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Federal Tax Return Forms 1040ez

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Federal Tax Return Forms 1040ez

Federal tax return forms 1040ez Index A Accounting method Accrual, Accrual Method, Accrual method. Federal tax return forms 1040ez Automatic procedures, Automatic change procedures. Federal tax return forms 1040ez Cash, Cash Method, Cash method. Federal tax return forms 1040ez Change in, Change in Accounting Method Combination, Combination Method Special, Special Methods Accounting periods, Accounting Periods Accrual method Income - general rule, Income—General Rule Income - special rules, Income—Special Rules Of accounting, Accrual Method Adjusted basis, Adjusted basis. Federal tax return forms 1040ez Administrator, Executor or administrator. Federal tax return forms 1040ez Alternative fuel vehicle refueling property credit, Alternative fuel vehicle refueling property credit (Form 8911). Federal tax return forms 1040ez Alternative motor vehicle credit, Alternative motor vehicle credit (Form 8910). Federal tax return forms 1040ez Appeal rights, Appeals. Federal tax return forms 1040ez Appreciation, Appreciation. Federal tax return forms 1040ez Audits, Examinations (audits). Federal tax return forms 1040ez Automobile (see Car expenses) B Bad debts, Bad Debts Barter income, Bartering for Property or Services Basis of property, Basis. Federal tax return forms 1040ez Bribes, Expenses You Cannot Deduct Business expenses, Business Expenses Business income, Business Income Business use of your home, Business Use of Your Home C Canceled debt, Canceled Debt Cancellation of qualified real property business debt, Cancellation of qualified real property business debt. Federal tax return forms 1040ez Capital gain or loss, Is My Gain or Loss Ordinary or Capital? Car expenses, Car and Truck Expenses, Methods for Deducting Car and Truck Expenses Carbon dioxide sequestration credit, Carbon dioxide sequestration credit (Form 8933). Federal tax return forms 1040ez Cash discount, Cash discounts. Federal tax return forms 1040ez , Cash discounts. Federal tax return forms 1040ez Cash method Expenses, Expenses Income, Income Changing accounting method, Changing accounting method. Federal tax return forms 1040ez Charitable contributions, Expenses You Cannot Deduct Child employed by parent, Child employed by parent. Federal tax return forms 1040ez Claim for refund, Refunds. Federal tax return forms 1040ez Collection of tax, Collections. Federal tax return forms 1040ez Combination method of accounting, Combination Method Comments on publication, Comments and suggestions. Federal tax return forms 1040ez Condemned property, Condemned property. Federal tax return forms 1040ez Consignments, Consignments. Federal tax return forms 1040ez Construction allowances, Construction allowances. Federal tax return forms 1040ez Cost of goods sold, How To Figure Cost of Goods Sold Credit Alternative fuel vehicle refueling property, Alternative fuel vehicle refueling property credit (Form 8911). Federal tax return forms 1040ez Alternative motor vehicle, Alternative motor vehicle credit (Form 8910). Federal tax return forms 1040ez Carbon dioxide sequestration, Carbon dioxide sequestration credit (Form 8933). Federal tax return forms 1040ez Disabled access, Disabled access credit (Form 8826). Federal tax return forms 1040ez Distilled spirits, Distilled spirits credit (Form 8906). Federal tax return forms 1040ez Employer-provided childcare, Credit for employer-provided childcare facilities and services (Form 8882). Federal tax return forms 1040ez How to claim, How To Claim the Credit Indian coal, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). Federal tax return forms 1040ez Investment, Investment credit (Form 3468). Federal tax return forms 1040ez Low sulfur diesel fuel production, Low sulfur diesel fuel production credit (Form 8896). Federal tax return forms 1040ez Low-income housing, Low-income housing credit (Form 8586). Federal tax return forms 1040ez New markets, New markets credit (Form 8874). Federal tax return forms 1040ez Nonconventional source fuel, Nonconventional source fuel credit (Form 8907). Federal tax return forms 1040ez Orphan drug, Orphan drug credit (Form 8820). Federal tax return forms 1040ez Qualified plug-in electric drive motor vehicle, Qualified plug-in electric drive motor vehicle credit (Form 8936). Federal tax return forms 1040ez Refined coal, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). Federal tax return forms 1040ez Renewable electricity, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). Federal tax return forms 1040ez Small employer health insurance premiums, Credit for small employer health insurance premiums (Form 8941). Federal tax return forms 1040ez Small employer pension plan startup costs, Credit for small employer pension plan startup costs (Form 8881). Federal tax return forms 1040ez Taxes paid on certain employee tips, Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). Federal tax return forms 1040ez Work opportunity, Work opportunity credit (Form 5884). Federal tax return forms 1040ez D Damages, Damages. Federal tax return forms 1040ez Debt Bad, Bad Debts Canceled, Canceled Debt Qualified real property business, Qualified real property business debt. Federal tax return forms 1040ez Refund offset against, Offset against debts. Federal tax return forms 1040ez Definitions Accounting methods, Accounting Methods Accounting periods, Accounting Periods Barter, Bartering for Property or Services Basis, Basis. Federal tax return forms 1040ez Business bad debt, Business bad debt. Federal tax return forms 1040ez Calendar tax year, Calendar tax year. Federal tax return forms 1040ez Cash discount, Cash discounts. Federal tax return forms 1040ez , Cash discounts. Federal tax return forms 1040ez Disposition of property, What Is a Disposition of Property? Drawing account, Merchandise withdrawn from sale. Federal tax return forms 1040ez Entertainment expenses, Entertainment expenses. Federal tax return forms 1040ez Fair market value, Fair market value. Federal tax return forms 1040ez Fiscal tax year, Fiscal tax year. Federal tax return forms 1040ez Fringe benefit, Fringe benefits. Federal tax return forms 1040ez Local transportation expenses, Local transportation expenses. Federal tax return forms 1040ez Necessary expense, Introduction Net operating loss, Net Operating Losses (NOLs) Nonbusiness bad debt, Nonbusiness bad debts. Federal tax return forms 1040ez Ordinary expense, Introduction Principal place of business, Principal place of business. Federal tax return forms 1040ez Qualified long-term real property, Qualified long-term real property. Federal tax return forms 1040ez Qualified real property business debt, Cancellation of qualified real property business debt. Federal tax return forms 1040ez Rent, Rent Expense Restricted property, Other Income Retail space, Retail space. Federal tax return forms 1040ez Self-employment (SE) tax, Self-Employment (SE) Tax Sole proprietor, Sole proprietor. Federal tax return forms 1040ez Tax home, Local transportation expenses. Federal tax return forms 1040ez Trade discount, Trade discounts. Federal tax return forms 1040ez , Cash discounts. Federal tax return forms 1040ez Travel expenses, Travel, Meals, and Entertainment Depreciation Deduction, Depreciation Listed property, Listed property. Federal tax return forms 1040ez Depreciation, recapture, Recapture of depreciation. Federal tax return forms 1040ez Direct seller, Direct seller. Federal tax return forms 1040ez , Real estate agent or direct seller. Federal tax return forms 1040ez Disabled access credit, Disabled access credit (Form 8826). Federal tax return forms 1040ez Disposition of property Business property, Introduction Installment sale, Installment sales. Federal tax return forms 1040ez , Installment sales. Federal tax return forms 1040ez Like-kind exchange, Like-kind exchanges. Federal tax return forms 1040ez , Like-kind exchanges. Federal tax return forms 1040ez , Exchange