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2012 tax software download 19. 2012 tax software download   Ajustes Tributarios por Estudios Table of Contents Introduction Useful Items - You may want to see: Deducción por Intereses sobre Préstamos de EstudiosDefinición de los Intereses sobre Préstamos de Estudios ¿Puede Reclamar la Deducción? ¿Cuánto Puede Deducir? ¿Cómo Calcular la Deducción? Deducción por Matrícula y Cuotas Escolares¿Puede Reclamar la Deducción? Gastos que Califican Estudiante que Reúne los Requisitos Quién Puede Reclamar los Gastos de un Dependiente Cuánto se Puede Deducir Gastos del Educador Introduction Este capítulo trata de ajustes relacionados con la educación que puede deducir al calcular el ingreso bruto ajustado. 2012 tax software download Este capítulo incluye información sobre la deducción por intereses sobre préstamos de estudios, la deducción de matrículas y cuotas escolares y la deducción por gastos del educador. 2012 tax software download Useful Items - You may want to see: Publicación 970 Tax Benefits for Education (Beneficios tributarios por estudios), en inglés Deducción por Intereses sobre Préstamos de Estudios Por lo general, los intereses personales que pague, salvo ciertos intereses hipotecarios, no son deducibles en la declaración de impuestos. 2012 tax software download No obstante, si su ingreso bruto ajustado modificado (MAGI, por sus siglas en inglés) es menos de $75,000 ($155,000 si presenta una declaración conjunta), se permite una deducción especial por los intereses pagados sobre préstamos de estudios (también conocidos como préstamos educativos) utilizados para enseñanza superior. 2012 tax software download Para la mayoría de los contribuyentes, el MAGI es el ingreso bruto ajustado en la declaración de impuestos federales sobre el ingreso antes de restar deducción alguna por intereses sobre préstamos de estudios. 2012 tax software download Esta deducción puede reducir la cantidad de su ingreso sujeto a impuestos hasta un máximo de $2,500 en el año 2013. 2012 tax software download La Tabla 19-1 resume características de la deducción por intereses sobre préstamos de estudios. 2012 tax software download Tabla 19-1. 2012 tax software download Resumen de la Deducción por Intereses sobre Préstamos de Estudios No se base únicamente en esta tabla. 2012 tax software download Consulte el texto para más detalles. 2012 tax software download Característica Descripción Beneficio máximo Puede reducir su ingreso tributable hasta un máximo de $2,500. 2012 tax software download Requisitos para obtener un préstamo Su préstamo de estudios: •  tiene que haber sido obtenido sólo para pagar gastos de estudios calificados y   • no puede ser de un pariente ni puede haberse hecho conforme a un plan calificado provisto por su empleador. 2012 tax software download Requisitos para estudiantes El estudiante tiene que: • ser usted, su cónyuge o su dependiente y   • estar matriculado por lo menos a tiempo parcial en un programa que lleve a obtener un título, certificación o cualquier otra credencial educacional en una institución educativa que reúne los requisitos. 2012 tax software download Plazo de la deducción Puede deducir intereses pagados durante el período que quede del préstamo de estudios. 2012 tax software download Eliminación gradual por fases La cantidad a deducir depende del nivel de ingresos. 2012 tax software download Definición de los Intereses sobre Préstamos de Estudios Los “intereses sobre préstamos de estudios” son intereses que usted pagó durante el año sobre un préstamo de estudios calificado. 2012 tax software download Incluyen tanto pagos de intereses obligatorios como pagos de intereses voluntarios. 2012 tax software download Préstamo de estudios calificado Éste es un préstamo que se obtuvo únicamente para pagar gastos de estudios calificados (definidos más adelante) que fueran: Para usted, su cónyuge o una persona que fue dependiente de usted (según se define en el capítulo 3) cuando obtuvo el préstamo; Pagados o incurridos dentro de un plazo razonable antes o después de que obtuviera el préstamo y Para estudios provistos durante un período académico cuando un estudiante reúne los requisitos. 2012 tax software download Los préstamos de las siguientes fuentes no son préstamos de estudios calificados: Un pariente. 2012 tax software download Un plan calificado proporcionado por un empleador. 2012 tax software download Excepciones. 2012 tax software download   Para propósitos de la deducción de intereses sobre un préstamo de estudios, las siguientes excepciones corresponden a las reglas generales para dependientes: Una persona puede ser su dependiente aunque usted mismo sea el dependiente de otro contribuyente. 2012 tax software download Una persona puede ser su dependiente aunque dicha persona presente una declaración conjunta con un cónyuge. 2012 tax software download Una persona puede ser su dependiente aunque dicha persona tuviera un ingreso bruto ese año que fuera igual o superior a la cantidad de exención para el año ($3,900 para el año 2013). 2012 tax software download Plazo razonable. 2012 tax software download   Los gastos de estudios calificados se consideran pagados u ocasionados dentro de un plazo razonable, antes o después de obtener el préstamo, si se pagan con fondos de préstamos de estudios que son parte de un programa federal de préstamos de estudios postsecundarios. 2012 tax software download   Aun si no se pagan con fondos de dicho tipo de préstamo, los gastos se consideran pagados u ocasionados dentro de un plazo razonable si se reúnen los dos siguientes requisitos: Los gastos se relacionan con un período académico específico. 2012 tax software download Los fondos del préstamo se desembolsan dentro de un período que comience 90 días antes del período académico y termine 90 días después del fin de dicho período. 2012 tax software download   Si ninguna de las situaciones indicadas anteriormente le corresponde, el plazo razonable se determina basándose en todos los hechos y circunstancias pertinentes. 2012 tax software download Período académico. 2012 tax software download   Un período académico incluye un semestre, trimestre, un cuatrimestre del año escolar u otro período de estudios (tal como un curso escolar de verano) según lo determine de manera razonable una institución de enseñanza superior. 2012 tax software download En el caso de una institución de enseñanza superior que no tenga períodos académicos, sino horas de crédito u horas de reloj, cada período de pago se puede considerar un período académico. 2012 tax software download Estudiante que reúne los requisitos. 2012 tax software download   Es un estudiante que estaba matriculado por lo menos a medio tiempo en un programa para obtener una licenciatura, un certificado u otro título educativo reconocido. 2012 tax software download Matriculado por lo menos a medio tiempo. 2012 tax software download   Un estudiante se considera que estaba matriculado por lo menos a medio tiempo si estaba tomando al menos la mitad de los cursos normales a tiempo completo de su programa de estudios. 2012 tax software download   Cada institución de enseñanza superior que reúna los requisitos establece lo que se considera la mitad de la carga académica habitual para ser estudiante a tiempo completo. 2012 tax software download No obstante, este estándar establecido no puede ser inferior a cualquiera que haya establecido el Departamento de Educación de los Estados Unidos conforme a la Higher Education Act (Ley de Enseñanza Superior) de 1965. 2012 tax software download Pariente. 2012 tax software download   No puede deducir intereses sobre un préstamo que obtenga de un pariente. 2012 tax software download Los parientes incluyen: Su cónyuge; Sus hermanos y hermanas; Sus medios hermanos y medias hermanas; Sus antecesores (padres, abuelos, etc. 2012 tax software download ); Sus descendientes en línea directa (hijos, nietos, etc. 2012 tax software download ) y Ciertas sociedades anónimas, sociedades colectivas, fideicomisos y organizaciones exentas de impuestos. 2012 tax software download Plan calificado proporcionado por un empleador. 2012 tax software download   No puede deducir intereses sobre un préstamo conforme a un plan calificado proporcionado por un empleador o bajo un contrato comprado conforme a tal plan. 2012 tax software download Gastos de Estudios Calificados Para propósitos de la deducción por intereses sobre préstamos de estudios, estos gastos son el total del costo de asistir a una institución de enseñanza superior que reúna los requisitos, incluyendo instituciones para estudios de posgrado. 2012 tax software download Incluyen cantidades pagadas por los siguientes conceptos: Matrícula y cuotas escolares. 2012 tax software download Alojamiento y comida. 2012 tax software download Libros, materiales y equipo. 2012 tax software download Otros gastos necesarios (tales como los de transporte). 2012 tax software download Los gastos de alojamiento y comida reúnen los requisitos sólo en la medida en que no sobrepasen las siguientes cantidades: La asignación para alojamiento y comida, según lo determine la institución de enseñanza superior correspondiente, que se incluyó en los gastos de asistencia a dicha institución (para propósitos de ayuda financiera federal) durante un período académico específico y alojamiento del estudiante, o Si es mayor, la cantidad exacta cobrada si el estudiante vive en alojamiento que sea propiedad de la institución de enseñanza superior que reúna los requisitos o sea operado por la misma. 2012 tax software download Institución de enseñanza superior que reúne los requisitos. 2012 tax software download   Una institución de enseñanza superior que reúne los requisitos es todo colegio universitario, universidad, escuelas de enseñanza técnica u otra institución de enseñanza superior todas con derecho a participar en un programa de asistencia financiera al estudiante, administrado por el Departamento de Educación de los Estados Unidos. 2012 tax software download Esta clase de institución abarca prácticamente todas las instituciones acreditadas de enseñanza superior públicas y sin fines de lucro así como las privadas con fines de lucro. 2012 tax software download   Determinadas instituciones de enseñanza superior ubicadas fuera de los Estados Unidos participan también en los programas de asistencia financiera al estudiante (Federal Student Aid (FSA, por sus siglas en inglés)) del Departamento de Educación de los Estados Unidos. 2012 tax software download   Para propósitos de la deducción por intereses sobre préstamos de estudios, una institución de enseñanza superior que reúne los requisitos incluye también una institución que administre un programa de estudiantes practicantes o de residencia para recibir un título universitario o un certificado de una institución de enseñanza superior, un hospital o un centro de atención médica que ofrezca capacitación de posgrado. 2012 tax software download   Una institución de enseñanza superior tiene que reunir los criterios establecidos en el párrafo anterior solamente durante el (los) período(s) académico(s) para el (los) cual(es) se incurrió el préstamo de estudios. 2012 tax software download La posibilidad de deducir los intereses sobre el préstamo no se ve afectada si la institución deja de reunir los requisitos más tarde. 2012 tax software download    La institución de enseñanza superior debe poder indicarle si la misma reúne los requisitos. 2012 tax software download Ajustes tributarios a gastos de estudios calificados. 2012 tax software download   Tiene que reducir sus gastos de estudios calificados por ciertos artículos exentos de impuestos (tales como la parte exenta de impuestos de becas de estudios y becas de investigación (becas de desarrollo profesional)). 2012 tax software download Vea el capítulo 4 de la Publicación 970, en inglés, para más detalles. 2012 tax software download Incluya estas Partidas como Intereses Además de los intereses simples sobre el préstamo, ciertos costos originarios del préstamo, intereses capitalizados, intereses sobre líneas de crédito rotativas e intereses sobre préstamos de estudios refinanciados pueden ser intereses sobre préstamos de estudios si se reúnen todos los demás requisitos. 2012 tax software download Costo originario del préstamo. 2012 tax software download   Normalmente, esto es un cargo que el prestamista cobra solamente una vez, al hacer un préstamo. 2012 tax software download Para ser deducible como intereses, dicho cargo tiene que ser por el uso de dinero en vez de bienes o servicios (como cargos por compromisos o costos de tramitación) proporcionados por el prestamista. 2012 tax software download Un costo originario del préstamo tratado como intereses se acumula a lo largo del plazo del préstamo. 2012 tax software download Intereses capitalizados. 2012 tax software download    Son intereses por pagar sobre un préstamo de estudios que el prestamista añade al saldo pendiente del capital del préstamo. 2012 tax software download Intereses sobre líneas de crédito rotativas. 2012 tax software download   Estos intereses, los cuales incluyen interés sobre deudas de tarjetas de crédito, es interés sobre préstamos de estudios si el prestatario usa la línea de crédito (tarjeta de crédito) sólo para pagar gastos de estudios calificados. 2012 tax software download Vea Gastos de Estudios Calificados , anteriormente. 2012 tax software download Intereses sobre préstamos de estudios refinanciados. 2012 tax software download   Incluyen intereses sobre lo siguiente: Préstamos consolidados —préstamos que se usan para refinanciar más de un préstamo de estudios del mismo prestatario y Préstamos conjuntos —dos o más préstamos del mismo prestatario que son tratados como un solo préstamo tanto por el prestamista como por el prestatario. 2012 tax software download Si refinancia un préstamo de estudios calificado por más del préstamo original y usa la cantidad adicional para algún propósito que no sea gastos de estudios calificados, no puede deducir los intereses pagados sobre el préstamo refinanciado. 2012 tax software download Pagos de intereses voluntarios. 2012 tax software download   Son pagos hechos sobre un préstamo de estudios calificado durante un período en el que los pagos de intereses no son obligatorios, por ejemplo, si al prestatario se le ha concedido un aplazamiento o si todavía no han empezado los reintegros del préstamo. 2012 tax software download No Incluya estas Partidas como Intereses No puede reclamar una deducción de intereses sobre préstamos de estudios por: Intereses que pagó sobre un préstamo si, según las condiciones del mismo, usted no está obligado legalmente a hacer pagos de intereses. 2012 tax software download Costos originarios del préstamo pagados por propiedad o servicios proporcionados por el prestamista, tales como cargos por compromiso o costos de tramitación. 2012 tax software download Intereses que pagó sobre un préstamo en la medida en que los pagos hayan sido hechos a través de su participación en el National Health Service Corps Loan Repayment Program (Programa para Reintegros de Préstamos del Cuerpo Nacional de Servicios de Salud), conocido también como el “ NHSC Loan Repayment Program ” (Programa para Reintegros de Préstamos del NHSC) o a través de otros programas de asistencia para el reintegro de préstamos. 2012 tax software download Para más información, vea Student Loan Repayment Assistance (Asistencia para el reintegro de préstamos de estudios) en el capítulo 5 de la Publicación 970, en inglés. 2012 tax software download ¿Puede Reclamar la Deducción? Normalmente, puede reclamar la deducción si se cumplen todos los requisitos siguientes: Su estado civil para efectos de la declaración es cualquier estado civil excepto casado que presenta su declaración por separado. 2012 tax software download Nadie más reclama una exención por usted en su declaración de impuestos. 