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Amend your tax return 32. Amend your tax return   Crédito por Gastos del Cuidado de Menores y Dependientes Table of Contents Recordatorios Introduction Useful Items - You may want to see: Requisitos Para Reclamar el CréditoRequisitos de la Persona Calificada Requisito del Ingreso del Trabajo Requisito de Gastos Relacionados con el Trabajo Requisito de la Declaración Conjunta Requisito de Identificación del Proveedor de Cuidados Cómo Calcular el CréditoCómo Calcular el Total de los Gastos Relacionados con el Trabajo Límite del Ingreso del Trabajo Límite de Dinero Cantidad de Crédito Cómo Reclamar el CréditoCrédito tributario no reembolsable. Amend your tax return Impuestos sobre la Nómina para Empleadores de Empleados Domésticos Recordatorios Se necesita un Número de Identificación del Contribuyente (TIN, por sus siglas en inglés) para cada persona calificada. Amend your tax return  Tiene que incluir el nombre y el número de identificación del contribuyente (el cual suele ser el número de Seguro Social) de cada persona calificada en la línea 2 del Formulario 2441. Amend your tax return Vea Número de identificación del contribuyente , bajo Requisitos de la Persona Calificada , más adelante. Amend your tax return Podría verse obligado a pagar los impuestos sobre la nómina. Amend your tax return  Si le paga a alguien para que venga a cuidar de su dependiente o de su cónyuge en su casa, puede que a usted se le considere un empleador de empleados domésticos, que deba pagar impuestos sobre la nómina. Amend your tax return Por lo general, no se le considera un empleador de empleados domésticos si la persona que cuida de su dependiente o de su cónyuge lleva a cabo este servicio en su propio domicilio (él de dicha persona) o en su lugar de negocios. Amend your tax return Vea Impuestos sobre la Nómina para Empleadores de Empleados Domésticos , más adelante. Amend your tax return Introduction Este capítulo trata del crédito por gastos de cuidado de menores y dependientes y trata los siguientes temas: Los requisitos que uno tiene que reunir para reclamar el crédito. Amend your tax return Cómo calcular el crédito. Amend your tax return Cómo reclamar el crédito. Amend your tax return Impuestos sobre la nómina que usted podría verse obligado a pagar como empleador de empleados domésticos. Amend your tax return Quizás pueda reclamar el crédito por gastos del cuidado de menores y dependientes si le paga a alguien para que cuide a un dependiente menor de 13 años de edad, o a su cónyuge o dependiente incapacitado que no pueda cuidar de sí mismo. Amend your tax return El crédito puede ser hasta el 35% de sus gastos. Amend your tax return Para tener derecho al crédito, usted debe encontrarse obligado a pagar estos gastos para poder trabajar o buscar trabajo. Amend your tax return Este crédito no se debe confundir con el crédito tributario por hijos, el cual se describe en el capítulo 34. Amend your tax return Beneficios para el cuidado de dependientes. Amend your tax return   Si usted recibió de su empleador algún beneficio durante el año que era para el cuidado de dependientes, usted quizás pueda excluir de sus ingresos una parte o el total de dicho beneficio. Amend your tax return Tiene que completar la Parte III del Formulario 2441, antes de poder calcular la cantidad de su crédito. Amend your tax return Vea Beneficios para el Cuidado de Dependientes bajo Cómo Calcular el Crédito , más adelante. Amend your tax return Useful Items - You may want to see: Publicación 501 Exemptions, Standard Deduction, and Filing Information (Exenciones, deducción estándar e información para la presentación de la declaración), en inglés 503 Child and Dependent Care Expenses (Gastos del cuidado de menores y dependientes), en inglés 926 Household Employer's Tax Guide (Guía de impuestos para empleadores de empleados domésticos), en inglés Formulario (e Instrucciones) 2441 Child and Dependent Care Expenses (Gastos del cuidado de menores y dependientes), en inglés Anexo H (Formulario 1040) Household Employment Taxes (Impuestos sobre la nómina correspondiente a empleados domésticos), en inglés W-7(SP) Solicitud del Número de Identificación Personal del Contribuyente del Servicio de Impuestos Internos W-10 Dependent Care Provider's Identification and Certification (Identificación y certificación del proveedor del cuidado de dependientes), en inglés Requisitos Para Reclamar el Crédito Para poder reclamar el crédito por gastos del cuidado de menores y dependientes, usted tiene que presentar el Formulario 1040 o el Formulario 1040A, pero no el Formulario 1040EZ y, además, cumplir todos los requisitos siguientes: El cuidado tiene que ser provisto a una, o más de una, persona calificada; la cual debe estar identificada en el Formulario 2441, Child and Dependent Care Expenses (Gastos del Cuidado de Menores y Dependientes), en inglés. Amend your tax return Vea más adelante Requisitos de la Persona Calificada . Amend your tax return Usted (y su cónyuge si presentan una declaración conjunta) tiene que haber recibido ingresos del trabajo durante el año. Amend your tax return Sin embargo, vea más adelante el tema Regla para cónyuge estudiante o cónyuge incapacitado para cuidar de sí mismo bajo Requisito del Ingreso del Trabajo. Amend your tax return Tiene que pagar gastos del cuidado de menores y dependientes para que usted (y su cónyuge, si presentan una declaración conjunta) pueda trabajar o buscar trabajo. Amend your tax return Vea más adelante Requisito de Gastos Relacionados con el Trabajo . Amend your tax return Tiene que hacer los pagos por gastos del cuidado de menores y dependientes a alguien que ni usted ni su cónyuge puedan declarar como dependiente. Amend your tax return Si le hace pagos a su hijo, dicho hijo no puede ser su dependiente y éste tiene que tener 19 años de edad o más al final del año. Amend your tax return Los pagos no se le pueden hacer: A su cónyuge ni Al padre o madre de la persona calificada, si éste es su hijo y tiene menos de 13 años de edad. Amend your tax return Vea más adelante Pagos a Parientes o Dependientes bajo Requisito de Gastos Relacionados con el Trabajo . Amend your tax return Su estado civil para la declaración puede ser soltero, cabeza de familia, o viudo que reúne los requisitos con hijo dependiente. Amend your tax return Si está casado, debe presentar una declaración conjunta, a menos que le corresponda alguna excepción. Amend your tax return Vea Requisito de la Declaración Conjunta , más adelante. Amend your tax return Tiene que identificar en la declaración a la persona o institución que le proporciona los cuidados. Amend your tax return Vea más adelante, Requisito de Identificación del Proveedor de Cuidados . Amend your tax return Si excluye o deduce beneficios de un plan de beneficios para el cuidado de dependientes provisto para ese propósito, la cantidad total que excluya o deduzca tiene que ser menos de la cantidad límite de dólares por gastos calificados (por lo general, $3,000 si se trata de una persona calificada que recibió el cuidado, o $6,000 si el cuidado fue para dos o más personas calificadas). Amend your tax return Si el cuidado fue para dos o más personas calificadas, la cantidad que excluya o deduzca siempre será menos del límite de dólares, ya que la cantidad total que puede excluir o deducir está limitada a $5,000. Amend your tax return Vea Reducción del Límite de Dinero bajo Cómo Calcular el Crédito , más adelante. Amend your tax return Estos requisitos se presentan en la Figura 32–A y también se explican en detalle en este capítulo. Amend your tax return Requisitos de la Persona Calificada Los gastos del cuidado de menores y dependientes tienen que haberse incurrido por el cuidado de una o más personas calificadas. Amend your tax return Una persona