of like-kind property. Federal tax return forms 1040ez Nontaxable exchange, Nontaxable exchanges. Federal tax return forms 1040ez Sale of a business, Sale of a business. Federal tax return forms 1040ez Distilled spirits credit, Distilled spirits credit (Form 8906). Federal tax return forms 1040ez Dividend income, Interest and Dividend Income Donation of inventory, Donation of inventory. Federal tax return forms 1040ez Drawing account, Merchandise withdrawn from sale. Federal tax return forms 1040ez Due date of return, When Is My Tax Return Due? E e-file, IRS e-file (Electronic Filing) Economic injury, Economic injury. Federal tax return forms 1040ez EFTPS, EFTPS Electronic filing, IRS e-file (Electronic Filing) Employee, Employee. Federal tax return forms 1040ez Employee benefit programs, Fringe benefits. Federal tax return forms 1040ez Employees' pay, Employees' Pay Employer identification number (EIN), Employer identification number (EIN). Federal tax return forms 1040ez Employment taxes About, Employment Taxes Deduction for, Employment taxes. Federal tax return forms 1040ez Entertainment expenses, Entertainment expenses. Federal tax return forms 1040ez (see Travel expenses) Escrow, payments placed in, Payment placed in escrow. Federal tax return forms 1040ez Estimated tax, How Do I Pay Income Tax? Examinations (audits), Examinations (audits). Federal tax return forms 1040ez Excise taxes About, Excise Taxes Deduction for, Excise taxes. Federal tax return forms 1040ez Executor, Executor or administrator. Federal tax return forms 1040ez Expenses, Business Expenses Bad debts, Bad Debts Car, Car and Truck Expenses Depreciation, Depreciation Employees' pay, Employees' Pay Entertainment, Travel, Meals, and Entertainment Home, business use, Business Use of Your Home Insurance, Insurance Interest, Interest Legal and professional fees, Legal and Professional Fees Meals, Travel, Meals, and Entertainment Nondeductible, Expenses You Cannot Deduct Other, Other Expenses You Can Deduct Pension plans, Pension Plans Rent, Rent Expense Taxes, Taxes Travel, Travel, Meals, and Entertainment Truck, Car and Truck Expenses F Fair market value, Fair market value. Federal tax return forms 1040ez Filing business taxes, Filing and Paying Business Taxes Fishing crew member, Fishing crew member. Federal tax return forms 1040ez , Fishing crew member. Federal tax return forms 1040ez Form 1040 (tax return), How Do I File? 1040-ES (estimated tax), How Do I Pay Income Tax? 1040-V (voucher), Balance due. Federal tax return forms 1040ez 1099-B (barter), Information returns. Federal tax return forms 1040ez 1099-MISC (miscellaneous), Form 1099-MISC. Federal tax return forms 1040ez , Information returns. Federal tax return forms 1040ez 1128 (change tax year), Change in tax year. Federal tax return forms 1040ez 2210 (underpayment of estimated tax), Penalty for underpayment of tax. Federal tax return forms 1040ez 2290 (excise tax for heavy trucks), Form 2290. Federal tax return forms 1040ez 3115 (change accounting method), Change in Accounting Method 3468 (investment credit), Investment credit (Form 3468). Federal tax return forms 1040ez 3800 (general business credit), Useful Items - You may want to see: 4562 (depreciation), Form 4562. Federal tax return forms 1040ez 4684 (casualty and theft), Casualties and thefts. Federal tax return forms 1040ez 4797 (sale of business property), Dispositions of business property and depreciable property. Federal tax return forms 1040ez , Condemned property. Federal tax return forms 1040ez , Listed property. Federal tax return forms 1040ez 4868 (extension), When Is My Tax Return Due? 5884 (work opportunity credit), Work opportunity credit (Form 5884). Federal tax return forms 1040ez 6251 (alternative minimum tax), Useful Items - You may want to see: 6252 (installment sale), Installment sales. Federal tax return forms 1040ez 720 (excise tax return), Form 720. Federal tax return forms 1040ez 8300 (cash payments over $10,000), Form 8300. Federal tax return forms 1040ez 8586 (low-income housing), Low-income housing credit (Form 8586). Federal tax return forms 1040ez 8594 (asset acquisition), Sale of a business. Federal tax return forms 1040ez 8820 (orphan drug credit), Orphan drug credit (Form 8820). Federal tax return forms 1040ez 8824 (like-kind exchange), Like-kind exchanges. Federal tax return forms 1040ez , Like-kind exchanges. Federal tax return forms 1040ez 8826 (disabled access credit), Disabled access credit (Form 8826). Federal tax return forms 1040ez 8829 (business in home), Deduction limit. Federal tax return forms 1040ez 8835 (renewable electricity, coal credit), Renewable electricity, refined coal, and Indian coal production credit (Form 8835). Federal tax return forms 1040ez 8846 (credit for social security on tip income), Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). Federal tax return forms 1040ez 8857 (innocent spouse), Innocent spouse relief. Federal tax return forms 1040ez 8874 (new markets credit), New markets credit (Form 8874). Federal tax return forms 1040ez 8879 (self-selected PIN), Using an Authorized IRS e-file Provider 8881 (pension plan startup costs credit), Credit for small employer pension plan startup costs (Form 8881). Federal tax return forms 1040ez 8882 (employer-provided childcare credit), Credit for employer-provided childcare facilities and services (Form 8882). Federal tax return forms 1040ez 8886 (transaction statement), Reminders 8896 (low sulfur diesel fuel production credit), Low sulfur diesel fuel production credit (Form 8896). Federal tax return forms 1040ez 8906 (distilled spirits credit), Distilled spirits credit (Form 8906). Federal tax return forms 1040ez 8907 (nonconventional fuel credit), Nonconventional source fuel credit (Form 8907). Federal tax return forms 1040ez 8910 (alternative vehicle credit), Alternative motor vehicle credit (Form 8910). Federal tax return forms 1040ez , Car and Truck Expenses 8911 (alternative fuel refueling property credit), Alternative fuel vehicle refueling property credit (Form 8911). Federal tax return forms 1040ez 8933 (carbon dioxide sequestration credit), Carbon dioxide sequestration credit (Form 8933). Federal tax return forms 1040ez 8936 (qualified plug-in electric drive motor vehicle), Qualified plug-in electric drive motor vehicle credit (Form 8936). Federal tax return forms 1040ez 8941 (small employer health insurance premiums), Credit for small employer health insurance premiums (Form 8941). Federal tax return forms 1040ez 982 (discharge of indebtedness), Exclusions Schedule C (sole proprietor), How Do I File? Schedule C-EZ (sole proprietor), How Do I File? Schedule SE (self-employment tax), Who must pay self-employment tax. Federal tax return forms 1040ez SS-4 (application for EIN), Employer identification number (EIN). Federal tax return forms 1040ez SS-5 (application for SSN), Social security number (SSN). Federal tax return forms 1040ez W-2 (report wages), Form W-2. Federal tax return forms 1040ez W-4 (employee withholding), Employee. Federal tax return forms 1040ez W-7 (application for ITIN), Individual taxpayer identification number (ITIN). Federal tax return forms 1040ez W-9 (request for TIN), Other payee. Federal tax return forms 1040ez Fringe benefits, Fringe benefits. Federal tax return forms 1040ez Fuel taxes, Fuel taxes. Federal tax return forms 1040ez G Gains and losses, Gains and losses. Federal tax return forms 1040ez General business credits, General Business Credits, Business Credits Gross profit Accuracy, Testing Gross Profit Accuracy Additions to, Additions to Gross Profit Guidelines for selected occupations, Guidelines for Selected Occupations (see also Occupations, selected) H Health insurance, deduction for self-employed, Self-employed health insurance deduction. Federal tax return forms 1040ez Home, business use of, Business Use of Your Home Hotels, boarding houses, and apartments, Hotels, boarding houses, and apartments. Federal tax return forms 1040ez Husband and wife business, Business owned and operated by spouses. Federal tax return