2012 tax software download Está obligado por ley a pagar intereses sobre un préstamo de estudios calificado. 2012 tax software download Usted pagó intereses sobre un préstamo de estudios calificado. 2012 tax software download Intereses pagados por otros. 2012 tax software download   Si usted es la persona legalmente obligada a pagar intereses y otra persona los paga por usted, a usted se le trata como si hubiese recibido el pago de la otra persona y, a su vez, hubiese pagado los intereses. 2012 tax software download Vea el capítulo 4 de la Publicación 970, en inglés, para más información. 2012 tax software download No se Permite Beneficio Doble No puede deducir como intereses sobre un préstamo de estudios una cantidad que sea deducible conforme a alguna otra disposición de la ley tributaria (por ejemplo, intereses hipotecarios). 2012 tax software download ¿Cuánto Puede Deducir? Su deducción por intereses sobre préstamos de estudios para el año 2013 es normalmente la cantidad que sea menor entre: $2,500 o Los intereses que usted pagó en el año 2013. 2012 tax software download Sin embargo, la cantidad determinada anteriormente se reduce paulatinamente si su MAGI está entre $60,000 y $75,000 ($125,000 y $155,000 si presenta una declaración conjunta). 2012 tax software download No puede tomar una deducción por intereses sobre préstamos de estudios si su MAGI es $75,000 o más ($155,000 o más si presenta una declaración conjunta). 2012 tax software download Para más detalles sobre cómo calcular su MAGI, vea el capítulo 4 de la Publicación 970, en inglés. 2012 tax software download ¿Cómo Calcular la Deducción? Para calcular la deducción, se suele usar la Student Loan Interest Deduction Worksheet (Hoja de trabajo de la deducción de intereses sobre préstamos de estudios), de las instrucciones del Formulario 1040 o del Formulario 1040A. 2012 tax software download No obstante, si presenta el Formulario 2555, 2555-EZ o 4563, o si excluye ingresos de fuentes dentro de Puerto Rico, tiene que llenar la Hoja de Trabajo 4-1 del capítulo 4 de la Publicación 970, en inglés. 2012 tax software download Para ayudarle a calcular la deducción por intereses sobre préstamos de estudios, debe recibir el Formulario 1098-E, Student Loan Interest Statement (Declaración de intereses sobre préstamos de estudios), en inglés. 2012 tax software download Generalmente, una institución (como un banco o una agencia gubernamental) que recibió pagos de intereses de $600 o más durante el año 2013 sobre uno o más préstamos de estudios calificados tiene que enviarle el Formulario 1098-E (o documento sustitutivo aceptable) a cada prestatario a más tardar el 31 de enero del año 2014. 2012 tax software download Para los préstamos de estudios calificados que se obtuvieron antes del 1 de septiembre de 2004, la institución está obligada a anotar en el Formulario 1098-E solamente los pagos de intereses establecidos. 2012 tax software download Puede ser que otros pagos de intereses, tales como ciertos costos originarios del préstamo e intereses capitalizados, no aparezcan en el formulario que usted reciba. 2012 tax software download No obstante, si paga intereses calificados que no se incluyen en el Formulario 1098-E, también puede deducir esas cantidades. 2012 tax software download Para información sobre cómo dividir pagos de intereses y pagos de capital, vea el capítulo 4 de la Publicación 970, en inglés. 2012 tax software download Para reclamar la deducción, anote la cantidad permisible en la línea 33 del Formulario 1040 o la línea 18 del Formulario 1040A. 2012 tax software download Deducción por Matrícula y Cuotas Escolares Quizás pueda deducir los gastos de estudios calificados que haya pagado durante el año para usted, su cónyuge o dependiente(s). 2012 tax software download No puede reclamar esta deducción si su estado civil para efectos de la declaración es casado que presenta la declaración por separado o si otra persona puede reclamar una exención por usted como dependiente en la declaración de impuestos de él o ella. 2012 tax software download Los gastos calificados tienen que ser por educación superior, tal como se explica más adelante en Gastos que Califican . 2012 tax software download La deducción por matrícula y cuotas escolares puede reducir la cantidad de sus ingresos sujetos a impuesto por hasta $4,000. 2012 tax software download La Tabla 19-2 resume las características de la deducción por matrícula y cuotas escolares. 2012 tax software download Quizás pueda tomar un crédito por sus gastos de estudios en lugar de una deducción. 2012 tax software download Puede escoger la opción que le proporcione una cantidad de impuesto menor. 2012 tax software download Vea el capítulo 35, Créditos Tributarios por Estudios , para saber detalles sobre los créditos. 2012 tax software download ¿Puede Reclamar la Deducción? Las siguientes reglas le pueden ayudar a determinar si puede reclamar la deducción por matrícula y cuotas escolares. 2012 tax software download Quién Puede Reclamar la Deducción La deducción por matrícula y gastos de estudios normalmente se puede reclamar si usted cumple los tres siguientes requisitos: Pagó gastos de educación superior calificados en 2013 para los períodos académicos que comienzan en 2013 y los que comienzan en los primeros tres meses de 2014. 2012 tax software download Pagó los gastos de estudios de un estudiante que reúne los requisitos. 2012 tax software download El estudiante que cumple los requisitos es usted mismo, su cónyuge o dependiente por el cual reclama una exención (que se define en el capítulo 3) en su declaración de impuestos. 2012 tax software download Los gastos de estudios calificados se definen bajo Gastos que Califican . 2012 tax software download La definición de “estudiantes que reúnen los requisitos” se puede ver más adelante bajo Estudiante que Reúne los Requisitos . 2012 tax software download Quién No Puede Reclamar la Deducción No puede reclamar la deducción por matrícula y cuotas escolares si le corresponde cualquiera de las siguientes situaciones: Su estado civil para efectos de la declaración de impuestos es casado que presenta por separado. 2012 tax software download Otra persona puede reclamar una exención por usted en la declaración de impuestos de él o ella. 2012 tax software download Usted no puede tomar la deducción aun si la otra persona de hecho no reclama la exención. 2012 tax software download Su MAGI es mayor que $80,000 ($160,000 si presenta una declaración conjunta). 2012 tax software download Usted (o su cónyuge) era un extranjero no residente en cualquier momento durante el año 2013 y dicho extranjero no residente no optó por ser tratado como extranjero residente para propósitos tributarios. 2012 tax software download Puede leer más información sobre extranjeros no residentes en la Publicación 519, U. 2012 tax software download S. 2012 tax software download Tax Guide for Aliens (Guía tributaria para extranjeros), en inglés. 2012 tax software download Usted o cualquier otra persona puede reclamar un crédito tributario de oportunidad para los estadounidenses o un crédito vitalicio por aprendizaje en el año 2013 en lo que concierne a los gastos del estudiante por el cual se pagaron gastos de estudios calificados. 2012 tax software download No obstante, el recibir un crédito por parte de su estado no lo descalifica de reclamar una deducción por matrícula y cuotas. 2012 tax software download Tabla 19-2. 2012 tax software download Resumen de las Características de la Deducción por Matrícula y Cuotas Escolares No se base únicamente en lo que aparece en esta tabla. 2012 tax software download Consulte el texto de este capítulo para más detalles. 2012 tax software download Pregunta Respuesta ¿Cuál es la cantidad máxima del beneficio? Usted puede reducir la cantidad de sus ingresos sujetos a impuestos por hasta $4,000. 2012 tax software download ¿Dónde se toma la deducción? Se toma como ajuste a los ingresos en la línea 34 del Formulario 1040 o en la línea 19 del Formulario 1040A. 2012 tax software download ¿Para quién tienen que ser pagados los gastos? Un estudiante que está matriculado en una institución de enseñanza superior que reúne los requisitos quien es: usted, su cónyuge o su dependiente por el cual reclama una exención. 2012 tax software download ¿Qué matrícula y cuotas escolares son deducibles? La matrícula y cuotas escolares requeridas para matricularse o para asistir a una institución de enseñanza superior que reúne los requisitos, pero que no incluyen gastos personales, de manutención ni gastos de familia, tales como alojamiento y comida. 2012 tax software download Gastos que Califican La deducción por matrícula y cuotas escolares se basa en los gastos de estudios calificados que paga por usted mismo, su cónyuge o por un dependiente por el cual usted reclama una exención en su declaración de impuestos. 2012 tax software download La deducción normalmente se permite por gastos de estudios calificados que fueron pagados en el año 2013 relacionados con la matriculación en una institución de educación superior durante el año 2013 o por un período académico (que se definió anteriormente bajo Deducción por Intereses sobre Préstamos de Estudios ) comenzando en 2013 o en los primeros 3 meses de 2014. 2012 tax software download Pagos hechos con fondos de un préstamo. 2012 tax software download   Puede reclamar una deducción por matrícula y cuotas escolares en base de gastos de estudios calificados que pagó con los fondos de un préstamo. 2012 tax software download Utilice los gastos para calcular la deducción para el año en que se pagaron los gastos, no para el año en que se liquidó el préstamo. 2012 tax software download Trate los pagos del préstamo que fueron enviados directamente a la institución de educación como si hubieran sido pagados en la fecha en que dicha institución abona la cuenta del estudiante. 2012 tax software download Estudiante que se da de baja de su(s) clase(s). 2012 tax software download   Usted puede reclamar una deducción por matrícula y cuotas escolares en base de gastos de estudios calificados que no se reembolsan cuando un estudiante se da de baja (retira) de su(s) clase(s). 2012 tax software download Gastos de Estudios Calificados Para propósitos de la deducción por matrícula y cuotas escolares, los gastos de estudios calificados son la matrícula y ciertos gastos relacionados que son requisitos para la matriculación o asistencia en una institución de educación superior que reúne los requisitos. 2012 tax software download Institución de educación que reúne los requisitos. 2012 tax software download   Una “institución de educación superior que reúne los requisitos” es cualquier colegio universitario, universidad, escuela de enseñanza técnica u otra institución de enseñanza superior con derecho a participar en un programa de asistencia financiera al estudiante, administrado por el Departamento de Educación de los Estados Unidos. 2012 tax software download Incluye prácticamente a casi todas las instituciones acreditadas de enseñanza superior públicas y sin fines de lucro así como las privadas con fines de lucro. 2012 tax software download La institución de educación superior deberá poder indicarle si la misma reúne los requisitos. 2012 tax software download   Ciertas instituciones de educación ubicadas fuera de los Estados Unidos participan también en los programas de FSA del Departamento de Educación de los Estados Unidos. 2012 tax software download Período académico. 2012 tax software download   Un período académico abarca un semestre, trimestre, un cuatrimestre o cualquier otro período de estudios según lo determine de manera razonable una institución de educación que reúne los requisitos. 2012 tax software download Si una institución de educación que reúne los requisitos no tiene períodos académicos sino horas de crédito, cada período de pago se puede considerar como un período académico. 2012 tax software download Gastos relacionados. 2012 tax software download   Las cuotas correspondientes a las actividades escolares y los gastos incurridos por los textos, útiles y equipo escolares se incluyen en los gastos de estudios calificados únicamente si las cuotas y gastos tienen que ser pagados a la institución como requisito de la matriculación o asistencia en dicha institución. 2012 tax software download Gastos pagados por adelantado. 2012 tax software download   Gastos de estudios calificados pagados en el año 2013 para un período académico que comienza en los primeros tres meses de 2014, sólo se pueden utilizar para calcular la deducción por matrícula y cuotas escolares de 2013. 2012 tax software download Vea Período académico, anteriormente. 2012 tax software download Por ejemplo, si usted paga $2,000 en diciembre de 2013 para matrícula calificada por el cuatrimestre del invierno de 2014 que comienza en enero de 2014, puede utilizar los $2,000 en el cálculo de la deducción por matrícula y cuotas escolares sólo para 2013, únicamente si reúne todos los otros requisitos. 2012 tax software download No puede utilizar cantidad alguna que pagó en 2012 ó 2014 para calcular los gastos de estudios calificados que utiliza para el cálculo de su deducción por matrícula y cuotas escolares de 2013. 2012 tax software download No Se Permite Beneficio Doble No se le permite deducir lo siguiente: Los gastos de estudios calificados que usted deduce conforme a cualquier otra disposición de la ley, como, por ejemplo, un gasto de negocios. 2012 tax software download Los gastos de estudios calificados de un estudiante en su declaración de impuestos si usted o cualquier otra persona reclama un crédito tributario de oportunidad para los estadounidenses o un crédito vitalicio por aprendizaje por el mismo estudiante en el mismo año. 2012 tax software download Los gastos de estudios calificados que se utilizaron para calcular la parte libre de impuestos de una distribución proveniente de una cuenta Coverdell de ahorros para la educación (ESA, por sus siglas en inglés) o de un programa de matrículas calificado (QTP, por sus siglas en inglés). 2012 tax software download En el caso de un QTP, esto corresponde sólo a la cantidad de ganancias exentas de impuesto que fueron distribuidas, no a la recuperación de las contribuciones hechas al programa. 2012 tax software download Vea los temas titulados Figuring the Taxable Portion of a Distribution (Cálculo de la parte sujeta a impuesto de una distribución) del capítulo 7 (Coverdell Education Savings Account (ESA) (Cuenta Coverdell de ahorros para la educación (ESA)) y del capítulo 8 (Qualified Tuition Progam (QTP)) (Programa de matrícula calificado (QTP)), de la Publicación 970, en inglés. 2012 tax software download Los gastos de estudios calificados que han sido pagados con intereses exentos de impuestos provenientes de un bono de ahorros de los Estados Unidos (Formulario 8815, en inglés). 2012 tax software download Vea Figuring the Tax-Free Amount (Cálculo de la cantidad libre de impuestos), en el capítulo 10 de la Publicación 970, en inglés. 2012 tax software download Los gastos de estudios calificados que han sido pagados con ayuda económica para los estudios que estén exentos de impuestos, tales como becas de estudios, subvenciones o ayuda económica para los estudios provista por el empleador. 2012 tax software download Vea a continuación el tema titulado Ajustes a los gastos de estudios calificados. 2012 tax software download Ajustes a los gastos de estudios calificados. 2012 tax software download   Para cada estudiante, se tienen que reducir los gastos de estudios calificados pagados por o en nombre de dicho estudiante bajo las siguientes reglas. 2012 tax software download El resultado es el ajuste a los gastos de estudios calificados por cada estudiante. 2012 tax software download Ayuda económica para los estudios exenta de impuestos. 