2, line 6. 2011 1040 forms Although Ida's entry on line 3 modifies her adjusted gross income, that does not affect any other items included in her adjusted gross income. 2011 1040 forms Ida enters zero on line 6. 2011 1040 forms Column 2, line 7. 2011 1040 forms Because Ida did not itemize deductions on her 2012 tax return, she enters zero on line 7. 2011 1040 forms Column 2, line 8. 2011 1040 forms Ida enters the deduction for her personal exemption of $3,800 for 2012. 2011 1040 forms Column 2, line 9. 2011 1040 forms After combining lines 2 through 8, Ida's modified taxable income is $6,375. 2011 1040 forms Column 2, line 10. 2011 1040 forms Ida figures her carryforward to 2014 by subtracting her modified taxable income (line 9) from her NOL deduction (line 1). 2011 1040 forms She enters the $150 carryover on line 10. 2011 1040 forms This image is too large to be displayed in the current screen. 2011 1040 forms Please click the link to view the image. 2011 1040 forms Form 1045, page 3 This image is too large to be displayed in the current screen. 2011 1040 forms Please click the link to view the image. 2011 1040 forms Form 1045, page 4 NOL Carryover From 2013 to 2014 If you had an NOL deduction carried forward from a year prior to 2013 that resulted in your having taxable income on your 2013 return of zero (of less than zero, if an estate or trust), complete Table 1 , Worksheet for NOL Carryover From 2013 to 2014, on the following pages. 2011 1040 forms It will help you figure your NOL to carry to 2014. 2011 1040 forms Keep the worksheet for your records. 2011 1040 forms Worksheet Instructions At the top of the worksheet, enter the NOL year for which you are figuring the carryover. 2011 1040 forms More than one NOL. 2011 1040 forms   If your 2013 NOL deduction includes amounts for more than one loss year, complete this worksheet only for one loss year. 2011 1040 forms To determine which year, start with your earliest NOL and subtract each NOL separately from your taxable income figured without the NOL deduction. 2011 1040 forms Complete this worksheet for the earliest NOL that results in your having taxable income below zero. 2011 1040 forms Your NOL carryover to 2014 is the total of the amount on line 10 of the worksheet and all later NOL amounts. 2011 1040 forms Example. 2011 1040 forms Your taxable income for 2013 is $5,000 without your $9,000 NOL deduction. 2011 1040 forms Your NOL deduction includes a $2,000 carryover from 2011 and a $7,000 carryover from 2012. 2011 1040 forms Subtract your 2011 NOL of $2,000 from $5,000. 2011 1040 forms This gives you taxable income of $3,000. 2011 1040 forms Your 2011 NOL is now completely used up. 2011 1040 forms Subtract your $7,000 2012 NOL from $3,000. 2011 1040 forms This gives you taxable income of ($4,000). 2011 1040 forms You now complete the worksheet for your 2012 NOL. 2011 1040 forms Your NOL carryover to 2014 is the unused part of your 2012 NOL from line 10 of the worksheet. 2011 1040 forms Line 2. 2011 1040 forms   Treat your NOL deduction for the NOL year entered at the top of the worksheet and later years as a positive amount. 2011 1040 forms Add it to your negative taxable income (figured without the NOL deduction). 2011 1040 forms Enter the result on line 2. 2011 1040 forms Line 6. 2011 1040 forms   You must refigure the following income and deductions based on adjusted gross income. 2011 1040 forms The special allowance for passive activity losses from rental real estate activities. 2011 1040 forms Taxable social security and tier 1 railroad retirement benefits. 2011 1040 forms IRA deductions. 2011 1040 forms Excludable savings bond interest. 2011 1040 forms Excludable employer-provided adoption benefits. 2011 1040 forms The student loan interest deduction. 2011 1040 forms The tuition and fees deduction. 2011 1040 forms   If none of these items apply to you, enter zero on line 6. 2011 1040 forms Otherwise, increase your adjusted gross income by the total of lines 3 through 5 and your NOL deduction for the NOL year entered at the top of the worksheet and later years. 2011 1040 forms Using this increased adjusted gross income, refigure the items that apply, in the order listed above. 2011 1040 forms Your adjustment for each item is the difference between the refigured amount and the amount included on your return. 2011 1040 forms Combine the adjustments for previous items with your adjusted gross income before refiguring the next item. 2011 1040 forms Keep a record of your computations. 2011 1040 forms   Enter your total adjustments for the above items on line 6. 2011 1040 forms Line 7. 2011 1040 forms   Enter zero if you claimed the standard deduction or the amounts on lines 3 through 5 are zero. 2011 1040 forms Otherwise, use lines 11 through 33 of the worksheet to figure the amount to enter on this line. 2011 1040 forms Complete only those sections that apply to you. 2011 1040 forms Estates and trusts. 2011 1040 forms   Enter zero on line 7 if you did not claim any miscellaneous deductions on Form 1041, line 15c, or a casualty or theft loss. 2011 1040 forms Otherwise, refigure these deductions by substituting modified adjusted gross income (see below ) for adjusted gross income. 2011 1040 forms Subtract the recomputed deductions from those claimed on the return. 2011 1040 forms Enter the result on line 7. 2011 1040 forms Modified adjusted gross income. 2011 1040 forms   To refigure miscellaneous itemized deductions of an estate or trust (Form 1041, line 15c), modified adjusted gross income is the total of the following amounts. 2011 1040 forms The adjusted gross income on the return. 2011 1040 forms The amounts from lines 3 through 5 of the worksheet. 2011 1040 forms The exemption amount from Form 1041, line 20. 2011 1040 forms The NOL deduction for the NOL year entered at the top of the worksheet and for later years. 