forms 1040ez I Identification numbers, Identification Numbers Income, Items That Are Not Income (see also Not income) Accounting for your, Accounting for Your Income Barter, Bartering for Property or Services Business, Business Income Damages, Damages. Federal tax return forms 1040ez Gains and losses, Gains and losses. Federal tax return forms 1040ez Kickbacks, Kickbacks. Federal tax return forms 1040ez Kinds of income, Kinds of Income Lost income payments, Lost income payments. Federal tax return forms 1040ez Other, Other Income Paid to a third party, Income paid to a third party. Federal tax return forms 1040ez Personal property rent, Personal Property Rents Promissory notes, Promissory notes. Federal tax return forms 1040ez Recapture of depreciation, Recapture of depreciation. Federal tax return forms 1040ez Recovery of items previously deducted, Recovery of items previously deducted. Federal tax return forms 1040ez Rental, Real Estate Rents, Personal Property Rents Restricted property, Restricted property. Federal tax return forms 1040ez Income tax About, Income Tax Deduction for, Income taxes. Federal tax return forms 1040ez How to pay, How Do I Pay Income Tax? Underpayment penalty, Penalty for underpayment of tax. Federal tax return forms 1040ez Income tax return, who must file, Do I Have To File an Income Tax Return? Independent contractor, Independent contractor. Federal tax return forms 1040ez , Employment Taxes, Sole proprietor or independent contractor. Federal tax return forms 1040ez Individual taxpayer identification number (ITIN), Individual taxpayer identification number (ITIN). Federal tax return forms 1040ez Information returns, Information Returns Information, How to get more, How To Get More Information Innocent spouse relief, Innocent spouse relief. Federal tax return forms 1040ez Installment sales, Installment sales. Federal tax return forms 1040ez Insurance Expense, Insurance Nondeductible premiums, Nondeductible premiums. Federal tax return forms 1040ez Prepayment, Prepayment. Federal tax return forms 1040ez Proceeds, Insurance proceeds. Federal tax return forms 1040ez Self-employed health, Self-employed health insurance deduction. Federal tax return forms 1040ez Insurance agent Former, Insurance agent, former. Federal tax return forms 1040ez Retired, Insurance agent, retired. Federal tax return forms 1040ez Interest Expenses, Interest Income, Interest and Dividend Income Inventories, Inventories Investment credit, Investment credit (Form 3468). Federal tax return forms 1040ez K Kickbacks, Kickbacks. Federal tax return forms 1040ez , Expenses You Cannot Deduct L Lease bonus, Lease bonus. Federal tax return forms 1040ez Lease cancellation payments, Lease cancellation payments. Federal tax return forms 1040ez Legal fees, Legal and Professional Fees Like-kind exchanges, Like-kind exchanges. Federal tax return forms 1040ez , Exchange of like-kind property. Federal tax return forms 1040ez Limited liability company, Limited liability company (LLC). Federal tax return forms 1040ez Listed property, Listed property. Federal tax return forms 1040ez Lobbying expense, Expenses You Cannot Deduct Local transportation expenses, Local transportation expenses. Federal tax return forms 1040ez Lodging, Meals and lodging. Federal tax return forms 1040ez Long-term capital gain or loss, Is My Capital Gain or Loss Short Term or Long Term? Lost income payments, Lost income payments. Federal tax return forms 1040ez Low sulfur diesel fuel production credit, Low sulfur diesel fuel production credit (Form 8896). Federal tax return forms 1040ez Low-income housing credit, Low-income housing credit (Form 8586). Federal tax return forms 1040ez M Meals, Meals and lodging. Federal tax return forms 1040ez (see Travel expenses) Methods for figuring net earnings, Methods for Figuring Net Earnings Mileage rate for vehicles, Standard mileage rate. Federal tax return forms 1040ez Motor vehicle, alternative credit, Alternative motor vehicle credit (Form 8910). Federal tax return forms 1040ez N Net operating losses, Net Operating Losses (NOLs) Net profit or loss, Introduction New markets credit, New markets credit (Form 8874). Federal tax return forms 1040ez Newspaper carrier or distributor, Newspaper carrier or distributor. Federal tax return forms 1040ez Newspaper or magazine vendor, Newspaper or magazine vendor. Federal tax return forms 1040ez Nonbusiness bad debt, Nonbusiness bad debts. Federal tax return forms 1040ez Nonconventional source fuel credit, Nonconventional source fuel credit (Form 8907). Federal tax return forms 1040ez Nondeductible insurance premiums, Nondeductible premiums. Federal tax return forms 1040ez Nonemployee compensation, Introduction Nontaxable exchanges, Nontaxable exchanges. Federal tax return forms 1040ez Not income Appreciation, Appreciation. Federal tax return forms 1040ez Consignments, Consignments. Federal tax return forms 1040ez Constructions allowances, Construction allowances. Federal tax return forms 1040ez Exchange of like-kind property, Exchange of like-kind property. Federal tax return forms 1040ez Leasehold improvements, Leasehold improvements. Federal tax return forms 1040ez Loans, Loans. Federal tax return forms 1040ez Sales tax, Sales tax. Federal tax return forms 1040ez Not-for-profit activities, Not-for-Profit Activities Notary public, Notary public. Federal tax return forms 1040ez , Notary public. Federal tax return forms 1040ez O Occupations, selected Administrator, Executor or administrator. Federal tax return forms 1040ez Direct seller, Direct seller. Federal tax return forms 1040ez , Real estate agent or direct seller. Federal tax return forms 1040ez Executor, Executor or administrator. Federal tax return forms 1040ez Fishing crew member, Fishing crew member. Federal tax return forms 1040ez Insurance agent, former, Insurance agent, former. Federal tax return forms 1040ez Insurance agent, retired, Insurance agent, retired. Federal tax return forms 1040ez Newspaper carrier or distributor, Newspaper carrier or distributor. Federal tax return forms 1040ez Newspaper or magazine vendor, Newspaper or magazine vendor. Federal tax return forms 1040ez Notary public, Notary public. Federal tax return forms 1040ez Public official, Public official. Federal tax return forms 1040ez Real estate agent, Real estate agent or direct seller. Federal tax return forms 1040ez Securities dealer, Securities dealer. Federal tax return forms 1040ez Securities trader, Securities trader. Federal tax return forms 1040ez Office in the home, Office in the home. Federal tax return forms 1040ez (see also Business use of your home) Optional methods, using both, Using Both Optional Methods Ordinary gain or loss, Is My Gain or Loss Ordinary or Capital? Orphan drug credit, Orphan drug credit (Form 8820). Federal tax return forms 1040ez P Parking fees, Parking fees and tolls. Federal tax return forms 1040ez Partners, husband and wife, Business owned and operated by spouses. Federal tax return forms 1040ez Pay, kinds of, Kinds of pay. Federal tax return forms 1040ez Paying Business taxes, Filing and Paying Business Taxes Income tax, How Do I Pay Income Tax? Payments to third parties, Payments to third parties. Federal tax return forms 1040ez Penalties and fines, Expenses You Cannot Deduct Penalty Failure to file Form 8300, Penalties. Federal tax return forms 1040ez Failure to file information returns, Penalties. Federal tax return forms 1040ez Failure to furnish correct payee statements, Penalties. Federal tax return forms 1040ez Underpayment of tax, Penalty for underpayment of tax. Federal tax return forms 1040ez Waiver of, Waiver of penalties. Federal tax return forms 1040ez Pension plans, Pension Plans Personal property tax, Personal property tax. Federal tax return forms 1040ez Prepaid expense Extends useful life, Prepayment. Federal tax return forms 1040ez Rent, Rent paid in advance. Federal tax return forms 1040ez Professional fees, Legal and Professional Fees Promissory notes, Promissory notes. Federal tax return forms 1040ez Public official, Public