2012 tax software download   Por la ayuda económica para los estudios exenta de impuestos que recibió en 2013, tiene que reducir los gastos de estudios calificados para cada período académico por la cantidad de la ayuda económica para los estudios exenta de impuestos de dicho período. 2012 tax software download Vea Período académico, anteriormente. 2012 tax software download   Dicha asistencia incluye: La parte libre de impuestos de becas de estudios y becas de investigación (becas de desarrollo profesional), incluidas las subvenciones federales Pell (vea el capítulo 1 de la Publicación 970); La parte libre de impuestos de toda ayuda económica para estudios provista por el empleador (vea el capítulo 11 de la Publicación 970); Ayuda económica para estudios ofrecida a veteranos (vea el capítulo 1 de la Publicación 970) y Todo otro pago exento de impuestos (que no sean regalos o herencias) que se recibe en concepto de ayuda para estudios. 2012 tax software download   Por lo general, todas las becas de estudios o becas de investigación (becas de desarrollo profesional) son tratadas como una ayuda económica para los estudios exenta de impuestos. 2012 tax software download Sin embargo, una beca de estudios o beca de investigación (becas de desarrollo profesional) no será tratada como asistencia exenta de impuestos al punto de que es incluida como ingreso bruto (si tiene que presentar una declaración de impuestos) para el año que reciba la beca de estudios o para investigación (becas de desarrollo profesional) si uno de estos dos puntos aplica: La beca de estudios o beca de investigación (becas de desarrollo profesional) (o cualquier parte de dicha beca) tiene que ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de educación calificados), de la Publicación 970, en inglés. 2012 tax software download La beca de estudios o beca de investigación (becas de desarrollo profesional) (o cualquier parte de dicha beca) puede ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés. 2012 tax software download    Podría aumentar el valor combinado de la deducción por matrícula y cuotas escolares y cierta ayuda económica para los estudios si incluye alguna parte o toda la ayuda económica para los estudios en sus ingresos en el año en que recibió dicha ayuda. 2012 tax software download Para detalles, vea Adjustments to Qualified Education Expenses (Ajustes a los gastos de estudios calificados), en el capítulo 6 de la Publicación 970, en inglés. 2012 tax software download   Cierta ayuda económica para los estudios exenta de impuestos recibida después de 2013 podría ser considerada como un reembolso de gastos de estudios calificados que se pagó en 2013. 2012 tax software download La ayuda económica para los estudios exenta de impuestos incluye toda ayuda económica para los estudios exenta de impuestos que usted o cualquier otra persona ha recibido después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 (o atribuible a la matriculación en una institución educativa calificada durante 2013). 2012 tax software download   Si la ayuda económica para los estudios exenta de impuestos se recibe después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos, más adelante. 2012 tax software download Si la ayuda económica para los estudios exenta de impuestos se recibe después de 2013 y después de que presenta su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos, más adelante. 2012 tax software download Reembolsos. 2012 tax software download   Un reembolso de gastos de estudios calificados puede reducir los ajustes a los gastos de estudios calificados por el año tributable o puede requerir que reintegre parte o el total del reembolso en su ingreso bruto para el año en que recibe el reembolso. 2012 tax software download Vea el capítulo 6 de la Publicación 970 para obtener más información. 2012 tax software download Alguna ayuda económica para los estudios exenta de impuestos recibida después de 2013 puede ser tratada como un reembolso. 2012 tax software download Vea Ayuda económica para los estudios exenta de impuestos, anteriormente. 2012 tax software download Reembolsos recibidos en 2013. 2012 tax software download   Por cada estudiante, calcule los gastos de estudios calificados ajustados de 2013 sumando todos los gastos de estudios calificados pagados en 2013 y restando todos los reembolsos de esos gastos recibidos de la institución educativa que reúne los requisitos durante 2013. 2012 tax software download Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos. 2012 tax software download   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 y el reembolso es recibido antes de presentar su declaración de impuestos sobre los ingresos de 2013, reduzca la cantidad de gastos de estudios calificados de 2013 por la cantidad del reembolso. 2012 tax software download Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos. 2012 tax software download   Si recibe un reembolso después de 2013 por gastos de estudios calificados pagados en 2013 y el reembolso es recibido después de presentar su declaración de impuestos sobre los ingresos de 2013, puede ser que tenga que incluir parte o todo el reembolso en su ingreso bruto del año en que recibió el reembolso. 2012 tax software download Vea el capítulo 6 de la Publicación 970, en inglés, para más información. 2012 tax software download Coordinación con cuentas Coverdell de ahorros para la educación y programas calificados de matrícula. 2012 tax software download   Debe reducir sus gastos de estudios calificados por los gastos de estudios calificados utilizados para calcular la exclusión del ingreso bruto de (a) los intereses recibidos bajo un programa de bonos de ahorro educativos o (b) cualquier distribución desde una cuenta Coverdell de ahorros para la educación o programa calificado de matrícula (QTP, por sus siglas en inglés). 2012 tax software download Para un programa QTP, esto se aplica solamente a la cantidad exenta de impuestos que fueron distribuidos, no a la recuperación de contribuciones al programa. 2012 tax software download Cantidades que no reducen los gastos de estudios calificados. 2012 tax software download   No reduzca los gastos de estudios calificados por las cantidades pagadas con fondos que el estudiante ha recibido por concepto de: Pagos por prestar servicios, como salarios, Un préstamo, Un regalo, Una herencia o Un retiro de fondos de una cuenta de ahorros personal del estudiante. 2012 tax software download   No reduzca los gastos de estudios calificados por cantidades de becas de estudios o becas de investigación (becas de desarrollo profesional) que se declaran como ingresos en la declaración de impuestos del estudiante en las siguientes circunstancias: El uso de dinero se restringe, por los términos de la beca de estudios o beca de investigación (becas de desarrollo profesional), a los costos de asistencia (como alojamiento y comida) que no sean gastos de estudios calificados. 2012 tax software download El uso de dinero no se restringe. 2012 tax software download Gastos que no Califican Los gastos de estudios calificados no incluyen cantidades pagadas en concepto de: Seguros; Gastos médicos (incluidas las cuotas del seguro médico escolar ofrecido por la institución); Alojamiento y comida; Transporte o Gastos personales, de manutención o relacionados a la familia que sean semejantes. 2012 tax software download Esto corresponde aun si se tienen que pagar dichas cantidades a la institución como requisito de matriculación o asistencia. 2012 tax software download Deportes, juegos, pasatiempos y cursos que no ofrecen créditos académicos. 2012 tax software download   Normalmente, los gastos de estudios calificados no incluyen gastos que corresponden a un curso de enseñanza u otro curso educativo en que se desempeñen deportes, juegos, pasatiempos o un curso que no ofrece créditos académicos. 2012 tax software download No obstante, si el curso de enseñanza u otro curso educativo es parte del programa de estudios del estudiante para obtener una licenciatura u otro título educativo reconocido, los gastos entonces sí pueden calificar. 2012 tax software download Cuotas íntegras o en conjunto. 2012 tax software download   Algunas instituciones de educación superior que reúnen los requisitos combinan o consolidan todas sus cuotas para un período académico en una sola cantidad. 2012 tax software download Si no recibe, o no tiene acceso a un estado de cuentas o asignación que muestra cuánto pagó usted en concepto de gastos de estudios calificados y cuánto pagó en concepto de gastos personales, como los que se mencionaron anteriormente, comuníquese con la institución. 2012 tax software download La institución tiene la obligación de redactar ese estado de cuentas o asignación y de proveerle a usted información sobre la cantidad que usted pagó (o que se le facturó) por los gastos de estudios calificados en el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés. 2012 tax software download Vea el tema Cómo se Calcula la Deducción , más adelante, para mayor información sobre el Formulario 1098-T. 2012 tax software download Estudiante que Reúne los Requisitos Para propósitos de la deducción por matrícula y cuotas escolares, un “estudiante que reúne los requisitos” es aquél que está matriculado en uno o más cursos en una institución de educación superior que reúne los requisitos (que se definió anteriormente). 2012 tax software download Quién Puede Reclamar los Gastos de un Dependiente Para poder reclamar la deducción por matrícula y cuotas escolares de un dependiente, usted tiene, normalmente, que: Haber pagado los gastos y Reclamar una exención de dependiente por el estudiante. 2012 tax software download La Tabla 19-3 resume quién puede reclamar la deducción. 2012 tax software download Cuánto se Puede Deducir La cantidad máxima por concepto de matrícula y cuotas escolares para 2013 es $4,000, $2,000 o $0, dependiendo de la cantidad de su MAGI. 2012 tax software download Para detalles sobre el cálculo de su MAGI, vea el capítulo 6 de la Publicación 970. 2012 tax software download Cómo se Calcula la Deducción Calcule la deducción utilizando el Formulario 8917, Tuition and Fees Deduction (Deducción por matrícula y cuotas), en inglés. 2012 tax software download Para ayudarle a calcular su deducción por matrícula y cuotas escolares, debe recibir el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés. 2012 tax software download Por lo general, una institución de educación superior que reúne los requisitos (como un colegio universitario o universidad) tiene que enviarle el Formulario 1098-T (o una declaración sustitutiva similar y aceptable) a cada estudiante matriculado para el 31 de enero de 2014. 2012 tax software download Para reclamar la deducción, anote la cantidad permitida en la línea 34 del Formulario 1040 o en la línea 19 del Formulario 1040A, y adjunte el Formulario 8917 que ha completado debidamente. 2012 tax software download Tabla 19-3. 2012 tax software download Quién Puede Reclamar los Gastos de un Dependiente No se base únicamente en lo que aparece en esta tabla. 2012 tax software download Consulte Who can claim a Dependent's Expenses (Quién puede reclamar los gastos de un dependiente), en el capítulo 6 de la Publicación 970, en inglés. 2012 tax software download SI su dependiente es un estudiante que reúne los requisitos y usted . 2012 tax software download . 2012 tax software download . 2012 tax software download Y. 2012 tax software download . 2012 tax software download . 2012 tax software download ENTONCES. 2012 tax software download . 2012 tax software download . 2012 tax software download reclama una exención por su dependiente usted paga todos los gastos de estudios calificados de su dependiente sólo usted puede deducir los gastos de estudios calificados que usted pagó. 2012 tax software download Su dependiente no puede tomar la deducción. 2012 tax software download reclama una exención por su dependiente su dependiente pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. 2012 tax software download no reclama una exención por su dependiente usted pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. 2012 tax software download no reclama una exención por su dependiente su dependiente pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. 2012 tax software download Gastos del Educador Si usted fue un educador que reúne los requisitos en el año 2013, puede deducir en la línea 23 del Formulario 1040 o en la línea 16 del Formulario 1040A, hasta $250 por concepto de gastos calificados que usted pagó en 2013. 2012 tax software download Si usted y su cónyuge están presentando una declaración de impuestos conjunta y si ambos de ustedes son educadores que reúnen los requisitos, la cantidad máxima que pueden deducir es $500. 2012 tax software download No obstante eso, ningún cónyuge puede deducir más de $250 en gastos calificados que él o ella ha pagado en la línea 23 del Formulario 1040 o en la línea 16 del Formulario 1040A. 2012 tax software download Usted quizás pueda deducir gastos que son mayores del límite de $250 (o $500) en la línea 21 del Anexo A (Formulario 1040). 2012 tax software download Educador que reúne los requisitos. 2012 tax software download   Un “educador que reúne los requisitos” es un maestro de primaria, instructor, consejero, director o ayudante, de kínder (jardín de infancia) hasta doceavo grado, que ha trabajado por lo menos 900 horas durante el año escolar. 2012 tax software download Gastos calificados. 2012 tax software download   En los gastos calificados se incluyen los gastos ordinarios (normales) y necesarios que se han pagado por libros, útiles, equipo (incluyendo equipo, programas y servicios para la computadora) y otros suministros y materiales que se utilizan en el aula. 2012 tax software download Un “gasto ordinario” es aquél que es común y aceptado en el campo educativo. 2012 tax software download Un “gasto necesario” es uno que es útil y apropiado en el desempeño de su profesión de educador. 2012 tax software download Un gasto no tiene que ser obligatorio para considerarse necesario. 2012 tax software download   Los gastos calificados no incluyen los gastos por enseñanza impartida en el hogar ni por artículos para cursos de salud o de educación física que no se usan en el desempeño del deporte. 2012 tax software download   Usted tiene que restar de sus gastos calificados las siguientes cantidades: Intereses de bonos de ahorros de los Estados Unidos de la serie EE y de la serie I que pueden excluirse de los ingresos y que provienen del Formulario 8815, Exclusion of Interest From Series EE and I U. 2012 tax software download S. 2012 tax software download Savings Bonds Issued After 1989 (Exclusión de los intereses provenientes de bonos de ahorros estadounidenses de las series EE e I emitidos después de 1989), en inglés. 2012 tax software download Vea el tema titulado Figuring the Tax-Free Amount (Cálculo de la cantidad exenta de impuestos), en el capítulo 10 de la Publicación 970, en inglés. 2012 tax software download Distribuciones o ganancias provenientes de un programa de matrícula calificado que no están sujetas a impuestos. 2012 tax software download Vea el tema titulado Figuring the Taxable Portion of a Distribution (Cálculo de la parte de una distribución sujeta a impuestos), en el capítulo 8 de la Publicación 970. 2012 tax software download Una distribución de ganancias no sujeta a impuestos proveniente de una cuenta Coverdell de ahorros para la educación. 2012 tax software download Vea el tema titulado Figuring the Taxable Portion of a Distribution (Cálculo de la parte de una distribución sujeta a impuestos), en el capítulo 7 de la Publicación 970. 2012 tax software download Todo reembolso de dichos gastos que haya recibido y del cual no se le haya informado en el recuadro 1 del Formulario W-2. 2012 tax software download Prev  Up  Next   Home   More Online Publications
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Understanding Your CP187 Notice