calificada es: Un hijo calificado que es su dependiente y que tenía menos de 13 años de edad cuando se le prestó el cuidado (pero vea Hijo de padres divorciados o separados o que viven aparte , más adelante) Su cónyuge que no estaba física o mentalmente capaz de cuidar de sí mismo y que vivió con usted por más de la mitad del año o Una persona que no estaba física o mentalmente capaz de cuidar de sí misma, vivió con usted por más de la mitad del año y: Era su dependiente o Hubiera sido su dependiente excepto que: recibió $3,900 o más de ingresos brutos, presentó una declaración conjunta o usted, o su cónyuge si presentaron una declaración conjunta, pudo ser declarado como dependiente en la declaración de impuestos del año 2013 de otra persona. Amend your tax return Definición de dependiente. Amend your tax return   Un dependiente es una persona, que no sea usted ni su cónyuge, por la cual puede declarar una exención. Amend your tax return Para ser su dependiente, una persona tiene que ser su hijo calificado (o su pariente calificado). Amend your tax return Hijo calificado. Amend your tax return   Para ser su hijo calificado, un hijo tiene que vivir con usted durante más de la mitad del año y reunir otros requisitos. Amend your tax return Información adicional. Amend your tax return   Para más información sobre quién es su dependiente o hijo calificado, vea el capítulo 3. Amend your tax return Persona que no estaba física o mentalmente capaz de cuidar de sí misma. Amend your tax return   Las personas que no pueden vestirse, lavarse o alimentarse por sí solas debido a problemas físicos o mentales son consideradas incapacitadas para cuidar de sí mismas. Amend your tax return También se consideran incapacitadas para cuidar de sí mismas las personas que tienen que ser cuidadas en todo momento para impedir que se lastimen a sí mismas o a los demás. Amend your tax return Figura 32–A. Amend your tax return ¿Puede usted reclamar el Crédito? ¿Puede usted reclamar el crédito? Persona que reúne los requisitos por parte del año. Amend your tax return   Se determina si una persona reúne o no los requisitos a diario. Amend your tax return Por ejemplo, si la persona por la cual usted paga los gastos del cuidado de menores y dependientes deja de reunir los requisitos el 16 de septiembre, cuente sólo los gastos hasta el 15 de septiembre, inclusive. Amend your tax return Vea también Límite annual bajo Límite de Dinero , más adelante. Amend your tax return Nacimiento o fallecimiento de una persona que reúna los demás requisitos. Amend your tax return   Al determinar si una persona es persona calificada, se considera que una persona que nació o falleció en 2013 vivió con usted durante más de la mitad del año 2013 si su vivienda (la de usted) fue la vivienda de dicha persona más de la mitad del tiempo que estuvo viva en 2013. Amend your tax return Número de identificación del contribuyente. Amend your tax return   Tiene que incluir en su declaración el nombre y el número de identificación del contribuyente (generalmente es el número del Seguro Social) de la(s) persona(s) calificada(s). Amend your tax return Si no indica la información correcta en la declaración, el crédito podría ser reducido o denegado. Amend your tax return Número de identificación de contribuyente individual para extranjeros. Amend your tax return   Si la persona calificada es extranjero residente, o extranjero no residente que no tiene y no puede obtener un número del Seguro Social (SSN, por sus siglas en inglés), use el número de identificación de contribuyente (ITIN, por sus siglas en inglés) de esa persona. Amend your tax return El ITIN se anota en todo espacio donde se requiera que se escriba un SSN en una declaración de impuestos. Amend your tax return Para solicitar un ITIN, consulte el Formulario W-7(SP) (o el Formulario W-7, en inglés). Amend your tax return   El ITIN se utiliza solamente para propósitos tributarios. Amend your tax return El mismo no le da al portador el derecho de recibir beneficios del Seguro Social ni cambia el estado del portador en cuanto a empleo o estado migratorio, de acuerdo con las leyes de los Estados Unidos. Amend your tax return Número de identificación del contribuyente en proceso de adopción. Amend your tax return   Si la persona calificada es un hijo que ha sido puesto a cargo de usted para adopción y para el cual usted no tiene un SSN, tiene que obtener un número de identificación del contribuyente en proceso de adopción (ATIN, por sus siglas en inglés) para el hijo. Amend your tax return Presente el Formulario W-7A, Application for Taxpayer Identification Number for Pending U. Amend your tax return S. Amend your tax return Adoptions (Solicitud de número de identificación del contribuyente para adopciones pendientes en los Estados Unidos), en inglés. Amend your tax return Hijo de padres divorciados o separados o que viven aparte. Amend your tax return   Aunque no pueda declarar a su hijo como dependiente, su hijo es tratado como su persona calificada si: El hijo tenía menos de 13 años de edad o estaba física o mentalmente incapacitado para cuidar de sí mismo, El hijo recibió más de la mitad de la manutención durante el año natural de parte de uno o ambos padres que son divorciados, o legalmente separados bajo un fallo de divorcio o de manutención por separación judicial, están separados conforme a un acuerdo de separación judicial escrito, o vivieron aparte en todo momento durante los últimos 6 meses del año natural, El hijo estuvo bajo la custodia de uno o ambos padres durante más de la mitad del año y Usted era el padre o madre que tuvo custodia. Amend your tax return   Se considera que el padre con quien el hijo vivió la mayor cantidad de noches en 2013 es el padre con custodia. Amend your tax return Si el hijo estaba con cada padre una cantidad igual de noches, el padre con custodia es aquél que tiene el ingreso bruto ajustado mayor. Amend your tax return Para más detalles e información sobre la excepción para padres que trabajan de noche, vea la Publicación 501, en inglés. Amend your tax return   El padre que no tiene custodia del hijo no puede tratarle a éste como su persona calificada, a pesar de que tenga derecho para reclamarle al hijo como dependiente conforme a las reglas especiales para hijos de padres divorciados o separados. Amend your tax return Requisito del Ingreso del Trabajo Para reclamar el crédito, usted (y su cónyuge, si presenta una declaración conjunta) tiene que haber recibido ingreso del trabajo durante el año. Amend your tax return Ingreso del trabajo. Amend your tax return   El ingreso del trabajo incluye sueldos, salarios, propinas, cualquier otra retribución tributable recibida como empleado, y los ingresos netos del trabajo por cuenta propia. Amend your tax return Las pérdidas netas del empleo por cuenta propia reducen el ingreso del trabajo. Amend your tax return El ingreso del trabajo también incluye indemnizaciones por huelga y toda compensación por incapacidad que haya declarado como salario. Amend your tax return   Generalmente, sólo se incluye esa compensación que es tributable. Amend your tax return Sin embargo, uno puede elegir incluir paga por combate no sujeta a impuestos en el ingreso del trabajo. Amend your tax return Si presenta una declaración conjunta y tanto usted como su cónyuge recibieron paga no tributable por combate, cada uno de ustedes puede hacer su propia elección. Amend your tax return (O sea, si uno de ustedes hace la elección, el otro también la puede hacer pero no es requerido). Amend your tax return Debería calcular el crédito de ambas maneras y hacer la elección si le da el mayor beneficio tributario. Amend your tax return Miembros de ciertas religiones opuestas al Seguro Social. Amend your tax return   Esas personas que son miembros de ciertas religiones que se oponen a