official. Federal tax return forms 1040ez Punitive damages, Punitive damages. Federal tax return forms 1040ez Q Qualified plug-in electric drive motor vehicle credit, Qualified plug-in electric drive motor vehicle credit (Form 8936). Federal tax return forms 1040ez Qualified real property business debt, Qualified real property business debt. Federal tax return forms 1040ez R Real estate Agent, Real estate agent or direct seller. Federal tax return forms 1040ez Dealer, Real estate dealer. Federal tax return forms 1040ez Rent, Real Estate Rents Taxes, Real estate taxes. Federal tax return forms 1040ez Recovery of items previously deducted, Recovery of items previously deducted. Federal tax return forms 1040ez Refund Inquiries, Refund inquiries. Federal tax return forms 1040ez Offsets against debts, Offset against debts. Federal tax return forms 1040ez Related persons Unreasonable rent, Unreasonable rent. Federal tax return forms 1040ez Renewable electricity, refined coal, and Indian coal production credit, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). Federal tax return forms 1040ez Rent expense, Rent Expense Rental income, Real Estate Rents Repayment of income, Repayment of income. Federal tax return forms 1040ez Reportable transaction disclosure statement, Reminders Reporting self-employment tax, Reporting Self-Employment Tax Restricted property, Restricted property. Federal tax return forms 1040ez Retirement plans (see Pension plans) S Salaries, Employees' Pay Sale of a business, Sale of a business. Federal tax return forms 1040ez Sale of property, What Is a Disposition of Property? (see also Disposition of property) Sales of assets, Introduction Sales tax, Sales tax. Federal tax return forms 1040ez Schedule C, How Do I File? Schedule C-EZ, How Do I File? Schedule SE (Form 1040), Who must pay self-employment tax. Federal tax return forms 1040ez Schedule SE, filing requirement, Reporting Self-Employment Tax SE tax About, Self-Employment (SE) Tax Aliens, Aliens. Federal tax return forms 1040ez Child employed by parent, Child employed by parent. Federal tax return forms 1040ez Church employee, Church employee. Federal tax return forms 1040ez Community property income, Community Property Income Deduction for, Self-employment tax. Federal tax return forms 1040ez Earning credits, Earning credits in 2013 and 2014. Federal tax return forms 1040ez Effects of using an optional method, Effects of using an optional method. Federal tax return forms 1040ez Farm optional method, Farm Optional Method Fiscal year filer, Fiscal Year Filer Fishing crew member, Fishing crew member. Federal tax return forms 1040ez Gain or loss, Gain or Loss Government employee, State or local government employee. Federal tax return forms 1040ez , Foreign government or international organization employee. Federal tax return forms 1040ez Joint return, Joint return. Federal tax return forms 1040ez Lost income payments, Lost Income Payments Maximum earnings For 2011, What's New for 2013, Maximum earnings subject to SE tax. Federal tax return forms 1040ez Subject to, Maximum earnings subject to self-employment tax. Federal tax return forms 1040ez Methods for figuring net earnings, Methods for Figuring Net Earnings More than one business, More Than One Business, More than one business. Federal tax return forms 1040ez Nonfarm optional method, Nonfarm Optional Method Notary public, Notary public. Federal tax return forms 1040ez Optional methods Farm, Farm Optional Method Nonfarm, Nonfarm Optional Method Rate, SE tax rate. Federal tax return forms 1040ez Regular method, Regular Method Residing abroad, U. Federal tax return forms 1040ez S. Federal tax return forms 1040ez citizen or resident alien residing abroad. Federal tax return forms 1040ez Special rules and exceptions, Special Rules and Exceptions Tax rate, SE tax rate. Federal tax return forms 1040ez Time limit for posting income, The Social Security Administration (SSA) time limit for posting self-employment income. Federal tax return forms 1040ez Who must pay, Who Must Pay SE Tax? Why use an optional method, Why use an optional method? Section 179 Deduction, Section 179 deduction. Federal tax return forms 1040ez Property, Section 179 property. Federal tax return forms 1040ez Securities Dealer, Securities dealer. Federal tax return forms 1040ez Trader, Securities trader. Federal tax return forms 1040ez Self-employed health insurance deduction, Self-employed health insurance deduction. Federal tax return forms 1040ez Self-employment tax (see SE tax) Settlement payments, Settlement payments. Federal tax return forms 1040ez Short-term capital gain or loss, Is My Capital Gain or Loss Short Term or Long Term? Signature, electronic, Electronic signatures. Federal tax return forms 1040ez Small Business Administration, Small Business Administration Small employer health insurance premiums credit, Credit for small employer health insurance premiums (Form 8941). Federal tax return forms 1040ez Social security coverage, Social security coverage. Federal tax return forms 1040ez Social security number (SSN), Social security number (SSN). Federal tax return forms 1040ez Sole proprietor, Sole proprietor. Federal tax return forms 1040ez , Sole proprietor or independent contractor. Federal tax return forms 1040ez Sport utility vehicle, Section 179 deduction. Federal tax return forms 1040ez Standard mileage rate, Standard mileage rate. Federal tax return forms 1040ez For 2011, What's New for 2013 Statutory employee, Statutory employee. Federal tax return forms 1040ez Suggestions for publication, Comments and suggestions. Federal tax return forms 1040ez SUV, Section 179 deduction. Federal tax return forms 1040ez T Tax home, Local transportation expenses. Federal tax return forms 1040ez , Travel expenses. Federal tax return forms 1040ez Tax preparation fees, Tax preparation fees. Federal tax return forms 1040ez Tax refund Claim for, Refunds. Federal tax return forms 1040ez Offset against debts, Offset against debts. Federal tax return forms 1040ez Tax return How to file, How Do I File? Who must file, Do I Have To File an Income Tax Return? Tax year, Accounting Periods Calendar, Calendar tax year. Federal tax return forms 1040ez Change in, Change in tax year. Federal tax return forms 1040ez Fiscal, Fiscal tax year. Federal tax return forms 1040ez Taxes Deduction for, Taxes Employment, Employment Taxes, Employment taxes. Federal tax return forms 1040ez Excise, Excise Taxes, Excise taxes. Federal tax return forms 1040ez Fuel, Fuel taxes. Federal tax return forms 1040ez Income, Income Tax, Income taxes. Federal tax return forms 1040ez Paid on certain employee tips, Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). Federal tax return forms 1040ez Personal property, Personal property tax. Federal tax return forms 1040ez Real estate, Real estate taxes. Federal tax return forms 1040ez Sales, Sales tax. Federal tax return forms 1040ez Self-employment, Self-Employment (SE) Tax, Self-employment tax. Federal tax return forms 1040ez Taxpayer rights, Declaration of Taxpayer Rights Third parties, Payments to, Payments to third parties. Federal tax return forms 1040ez Tolls, Parking fees and tolls. Federal tax return forms 1040ez Trade discount, Trade discounts. Federal tax return forms 1040ez , Trade discounts. Federal tax return forms 1040ez Trade or business, Trade or business. Federal tax return forms 1040ez Trailer park owner, Trailer park owner. Federal tax return forms 1040ez Transportation expenses, Local transportation expenses. Federal tax return forms 1040ez Travel expenses, Travel expenses. Federal tax return forms 1040ez U Underpayment of tax penalty, Penalty for underpayment of tax. Federal tax return forms 1040ez Uniform capitalization rules, Uniform Capitalization Rules W Wages, Employees' Pay Work opportunity credit, Work opportunity credit (Form 5884). Federal tax return forms 1040ez Prev  Up     Home   More Online Publications
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Page Last Reviewed or Updated: 19-Mar-2014