You received this notice to remind you of the amount you owe in tax, penalty and interest.


What you need to do

  • Read your notice carefully ― it will explain how much money you owe on your taxes.

You may want to...


Answers to Common Questions

  • Am I charged interest on the money I owe?
    Yes, interest accrues on your unpaid balance until you pay it in full.

  • Do I receive a penalty if I cannot pay the full amount?
    Yes, you receive a late payment penalty.

  • What happens if I cannot pay the full amount I owe?
    You can arrange to make a payment plan with us if you cannot pay the full amount you owe.

  • How can I set up a payment plan?
    Call the toll-free number listed on the top right corner of your notice to discuss payment options or learn more about payment arrangements here.

  • What’s a Federal Tax Deposit Coupon Book? Do I need one?
    The coupon book allows you to make deposits at your bank of various business taxes such as income tax withholding, Social Security tax and Medicare tax collected from your employees’ pay. You can also make your tax liability deposits electronically through the Electronic Federal Tax Deposit System. If your employment taxes are less than $2500 each quarter, you can submit your employment tax payment with your Form 941, Employer’s QUARTERLY Federal Tax Return.

  •  


  • Tips for next year

    Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions for which you may qualify. In many cases, you can file free. Learn more about how to file electronically here.


    Understanding your notice

    Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

    Notice CP187, Page 1

    Notice CP187, Page 2

    Notice CP187, Page 3

Page Last Reviewed or Updated: 09-Dec-2013

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The 2012 Tax Software Download