participar en programas de la Ley del Seguro Social y que tienen un formulario aprobado por el IRS que excluya ciertos ingresos de los impuestos del Seguro Social y Medicare pueden tratar ciertos ingresos como si no fueran ingresos del trabajo, para este propósito. Amend your tax return Vea Earned Income Test (Requisito del ingreso del trabajo), en la Publicación 503, en inglés. Amend your tax return Ingreso no derivado del trabajo. Amend your tax return   El ingreso del trabajo no incluye: Pensiones y anualidades, Beneficios del Seguro Social ni beneficios de jubilación para empleados ferroviarios, Compensación del seguro obrero, Intereses ni dividendos, Compensación por desempleo, Becas de estudios ni becas de desarrollo profesional, salvo las que se declaren en el Formulario W-2 pagadas a usted por haber trabajado en la enseñanza o por algún otro servicio, Pagos por trabajo requerido por el bienestar social no sujetos a impuesto, Pagos de manutención para hijos menores que usted haya recibido, Ingreso de extranjeros no residentes no relacionado con una ocupación o negocio estadounidense, o Toda cantidad recibida por trabajo hecho mientras estaba recluido en una institución penal. Amend your tax return Regla para cónyuge estudiante o cónyuge que no es capaz de cuidar de sí mismo. Amend your tax return   Se considera que su cónyuge tiene ingreso del trabajo en cualquier mes en que el mismo: Sea estudiante a tiempo completo o No esté física o mentalmente capaz de cuidar de sí mismo. Amend your tax return Su cónyuge también tiene que vivir con usted durante más de la mitad del año. Amend your tax return   Si usted va a presentar una declaración conjunta, esta regla también es aplicable. Amend your tax return Usted puede ser tratado como si hubiera obtenido ingreso del trabajo por cualquier mes en el que es un estudiante a tiempo completo o no es capaz de cuidar de sí mismo. Amend your tax return   Calcule el ingreso del trabajo del cónyuge que no trabaja, descrito en los apartados (1) o (2) anteriores, tal como se indica más adelante en la sección titulada Límite del Ingreso del Trabajo . Amend your tax return   Esta regla es aplicable a un solo cónyuge durante cualquier mes del año. Amend your tax return Si, en el mismo mes, ni usted ni su cónyuge trabajan, pero son estudiantes a tiempo completo o no están física o mentalmente capaces de cuidar de sí mismos, se considera que solamente uno de ustedes ha recibido ingreso del trabajo en ese mes. Amend your tax return Estudiante a tiempo completo. Amend your tax return   Se considera que usted es estudiante a tiempo completo si se ha matriculado en una escuela por el número de horas o cursos que la misma considere asistencia a tiempo completo. Amend your tax return Tiene que haber sido estudiante a tiempo completo durante alguna parte de cada uno de un mínimo de 5 meses del año natural durante el año. Amend your tax return Dichos meses no tienen que ser consecutivos. Amend your tax return Escuela. Amend your tax return   El término “escuela” comprende escuelas secundarias, escuelas universitarias (colleges), universidades y escuelas técnicas, profesionales e industriales. Amend your tax return No se considera que un curso de capacitación en el empleo, escuela por correspondencia, ni escuelas por Internet sean escuelas, para este propósito. Amend your tax return Requisito de Gastos Relacionados con el Trabajo Los gastos de cuidado de menores y dependientes tienen que estar relacionados con el trabajo para que usted tenga derecho al crédito. Amend your tax return Los gastos se consideran relacionados con el trabajo solamente si se cumplen las dos condiciones siguientes: Le permiten a usted (y a su cónyuge si presentan una declaración conjunta) trabajar o buscar trabajo. Amend your tax return Son para el cuidado de una persona calificada. Amend your tax return Si Trabaja o Busca Trabajo Para ser relacionados con el trabajo, sus gastos tendrán que permitirle trabajar o buscar trabajo. Amend your tax return Si está casado, generalmente tanto usted como su cónyuge tienen que trabajar o estar buscando trabajo. Amend your tax return A un cónyuge se le considera empleado durante cualquier mes en que sea estudiante a tiempo completo o esté física o mentalmente incapaz de cuidar de sí mismo. Amend your tax return Puede trabajar para otra persona o por cuenta propia como dueño único o en sociedad colectiva. Amend your tax return Su empleo puede ser a tiempo completo o a tiempo parcial. Amend your tax return También se le considera empleado si está buscando trabajo activamente. Amend your tax return Sin embargo, si no encuentra empleo y no tiene ingreso del trabajo ese año, no puede reclamar este crédito. Amend your tax return Vea Requisito del Ingreso del Trabajo , anteriormente. Amend your tax return Un gasto no se considera relacionado con el trabajo simplemente porque incurrió en el mismo mientras estaba trabajando. Amend your tax return Su razón por incurrir en el gasto tiene que ser para permitirle a usted trabajar. Amend your tax return Son los hechos los que determinan si sus gastos son para permitirle trabajar o buscar trabajo. Amend your tax return Ejemplo 1. Amend your tax return El costo de una niñera mientras usted y su cónyuge salen a comer no suele ser un gasto relacionado con el trabajo. Amend your tax return Ejemplo 2. Amend your tax return Usted trabaja durante el día. Amend your tax return Su cónyuge trabaja por la noche y duerme por el día. Amend your tax return Usted paga por el cuidado de su hijo de 5 años de edad durante las horas en las que usted trabaja y su cónyuge duerme. Amend your tax return Estos gastos se consideran gastos de trabajo. Amend your tax return Trabajo voluntario. Amend your tax return    Para este propósito, a usted no se le considera empleado si hace trabajo voluntario no pagado o por un salario nominal. Amend your tax return Trabajo parte del año. Amend your tax return   Si trabaja o busca trabajo activamente durante solamente parte del período cubierto por los gastos, entonces tiene que calcular los gastos de cada día. Amend your tax return Por ejemplo, si trabaja todo el año y sus gastos de cuidado son de $250 al mes ($3,000 para el año), todos los gastos están relacionados con el trabajo. Amend your tax return Sin embargo, si trabaja o busca trabajo por sólo 2 meses y 15 días durante el año y paga gastos de $250 al mes, sus gastos relacionados con el trabajo se limitan a $625 (2 meses y medio x $250). Amend your tax return Ausencia temporal del trabajo. Amend your tax return   En caso de una ausencia temporal y breve del trabajo, como vacaciones o una enfermedad leve, no tiene que calcular los gastos por cada día, si le resulta de todos modos necesario pagar por cuidados durante ese período. Amend your tax return En vez de eso, puede calcular el crédito incluyendo los gastos que pagó durante el período de ausencia. Amend your tax return   Una ausencia de 2 semanas o menos se considera una ausencia temporal y breve. Amend your tax return Una ausencia de más de 2 semanas podría considerarse una ausencia temporal y breve, según las circunstancias. Amend your tax return Ejemplo. Amend your tax return Para poder trabajar, usted paga a una niñera para que cuide de su hijo de 2 años e hija de 4 años de edad. Amend your tax return Usted se enferma y falta al trabajo 4 meses, pero recibe compensación por enfermedad. Amend your tax return Sigue pagando a la niñera por cuidar de sus hijos mientras está enferma. Amend your tax return La ausencia no se considera temporal y breve y los gastos no se consideran gastos relacionados con el trabajo. Amend your tax return Trabajo a tiempo parcial. Amend your tax return   Si trabaja a tiempo parcial, normalmente tiene que calcular los gastos por cada día. Amend your tax return No obstante, si tiene que pagar por