The Federal Tax Return Forms 1040ez

Federal tax return forms 1040ez 15. Federal tax return forms 1040ez   Selling Your Home Table of Contents Reminder Introduction Useful Items - You may want to see: Main Home Figuring Gain or LossSelling Price Amount Realized Adjusted Basis Amount of Gain or Loss Dispositions Other Than Sales Determining Basis Excluding the GainMaximum Exclusion Ownership and Use Tests Reduced Maximum Exclusion Business Use or Rental of Home Reporting the SaleSeller-financed mortgage. Federal tax return forms 1040ez More information. Federal tax return forms 1040ez Special SituationsException for sales to related persons. Federal tax return forms 1040ez Recapturing (Paying Back) a Federal Mortgage Subsidy Reminder Home sold with undeducted points. Federal tax return forms 1040ez  If you have not deducted all the points you paid to secure a mortgage on your old home, you may be able to deduct the remaining points in the year of the sale. Federal tax return forms 1040ez See Mortgage ending early under Points in chapter 23. Federal tax return forms 1040ez Introduction This chapter explains the tax rules that apply when you sell your main home. Federal tax return forms 1040ez In most cases, your main home is the one in which you live most of the time. Federal tax return forms 1040ez If you sold your main home in 2013, you may be able to exclude from income any gain up to a limit of $250,000 ($500,000 on a joint return in most cases). Federal tax return forms 1040ez See Excluding the Gain , later. Federal tax return forms 1040ez Generally, if you can exclude all the gain, you do not need to report the sale on your tax return. Federal tax return forms 1040ez If you have gain that cannot be excluded, it is taxable. Federal tax return forms 1040ez Report it on Form 8949, Sales and Other Dispositions of Capital Assets, and Schedule D (Form 1040). Federal tax return forms 1040ez You may also have to complete Form 4797, Sales of Business Property. Federal tax return forms 1040ez See Reporting the Sale , later. Federal tax return forms 1040ez If you have a loss on the sale, you generally cannot deduct it on your return. Federal tax return forms 1040ez However, you may need to report it. Federal tax return forms 1040ez See Reporting the Sale , later. Federal tax return forms 1040ez The following are main topics in this chapter. Federal tax return forms 1040ez Figuring gain or loss. Federal tax return forms 1040ez Basis. Federal tax return forms 1040ez Excluding the gain. Federal tax return forms 1040ez Ownership and use tests. Federal tax return forms 1040ez Reporting the sale. Federal tax return forms 1040ez Other topics include the following. Federal tax return forms 1040ez Business use or rental of home. Federal tax return forms 1040ez Recapturing a federal mortgage subsidy. Federal tax return forms 1040ez Useful Items - You may want to see: Publication 523 Selling Your Home 530 Tax Information for Homeowners 547 Casualties, Disasters, and Thefts Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 982 Reduction of Tax Attributes Due to Discharge of Indebtedness 8828 Recapture of Federal Mortgage Subsidy 8949 Sales and Other Dispositions of Capital Assets Main Home This section explains the term “main home. Federal tax return forms 1040ez ” Usually, the home you live in most of the time is your main home and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. Federal tax return forms 1040ez To exclude gain under the rules of this chapter, you in most cases must have 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. Federal tax return forms 1040ez Land. Federal tax return forms 1040ez   If you sell the land on which your main home is located, but not the house itself, you cannot exclude any gain you have from the sale of the land. Federal tax return forms 1040ez However, if you sell vacant land used as part of your main home and that is adjacent to it, you may be able to exclude the gain from the sale under certain circumstances. Federal tax return forms 1040ez See Vacant land under Main Home in Publication 523 for more information. Federal tax return forms 1040ez Example. Federal tax return forms 1040ez You buy a piece of land and move your main home to it. Federal tax return forms 1040ez Then you sell the land on which your main home was located. Federal tax return forms 1040ez This sale is not considered a sale of your main home, and you cannot exclude any gain on the sale of the land. Federal tax return forms 1040ez More than one home. Federal tax return forms 1040ez   If you have more than one home, you can exclude gain only from the sale of your main home. Federal tax return forms 1040ez You must include in income gain from the sale of any other home. Federal tax return forms 1040ez If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time during the year. Federal tax return forms 1040ez Example 1. Federal tax return forms 1040ez You own two homes, one in New York and one in Florida. Federal tax return forms 1040ez From 2009 through 2013, you live in the New York home for 7 months and in the Florida residence for 5 months of each year. Federal tax return forms 1040ez In the absence of facts and circumstances indicating otherwise, the New York home is your main home. Federal tax return forms 1040ez You would be eligible to exclude the gain from the sale of the New York home but not of the Florida home in 2013. Federal tax return forms 1040ez Example 2. Federal tax return forms 1040ez You own a house, but you live in another house that you rent. Federal tax return forms 1040ez The rented house is your main home. Federal tax return forms 1040ez Example 3. Federal tax return forms 1040ez You own two homes, one in Virginia and one in New Hampshire. Federal tax return forms 1040ez In 2009 and 2010, you lived in the Virginia home. Federal tax return forms 1040ez In 2011 and 2012, you lived in the New Hampshire home. Federal tax return forms 1040ez In 2013, you lived again in the Virginia home. Federal tax return forms 1040ez Your main home in 2009, 2010, and 2013 is the Virginia home. Federal tax return forms 1040ez Your main home in 2011 and 2012 is the New Hampshire home. Federal tax return forms 1040ez You would be eligible to exclude gain from the sale of either home (but not both) in 2013. Federal tax return forms 1040ez Property used partly as your main home. Federal tax return forms 1040ez   If you use only part of the property as your main home, the rules discussed in this publication apply only to the gain or loss on the sale of that part of the property. Federal tax return forms 1040ez For details, see Business Use or Rental of Home , later. Federal tax return forms 1040ez Figuring Gain or Loss To figure the gain or loss on the sale of your main home, you must know the selling price, the amount realized, and the adjusted basis. Federal tax return forms 1040ez Subtract the adjusted basis from the amount realized to get your gain or loss. Federal tax return forms 1040ez     Selling price     − Selling expenses       Amount realized       Amount realized     − Adjusted basis       Gain or loss   Selling Price The selling price is the total amount you receive for your home. Federal tax return forms 1040ez It includes money and the fair market value of any other property or any other services you receive and all notes, mortgages or other debts assumed by the buyer as part of the sale. Federal tax return forms 1040ez Payment by employer. Federal tax return forms 1040ez   You may have to sell your home because of a job transfer. Federal tax return forms 1040ez If your employer pays you for a loss on the sale or for your selling expenses, do not include the payment as part of the selling price. Federal tax return forms 1040ez Your employer will include it as wages in box 1 of your Form W-2, and you will include it in your income on Form 1040, line 7. Federal tax return forms 1040ez Option to buy. Federal tax return forms 1040ez   If you grant an option to buy your home and the option is exercised, add the amount you receive for the option to