2012 tax software download Publication 541 - Main Content Table of Contents Forming a PartnershipOrganizations Classified as Partnerships Family Partnership Partnership Agreement Terminating a PartnershipIRS e-file (Electronic Filing) Exclusion From Partnership Rules Partnership Return (Form 1065) Partnership DistributionsSubstantially appreciated inventory items. 2012 tax software download Partner's Gain or Loss Partner's Basis for Distributed Property Transactions Between Partnership and PartnersGuaranteed Payments Sale or Exchange of Property Contribution of Property Contribution of Services Basis of Partner's InterestAdjusted Basis Effect of Partnership Liabilities Disposition of Partner's InterestSale, Exchange, or Other Transfer Payments for Unrealized Receivables and Inventory Items Liquidation at Partner's Retirement or Death Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA)Partnership Item. 2012 tax software download Small Partnerships and the Small Partnership Exception Small Partnership TEFRA Election Role of Tax Matters Partner (TMP) in TEFRA Proceedings Statute of Limitations and TEFRA Amended Returns and Administrative Adjustment Requests (AARs) How To Get Tax Help Forming a Partnership The following sections contain general information about partnerships. 2012 tax software download Organizations Classified as Partnerships An unincorporated organization with two or more members is generally classified as a partnership for federal tax purposes if its members carry on a trade, business, financial operation, or venture and divide its profits. 2012 tax software download However, a joint undertaking merely to share expenses is not a partnership. 2012 tax software download For example, co-ownership of property maintained and rented or leased is not a partnership unless the co-owners provide services to the tenants. 2012 tax software download The rules you must use to determine whether an organization is classified as a partnership changed for organizations formed after 1996. 2012 tax software download Organizations formed after 1996. 2012 tax software download   An organization formed after 1996 is classified as a partnership for federal tax purposes if it has two or more members and it is none of the following. 2012 tax software download An organization formed under a federal or state law that refers to it as incorporated or as a corporation, body corporate, or body politic. 2012 tax software download An organization formed under a state law that refers to it as a joint-stock company or joint-stock association. 2012 tax software download An insurance company. 2012 tax software download Certain banks. 2012 tax software download An organization wholly owned by a state, local, or foreign government. 2012 tax software download An organization specifically required to be taxed as a corporation by the Internal Revenue Code (for example, certain publicly traded partnerships). 2012 tax software download Certain foreign organizations identified in section 301. 2012 tax software download 7701-2(b)(8) of the regulations. 2012 tax software download A tax-exempt organization. 2012 tax software download A real estate investment trust. 2012 tax software download An organization classified as a trust under section 301. 2012 tax software download 7701-4 of the regulations or otherwise subject to special treatment under the Internal Revenue Code. 2012 tax software download Any other organization that elects to be classified as a corporation by filing Form 8832. 2012 tax software download For more information, see the instructions for Form 8832. 2012 tax software download Limited liability company. 2012 tax software download   A limited liability company (LLC) is an entity formed under state law by filing articles of organization as an LLC. 2012 tax software download Unlike a partnership, none of the members of an LLC are personally liable for its debts. 2012 tax software download An LLC may be classified for federal income tax purposes as either a partnership, a corporation, or an entity disregarded as an entity separate from its owner by applying the rules in Regulations section 301. 2012 tax software download 7701-3. 2012 tax software download See Form 8832 and section 301. 2012 tax software download 7701-3 of the regulations for more details. 2012 tax software download A domestic LLC with at least two members that does not file Form 8832 is classified as a partnership for federal income tax purposes. 2012 tax software download Organizations formed before 1997. 2012 tax software download   An organization formed before 1997 and classified as a partnership under the old rules will generally continue to be classified as a partnership as long as the organization has at least two members and does not elect to be classified as a corporation by filing Form 8832. 2012 tax software download Community property. 2012 tax software download    Spouses who own a qualified entity (defined later) can choose to classify the entity as a partnership for federal tax purposes by filing the appropriate partnership tax returns. 2012 tax software download They can choose to classify the entity as a sole proprietorship by filing a Schedule C (Form 1040) listing one spouse as the sole proprietor. 2012 tax software download A change in reporting position will be treated for federal tax purposes as a conversion of the entity. 2012 tax software download   A qualified entity is a business entity that meets all the following requirements. 2012 tax software download The business entity is wholly owned by spouses as community property under the laws of a state, a foreign country, or a possession of the United States. 2012 tax software download No person other than one or both spouses would be considered an owner for federal tax purposes. 2012 tax software download The business entity is not treated as a corporation. 2012 tax software download   For more information about community property, see Publication 555, Community Property. 2012 tax software download Publication 555 discusses the community property laws of Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. 2012 tax software download Family Partnership Members of a family can be partners. 2012 tax software download However, family members (or any other person) will be recognized as partners only if one of the following requirements is met. 2012 tax software download If capital is a material income-producing factor, they acquired their capital interest in a bona fide transaction (even if by gift or purchase from another family member), actually own the partnership interest, and actually control the interest. 2012 tax software download If capital is not a material income-producing factor, they joined together in good faith to conduct a business. 2012 tax software download They agreed that contributions of each entitle them to a share in the profits, and some capital or service has been (or is) provided by each partner. 2012 tax software download Capital is material. 2012 tax software download   Capital is a material income-producing factor if a substantial part of the gross income of the business comes from the use of capital. 2012 tax software download Capital is ordinarily an income-producing factor if the operation of the business requires substantial inventories or investments in plants, machinery, or equipment. 2012 tax software download Capital is not material. 2012 tax software download   In general, capital is not a material income-producing factor if the income of the business consists principally of fees, commissions, or other compensation for personal services performed by members or employees of the partnership. 2012 tax software download Capital interest. 2012 tax software download   A capital interest in a partnership is an interest in its assets that is distributable to the owner of the interest in either of the following situations. 2012 tax software download The owner withdraws from the partnership. 2012 tax software download The partnership liquidates. 2012 tax software download   The mere right to share in earnings and profits is not a capital interest in the partnership. 2012 tax software download Gift of capital interest. 2012 tax software download   If a family member (or any other person) receives a gift of a capital interest in a partnership in which capital is a material income-producing factor, the donee's distributive share of partnership income is subject to both of the following restrictions. 2012 tax software download It must be figured by reducing the partnership income by reasonable compensation for services the donor renders to the partnership. 2012 tax software download The donee's distributive share of partnership income attributable to donated capital must not be proportionately greater than the donor's distributive share attributable to the donor's capital. 2012 tax software download Purchase. 2012 tax software download   For purposes of determining a partner's distributive share, an interest purchased by one family member from another family member is considered a gift from the seller. 2012 tax software download The fair market value of the purchased interest is considered donated capital. 2012 tax software download For this purpose, members of a family include only spouses, ancestors, and lineal descendants (or a trust for the primary benefit of those persons). 2012 tax software download Example. 2012 tax software download A father sold 50% of his business to his son. 2012 tax software download The resulting partnership had a profit of $60,000. 2012 tax software download Capital is a material income-producing factor. 2012 tax software download The father performed services worth $24,000, which is reasonable compensation, and the son performed no services. 2012 tax software download The $24,000 must be allocated to the father as compensation. 2012 tax software download Of the remaining $36,000 of profit due to capital, at least 50%, or $18,000, must be allocated to the father since he owns a 50% capital interest. 2012 tax software download The son's share of partnership profit cannot be more than $18,000. 2012 tax software download Business owned and operated by spouses. 2012 tax software download   If spouses carry on a business together and share in the profits and losses, they may be partners whether or not they have a formal partnership agreement. 2012 tax software download If so, they should report income or loss from the business on Form 1065. 2012 tax software download They should not report the income on a Schedule C (Form 1040) in the name of one spouse as a sole proprietor. 2012 tax software download However, the spouses can elect not to treat the joint venture as a partnership by making a Qualified Joint Venture Election. 2012 tax software download Qualified Joint Venture Election. 2012 tax software download   A "qualified joint venture," whose only members are spouses filing a joint return, can elect not to be treated as a partnership for federal tax purposes. 2012 tax software download A qualified joint venture conducts a trade or business where: the only members of the joint venture are spouses filing jointly; both spouses elect not to be treated as a partnership; both spouses materially participate in the trade or business (see Passive Activity Limitations in the Instructions for Form 1065 for a definition of material participation); and the business is co-owned by both spouses and is not held in the name of a state law entity such as a partnership or LLC. 2012 tax software download   Under this election, a qualified joint venture conducted by spouses who file a joint return is not treated as a partnership for federal tax purposes and therefore does not have a Form 1065 filing requirement. 2012 tax software download All items of income, gain, deduction, loss, and credit are divided between the spouses based on their respective interests in the venture. 2012 tax software download Each spouse takes into account his or her respective share of these items as a sole proprietor. 2012 tax software download Each spouse would account for his or her respective share on the appropriate form, such as Schedule C (Form 1040). 2012 tax software download For purposes of determining net earnings from self-employment, each spouse's share of income or loss from a qualified joint venture is taken into account just as it is for federal income tax purposes (i. 2012 tax software download e. 2012 tax software download , based on their respective interests in the venture). 2012 tax software download   If the spouses do not make the election to treat their respective interests in the joint venture as sole proprietorships, each spouse should carry his or her share of the partnership income or loss from Schedule K-1 (Form 1065) to their joint or separate Form(s) 1040. 2012 tax software download Each spouse should include his or her respective share of self-employment income on a separate Schedule SE (Form 1040), Self-Employment Tax. 2012 tax software download   This generally does not increase the total tax on the return, but it does give each spouse credit for social security earnings on which retirement benefits are based. 2012 tax software download However, this may not be true if either spouse exceeds the social security tax limitation. 2012 tax software download   For more information on qualified joint ventures, go to IRS. 2012 tax software download gov, enter “Election for Qualified Joint Ventures” in the search box and select the link reading “Election for Husband and Wife Unincorporated Businesses. 2012 tax software download ” Partnership Agreement The partnership agreement includes the original agreement and any modifications. 2012 tax software download The modifications must be agreed to by all partners or adopted in any other manner provided by the partnership agreement. 2012 tax software download The agreement or modifications can be oral or written. 2012 tax software download Partners can modify the partnership agreement for a particular tax year after the close of the year but not later than the date for filing the partnership return for that year. 2012 tax software download This filing date does not include any extension of time. 2012 tax software download If the partnership agreement or any modification is silent on any matter, the provisions of local law are treated as part of the agreement. 2012 tax software download Terminating a Partnership A partnership terminates when one of the following events takes place. 2012 tax software download All its operations are discontinued and no part of any business, financial operation, or venture is continued by any of its partners in a partnership. 2012 tax software download At least 50% of the total interest in partnership capital and profits is sold or exchanged within a 12-month period, including a sale or exchange to another partner. 2012 tax software download Unlike other partnerships, an electing large partnership does not terminate on the sale or exchange of 50% or more of the partnership interests within a 12-month period. 2012 tax software download See section 1. 2012 tax software download 708-1(b) of the regulations for more information on the termination of a partnership. 2012 tax software download For special rules that apply to a merger, consolidation, or division of a partnership, see sections 1. 2012 tax software download 708-1(c) and 1. 2012 tax software download 708-1(d) of the regulations. 2012 tax software download Date of termination. 2012 tax software download   The partnership's tax year ends on the date of termination. 2012 tax software download For the event described in (1), above, the date of termination is the date the partnership completes the winding up of its affairs. 2012 tax software download For the event described in (2), above, the date of termination is the date of the sale or exchange of a partnership interest that, by itself or together with other sales or exchanges in the preceding 12 months, transfers an interest of 50% or more in both capital and profits. 2012 tax software download Short period return. 2012 tax software download   If a partnership is terminated before the end of what would otherwise be its tax year, Form 1065 must be filed for the short period, which is the period from the beginning of the tax year through the date of termination. 2012 tax software download The return is due the 15th day of the fourth month following the date of termination. 2012 tax software download See Partnership Return (Form 1065), later, for information about filing Form 1065. 2012 tax software download Conversion of partnership into limited liability company (LLC). 2012 tax software download   The conversion of a partnership into an LLC classified as a partnership for federal tax purposes does not terminate the partnership. 2012 tax software download The conversion is not a sale, exchange, or liquidation of any partnership interest; the partnership's tax year does not close; and the LLC can continue to use the partnership's taxpayer identification number. 2012 tax software download   However, the conversion may change some of the partners' bases in their partnership interests if the partnership has recourse liabilities that become nonrecourse liabilities. 2012 tax software download Because the partners share recourse and nonrecourse liabilities differently, their bases must be adjusted to reflect the new sharing ratios. 2012 tax software download If a decrease in a partner's share of liabilities exceeds the partner's basis, he or she must recognize gain on the excess. 2012 tax software download For more information, see Effect of Partnership Liabilities under Basis of Partner's Interest, later. 2012 tax software download   The same rules apply if an LLC classified as a partnership is converted into a partnership. 2012 tax software download IRS e-file (Electronic Filing) Please click here for the text description of the image. 2012 tax software download e-file Certain partnerships with more than 100 partners are required to file Form 1065, Schedules K-1, and related forms and schedules electronically (e-file). 2012 tax software download Other partnerships generally have the option to file electronically. 2012 tax software download For details about IRS e-file, see the Form 1065 instructions. 2012 tax software download Exclusion From Partnership Rules Certain partnerships that do not actively conduct a business can choose to be completely or partially excluded from being treated as partnerships for federal income tax purposes. 2012 tax software download All the partners must agree to make the choice, and the partners must be able to compute their own taxable income without computing the partnership's income. 2012 tax software download However, the partners are not exempt from the rule that limits a partner's distributive share of partnership loss to the adjusted basis of the partner's partnership interest. 2012 tax software download Nor are they exempt from the requirement of a business purpose for adopting a tax year for the partnership that differs from its required tax year. 2012 tax software download Investing partnership. 2012 tax software download   An investing partnership can be excluded if the participants in the joint purchase, retention, sale, or exchange of investment property meet all the following requirements. 2012 tax software download They own the property as co-owners. 2012 tax software download They reserve the right separately to take or dispose of their shares of any property acquired or retained. 2012 tax software download They do not actively conduct business or irrevocably authorize some person acting in a representative capacity to purchase, sell, or exchange the investment property. 