cuidados semanal o mensualmente, o de algún otro modo que incluya días trabajados y no trabajados, puede calcular el crédito incluyendo los gastos que pagó por los días no trabajados. Amend your tax return Todo día en el que trabaje por lo menos 1 hora se considera día de trabajo. Amend your tax return Ejemplo 1. Amend your tax return Trabaja 3 días a la semana. Amend your tax return Mientras trabaja, le cuidan a su hijo de 6 años de edad en un centro de cuidados para dependientes, que cumple todos los reglamentos estatales y locales. Amend your tax return El centro cobra a tasas de $150 por cualesquiera 3 días de la semana o $250 por 5 días a la semana. Amend your tax return A su hijo le cuidan en el centro 5 días a la semana. Amend your tax return Los gastos relacionados con el trabajo se limitan a $150 a la semana. Amend your tax return Ejemplo 2. Amend your tax return Los hechos son los mismos del Ejemplo 1 salvo que el centro no brinda la opción de pagar por solo 3 días. Amend your tax return El cargo semanal completo de $250 podría ser un gasto relacionado con el trabajo. Amend your tax return Cuidado de una Persona Calificada Para tener gastos que se consideran relacionados con el trabajo, tiene que haber incurrido en los mismos para proveer cuidados a una persona calificada. Amend your tax return No se le requiere escoger la manera más barata de proveer dichos cuidados. Amend your tax return El costo de un proveedor de cuidados remunerado podría ser un gasto por cuidar de una persona calificada aun si se pudiera haber conseguido otro proveedor de cuidados sin costo alguno. Amend your tax return Se considera que los gastos son para el cuidado de una persona calificada sólo si el motivo prinicipal de dichos gastos es el bienestar y la protección de esa persona. Amend your tax return Los gastos para servicios domésticos reúnen los requisitos si una parte de dichos servicios es el cuidado de personas calificadas. Amend your tax return Vea Servicios domésticos , más adelante. Amend your tax return Gastos que no son por cuidados. Amend your tax return   Los gastos para el cuidado no incluyen cantidades que pague por concepto de comida, alojamiento, ropa, educación y entretenimiento. Amend your tax return Sin embargo, puede incluir cantidades pequeñas pagadas por estos artículos si las mismas están relacionadas con el costo del cuidado de la persona calificada, y no se pueden separar de dicho costo. Amend your tax return   Pagos de pensión para hijos menores no son de cuidado y no reúne los requisitos del crédito. Amend your tax return Educación. Amend your tax return   Los gastos incurridos por un niño que está en una guardería infantil, un parvulario o programas similares para niños que estén por debajo del nivel de kindergarten, se consideran gastos de cuidado. Amend your tax return Los gastos para la asistencia al kindergarten o para grados superiores no se consideran gastos de cuidado. Amend your tax return No use estos gastos para calcular el crédito. Amend your tax return   Sin embargo, los gastos de cuidado del niño antes o después de la escuela si asiste al kindergarten o a un grado superior podrían considerarse gastos por cuidado de dependientes. Amend your tax return   Las clases de verano y programas de clases particulares no se consideran cuidado de dependientes. Amend your tax return Ejemplo 1. Amend your tax return Usted lleva a su hijo de 3 años de edad a una guardería infantil que provee almuerzo y actividades educativas como parte de su servicio de cuidado para niños de edad preescolar. Amend your tax return El almuerzo y las actividades educativas están relacionados con el cuidado de su hijo y el costo de los mismos no se puede separar del costo del cuidado. Amend your tax return Puede incluir el costo total cuando calcule el crédito. Amend your tax return Ejemplo 2. Amend your tax return Usted inscribe a su hijo de 10 años de edad en una escuela de internado para poder trabajar a tiempo completo. Amend your tax return Sólo la parte del gasto de la escuela de internado que corresponde al cuidado de su hijo se considera un gasto relacionado con el trabajo. Amend your tax return Puede incluir esa parte del gasto al calcular su crédito, si la misma se puede separar del costo de educación. Amend your tax return No puede incluir parte alguna de la cantidad que usted pague a la escuela por la educación de su hijo. Amend your tax return Cuidado fuera de su domicilio. Amend your tax return   Puede incluir el costo del cuidado provisto fuera de su domicilio si dicho cuidado es para un dependiente que tenga menos de 13 años de edad o alguna otra persona calificada que habitualmente pasa por lo menos 8 horas al día en la casa de usted. Amend your tax return Centro de cuidado para dependientes. Amend your tax return   Puede incluir el costo de cuidados provistos fuera de su domicilio por un centro de cuidados para dependientes sólo si el centro cumple con todas las reglas o normas locales y estatales correspondientes a estos centros. Amend your tax return   Un centro de cuidados para dependientes es un lugar que provee cuidados a más de 6 personas (que no sean personas que vivan allí) y recibe una compensación, pago o subvención por proveer servicios para cualquiera de esas personas, aun cuando el centro no tenga fines de lucro. Amend your tax return Campamento. Amend your tax return   El costo de mandar a su hijo a un campamento en el que pase la noche no se considera un gasto relacionado con el trabajo. Amend your tax return El costo de mandar a su hijo a un campamento de día podría ser un gasto relacionado con el trabajo, aunque el campamento se especialice en una actividad específica, como computadoras o fútbol. Amend your tax return Transporte. Amend your tax return   Si un proveedor de cuidados lleva a una persona calificada desde o hasta el lugar de cuidado, se considera que dicho transporte es gasto de cuidado de la persona calificada. Amend your tax return Esto incluye transporte en autobús, metro, taxi o auto privado. Amend your tax return Sin embargo, el transporte que no sea proporcionado por un proveedor de cuidados no se considera gasto de cuidado de la persona calificada. Amend your tax return Además, si usted paga el costo del transporte de la persona que provee el cuidado para que venga a su casa, dicho gasto no se considera gasto de cuidado de la persona calificada. Amend your tax return Cargos y depósitos. Amend your tax return   Los cargos pagados a una agencia para obtener servicios de un proveedor de cuidados, los depósitos pagados a una agencia o parvulario, los cargos de solicitud y otros gastos indirectos se consideran gastos relacionados con el trabajo si uno tiene que pagarlos para recibir los cuidados, aun si no se pagan directamente por dichos cuidados. Amend your tax return Sin embargo, un depósito al que haya perdido el derecho no se considera gasto de cuidado de una persona calificada si de hecho no se provee dicho cuidado. Amend your tax return Ejemplo 1. Amend your tax return Pagó un cargo a una agencia para recibir los servicios de la niñera que cuida a su hija de 2 años de edad mientras usted trabaja. Amend your tax return El cargo que usted pagó se considera un gasto relacionado con el trabajo. Amend your tax return Ejemplo 2. Amend your tax return Pagó un depósito a un parvulario para reservar una plaza para su hijo de 3 años de edad. Amend your tax return Después, envió su hijo a otro parvulario y por lo tanto perdió el derecho al depósito. Amend your tax return El depósito al que ya no tiene derecho no es gasto por cuidados que de hecho se proveyeron y por lo tanto no se considera un gasto relacionado con el trabajo. Amend your tax return Servicios domésticos. Amend your tax return   Los gastos que usted paga por servicios domésticos reúnen los requisitos como gastos