the selling price of your home. Federal tax return forms 1040ez If the option is not exercised, you must report the amount as ordinary income in the year the option expires. Federal tax return forms 1040ez Report this amount on Form 1040, line 21. Federal tax return forms 1040ez Form 1099-S. Federal tax return forms 1040ez   If you received Form 1099-S, Proceeds From Real Estate Transactions, box 2 (Gross proceeds) should show the total amount you received for your home. Federal tax return forms 1040ez   However, box 2 will not include the fair market value of any services or property other than cash or notes you received or will receive. Federal tax return forms 1040ez Instead, box 4 will be checked to indicate your receipt or expected receipt of these items. Federal tax return forms 1040ez Amount Realized The amount realized is the selling price minus selling expenses. Federal tax return forms 1040ez Selling expenses. Federal tax return forms 1040ez   Selling expenses include: Commissions, Advertising fees, Legal fees, and Loan charges paid by the seller, such as loan placement fees or “points. Federal tax return forms 1040ez ” Adjusted Basis While you owned your home, you may have made adjustments (increases or decreases) to the basis. Federal tax return forms 1040ez This adjusted basis must be determined before you can figure gain or loss on the sale of your home. Federal tax return forms 1040ez For information on how to figure your home's adjusted basis, see Determining Basis , later. Federal tax return forms 1040ez Amount of Gain or Loss To figure the amount of gain or loss, compare the amount realized to the adjusted basis. Federal tax return forms 1040ez Gain on sale. Federal tax return forms 1040ez   If the amount realized is more than the adjusted basis, the difference is a gain and, except for any part you can exclude, in most cases is taxable. Federal tax return forms 1040ez Loss on sale. Federal tax return forms 1040ez   If the amount realized is less than the adjusted basis, the difference is a loss. Federal tax return forms 1040ez A loss on the sale of your main home cannot be deducted. Federal tax return forms 1040ez Jointly owned home. Federal tax return forms 1040ez   If you and your spouse sell your jointly owned home and file a joint return, you figure your gain or loss as one taxpayer. Federal tax return forms 1040ez Separate returns. Federal tax return forms 1040ez   If you file separate returns, each of you must figure your own gain or loss according to your ownership interest in the home. Federal tax return forms 1040ez Your ownership interest is generally determined by state law. Federal tax return forms 1040ez Joint owners not married. Federal tax return forms 1040ez   If you and a joint owner other than your spouse sell your jointly owned home, each of you must figure your own gain or loss according to your ownership interest in the home. Federal tax return forms 1040ez Each of you applies the rules discussed in this chapter on an individual basis. Federal tax return forms 1040ez Dispositions Other Than Sales Some special rules apply to other dispositions of your main home. Federal tax return forms 1040ez Foreclosure or repossession. Federal tax return forms 1040ez   If your home was foreclosed on or repossessed, you have a disposition. Federal tax return forms 1040ez See Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments, to determine if you have ordinary income, gain, or loss. Federal tax return forms 1040ez Abandonment. Federal tax return forms 1040ez   If you abandon your home, see Publication 4681 to determine if you have ordinary income, gain, or loss. Federal tax return forms 1040ez Trading (exchanging) homes. Federal tax return forms 1040ez   If you trade your old home for another home, treat the trade as a sale and a purchase. Federal tax return forms 1040ez Example. Federal tax return forms 1040ez You owned and lived in a home with an adjusted basis of $41,000. Federal tax return forms 1040ez A real estate dealer accepted your old home as a trade-in and allowed you $50,000 toward a new home priced at $80,000. Federal tax return forms 1040ez This is treated as a sale of your old home for $50,000 with a gain of $9,000 ($50,000 – $41,000). Federal tax return forms 1040ez If the dealer had allowed you $27,000 and assumed your unpaid mortgage of $23,000 on your old home, your sales price would still be $50,000 (the $27,000 trade-in allowed plus the $23,000 mortgage assumed). Federal tax return forms 1040ez Transfer to spouse. Federal tax return forms 1040ez   If you transfer your home to your spouse or you transfer it to your former spouse incident to your divorce, you in most cases have no gain or loss. Federal tax return forms 1040ez This is true even if you receive cash or other consideration for the home. Federal tax return forms 1040ez As a result, the rules in this chapter do not apply. Federal tax return forms 1040ez More information. Federal tax return forms 1040ez   If you need more information, see Transfer to spouse in Publication 523 and Property Settlements in Publication 504, Divorced or Separated Individuals. Federal tax return forms 1040ez Involuntary conversion. Federal tax return forms 1040ez   You have a disposition when your home is destroyed or condemned and you receive other property or money in payment, such as insurance or a condemnation award. Federal tax return forms 1040ez This is treated as a sale and you may be able to exclude all or part of any gain from the destruction or condemnation of your home, as explained later under Special Situations . Federal tax return forms 1040ez Determining Basis You need to know your basis in your home to figure any gain or loss when you sell it. Federal tax return forms 1040ez Your basis in your home is determined by how you got the home. Federal tax return forms 1040ez Generally, your basis is its cost if you bought it or built it. Federal tax return forms 1040ez If you got it in some other way (inheritance, gift, etc. Federal tax return forms 1040ez ), your basis is generally either its fair market value when you received it or the adjusted basis of the previous owner. Federal tax return forms 1040ez While you owned your home, you may have made adjustments (increases or decreases) to your home's basis. Federal tax return forms 1040ez The result of these adjustments is your home's adjusted basis, which is used to figure gain or loss on the sale of your home. Federal tax return forms 1040ez See Adjusted Basis , later. Federal tax return forms 1040ez You can find more information on basis and adjusted basis in chapter 13 of this publication and in Publication 523. Federal tax return forms 1040ez Cost As Basis The cost of property is the amount you paid for it in cash, debt obligations, other property, or services. Federal tax return forms 1040ez Purchase. Federal tax return forms 1040ez   If you bought your home, your basis is its cost to you. Federal tax return forms 1040ez This includes the purchase price and certain settlement or closing costs. Federal tax return forms 1040ez In most cases, your purchase price includes your down payment and any debt, such as a first or second mortgage or notes you gave the seller in payment for the home. Federal tax return forms 1040ez If you build, or contract to build, a new home, your purchase price can include costs of construction, as discussed in Publication 523. Federal tax return forms 1040ez Settlement fees or closing costs. Federal tax return forms 1040ez   When you bought your home, you may have paid settlement fees or closing costs in addition to the contract price of the property. Federal tax return forms 1040ez You can include in your basis some of the settlement fees and closing costs you paid for buying the home, but not the fees and costs for getting a mortgage loan. Federal tax return forms 1040ez A fee paid for buying the home is any fee you would have had to pay even if you paid cash for the home (that is, without the need for financing). Federal tax return forms 1040ez    Chapter 13 lists some