2012 tax software download Each separate participant can delegate authority to purchase, sell, or exchange his or her share of the investment property for the time being for his or her account, but not for a period of more than a year. 2012 tax software download Operating agreement partnership. 2012 tax software download   An operating agreement partnership group can be excluded if the participants in the joint production, extraction, or use of property meet all the following requirements. 2012 tax software download They own the property as co-owners, either in fee or under lease or other form of contract granting exclusive operating rights. 2012 tax software download They reserve the right separately to take in kind or dispose of their shares of any property produced, extracted, or used. 2012 tax software download They do not jointly sell services or the property produced or extracted. 2012 tax software download Each separate participant can delegate authority to sell his or her share of the property produced or extracted for the time being for his or her account, but not for a period of time in excess of the minimum needs of the industry, and in no event for more than one year. 2012 tax software download However, this exclusion does not apply to an unincorporated organization one of whose principal purposes is cycling, manufacturing, or processing for persons who are not members of the organization. 2012 tax software download Electing the exclusion. 2012 tax software download   An eligible organization that wishes to be excluded from the partnership rules must make the election not later than the time for filing the partnership return for the first tax year for which exclusion is desired. 2012 tax software download This filing date includes any extension of time. 2012 tax software download See Regulations section 1. 2012 tax software download 761-2(b) for the procedures to follow. 2012 tax software download Partnership Return (Form 1065) Every partnership that engages in a trade or business or has gross income must file an information return on Form 1065 showing its income, deductions, and other required information. 2012 tax software download The partnership return must show the names and addresses of each partner and each partner's distributive share of taxable income. 2012 tax software download The return must be signed by a general partner. 2012 tax software download If a limited liability company is treated as a partnership, it must file Form 1065 and one of its members must sign the return. 2012 tax software download A partnership is not considered to engage in a trade or business, and is not required to file a Form 1065, for any tax year in which it neither receives income nor pays or incurs any expenses treated as deductions or credits for federal income tax purposes. 2012 tax software download See the Instructions for Form 1065 for more information about who must file Form 1065. 2012 tax software download Partnership Distributions Partnership distributions include the following. 2012 tax software download A withdrawal by a partner in anticipation of the current year's earnings. 2012 tax software download A distribution of the current year's or prior years' earnings not needed for working capital. 2012 tax software download A complete or partial liquidation of a partner's interest. 2012 tax software download A distribution to all partners in a complete liquidation of the partnership. 2012 tax software download A partnership distribution is not taken into account in determining the partner's distributive share of partnership income or loss. 2012 tax software download If any gain or loss from the distribution is recognized by the partner, it must be reported on his or her return for the tax year in which the distribution is received. 2012 tax software download Money or property withdrawn by a partner in anticipation of the current year's earnings is treated as a distribution received on the last day of the partnership's tax year. 2012 tax software download Effect on partner's basis. 2012 tax software download   A partner's adjusted basis in his or her partnership interest is decreased (but not below zero) by the money and adjusted basis of property distributed to the partner. 2012 tax software download See Adjusted Basis under Basis of Partner's Interest, later. 2012 tax software download Effect on partnership. 2012 tax software download   A partnership generally does not recognize any gain or loss because of distributions it makes to partners. 2012 tax software download The partnership may be able to elect to adjust the basis of its undistributed property. 2012 tax software download Certain distributions treated as a sale or exchange. 2012 tax software download   When a partnership distributes the following items, the distribution may be treated as a sale or exchange of property rather than a distribution. 2012 tax software download Unrealized receivables or substantially appreciated inventory items distributed in exchange for any part of the partner's interest in other partnership property, including money. 2012 tax software download Other property (including money) distributed in exchange for any part of a partner's interest in unrealized receivables or substantially appreciated inventory items. 2012 tax software download   See Payments for Unrealized Receivables and Inventory Items under Disposition of Partner's Interest, later. 2012 tax software download   This treatment does not apply to the following distributions. 2012 tax software download A distribution of property to the partner who contributed the property to the partnership. 2012 tax software download Payments made to a retiring partner or successor in interest of a deceased partner that are the partner's distributive share of partnership income or guaranteed payments. 2012 tax software download Substantially appreciated inventory items. 2012 tax software download   Inventory items of the partnership are considered to have appreciated substantially in value if, at the time of the distribution, their total fair market value is more than 120% of the partnership's adjusted basis for the property. 2012 tax software download However, if a principal purpose for acquiring inventory property is to avoid ordinary income treatment by reducing the appreciation to less than 120%, that property is excluded. 2012 tax software download Partner's Gain or Loss A partner generally recognizes gain on a partnership distribution only to the extent any money (and marketable securities treated as money) included in the distribution exceeds the adjusted basis of the partner's interest in the partnership. 2012 tax software download Any gain recognized is generally treated as capital gain from the sale of the partnership interest on the date of the distribution. 2012 tax software download If partnership property (other than marketable securities treated as money) is distributed to a partner, he or she generally does not recognize any gain until the sale or other disposition of the property. 2012 tax software download For exceptions to these rules, see Distribution of partner's debt and Net precontribution gain, later. 2012 tax software download Also, see Payments for Unrealized Receivables and Inventory Items under Disposition of Partner's Interest, later. 2012 tax software download Example. 2012 tax software download The adjusted basis of Jo's partnership interest is $14,000. 2012 tax software download She receives a distribution of $8,000 cash and land that has an adjusted basis of $2,000 and a fair market value of $3,000. 2012 tax software download Because the cash received does not exceed the basis of her partnership interest, Jo does not recognize any gain on the distribution. 2012 tax software download Any gain on the land will be recognized when she sells or otherwise disposes of it. 2012 tax software download The distribution decreases the adjusted basis of Jo's partnership interest to $4,000 [$14,000 − ($8,000 + $2,000)]. 2012 tax software download Marketable securities treated as money. 2012 tax software download   Generally, a marketable security distributed to a partner is treated as money in determining whether gain is recognized on the distribution. 2012 tax software download This treatment, however, does not generally apply if that partner contributed the security to the partnership or an investment partnership made the distribution to an eligible partner. 2012 tax software download   The amount treated as money is the security's fair market value when distributed, reduced (but not below zero) by the excess (if any) of: The partner's distributive share of the gain that would be recognized had the partnership sold all its marketable securities at their fair market value immediately before the transaction resulting in the distribution, over The partner's distributive share of the gain that would be recognized had the partnership sold all such securities it still held after the distribution at the fair market value in (1). 2012 tax software download   For more information, including the definition of marketable securities, see section 731(c) of the Internal Revenue Code. 2012 tax software download Loss on distribution. 2012 tax software download   A partner does not recognize loss on a partnership distribution unless all the following requirements are met. 2012 tax software download The adjusted basis of the partner's interest in the partnership exceeds the distribution. 2012 tax software download The partner's entire interest in the partnership is liquidated. 2012 tax software download The distribution is in money, unrealized receivables, or inventory items. 2012 tax software download   There are exceptions to these general rules. 2012 tax software download See the following discussions. 2012 tax software download Also, see Liquidation at Partner's Retirement or Death under Disposition of Partner's Interest, later. 2012 tax software download Distribution of partner's debt. 2012 tax software download   If a partnership acquires a partner's debt and extinguishes the debt by distributing it to the partner, the partner will recognize capital gain or loss to the extent the fair market value of the debt differs from the basis of the debt (determined under the rules discussed in Partner's Basis for Distributed Property, later). 2012 tax software download   The partner is treated as having satisfied the debt for its fair market value. 2012 tax software download If the issue price (adjusted for any premium or discount) of the debt exceeds its fair market value when distributed, the partner may have to include the excess amount in income as canceled debt. 2012 tax software download   Similarly, a deduction may be available to a corporate partner if the fair market value of the debt at the time of distribution exceeds its adjusted issue price. 2012 tax software download Net precontribution gain. 2012 tax software download   A partner generally must recognize gain on the distribution of property (other than money) if the partner contributed appreciated property to the partnership during the 7-year period before the distribution. 2012 tax software download   The gain recognized is the lesser of the following amounts. 2012 tax software download The excess of: The fair market value of the property received in the distribution, over The adjusted basis of the partner's interest in the partnership immediately before the distribution, reduced (but not below zero) by any money received in the distribution. 2012 tax software download The “net precontribution gain” of the partner. 2012 tax software download This is the net gain the partner would recognize if all the property contributed by the partner within 7 years of the distribution, and held by the partnership immediately before the distribution, were distributed to another partner, other than a partner who owns more than 50% of the partnership. 2012 tax software download For information about the distribution of contributed property to another partner, see Contribution of Property , under Transactions Between Partnership and Partners, later. 2012 tax software download   The character of the gain is determined by reference to the character of the net precontribution gain. 2012 tax software download This gain is in addition to any gain the partner must recognize if the money distributed is more than his or her basis in the partnership. 2012 tax software download For these rules, the term “money” includes marketable securities treated as money, as discussed earlier. 2012 tax software download Effect on basis. 2012 tax software download   The adjusted basis of the partner's interest in the partnership is increased by any net precontribution gain recognized by the partner. 2012 tax software download Other than for purposes of determining the gain, the increase is treated as occurring immediately before the distribution. 2012 tax software download See Basis of Partner's Interest , later. 2012 tax software download   The partnership must adjust its basis in any property the partner contributed within 7 years of the distribution to reflect any gain that partner recognizes under this rule. 2012 tax software download Exceptions. 2012 tax software download   Any part of a distribution that is property the partner previously contributed to the partnership is not taken into account in determining the amount of the excess distribution or the partner's net precontribution gain. 2012 tax software download For this purpose, the partner's previously contributed property does not include a contributed interest in an entity to the extent its value is due to property contributed to the entity after the interest was contributed to the partnership. 2012 tax software download   Recognition of gain under this rule also does not apply to a distribution of unrealized receivables or substantially appreciated inventory items if the distribution is treated as a sale or exchange, as discussed earlier. 2012 tax software download Partner's Basis for Distributed Property Unless there is a complete liquidation of a partner's interest, the basis of property (other than money) distributed to the partner by a partnership is its adjusted basis to the partnership immediately before the distribution. 2012 tax software download 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. 2012 tax software download Example 1. 2012 tax software download The adjusted basis of Emily's partnership interest is $30,000. 2012 tax software download She receives a distribution of property that has an adjusted basis of $20,000 to the partnership and $4,000 in cash. 2012 tax software download Her basis for the property is $20,000. 2012 tax software download Example 2. 2012 tax software download The adjusted basis of Steve's partnership interest is $10,000. 2012 tax software download He receives a distribution of $4,000 cash and property that has an adjusted basis to the partnership of $8,000. 2012 tax software download His basis for the distributed property is limited to $6,000 ($10,000 − $4,000, the cash he receives). 2012 tax software download Complete liquidation of partner's interest. 2012 tax software download   The basis of property received in complete liquidation of a partner's interest is the adjusted basis of the partner's interest in the partnership reduced by any money distributed to the partner in the same transaction. 2012 tax software download Partner's holding period. 2012 tax software download   A partner's holding period for property distributed to the partner includes the period the property was held by the partnership. 2012 tax software download If the property was contributed to the partnership by a partner, then the period it was held by that partner is also included. 2012 tax software download Basis divided among properties. 2012 tax software download   If the basis of property received is the adjusted basis of the partner's interest in the partnership (reduced by money received in the same transaction), it must be divided among the properties distributed to the partner. 2012 tax software download For property distributed after August 5, 1997, allocate the basis using the following rules. 2012 tax software download Allocate the basis first to unrealized receivables and inventory items included in the distribution by assigning a basis to each item equal to the partnership's adjusted basis in the item immediately before the distribution. 2012 tax software download If the total of these assigned bases exceeds the allocable basis, decrease the assigned bases by the amount of the excess. 2012 tax software download Allocate any remaining basis to properties other than unrealized receivables and inventory items by assigning a basis to each property equal to the partnership's adjusted basis in the property immediately before the distribution. 2012 tax software download If the allocable basis exceeds the total of these assigned bases, increase the assigned bases by the amount of the excess. 2012 tax software download If the total of these assigned bases exceeds the allocable basis, decrease the assigned bases by the amount of the excess. 2012 tax software download Allocating a basis increase. 2012 tax software download   Allocate any basis increase required in rule (2), above, first to properties with unrealized appreciation to the extent of the unrealized appreciation. 2012 tax software download If the basis increase is less than the total unrealized appreciation, allocate it among those properties in proportion to their respective amounts of unrealized appreciation. 2012 tax software download Allocate any remaining basis increase among all the properties in proportion to their respective fair market values. 2012 tax software download Example. 2012 tax software download Eun's basis in her partnership interest is $55,000. 2012 tax software download In a distribution in liquidation of her entire interest, she receives properties A and B, neither of which is inventory or unrealized receivables. 2012 tax software download Property A has an adjusted basis to the partnership of $5,000 and a fair market value of $40,000. 2012 tax software download Property B has an adjusted basis to the partnership of $10,000 and a fair market value of $10,000. 2012 tax software download To figure her basis in each property, Eun first assigns bases of $5,000 to property A and $10,000 to property B (their adjusted bases to the partnership). 2012 tax software download This leaves a $40,000 basis increase (the $55,000 allocable basis minus the $15,000 total of the assigned bases). 2012 tax software download She first allocates $35,000 to property A (its unrealized appreciation). 2012 tax software download The remaining $5,000 is allocated between the properties based on their fair market values. 2012 tax software download $4,000 ($40,000/$50,000) is allocated to property A and $1,000 ($10,000/$50,000) is allocated to property B. 2012 tax software download Eun's basis in property A is $44,000 ($5,000 + $35,000 + $4,000) and her basis in property B is $11,000 ($10,000 + $1,000). 2012 tax software download Allocating a basis decrease. 2012 tax software download   Use the following rules to allocate any basis decrease required in rule (1) or rule (2), earlier. 2012 tax software download Allocate the basis decrease first to items with unrealized depreciation to the extent of the unrealized depreciation. 2012 tax software download If the basis decrease is less than the total unrealized depreciation, allocate it among those items in proportion to their respective amounts of unrealized depreciation. 