relacionados con el trabajo si los mismos son, por lo menos en parte, para el bienestar y la protección de la persona calificada. Amend your tax return   Se considera que esos servicios domésticos son servicios comunes y habituales, provistos en su casa y alrededor de la misma, que sean necesarios para mantener la casa. Amend your tax return Los mismos incluyen servicios de un ama de casa, criada, o cocinero. Amend your tax return Sin embargo, los servicios domésticos no incluyen un chófer, camarero o jardinero. Amend your tax return Vea Household Services (Servicios Domésticos), en la Publicación 503, en inglés, para más información. Amend your tax return   En este capítulo, el término ama de casa se refiere a cualquier empleado doméstico cuyos servicios incluyan el cuidado de una persona calificada. Amend your tax return Impuestos pagados sobre el salario. Amend your tax return   Los impuestos pagados sobre el salario por servicios del cuidado de menores y dependientes calificados son gastos relacionados con el trabajo. Amend your tax return Vea Impuestos sobre la nómina para Empleadores de Empleados Domésticos , más adelante. Amend your tax return Pagos a Parientes o Dependientes Usted puede incluir pagos relacionados con el trabajo que usted hizo a sus parientes que no son sus dependientes, aun si los mismos viven en su vivienda. Amend your tax return Sin embargo, no incluya ninguna cantidad que pague a: Un dependiente por quien usted (o su cónyuge, si presentan una declaración conjunta) pueda declarar una exención, Un hijo suyo que tuviera menos de 19 años de edad al final del año, aun si no es dependiente suyo, Una persona que fuera su cónyuge en cualquier momento del año ni Al padre o a la madre de la persona calificada si es hijo de usted y tiene menos de 13 años de edad. Amend your tax return Requisito de la Declaración Conjunta Por regla general, las parejas casadas tienen que presentar una declaración conjunta para poder reclamar el crédito. Amend your tax return Sin embargo, si usted está legalmente separado de su cónyuge o no vive con su cónyuge, quizás pueda presentar una declaración por separado y aún reclamar el crédito. Amend your tax return Si está legalmente separado. Amend your tax return   Si está legalmente separado de su cónyuge conforme a un fallo de divorcio o de manutención por separación judicial, no se le considera casado. Amend your tax return Podría tener derecho a reclamar el crédito en su declaración utilizando el estado civil de cabeza de familia. Amend your tax return Casados que viven aparte. Amend your tax return   No se le considera casado y tendrá derecho al crédito si reúne todas las condiciones siguientes: Presenta una declaración separada de su cónyuge. Amend your tax return Su vivienda es la vivienda de una persona calificada durante más de la mitad del año. Amend your tax return Usted paga más de la mitad del costo de mantener su hogar durante el año. Amend your tax return Su cónyuge no vive en el hogar de usted durante los últimos 6 meses del año. Amend your tax return Gastos de mantenimiento de la vivienda. Amend your tax return   Los gastos de mantenimiento de la vivienda suelen incluir impuestos sobre la propiedad, intereses hipotecarios, alquiler, cargos por servicios públicos, reparaciones en la vivienda, seguros para la vivienda, y alimentos consumidos en la vivienda. Amend your tax return   Los gastos de mantenimiento de la vivienda no incluyen pagos por ropa, educación, tratamiento médico, vacaciones, seguro de vida, transporte ni capital hipotecario. Amend your tax return   Tampoco incluyen la compra, mejoras permanentes ni reemplazo de propiedad. Amend your tax return Por ejemplo, usted no puede incluir los gastos de reemplazar un calentador de agua. Amend your tax return Sin embargo, sí puede incluir los gastos de reparar un calentador de agua. Amend your tax return Fallecimiento del cónyuge. Amend your tax return   Si su cónyuge fallece durante el año y usted no se vuelve a casar antes del final del año, por lo general, debe presentar una declaración conjunta para poder reclamar el crédito. Amend your tax return Si se vuelve a casar antes del final del año, puede reclamar el crédito en la declaración de su cónyuge fallecido. Amend your tax return Requisito de Identificación del Proveedor de Cuidados Tiene que identificar a todas las personas u organizaciones que provean cuidados para su hijo o dependiente. Amend your tax return Use la Parte I del Formulario 2441 para mostrar la información. Amend your tax return Si no tiene proveedores de cuidados y presenta el Formulario 2441 sólo para declarar ingresos tributables en la Parte III, anote “none” (ninguno) en la columna (a) de la línea 1. Amend your tax return Información que se necesita. Amend your tax return   Para identificar al proveedor del cuidado, tiene que dar la siguiente información sobre el proveedor: Nombre, Dirección y Número de identificación del contribuyente. Amend your tax return   Si el proveedor del cuidado es una persona física, el número de identificación del contribuyente es su número de Seguro Social o su número de identificación del contribuyente individual. Amend your tax return Si el proveedor del cuidado es una organización, entonces es su número de identificación del empleador (EIN, por sus siglas en inglés). Amend your tax return   No tiene que mostrar el número de identificación del contribuyente si el proveedor del cuidado es una organización exenta de impuestos (tal como una iglesia o escuela). Amend your tax return En este caso, escriba “Tax-Exempt” (Exento de impuestos) en el espacio donde el Formulario 2441 pide el número. Amend your tax return   Si no puede proveer toda la información o si dicha información es incorrecta, tiene que demostrar que usted actuó con debida diligencia (de la cual se habla más adelante) al tratar de facilitar la información necesaria. Amend your tax return Cómo obtener la información. Amend your tax return   Puede usar el Formulario W-10 para solicitar la información requerida del proveedor de cuidados. Amend your tax return Si no usa el Formulario W-10, puede obtener la información de una de las fuentes de información indicadas en las instrucciones del Formulario W-10, incluyendo: Una copia de la tarjeta del Seguro Social del proveedor, Una copia completada del Formulario W-4(SP) (o el Formulario W-4, en inglés) del proveedor de cuidados si éste es su empleado doméstico, Una copia del informe proporcionado por su empleador, si el proveedor es el plan de cuidado de dependientes de su empleador o Una carta o factura del proveedor si la información se muestra en ella. Amend your tax return    Debería mantener esta información como documentación de su historial tributario. Amend your tax return No envíe el Formulario W-10 (ni otros documentos que contengan esta información) al Servicio de Impuestos Internos (Internal Revenue Service). Amend your tax return Debida diligencia. Amend your tax return   Si la información acerca del proveedor de cuidados que usted proporcione es incorrecta o incompleta, es posible que no se le permita reclamar el crédito. Amend your tax return Sin embargo, si usted puede demostrar haber actuado con debida diligencia al tratar de dar la información, todavía podrá reclamar el crédito. Amend your tax return   Puede demostrar debida diligencia obteniendo y manteniendo un Formulario W-10 completado del proveedor o una de las fuentes de información enumeradas anteriormente. Amend your tax return Los proveedores de cuidados pueden ser sancionados si no le proporcionan esta información a usted, o si proporcionan información incorrecta. Amend your tax return Negativa del proveedor a dar información. Amend your tax return   Si el proveedor se niega a darle la información de identificación, usted debería declarar la información que tenga