2011 1040 forms   To refigure the casualty and theft loss deduction of an estate or trust, modified adjusted gross income is the total of the following amounts. 2011 1040 forms The adjusted gross income amount you used to figure the deduction claimed on the return. 2011 1040 forms The amounts from lines 3 through 5 of the worksheet. 2011 1040 forms The NOL deduction for the NOL year entered at the top of the worksheet and for later years. 2011 1040 forms Line 11. 2011 1040 forms   Treat your NOL deduction for the NOL year entered at the top of the worksheet and for later years as a positive amount. 2011 1040 forms Add it to your adjusted gross income. 2011 1040 forms Enter the result on line 11. 2011 1040 forms Line 20. 2011 1040 forms   Is your modified adjusted gross income from line 13 of this worksheet more than $100,000 ($50,000 if married filing separately)?   □ Yes. 2011 1040 forms Your deduction is limited. 2011 1040 forms Refigure your deduction using the Mortgage Insurance Premiums Deduction Worksheet in the 2013 Instructions for Form 1045. 2011 1040 forms On line 2 of the Mortgage Insurance Premiums Deduction Worksheet, enter the amount from line 13 of this worksheet. 2011 1040 forms   □ No. 2011 1040 forms Your deduction is not limited. 2011 1040 forms Enter the amount from line 19 on line 20 and enter -0- on line 21. 2011 1040 forms Line 23. 2011 1040 forms   If you had a contributions carryover from 2012 to 2013 and your NOL deduction includes an amount from an NOL year before 2012, you may have to reduce your contributions carryover. 2011 1040 forms Reduce the contributions carryover by the amount of any adjustment you made to your 2012 charitable contributions deduction when figuring your NOL carryover to 2013. 2011 1040 forms Use the reduced contributions carryover to figure the amount to enter on line 23. 2011 1040 forms Please click here for the text description of the image. 2011 1040 forms Worksheet for NOL Carryover Worksheet for NOL Carryover (Continued) How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. 2011 1040 forms Free help with your tax return. 2011 1040 forms   You can get free help preparing your return nationwide from IRS-certified volunteers. 2011 1040 forms The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. 2011 1040 forms The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 2011 1040 forms Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 2011 1040 forms In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. 2011 1040 forms To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. 2011 1040 forms gov, download the IRS2Go app, or call 1-800-906-9887. 2011 1040 forms   As part of the TCE program, AARP offers the Tax-Aide counseling program. 2011 1040 forms To find the nearest AARP Tax-Aide site, visit AARP's website at www. 2011 1040 forms aarp. 2011 1040 forms org/money/taxaide or call 1-888-227-7669. 2011 1040 forms For more information on these programs, go to IRS. 2011 1040 forms gov and enter “VITA” in the search box. 2011 1040 forms Internet. 2011 1040 forms    IRS. 2011 1040 forms gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. 2011 1040 forms Download the free IRS2Go app from the iTunes app store or from Google Play. 2011 1040 forms Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. 2011 1040 forms Check the status of your 2013 refund with the Where's My Refund? application on IRS. 2011 1040 forms gov or download the IRS2Go app and select the Refund Status option. 2011 1040 forms The IRS issues more than 9 out of 10 refunds in less than 21 days. 2011 1040 forms Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. 2011 1040 forms You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. 2011 1040 forms The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 2011 1040 forms Use the Interactive Tax Assistant (ITA) to research your tax questions. 2011 1040 forms No need to wait on the phone or stand in line. 2011 1040 forms The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. 2011 1040 forms When you reach the response screen, you can print the entire interview and the final response for your records. 2011 1040 forms New subject areas are added on a regular basis. 2011 1040 forms  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. 2011 1040 forms gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. 2011 1040 forms You can use the IRS Tax Map to search publications and instructions by topic or keyword. 2011 1040 forms The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. 2011 1040 forms When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. 2011 1040 forms Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. 2011 1040 forms You can also ask the IRS to mail a return or an account transcript to you. 2011 1040 forms Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. 2011 1040 forms gov or by calling 1-800-908-9946. 2011 1040 forms Tax return and tax account transcripts are generally available for the current year and the past three years. 2011 1040 forms Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. 2011 1040 forms Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. 2011 1040 forms If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. 2011 1040 forms Check the status of your amended return using Where's My Amended Return? Go to IRS. 2011 1040 forms gov and enter Where's My Amended Return? in the search box. 2011 1040 forms You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 2011 1040 forms It can take up to 3 weeks from the date you mailed it to show up in our system. 2011 1040 forms Make a payment using one of several safe and convenient electronic payment options available on IRS. 2011 1040 forms gov. 2011 1040 forms Select the Payment tab on the front page of IRS. 2011 1040 forms gov for more information. 