of the settlement fees and closing costs that you can include in the basis of property, including your home. Federal tax return forms 1040ez It also lists some settlement costs that cannot be included in basis. Federal tax return forms 1040ez   Also see Publication 523 for additional items and a discussion of basis other than cost. Federal tax return forms 1040ez Adjusted Basis Adjusted basis is your cost or other basis increased or decreased by certain amounts. Federal tax return forms 1040ez To figure your adjusted basis, you can use Worksheet 1 in Publication 523. Federal tax return forms 1040ez Do not use Worksheet 1 if you acquired an interest in your home from a decedent who died in 2010 and whose executor filed Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent. Federal tax return forms 1040ez Increases to basis. Federal tax return forms 1040ez   These include the following. Federal tax return forms 1040ez Additions and other improvements that have a useful life of more than 1 year. Federal tax return forms 1040ez Special assessments for local improvements. Federal tax return forms 1040ez Amounts you spent after a casualty to restore damaged property. Federal tax return forms 1040ez Improvements. Federal tax return forms 1040ez   These add to the value of your home, prolong its useful life, or adapt it to new uses. Federal tax return forms 1040ez You add the cost of additions and other improvements to the basis of your property. Federal tax return forms 1040ez   For example, putting a recreation room or another bathroom in your unfinished basement, putting up a new fence, putting in new plumbing or wiring, putting on a new roof, or paving your unpaved driveway are improvements. Federal tax return forms 1040ez An addition to your house, such as a new deck, a sunroom, or a new garage, is also an improvement. Federal tax return forms 1040ez Repairs. Federal tax return forms 1040ez   These maintain your home in good condition but do not add to its value or prolong its life. Federal tax return forms 1040ez You do not add their cost to the basis of your property. Federal tax return forms 1040ez   Examples of repairs include repainting your house inside or outside, fixing your gutters or floors, repairing leaks or plastering, and replacing broken window panes. Federal tax return forms 1040ez Decreases to basis. Federal tax return forms 1040ez   These include the following. Federal tax return forms 1040ez Discharge of qualified principal residence indebtedness that was excluded from income. Federal tax return forms 1040ez Some or all of the cancellation of debt income that was excluded due to your bankruptcy or insolvency. Federal tax return forms 1040ez For details, see Publication 4681. Federal tax return forms 1040ez Gain you postponed from the sale of a previous home before May 7, 1997. Federal tax return forms 1040ez Deductible casualty losses. Federal tax return forms 1040ez Insurance payments you received or expect to receive for casualty losses. Federal tax return forms 1040ez Payments you received for granting an easement or right-of-way. Federal tax return forms 1040ez Depreciation allowed or allowable if you used your home for business or rental purposes. Federal tax return forms 1040ez Energy-related credits allowed for expenditures made on the residence. Federal tax return forms 1040ez (Reduce the increase in basis otherwise allowable for expenditures on the residence by the amount of credit allowed for those expenditures. Federal tax return forms 1040ez ) Adoption credit you claimed for improvements added to the basis of your home. Federal tax return forms 1040ez Nontaxable payments from an adoption assistance program of your employer you used for improvements you added to the basis of your home. Federal tax return forms 1040ez Energy conservation subsidy excluded from your gross income because you received it (directly or indirectly) from a public utility after 1992 to buy or install any energy conservation measure. Federal tax return forms 1040ez An energy conservation measure is an installation or modification primarily designed either to reduce consumption of electricity or natural gas or to improve the management of energy demand for a home. Federal tax return forms 1040ez District of Columbia first-time homebuyer credit (allowed on the purchase of a principal residence in the District of Columbia beginning on August 5, 1997 and before January 1, 2012). Federal tax return forms 1040ez General sales taxes (allowed beginning 2004 and ending before 2014) claimed as an itemized deduction on Schedule A (Form 1040) that were imposed on the purchase of personal property, such as a houseboat used as your home or a mobile home. Federal tax return forms 1040ez Discharges of qualified principal residence indebtedness. Federal tax return forms 1040ez   You may be able to exclude from gross income a discharge of qualified principal residence indebtedness. Federal tax return forms 1040ez This exclusion applies to discharges made after 2006 and before 2014. Federal tax return forms 1040ez If you choose to exclude this income, you must reduce (but not below zero) the basis of the principal residence by the amount excluded from your gross income. Federal tax return forms 1040ez   File Form 982 with your tax return. Federal tax return forms 1040ez See the form's instructions for detailed information. Federal tax return forms 1040ez Recordkeeping. Federal tax return forms 1040ez You should keep records to prove your home's adjusted basis. Federal tax return forms 1040ez Ordinarily, you must keep records for 3 years after the due date for filing your return for the tax year in which you sold your home. Federal tax return forms 1040ez But if you sold a home before May 7, 1997, and postponed tax on any gain, the basis of that home affects the basis of the new home you bought. Federal tax return forms 1040ez Keep records proving the basis of both homes as long as they are needed for tax purposes. Federal tax return forms 1040ez The records you should keep include: Proof of the home's purchase price and purchase expenses, Receipts and other records for all improvements, additions, and other items that affect the home's adjusted basis, Any worksheets or other computations you used to figure the adjusted basis of the home you sold, the gain or loss on the sale, the exclusion, and the taxable gain, Any Form 982 you filed to report any discharge of qualified principal residence indebtedness, Any Form 2119, Sale of Your Home, you filed to postpone gain from the sale of a previous home before May 7, 1997, and Any worksheets you used to prepare Form 2119, such as the Adjusted Basis of Home Sold Worksheet or the Capital Improvements Worksheet from the Form 2119 instructions, or other source of computations. Federal tax return forms 1040ez Excluding the Gain You may qualify to exclude from your income all or part of any gain from the sale of your main home. Federal tax return forms 1040ez This means that, if you qualify, you will not have to pay tax on the gain up to the limit described under Maximum Exclusion , next. Federal tax return forms 1040ez To qualify, you must meet the ownership and use tests described later. Federal tax return forms 1040ez You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. Federal tax return forms 1040ez You can use Worksheet 2 in Publication 523 to figure the amount of your exclusion and your taxable gain, if any. Federal tax return forms 1040ez If you have any taxable gain from the sale of your home, you may have to increase your withholding or make estimated tax payments. Federal tax return forms 1040ez See Publication 505, Tax Withholding and Estimated Tax. Federal tax return forms 1040ez Maximum Exclusion You can exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. Federal tax return forms 1040ez You meet the ownership test. Federal tax return forms 1040ez You meet the use test. Federal tax return forms 1040ez During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. Federal tax return forms 1040ez For details