disponible (tal como el nombre y dirección) en el Formulario 2441. Amend your tax return Escriba “See Attached Statement” (Vea aclaración adjunta) en las columnas que piden la información que no tenga. Amend your tax return Luego adjunte una aclaración que explique que le solicitó la información al proveedor de cuidados, pero que el mismo no le dio la información. Amend your tax return Asegúrese de anotar su nombre y número de Seguro Social en la aclaración. Amend your tax return Dicha aclaración mostrará que usted actuó con debida diligencia al tratar de dar la información necesaria. Amend your tax return Ciudadanos y extranjeros residentes de los Estados Unidos que viven en el extranjero. Amend your tax return   Si vive en el extranjero, es posible que su proveedor de cuidados no tenga, y que no esté obligado a conseguir, un número de identificación del contribuyente de los EE. Amend your tax return UU. Amend your tax return (por ejemplo, un número de Seguro Social o número de identificación del empleador). Amend your tax return De ser así, escriba “LAFCP” (siglas en inglés que significan Living Abroad Foreign Care Provider (Proveedor de cuidados extranjero que vive en el extranjero)) en el espacio correspondiente al número de identificación del contribuyente perteneciente al proveedor de cuidados. Amend your tax return Cómo Calcular el Crédito Su crédito es un porcentaje de sus gastos relacionados con el trabajo. Amend your tax return Sus gastos están sujetos al límite del ingreso del trabajo y al límite de dinero. Amend your tax return El porcentaje se basa en su ingreso bruto ajustado. Amend your tax return Cómo Calcular el Total de los Gastos Relacionados con el Trabajo Para calcular su crédito por gastos relacionados con el trabajo del año 2013, sume sólo aquellos gastos pagados hasta el 31 de diciembre del año 2013. Amend your tax return Gastos pagados por adelantado en un año anterior. Amend your tax return   Si paga por algún servicio antes de que se provea de hecho, podrá usar los gastos pagados por adelantado solamente en el año en que el cuidado fue recibido. Amend your tax return Declare los gastos en el año posterior como si de hecho fueran pagados en ese año posterior. Amend your tax return Gastos no pagados hasta el año siguiente. Amend your tax return   No cuente los gastos ocasionados en el año 2012 que usted pagó en el año 2013 como gastos relacionados con el trabajo en el año 2013. Amend your tax return Quizás pueda reclamar un crédito adicional por dichos gastos en su declaración de impuestos del año 2013, pero tiene que calcularlo por separado. Amend your tax return Vea Payments for prior year's expenses (Pagos por gastos del año anterior), bajo Amount of Credit (Cantidad del crédito) en la Publicación 503, en inglés. Amend your tax return    Si incurrió en gastos en el año 2013 que no pagó hasta el año 2014, no los puede incluir cuando calcule el crédito del año 2013. Amend your tax return Quizás pueda reclamar un crédito por esa cantidad en la declaración de impuestos del año 2014. Amend your tax return Gastos reembolsados. Amend your tax return   Si una agencia estatal de servicios sociales le paga una cantidad no tributable para reembolsarle algunos de sus gastos por el cuidado de su hijo o dependiente, no puede considerar esos gastos como gastos relacionados con el trabajo. Amend your tax return Ejemplo. Amend your tax return Usted pagó $3,000 en gastos relacionados con el trabajo. Amend your tax return Una agencia estatal de servicios sociales le reembolsa $2,000. Amend your tax return Puede usar sólamente $1,000 para calcular el crédito. Amend your tax return Gastos médicos. Amend your tax return   Algunos gastos por el cuidado de personas calificadas que no puedan cuidarse de sí mismas podrían reunir los requisitos para considerarse como gastos relacionados con el trabajo y también como gastos médicos. Amend your tax return Puede usarlos de la manera que prefiera, pero no puede usar los mismos gastos para reclamar un crédito y también para declarar una deducción por gastos médicos. Amend your tax return   Si usa estos gastos para calcular el crédito y son mayores que el límite del ingreso del trabajo o el límite de dinero, los cuales se explican más adelante, puede añadir a los gastos médicos la parte que excede del límite. Amend your tax return Sin embargo, si usa el total de sus gastos para calcular la deducción de sus gastos médicos, no puede usar ninguna parte de los mismos para calcular el crédito. Amend your tax return    Las cantidades que han sido excluidas de sus ingresos conforme al plan de cuidados de dependientes de su empleador no se pueden usar para declarar una deducción por gastos médicos. Amend your tax return Beneficios para el Cuidado de Dependientes Si recibe beneficios para el cuidado de dependientes, el límite de dinero para propósitos del crédito podría ser disminuido. Amend your tax return Vea más adelante Reducción del Límite de Dinero . Amend your tax return No obstante, aun si no puede reclamar el crédito, quizás pueda declarar una exclusión o deducción por los beneficios para el cuidado de dependientes. Amend your tax return Beneficios para el cuidado de dependientes. Amend your tax return   Los beneficios para el cuidado de dependientes incluyen: Cantidades que su empleador le pague directamente a usted o directamente al proveedor de cuidados por el cuidado de su persona calificada mientras usted trabaje, El valor justo de mercado del cuidado en una guardería provista o financiada por su empleador y Aportaciones hechas por usted antes de la tasación de impuestos a una cuenta de gastos flexible para el cuidado de dependientes. Amend your tax return Puede ser que su sueldo haya sido reducido para pagar esos beneficios. Amend your tax return Si recibió beneficios como empleado, éstos deberían estar anotados en el recuadro 10 de su Formulario W-2. Amend your tax return Vea Informe del empleado , más adelante. Amend your tax return Los beneficios que usted recibió como socio deberían estar anotados en el recuadro 13 de su Anexo K-1 (Formulario 1065) con el código O. Amend your tax return Anote la cantidad de dichos beneficios en la línea 12 de la Parte III del Formulario 2441. Amend your tax return Exclusión o deducción. Amend your tax return   Si su empleador provee beneficios para el cuidado de dependientes, conforme a un plan calificado, tal vez pueda excluir estos beneficios de sus ingresos. Amend your tax return Su empleador le puede decir si su plan de beneficios reúne los requisitos. Amend your tax return Para declarar la exclusión, tiene que llenar la Parte III del Formulario 2441. Amend your tax return No puede usar el Formulario 1040EZ. Amend your tax return   Si trabaja por cuenta propia y recibe beneficios de un plan calificado de beneficios para el cuidado de dependientes, se le considera empleador y empleado a la vez. Amend your tax return Por lo tanto, no se le permite una exclusión del salario, sino una deducción en la línea 14 del Anexo C (Formulario 1040), en la línea 19 ó 28 del Anexo E (Formulario 1040), o en la línea 15 del Anexo F (Formulario 1040). Amend your tax return Para declarar la deducción, tiene que usar el Formulario 2441. Amend your tax return   La cantidad que se puede excluir o deducir se limita a la que sea menor entre las siguientes: La cantidad total de beneficios para el cuidado de dependientes que usted recibió durante el año, La cantidad total de gastos calificados en los que usted incurrió durante el año, Su ingreso del trabajo, El ingreso del trabajo de su cónyuge o $5,000 ($2,500 si son casados que presentan la declaración por separado). Amend your tax return La definición del ingreso del trabajo para fines de la exclusión o deducción es igual a la definición que se usa para calcular el crédito, salvo que el ingreso del trabajo