2012 tax software download Allocate any remaining basis decrease among all the items in proportion to their respective assigned basis amounts (as decreased in (1)). 2012 tax software download Example. 2012 tax software download Armando's basis in his partnership interest is $20,000. 2012 tax software download In a distribution in liquidation of his entire interest, he receives properties C and D, neither of which is inventory or unrealized receivables. 2012 tax software download Property C has an adjusted basis to the partnership of $15,000 and a fair market value of $15,000. 2012 tax software download Property D has an adjusted basis to the partnership of $15,000 and a fair market value of $5,000. 2012 tax software download To figure his basis in each property, Armando first assigns bases of $15,000 to property C and $15,000 to property D (their adjusted bases to the partnership). 2012 tax software download This leaves a $10,000 basis decrease (the $30,000 total of the assigned bases minus the $20,000 allocable basis). 2012 tax software download He allocates the entire $10,000 to property D (its unrealized depreciation). 2012 tax software download Armando's basis in property C is $15,000 and his basis in property D is $5,000 ($15,000 − $10,000). 2012 tax software download Distributions before August 6, 1997. 2012 tax software download   For property distributed before August 6, 1997, allocate the basis using the following rules. 2012 tax software download Allocate the basis first to unrealized receivables and inventory items included in the distribution to the extent of the partnership's adjusted basis in those items. 2012 tax software download If the partnership's adjusted basis in those items exceeded the allocable basis, allocate the basis among the items in proportion to their adjusted bases to the partnership. 2012 tax software download Allocate any remaining basis to other distributed properties in proportion to their adjusted bases to the partnership. 2012 tax software download Partner's interest more than partnership basis. 2012 tax software download   If the basis of a partner's interest to be divided in a complete liquidation of the partner's interest is more than the partnership's adjusted basis for the unrealized receivables and inventory items distributed, and if no other property is distributed to which the partner can apply the remaining basis, the partner has a capital loss to the extent of the remaining basis of the partnership interest. 2012 tax software download Special adjustment to basis. 2012 tax software download   A partner who acquired any part of his or her partnership interest in a sale or exchange or upon the death of another partner may be able to choose a special basis adjustment for property distributed by the partnership. 2012 tax software download To choose the special adjustment, the partner must have received the distribution within 2 years after acquiring the partnership interest. 2012 tax software download Also, the partnership must not have chosen the optional adjustment to basis when the partner acquired the partnership interest. 2012 tax software download   If a partner chooses this special basis adjustment, the partner's basis for the property distributed is the same as it would have been if the partnership had chosen the optional adjustment to basis. 2012 tax software download However, this assigned basis is not reduced by any depletion or depreciation that would have been allowed or allowable if the partnership had previously chosen the optional adjustment. 2012 tax software download   The choice must be made with the partner's tax return for the year of the distribution if the distribution includes any property subject to depreciation, depletion, or amortization. 2012 tax software download If the choice does not have to be made for the distribution year, it must be made with the return for the first year in which the basis of the distributed property is pertinent in determining the partner's income tax. 2012 tax software download   A partner choosing this special basis adjustment must attach a statement to his or her tax return that the partner chooses under section 732(d) of the Internal Revenue Code to adjust the basis of property received in a distribution. 2012 tax software download The statement must show the computation of the special basis adjustment for the property distributed and list the properties to which the adjustment has been allocated. 2012 tax software download Example. 2012 tax software download Chin Ho purchased a 25% interest in X partnership for $17,000 cash. 2012 tax software download At the time of the purchase, the partnership owned inventory having a basis to the partnership of $14,000 and a fair market value of $16,000. 2012 tax software download Thus, $4,000 of the $17,000 he paid was attributable to his share of inventory with a basis to the partnership of $3,500. 2012 tax software download Within 2 years after acquiring his interest, Chin Ho withdrew from the partnership and for his entire interest received cash of $1,500, inventory with a basis to the partnership of $3,500, and other property with a basis of $6,000. 2012 tax software download The value of the inventory received was 25% of the value of all partnership inventory. 2012 tax software download (It is immaterial whether the inventory he received was on hand when he acquired his interest. 2012 tax software download ) Since the partnership from which Chin Ho withdrew did not make the optional adjustment to basis, he chose to adjust the basis of the inventory received. 2012 tax software download His share of the partnership's basis for the inventory is increased by $500 (25% of the $2,000 difference between the $16,000 fair market value of the inventory and its $14,000 basis to the partnership at the time he acquired his interest). 2012 tax software download The adjustment applies only for purposes of determining his new basis in the inventory, and not for purposes of partnership gain or loss on disposition. 2012 tax software download The total to be allocated among the properties Chin Ho received in the distribution is $15,500 ($17,000 basis of his interest − $1,500 cash received). 2012 tax software download His basis in the inventory items is $4,000 ($3,500 partnership basis + $500 special adjustment). 2012 tax software download The remaining $11,500 is allocated to his new basis for the other property he received. 2012 tax software download Mandatory adjustment. 2012 tax software download   A partner does not always have a choice of making this special adjustment to basis. 2012 tax software download The special adjustment to basis must be made for a distribution of property (whether or not within 2 years after the partnership interest was acquired) if all the following conditions existed when the partner received the partnership interest. 2012 tax software download The fair market value of all partnership property (other than money) was more than 110% of its adjusted basis to the partnership. 2012 tax software download If there had been a liquidation of the partner's interest immediately after it was acquired, an allocation of the basis of that interest under the general rules (discussed earlier under Basis divided among properties) would have decreased the basis of property that could not be depreciated, depleted, or amortized and increased the basis of property that could be. 2012 tax software download The optional basis adjustment, if it had been chosen by the partnership, would have changed the partner's basis for the property actually distributed. 2012 tax software download Required statement. 2012 tax software download   Generally, if a partner chooses a special basis adjustment and notifies the partnership, or if the partnership makes a distribution for which the special basis adjustment is mandatory, the partnership must provide a statement to the partner. 2012 tax software download The statement must provide information necessary for the partner to compute the special basis adjustment. 2012 tax software download Marketable securities. 2012 tax software download   A partner's basis in marketable securities received in a partnership distribution, as determined in the preceding discussions, is increased by any gain recognized by treating the securities as money. 2012 tax software download See Marketable securities treated as money under Partner's Gain or Loss, earlier. 2012 tax software download The basis increase is allocated among the securities in proportion to their respective amounts of unrealized appreciation before the basis increase. 2012 tax software download Transactions Between Partnership and Partners For certain transactions between a partner and his or her partnership, the partner is treated as not being a member of the partnership. 2012 tax software download These transactions include the following. 2012 tax software download Performing services for, or transferring property to, a partnership if: There is a related allocation and distribution to a partner, and The entire transaction, when viewed together, is properly characterized as occurring between the partnership and a partner not acting in the capacity of a partner. 2012 tax software download Transferring money or other property to a partnership if: There is a related transfer of money or other property by the partnership to the contributing partner or another partner, and The transfers together are properly characterized as a sale or exchange of property. 2012 tax software download Payments by accrual basis partnership to cash basis partner. 2012 tax software download   A partnership that uses an accrual method of accounting cannot deduct any business expense owed to a cash basis partner until the amount is paid. 2012 tax software download However, this rule does not apply to guaranteed payments made to a partner, which are generally deductible when accrued. 2012 tax software download Guaranteed Payments Guaranteed payments are those made by a partnership to a partner that are determined without regard to the partnership's income. 2012 tax software download A partnership treats guaranteed payments for services, or for the use of capital, as if they were made to a person who is not a partner. 2012 tax software download This treatment is for purposes of determining gross income and deductible business expenses only. 2012 tax software download For other tax purposes, guaranteed payments are treated as a partner's distributive share of ordinary income. 2012 tax software download Guaranteed payments are not subject to income tax withholding. 2012 tax software download The partnership generally deducts guaranteed payments on line 10 of Form 1065 as a business expense. 2012 tax software download They are also listed on Schedules K and K-1 of the partnership return. 2012 tax software download The individual partner reports guaranteed payments on Schedule E (Form 1040) as ordinary income, along with his or her distributive share of the partnership's other ordinary income. 2012 tax software download Guaranteed payments made to partners for organizing the partnership or syndicating interests in the partnership are capital expenses. 2012 tax software download Generally, organizational and syndication expenses are not deductible by the partnership. 2012 tax software download However, a partnership can elect to deduct a portion of its organizational expenses and amortize the remaining expenses (see Business start-up and organizational costs in the Instructions for Form 1065). 2012 tax software download Organizational expenses (if the election is not made) and syndication expenses paid to partners must be reported on the partners' Schedule K-1 as guaranteed payments. 2012 tax software download Minimum payment. 2012 tax software download   If a partner is to receive a minimum payment from the partnership, the guaranteed payment is the amount by which the minimum payment is more than the partner's distributive share of the partnership income before taking into account the guaranteed payment. 2012 tax software download Example. 2012 tax software download Under a partnership agreement, Divya is to receive 30% of the partnership income, but not less than $8,000. 2012 tax software download The partnership has net income of $20,000. 2012 tax software download Divya's share, without regard to the minimum guarantee, is $6,000 (30% × $20,000). 2012 tax software download The guaranteed payment that can be deducted by the partnership is $2,000 ($8,000 − $6,000). 2012 tax software download Divya's income from the partnership is $8,000, and the remaining $12,000 of partnership income will be reported by the other partners in proportion to their shares under the partnership agreement. 2012 tax software download If the partnership net income had been $30,000, there would have been no guaranteed payment since her share, without regard to the guarantee, would have been greater than the guarantee. 2012 tax software download Self-employed health insurance premiums. 2012 tax software download   Premiums for health insurance paid by a partnership on behalf of a partner, for services as a partner, are treated as guaranteed payments. 2012 tax software download The partnership can deduct the payments as a business expense, and the partner must include them in gross income. 2012 tax software download However, if the partnership accounts for insurance paid for a partner as a reduction in distributions to the partner, the partnership cannot deduct the premiums. 2012 tax software download   A partner who qualifies can deduct 100% of the health insurance premiums paid by the partnership on his or her behalf as an adjustment to income. 2012 tax software download The partner cannot deduct the premiums for any calendar month, or part of a month, in which the partner is eligible to participate in any subsidized health plan maintained by any employer of the partner, the partner's spouse, the partner's dependents, or any children under age 27 who are not dependents. 2012 tax software download For more information on the self-employed health insurance deduction, see chapter 6 in Publication 535. 2012 tax software download Including payments in partner's income. 2012 tax software download   Guaranteed payments are included in income in the partner's tax year in which the partnership's tax year ends. 2012 tax software download Example 1. 2012 tax software download Under the terms of a partnership agreement, Erica is entitled to a fixed annual payment of $10,000 without regard to the income of the partnership. 2012 tax software download Her distributive share of the partnership income is 10%. 2012 tax software download The partnership has $50,000 of ordinary income after deducting the guaranteed payment. 2012 tax software download She must include ordinary income of $15,000 ($10,000 guaranteed payment + $5,000 ($50,000 × 10%) distributive share) on her individual income tax return for her tax year in which the partnership's tax year ends. 2012 tax software download Example 2. 2012 tax software download Lamont is a calendar year taxpayer who is a partner in a partnership. 2012 tax software download The partnership uses a fiscal year that ended January 31, 2013. 2012 tax software download Lamont received guaranteed payments from the partnership from February 1, 2012, until December 31, 2012. 2012 tax software download He must include these guaranteed payments in income for 2013 and report them on his 2013 income tax return. 2012 tax software download Payments resulting in loss. 2012 tax software download   If guaranteed payments to a partner result in a partnership loss in which the partner shares, the partner must report the full amount of the guaranteed payments as ordinary income. 2012 tax software download The partner separately takes into account his or her distributive share of the partnership loss, to the extent of the adjusted basis of the partner's partnership interest. 2012 tax software download Sale or Exchange of Property Special rules apply to a sale or exchange of property between a partnership and certain persons. 2012 tax software download Losses. 2012 tax software download   Losses will not be allowed from a sale or exchange of property (other than an interest in the partnership) directly or indirectly between a partnership and a person whose direct or indirect interest in the capital or profits of the partnership is more than 50%. 2012 tax software download   If the sale or exchange is between two partnerships in which the same persons directly or indirectly own more than 50% of the capital or profits interests in each partnership, no deduction of a loss is allowed. 2012 tax software download   The basis of each partner's interest in the partnership is decreased (but not below zero) by the partner's share of the disallowed loss. 2012 tax software download   If the purchaser later sells the property, only the gain realized that is greater than the loss not allowed will be taxable. 2012 tax software download If any gain from the sale of the property is not recognized because of this rule, the basis of each partner's interest in the partnership is increased by the partner's share of that gain. 2012 tax software download Gains. 2012 tax software download   Gains are treated as ordinary income in a sale or exchange of property directly or indirectly between a person and a partnership, or between two partnerships, if both of the following tests are met. 2012 tax software download More than 50% of the capital or profits interest in the partnership(s) is directly or indirectly owned by the same person(s). 2012 tax software download The property in the hands of the transferee immediately after the transfer is not a capital asset. 2012 tax software download Property that is not a capital asset includes accounts receivable, inventory, stock-in-trade, and depreciable or real property used in a trade or business. 2012 tax software download More than 50% ownership. 2012 tax software download   To determine if there is more than 50% ownership in partnership capital or profits, the following rules apply. 2012 tax software download An interest directly or indirectly owned by, or for, a corporation, partnership, estate, or trust is considered to be owned proportionately by, or for, its shareholders, partners, or beneficiaries. 2012 tax software download An individual is considered to own the interest directly or indirectly owned by, or for, the individual's family. 2012 tax software download For this rule, “family” includes only brothers, sisters, half-brothers, half-sisters, spouses, ancestors, and lineal descendants. 2012 tax software download If a person is considered to own an interest using rule (1), that person (the “constructive owner”) is treated as if actually owning that interest when rules (1) and (2) are applied. 2012 tax software download However, if a person is considered to own an interest using rule (2), that person is not treated as actually owning that interest in reapplying rule (2) to make another person the constructive owner. 2012 tax software download Example. 2012 tax software download Individuals A and B and Trust T are equal partners in Partnership ABT. 2012 tax software download A's husband, AH, is the sole beneficiary of Trust T. 2012 tax software download Trust T's partnership interest will be attributed to AH only for the purpose of further attributing the interest to A. 2012 tax software download As a result, A is a more-than-50% partner. 