2011 1040 forms Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. 2011 1040 forms Figure your income tax withholding with the IRS Withholding Calculator on IRS. 2011 1040 forms gov. 2011 1040 forms Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. 2011 1040 forms Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. 2011 1040 forms gov. 2011 1040 forms Request an Electronic Filing PIN by going to IRS. 2011 1040 forms gov and entering Electronic Filing PIN in the search box. 2011 1040 forms Download forms, instructions and publications, including accessible versions for people with disabilities. 2011 1040 forms Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. 2011 1040 forms gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. 2011 1040 forms An employee can answer questions about your tax account or help you set up a payment plan. 2011 1040 forms Before you visit, check the Office Locator on IRS. 2011 1040 forms gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. 2011 1040 forms If you have a special need, such as a disability, you can request an appointment. 2011 1040 forms Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. 2011 1040 forms Apply for an Employer Identification Number (EIN). 2011 1040 forms Go to IRS. 2011 1040 forms gov and enter Apply for an EIN in the search box. 2011 1040 forms Read the Internal Revenue Code, regulations, or other official guidance. 2011 1040 forms Read Internal Revenue Bulletins. 2011 1040 forms Sign up to receive local and national tax news and more by email. 2011 1040 forms Just click on “subscriptions” above the search box on IRS. 2011 1040 forms gov and choose from a variety of options. 2011 1040 forms Phone. 2011 1040 forms    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. 2011 1040 forms Download the free IRS2Go app from the iTunes app store or from Google Play. 2011 1040 forms Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. 2011 1040 forms gov, or download the IRS2Go app. 2011 1040 forms Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. 2011 1040 forms The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 2011 1040 forms Most VITA and TCE sites offer free electronic filing. 2011 1040 forms Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. 2011 1040 forms Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. 2011 1040 forms Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. 2011 1040 forms If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. 2011 1040 forms The IRS issues more than 9 out of 10 refunds in less than 21 days. 2011 1040 forms Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. 2011 1040 forms Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. 2011 1040 forms The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 2011 1040 forms Note, the above information is for our automated hotline. 2011 1040 forms Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. 2011 1040 forms Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. 2011 1040 forms You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 2011 1040 forms It can take up to 3 weeks from the date you mailed it to show up in our system. 2011 1040 forms Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). 2011 1040 forms You should receive your order within 10 business days. 2011 1040 forms Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. 2011 1040 forms If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. 2011 1040 forms Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. 2011 1040 forms The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. 2011 1040 forms These individuals can also contact the IRS through relay services such as the Federal Relay Service. 2011 1040 forms Walk-in. 2011 1040 forms   You can find a selection of forms, publications and services — in person. 2011 1040 forms Products. 2011 1040 forms You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 2011 1040 forms Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 2011 1040 forms Services. 2011 1040 forms You can walk in to your local TAC for face-to-face tax help. 2011 1040 forms An employee can answer questions about your tax account or help you set up a payment plan. 2011 1040 forms Before visiting, use the Office Locator tool on IRS. 2011 1040 forms gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. 2011 1040 forms Mail. 2011 1040 forms   You can send your order for forms, instructions, and publications to the address below. 2011 1040 forms You should receive a response within 10 business days after your request is received. 2011 1040 forms Internal Revenue Service 1201 N. 2011 1040 forms Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. 2011 1040 forms The Taxpayer Advocate Service (TAS) is your voice at the IRS. 2011 1040 forms Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. 2011 1040 forms   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. 2011 1040 forms We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. 2011 1040 forms You face (or your business is facing) an immediate threat of adverse action. 2011 1040 forms You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. 2011 1040 forms   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. 2011 1040 forms Here's why we can help: TAS is an independent organization within the IRS. 2011 1040 forms Our advocates know how to work with the IRS. 2011 1040 forms Our services are free and tailored to meet your needs. 2011 1040 forms We have offices in every state, the District of Columbia, and Puerto Rico. 2011 1040 forms   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. 2011 1040 forms   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. 2011 1040 forms If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. 2011 1040 forms Low Income Taxpayer Clinics Low Income