para fines de la exclusión o deducción no incluye los beneficios para el cuidado de dependientes recibidos por usted. Amend your tax return Vea Límite del Ingreso del Trabajo, más adelante. Amend your tax return    Cuando está calculando su exclusión o deducción, usted puede elegir incluir en su ingreso del trabajo lo que ha ganado por concepto de pago por combate no sujeto a impuestos. Amend your tax return Tiene esta opción aun si usted elige no incluir esos pagos en su ingreso del trabajo para propósitos del crédito por ingreso del trabajo o el crédito por gastos del cuidado de menores y dependientes. Amend your tax return Informe del empleado. Amend your tax return   Su empleador tiene que entregarle a usted un Formulario W-2 (o informe parecido) que muestre en el recuadro 10 la cantidad total de los beneficios para el cuidado de dependientes que le fueron provistos a usted durante el año conforme a un plan calificado. Amend your tax return Su empleador también incluirá en sus salarios, anotados en el recuadro 1 de su Formulario W-2, todos los beneficios para el cuidado de dependientes que exceden de los $5,000. Amend your tax return Efecto de la exclusión sobre el crédito. Amend your tax return   Si excluye de sus ingresos los beneficios para el cuidado de dependientes, la cantidad de los beneficios excluidos: No se incluye en sus gastos relacionados con el trabajo y Reduce el límite de dinero, explicado más adelante. Amend your tax return Límite del Ingreso del Trabajo La cantidad de los gastos relacionados con el trabajo que usted puede utilizar para calcular su crédito no puede exceder: Del importe de su ingreso del trabajo del año, si está soltero al final del año ni Del que sea menor entre su ingreso del trabajo y el de su cónyuge durante el año, si están casados al final del año. Amend your tax return El ingreso del trabajo se define bajo Requisito del Ingreso del Trabajo , anteriormente. Amend your tax return En el caso del punto (2) anterior, utilice el total del ingreso del trabajo de su cónyuge durante todo el año, aunque estuviera casado solamente durante una parte del año. Amend your tax return Cónyuge separado. Amend your tax return   Si está legalmente separado o casado y no vive con su cónyuge (tal como se describe anteriormente bajo Requisito de la Declaración Conjunta ), a usted no se le considera casado para propósitos del límite del ingreso del trabajo. Amend your tax return Use solamente su propio ingreso al calcular el límite del ingreso del trabajo. Amend your tax return Cónyuge sobreviviente. Amend your tax return   Si su cónyuge falleció durante el año y usted presenta una declaración conjunta como cónyuge sobreviviente, puede, pero no está obligado a, tomar en cuenta el ingreso del trabajo de su cónyuge fallecido durante el año. Amend your tax return Leyes de los bienes gananciales. Amend your tax return   Debe hacer caso omiso de las leyes de los bienes gananciales al calcular el ingreso del trabajo para este crédito. Amend your tax return Si usted o cónyuge es estudiante o no puede cuidar de sí mismo. Amend your tax return   Si su cónyuge es estudiante a tiempo completo o no puede cuidar de sí mismo, se considera que tiene ingreso del trabajo. Amend your tax return Se considera que su ingreso del trabajo mensual es de por lo menos $250 si hay una persona calificada en la vivienda de usted, o de por lo menos $500 si hay dos o más personas en su vivienda. Amend your tax return Si su cónyuge trabaja. Amend your tax return   Si su cónyuge trabaja durante ese mes, utilice $250 (o $500) o el ingreso del trabajo real de él o ella para ese mes, lo que sea mayor. Amend your tax return Si su cónyuge reúne los requisitos por una parte de un mes. Amend your tax return    Si su cónyuge es estudiante a tiempo completo o no puede cuidar de sí mismo sólo por una parte del mes, la cantidad entera de $250 (o $500) todavía corresponde para ese mes. Amend your tax return Usted es estudiante o no puede cuidar de sí mismo. Amend your tax return   También corresponden estas reglas si usted es estudiante o no puede cuidar de sí mismo y presenta una declaración conjunta. Amend your tax return Por cada mes o parte del mes que sea un estudiante o que no pueda cuidar de sí mismo, se considera que su ingreso del trabajo es por lo menos $250 (o $500). Amend your tax return Si también trabaja durante ese mes, use la cantidad mayor de $250 (o $500) o su cantidad real de ingreso del trabajo para ese mes. Amend your tax return Si ambos cónyuges reúnen los requisitos. Amend your tax return   Si, en el mismo mes, tanto usted como su cónyuge son estudiantes a tiempo completo o no pueden cuidar de sí mismos, se puede considerar que sólo un cónyuge tiene este ingreso del trabajo de $250 (o $500) para ese mes. Amend your tax return Límite de Dinero Existe un límite en la cantidad de gastos relacionados con el trabajo que se puede usar para calcular el crédito. Amend your tax return El límite es $3,000 en el caso de una persona calificada, o $6,000 en el caso de dos o más personas calificadas. Amend your tax return Si pagó gastos relacionados con el trabajo por el cuidado de dos o más personas calificadas, el límite aplicable es de $6,000. Amend your tax return No hay necesidad de dividir dicho límite de $6,000 por igual entre ellas. Amend your tax return Por ejemplo, si sus gastos relacionados con el trabajo por el cuidado de una persona calificada son de $3,200 y los gastos relacionados con el trabajo por otra persona calificada son de $2,800, puede utilizar el total, $6,000, al calcular el crédito. Amend your tax return Límite anual. Amend your tax return   El límite de dinero es un límite anual. Amend your tax return La cantidad del límite de dinero se mantiene igual, sin importar cuánto tiempo durante el año tenga en su residencia a una persona calificada. Amend your tax return Utilice el límite de $3,000 si pagó gastos relacionados con el trabajo para una persona calificada en algún momento del año. Amend your tax return Utilice el límite de $6,000 si pagó gastos relacionados con el trabajo para más de una persona calificada en algún momento del año. Amend your tax return Reducción del Límite de Dinero Si recibió beneficios para el cuidado de dependientes que usted excluye o deduce de sus ingresos, tiene que restar esa cantidad del límite de dinero que le corresponde. Amend your tax return La reducción del límite de dinero se calcula en la Parte III del Formulario 2441. Amend your tax return Vea la sección anterior, Beneficios para el Cuidado de Dependientes , para información sobre cómo excluir o deducir estos beneficios. Amend your tax return Ejemplo 1. Amend your tax return Jorge es viudo, tiene un hijo y gana $24,000 al año. Amend your tax return Paga gastos relacionados con el trabajo de $2,900 por el cuidado de su hijo de 4 años de edad. Amend your tax return Jorge reúne los requisitos para reclamar el crédito por gastos del cuidado de menores y dependientes. Amend your tax return Su empleador paga $1,000 adicionales, conforme a un plan de beneficios para el cuidado de dependientes. Amend your tax return Estos $1,000 se excluyen de los ingresos de Jorge. Amend your tax return Aunque el límite de dinero para sus gastos relacionados con el trabajo es de $3,000 (una persona calificada), Jorge calcula su crédito basándose solamente en $2,000 de los $2,900 que pagó por gastos relacionados con el trabajo. Amend your tax return Ésto se debe a que su límite de dinero se ha reducido como se muestra a continuación:   Reducción del Límite de Dinero de Jorge 1) Máximo de gastos permitidos para una persona calificada $3,000 2) Menos: Los beneficios para el cuidado de dependientes que Jorge excluye de sus ingresos −1,000 3) Reducción del límite de dinero sobre los gastos que Jorge puede utilizar para el crédito $2,000 Ejemplo 