2012 tax software download This means that any deduction for losses on transactions between her and ABT will not be allowed, and gain from property that in the hands of the transferee is not a capital asset is treated as ordinary, rather than capital, gain. 2012 tax software download More information. 2012 tax software download   For more information on these special rules, see Sales and Exchanges Between Related Persons in chapter 2 of Publication 544. 2012 tax software download Contribution of Property Usually, neither the partner nor the partnership recognizes a gain or loss when property is contributed to the partnership in exchange for a partnership interest. 2012 tax software download This applies whether a partnership is being formed or is already operating. 2012 tax software download The partnership's holding period for the property includes the partner's holding period. 2012 tax software download The contribution of limited partnership interests in one partnership for limited partnership interests in another partnership qualifies as a tax-free contribution of property to the second partnership if the transaction is made for business purposes. 2012 tax software download The exchange is not subject to the rules explained later under Disposition of Partner's Interest. 2012 tax software download Disguised sales. 2012 tax software download   A contribution of money or other property to the partnership followed by a distribution of different property from the partnership to the partner is treated not as a contribution and distribution, but as a sale of property, if both of the following tests are met. 2012 tax software download The distribution would not have been made but for the contribution. 2012 tax software download The partner's right to the distribution does not depend on the success of partnership operations. 2012 tax software download   All facts and circumstances are considered in determining if the contribution and distribution are more properly characterized as a sale. 2012 tax software download However, if the contribution and distribution occur within 2 years of each other, the transfers are presumed to be a sale unless the facts clearly indicate that the transfers are not a sale. 2012 tax software download If the contribution and distribution occur more than 2 years apart, the transfers are presumed not to be a sale unless the facts clearly indicate that the transfers are a sale. 2012 tax software download Form 8275 required. 2012 tax software download   A partner must attach Form 8275, Disclosure Statement, (or other statement) to his or her return if the partner contributes property to a partnership and, within 2 years (before or after the contribution), the partnership transfers money or other consideration to the partner. 2012 tax software download For exceptions to this requirement, see section 1. 2012 tax software download 707-3(c)(2) of the regulations. 2012 tax software download   A partnership must attach Form 8275 (or other statement) to its return if it distributes property to a partner, and, within 2 years (before or after the distribution), the partner transfers money or other consideration to the partnership. 2012 tax software download   Form 8275 must include the following information. 2012 tax software download A caption identifying the statement as a disclosure under section 707 of the Internal Revenue Code. 2012 tax software download A description of the transferred property or money, including its value. 2012 tax software download A description of any relevant facts in determining if the transfers are properly viewed as a disguised sale. 2012 tax software download See section 1. 2012 tax software download 707-3(b)(2) of the regulations for a description of the facts and circumstances considered in determining if the transfers are a disguised sale. 2012 tax software download Contribution to partnership treated as investment company. 2012 tax software download   Gain is recognized when property is contributed (in exchange for an interest in the partnership) to a partnership that would be treated as an investment company if it were incorporated. 2012 tax software download   A partnership is generally treated as an investment company if over 80% of the value of its assets is held for investment and consists of certain readily marketable items. 2012 tax software download These items include money, stocks and other equity interests in a corporation, and interests in regulated investment companies and real estate investment trusts. 2012 tax software download For more information, see section 351(e)(1) of the Internal Revenue Code and the related regulations. 2012 tax software download Whether a partnership is treated as an investment company under this test is ordinarily determined immediately after the transfer of property. 2012 tax software download   This rule applies to limited partnerships and general partnerships, regardless of whether they are privately formed or publicly syndicated. 2012 tax software download Contribution to foreign partnership. 2012 tax software download   A domestic partnership that contributed property after August 5, 1997, to a foreign partnership in exchange for a partnership interest may have to file Form 8865 if either of the following apply. 2012 tax software download Immediately after the contribution, the partnership owned, directly or indirectly, at least a 10% interest in the foreign partnership. 2012 tax software download The fair market value of the property contributed to the foreign partnership, when added to other contributions of property made to the partnership during the preceding 12-month period, is greater than $100,000. 2012 tax software download   The partnership may also have to file Form 8865, even if no contributions are made during the tax year, if it owns a 10% or more interest in a foreign partnership at any time during the year. 2012 tax software download See the form instructions for more information. 2012 tax software download Basis of contributed property. 2012 tax software download   If a partner contributes property to a partnership, the partnership's basis for determining depreciation, depletion, gain, or loss for the property is the same as the partner's adjusted basis for the property when it was contributed, increased by any gain recognized by the partner at the time of contribution. 2012 tax software download Allocations to account for built-in gain or loss. 2012 tax software download   The fair market value of property at the time it is contributed may be different from the partner's adjusted basis. 2012 tax software download The partnership must allocate among the partners any income, deduction, gain, or loss on the property in a manner that will account for the difference. 2012 tax software download This rule also applies to contributions of accounts payable and other accrued but unpaid items of a cash basis partner. 2012 tax software download   The partnership can use different allocation methods for different items of contributed property. 2012 tax software download A single reasonable method must be consistently applied to each item, and the overall method or combination of methods must be reasonable. 2012 tax software download See section 1. 2012 tax software download 704-3 of the regulations for allocation methods generally considered reasonable. 2012 tax software download   If the partnership sells contributed property and recognizes gain or loss, built-in gain or loss is allocated to the contributing partner. 2012 tax software download If contributed property is subject to depreciation or other cost recovery, the allocation of deductions for these items takes into account built-in gain or loss on the property. 2012 tax software download However, the total depreciation, depletion, gain, or loss allocated to partners cannot be more than the depreciation or depletion allowable to the partnership or the gain or loss realized by the partnership. 2012 tax software download Example. 2012 tax software download Areta and Sofia formed an equal partnership. 2012 tax software download Areta contributed $10,000 in cash to the partnership and Sofia contributed depreciable property with a fair market value of $10,000 and an adjusted basis of $4,000. 2012 tax software download The partnership's basis for depreciation is limited to the adjusted basis of the property in Sofia's hands, $4,000. 2012 tax software download In effect, Areta purchased an undivided one-half interest in the depreciable property with her contribution of $10,000. 2012 tax software download Assuming that the depreciation rate is 10% a year under the General Depreciation System (GDS), she would have been entitled to a depreciation deduction of $500 per year, based on her interest in the partnership, if the adjusted basis of the property equaled its fair market value when contributed. 2012 tax software download To simplify this example, the depreciation deductions are determined without regard to any first-year depreciation conventions. 2012 tax software download However, since the partnership is allowed only $400 per year of depreciation (10% of $4,000), no more than $400 can be allocated between the partners. 2012 tax software download The entire $400 must be allocated to Areta. 2012 tax software download Distribution of contributed property to another partner. 2012 tax software download   If a partner contributes property to a partnership and the partnership distributes the property to another partner within 7 years of the contribution, the contributing partner must recognize gain or loss on the distribution. 2012 tax software download   The recognized gain or loss is the amount the contributing partner would have recognized if the property had been sold for its fair market value when it was distributed. 2012 tax software download This amount is the difference between the property's basis and its fair market value at the time of contribution. 2012 tax software download The character of the gain or loss will be the same as the character of the gain or loss that would have resulted if the partnership had sold the property to the distributee partner. 2012 tax software download Appropriate adjustments must be made to the adjusted basis of the contributing partner's partnership interest and to the adjusted basis of the property distributed to reflect the recognized gain or loss. 2012 tax software download Disposition of certain contributed property. 2012 tax software download   The following rules determine the character of the partnership's gain or loss on a disposition of certain types of contributed property. 2012 tax software download Unrealized receivables. 2012 tax software download If the property was an unrealized receivable in the hands of the contributing partner, any gain or loss on its disposition by the partnership is ordinary income or loss. 2012 tax software download Unrealized receivables are defined later under Payments for Unrealized Receivables and Inventory Items. 2012 tax software download When reading the definition, substitute “partner” for “partnership. 2012 tax software download ” Inventory items. 2012 tax software download If the property was an inventory item in the hands of the contributing partner, any gain or loss on its disposition by the partnership within 5 years after the contribution is ordinary income or loss. 2012 tax software download Inventory items are defined later in Payments for Unrealized Receivables and Inventory Items. 2012 tax software download Capital loss property. 2012 tax software download If the property was a capital asset in the contributing partner's hands, any loss on its disposition by the partnership within 5 years after the contribution is a capital loss. 2012 tax software download The capital loss is limited to the amount by which the partner's adjusted basis for the property exceeded the property's fair market value immediately before the contribution. 2012 tax software download Substituted basis property. 2012 tax software download If the disposition of any of the property listed in (1), (2), or (3) is a nonrecognition transaction, these rules apply when the recipient of the property disposes of any substituted basis property (other than certain corporate stock) resulting from the transaction. 2012 tax software download Contribution of Services A partner can acquire an interest in partnership capital or profits as compensation for services performed or to be performed. 2012 tax software download Capital interest. 2012 tax software download   A capital interest is an interest that would give the holder a share of the proceeds if the partnership's assets were sold at fair market value and the proceeds were distributed in a complete liquidation of the partnership. 2012 tax software download This determination generally is made at the time of receipt of the partnership interest. 2012 tax software download The fair market value of such an interest received by a partner as compensation for services must generally be included in the partner's gross income in the first tax year in which the partner can transfer the interest or the interest is not subject to a substantial risk of forfeiture. 2012 tax software download The capital interest transferred as compensation for services is subject to the rules for restricted property discussed in Publication 525 under Employee Compensation. 2012 tax software download   The fair market value of an interest in partnership capital transferred to a partner as payment for services to the partnership is a guaranteed payment, discussed earlier. 2012 tax software download Profits interest. 2012 tax software download   A profits interest is a partnership interest other than a capital interest. 2012 tax software download If a person receives a profits interest for providing services to, or for the benefit of, a partnership in a partner capacity or in anticipation of being a partner, the receipt of such an interest is not a taxable event for the partner or the partnership. 2012 tax software download However, this does not apply in the following situations. 2012 tax software download The profits interest relates to a substantially certain and predictable stream of income from partnership assets, such as income from high-quality debt securities or a high-quality net lease. 2012 tax software download Within 2 years of receipt, the partner disposes of the profits interest. 2012 tax software download The profits interest is a limited partnership interest in a publicly traded partnership. 2012 tax software download   A profits interest transferred as compensation for services is not subject to the rules for restricted property that apply to capital interests. 2012 tax software download Basis of Partner's Interest The basis of a partnership interest is the money plus the adjusted basis of any property the partner contributed. 2012 tax software download If the partner must recognize gain as a result of the contribution, this gain is included in the basis of his or her interest. 2012 tax software download Any increase in a partner's individual liabilities because of an assumption of partnership liabilities is considered a contribution of money to the partnership by the partner. 2012 tax software download Interest acquired by gift, etc. 2012 tax software download   If a partner acquires an interest in a partnership by gift, inheritance, or under any circumstance other than by a contribution of money or property to the partnership, the partner's basis must be determined using the basis rules described in Publication 551. 2012 tax software download Adjusted Basis There is a worksheet for adjusting the basis of a partner's interest in the partnership in the Partner's Instructions for Schedule K-1 (Form 1065). 2012 tax software download The basis of an interest in a partnership is increased or decreased by certain items. 2012 tax software download Increases. 2012 tax software download   A partner's basis is increased by the following items. 2012 tax software download The partner's additional contributions to the partnership, including an increased share of, or assumption of, partnership liabilities. 2012 tax software download The partner's distributive share of taxable and nontaxable partnership income. 2012 tax software download The partner's distributive share of the excess of the deductions for depletion over the basis of the depletable property, unless the property is oil or gas wells whose basis has been allocated to partners. 2012 tax software download Decreases. 2012 tax software download   The partner's basis is decreased (but never below zero) by the following items. 2012 tax software download The money (including a decreased share of partnership liabilities or an assumption of the partner's individual liabilities by the partnership) and adjusted basis of property distributed to the partner by the partnership. 2012 tax software download The partner's distributive share of the partnership losses (including capital losses). 2012 tax software download The partner's distributive share of nondeductible partnership expenses that are not capital expenditures. 2012 tax software download This includes the partner's share of any section 179 expenses, even if the partner cannot deduct the entire amount on his or her individual income tax return. 2012 tax software download The partner's deduction for depletion for any partnership oil and gas wells, up to the proportionate share of the adjusted basis of the wells allocated to the partner. 2012 tax software download Partner's liabilities assumed by partnership. 2012 tax software download   If contributed property is subject to a debt or if a partner's liabilities are assumed by the partnership, the basis of that partner's interest is reduced (but not below zero) by the liability assumed by the other partners. 2012 tax software download This partner must reduce his or her basis because the assumption of the liability is treated as a distribution of money to that partner. 2012 tax software download The other partners' assumption of the liability is treated as a contribution by them of money to the partnership. 2012 tax software download See Effect of Partnership Liabilities , later. 2012 tax software download Example 1. 2012 tax software download Ivan acquired a 20% interest in a partnership by contributing property that had an adjusted basis to him of $8,000 and a $4,000 mortgage. 2012 tax software download The partnership assumed payment of the mortgage. 2012 tax software download The basis of Ivan's interest is: Adjusted basis of contributed property $8,000 Minus: Part of mortgage assumed by other partners (80% × $4,000) 3,200 Basis of Ivan's partnership interest $4,800 Example 2. 2012 tax software download If, in Example 1, the contributed property had a $12,000 mortgage, the basis of Ivan's partnership interest would be zero. 2012 tax software download The $1,600 difference between the mortgage assumed by the other partners, $9,600 (80% × $12,000), and his basis of $8,000 would be treated as capital gain from the sale or exchange of a partnership interest. 2012 tax software download However, this gain would not increase the basis of his partnership interest. 2012 tax software download Book value of partner's interest. 2012 tax software download   The adjusted basis of a partner's interest is determined without considering any amount shown in the partnership books as a capital, equity, or similar account. 2012 tax software download Example. 2012 tax software download Enzo contributes to his partnership property that has an adjusted basis of $400 and a fair market value of $1,000. 2012 tax software download His partner contributes $1,000 cash. 2012 tax software download While each partner has increased his capital account by $1,000, which will be re