2. Amend your tax return Ronaldo está casado y tanto él como su esposa trabajan. Amend your tax return Cada uno tiene ingreso del trabajo superior a $6,000. Amend your tax return Ellos tienen dos hijos, Anita y Antonio, de 2 y 4 años. Amend your tax return Sus hijos asisten a un centro de cuidados para niños durante el día, el cual es controlado por el estado, y con licencia expedida por el mismo. Amend your tax return Ronaldo tuvo $6,000 en gastos relacionados con su trabajo en el año. Amend your tax return El empleador de Ronaldo ofrece un programa de ayuda para el cuidado de dependientes como parte de su plan cafeteria, el cual permite que los empleados efectúen aportaciones a un plan de gastos flexibles para el cuidado de dependientes (Dependent care flexible spending arrangement) antes de que se tasen impuestos sobre las mismas. Amend your tax return Como parte de este programa, Ronaldo ha elegido tomar la exclusión máxima de $5,000 de su salario para pagar los gastos del cuidado de dependientes. Amend your tax return Aunque el límite de dinero para los gastos relacionados con el trabajo es de $6,000 (para dos o más personas calificadas), Ronaldo calcula su crédito usando sólo $1,000 de los $6,000 que pagó por concepto de gastos relacionados con el trabajo. Amend your tax return Esto se debe a la reducción de su límite de dinero, explicada a continuación. Amend your tax return   Reducción del Límite de Dinero de Ronaldo 1) Máximo de gastos permitidos para dos personas calificadas $6,000 2) Menos: Los beneficios para el cuidado de dependientes elegidos del plan “cafetería” ofrecido por su empleador, y excluidos del ingreso de Ronaldo −5,000 3) Reducción del límite de dinero sobre los gastos que Ronaldo puede utilizar para el crédito $1,000 Cantidad de Crédito Para determinar la cantidad de su crédito, multiplique sus gastos relacionados con el trabajo (después de aplicar el límite del ingreso del trabajo y el límite de dinero) por el porcentaje correspondiente. Amend your tax return Este porcentaje depende del ingreso bruto ajustado, como se refleja en la línea 38 del Formulario 1040 o la línea 22 del Formulario 1040A. Amend your tax return La tabla siguiente muestra el porcentaje que deberá usar basado en el ingreso bruto ajustado:   SI su ingreso bruto ajustado es: ENTONCES el       Más de   Pero no más de   porcentaje es:       $0   $15,000   35%       15,000   17,000   34%       17,000   19,000   33%       19,000   21,000   32%       21,000   23,000   31%       23,000   25,000   30%       25,000   27,000   29%       27,000   29,000   28%       29,000   31,000   27%       31,000   33,000   26%       33,000   35,000   25%       35,000   37,000   24%       37,000   39,000   23%       39,000   41,000   22%       41,000   43,000   21%       43,000   No hay límite   20%   Cómo Reclamar el Crédito Para reclamar el crédito, puede presentar el Formulario 1040 o el Formulario 1040A. Amend your tax return No puede reclamar el crédito en el Formulario 1040EZ. Amend your tax return Formulario 1040 ó 1040A. Amend your tax return   Tiene que completar el Formulario 2441 y adjuntar el mismo a su Formulario 1040 ó 1040A. Amend your tax return Anote la cantidad del crédito en la línea 48 del Formulario 1040 o la línea 29 del Formulario 1040A. Amend your tax return Límite de crédito. Amend your tax return   En la mayoría de los casos, la cantidad de crédito que puede reclamar se limita a la cantidad de su impuesto. Amend your tax return Para más información vea las Instrucciones del Formulario 2441. Amend your tax return Crédito tributario no reembolsable. Amend your tax return   No puede obtener un reembolso por parte alguna del crédito que supere este límite. Amend your tax return Mantenimiento de documentación. Amend your tax return Usted debería mantener datos y registros de los gastos relacionados con el trabajo. Amend your tax return Además, si su dependiente o cónyuge no puede cuidar de sí mismo, los datos y registros que mantiene deben indicar tanto la forma como la duración de la incapacidad. Amend your tax return Otros datos y documentos que debería mantener para respaldar su solicitud de crédito se describen anteriormente bajo Requisito de Identificación del Proveedor de Cuidados . Amend your tax return Impuestos sobre la Nómina para Empleadores de Empleados Domésticos Si le paga a alguien para que venga a su hogar y cuide a su dependiente o a su cónyuge, es posible que se le considere un empleador de empleados domésticos. Amend your tax return Si es empleador de empleados domésticos, necesitará obtener un número de identificación del empleador (EIN) y quizás tenga que pagar impuestos sobre la nómina. Amend your tax return Si las personas que trabajan en la residencia de usted son empleados autónomos, es decir, trabajan por cuenta propia, usted no es responsable de ninguno de los impuestos que se explican en esta sección. Amend your tax return Las personas que trabajan por cuenta propia no son empleados domésticos. Amend your tax return Por lo general, usted no es empleador de empleados domésticos si la persona que cuida a su dependiente o cónyuge presta el servicio de cuidados en su propia residencia o lugar de negocio. Amend your tax return Si usa una agencia de empleo que tiene control sobre la clase de trabajo que realiza una niñera o acompañante que trabaja en la vivienda de usted, y sobre la manera en que se realiza el mismo, aquella persona no es su empleado. Amend your tax return Dicho control podría incluir proveer reglas de conducta y aspecto personal y exigir la entrega de informes con regularidad. Amend your tax return Si ese es el caso, usted no tiene que pagar impuestos sobre la nómina. Amend your tax return Sin embargo, si una agencia sólo le entrega una lista de niñeros o niñeras y usted contrata a uno de los que encontró en esa lista y paga directamente al mismo por sus servicios, dicha persona podría ser su empleado. Amend your tax return Si tiene un empleado doméstico usted podría estar sujeto a: Los impuestos del Seguro Social y Medicare, El impuesto federal sobre el desempleo y La retención del impuesto federal sobre el ingreso. Amend your tax return Los impuestos del Seguro Social y Medicare, por lo general, son retenidos de la paga de los empleados, y los empleadores pagan una cantidad igual. Amend your tax return El impuesto federal para el desempleo (FUTA, por sus siglas en inglés) lo paga solamente el empleador y son pagos por desempleo a empleados que hayan perdido su trabajo. Amend your tax return El impuesto federal sobre el ingreso se retiene del sueldo total del empleado si él le pide que lo haga y usted está de acuerdo. Amend your tax return Para más información sobre las responsabilidades tributarias de un empleador doméstico, vea la Publicación 926 y el Anexo H (Formulario 1040), en inglés, y las instrucciones correspondientes. Amend your tax return Impuestos estatales sobre la nómina. Amend your tax return   Es posible que también tenga que pagar el impuesto estatal de desempleo. Amend your tax return Póngase en contacto con su oficina de impuestos estatales para el desempleo a fin de obtener más información. Amend your tax return También debería averiguar si necesita pagar o cobrar otros impuestos estatales sobre la nómina o tener seguro de compensación al trabajador. Amend your tax return Para una lista de agencias de impuestos estatales de desempleo, vísite el sitio web del U. Amend your tax return S. Amend your tax return Department of Labor (Departamento del Trabajo). Amend your tax return Un enlace a este sitio web está en la Publicación 926, en inglés, o lo puede buscar en línea. Amend your tax return Prev  Up  Next   Home   More Online Publications
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The Amend Your Tax Return

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