on gain allocated to periods of nonqualified use, see Periods of nonqualified use , later. Federal tax return forms 1040ez You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . Federal tax return forms 1040ez Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. Federal tax return forms 1040ez This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). Federal tax return forms 1040ez Exception. Federal tax return forms 1040ez   If you owned and lived in the property as your main home for less than 2 years, you can still claim an exclusion in some cases. Federal tax return forms 1040ez However, the maximum amount you may be able to exclude will be reduced. Federal tax return forms 1040ez See Reduced Maximum Exclusion , later. Federal tax return forms 1040ez Example 1—home owned and occupied for at least 2 years. Federal tax return forms 1040ez Mya bought and moved into her main home in September 2011. Federal tax return forms 1040ez She sold the home at a gain in October 2013. Federal tax return forms 1040ez During the 5-year period ending on the date of sale in October 2013, she owned and lived in the home for more than 2 years. Federal tax return forms 1040ez She meets the ownership and use tests. Federal tax return forms 1040ez Example 2—ownership test met but use test not met. Federal tax return forms 1040ez Ayden bought a home, lived in it for 6 months, moved out, and never occupied the home again. Federal tax return forms 1040ez He later sold the home for a gain. Federal tax return forms 1040ez He owned the home during the entire 5-year period ending on the date of sale. Federal tax return forms 1040ez He meets the ownership test but not the use test. Federal tax return forms 1040ez He cannot exclude any part of his gain on the sale unless he qualified for a reduced maximum exclusion (explained later). Federal tax return forms 1040ez Period of Ownership and Use The required 2 years of ownership and use during the 5-year period ending on the date of the sale do not have to be continuous nor do they both have to occur at the same time. Federal tax return forms 1040ez You meet the tests if you can show that you owned and lived in the property as your main home for either 24 full months or 730 days (365 × 2) during the 5-year period ending on the date of sale. Federal tax return forms 1040ez Temporary absence. Federal tax return forms 1040ez   Short temporary absences for vacations or other seasonal absences, even if you rent out the property during the absences, are counted as periods of use. Federal tax return forms 1040ez The following examples assume that the reduced maximum exclusion (discussed later) does not apply to the sales. Federal tax return forms 1040ez Example 1. Federal tax return forms 1040ez David Johnson, who is single, bought and moved into his home on February 1, 2011. Federal tax return forms 1040ez Each year during 2011 and 2012, David left his home for a 2-month summer vacation. Federal tax return forms 1040ez David sold the house on March 1, 2013. Federal tax return forms 1040ez Although the total time David used his home is less than 2 years (21 months), he meets the requirement and may exclude gain. Federal tax return forms 1040ez The 2-month vacations are short temporary absences and are counted as periods of use in determining whether David used the home for the required 2 years. Federal tax return forms 1040ez Example 2. Federal tax return forms 1040ez Professor Paul Beard, who is single, bought and moved into a house on August 18, 2010. Federal tax return forms 1040ez He lived in it as his main home continuously until January 5, 2012, when he went abroad for a 1-year sabbatical leave. Federal tax return forms 1040ez On February 6, 2013, 1 month after returning from the leave, Paul sold the house at a gain. Federal tax return forms 1040ez Because his leave was not a short temporary absence, he cannot include the period of leave to meet the 2-year use test. Federal tax return forms 1040ez He cannot exclude any part of his gain, because he did not use the residence for the required 2 years. Federal tax return forms 1040ez Ownership and use tests met at different times. Federal tax return forms 1040ez   You can meet the ownership and use tests during different 2-year periods. Federal tax return forms 1040ez However, you must meet both tests during the 5-year period ending on the date of the sale. Federal tax return forms 1040ez Example. Federal tax return forms 1040ez Beginning in 2002, Helen Jones lived in a rented apartment. Federal tax return forms 1040ez The apartment building was later converted to condominiums, and she bought her same apartment on December 3, 2010. Federal tax return forms 1040ez In 2011, Helen became ill and on April 14 of that year she moved to her daughter's home. Federal tax return forms 1040ez On July 12, 2013, while still living in her daughter's home, she sold her condominium. Federal tax return forms 1040ez Helen can exclude gain on the sale of her condominium because she met the ownership and use tests during the 5-year period from July 13, 2008, to July 12, 2013, the date she sold the condominium. Federal tax return forms 1040ez She owned her condominium from December 3, 2010, to July 12, 2013 (more than 2 years). Federal tax return forms 1040ez She lived in the property from July 13, 2008 (the beginning of the 5-year period), to April 14, 2011 (more than 2 years). Federal tax return forms 1040ez The time Helen lived in her daughter's home during the 5-year period can be counted toward her period of ownership, and the time she lived in her rented apartment during the 5-year period can be counted toward her period of use. Federal tax return forms 1040ez Cooperative apartment. Federal tax return forms 1040ez   If you sold stock as a tenant-stockholder in a cooperative housing corporation, the ownership and use tests are met if, during the 5-year period ending on the date of sale, you: Owned the stock for at least 2 years, and Lived in the house or apartment that the stock entitles you to occupy as your main home for at least 2 years. Federal tax return forms 1040ez Exceptions to Ownership and Use Tests The following sections contain exceptions to the ownership and use tests for certain taxpayers. Federal tax return forms 1040ez Exception for individuals with a disability. Federal tax return forms 1040ez   There is an exception to the use test if: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year during the 5-year period before the sale of your home. Federal tax return forms 1040ez Under this exception, you are considered to live in your home during any time within the 5-year period that you own the home and live in a facility (including a nursing home) licensed by a state or political subdivision to care for persons in your condition. Federal tax return forms 1040ez If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. Federal tax return forms 1040ez Previous home destroyed or condemned. Federal tax return forms 1040ez   For the ownership and use tests, you add the time you owned and lived in a previous home that was destroyed or condemned to the time you owned and lived in the replacement home on whose sale you wish to exclude gain. Federal tax return forms 1040ez This rule applies if any part of the basis of the home you sold depended on the basis of the destroyed or condemned home. Federal tax return forms 1040ez Otherwise, you must have owned and lived in the same home for 2 of the 5 years before the sale to qualify for the exclusion. Federal tax return forms 1040ez Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps. Federal tax return forms 1040ez   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve on “qualified official extended duty” as a member of the uniformed services or Foreign Service of the United States, or as an employee of the intelligence community. Federal tax return forms 1040ez You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve outside the United States either as an employee of the Peace Corps on "qualified official extended duty" or as an enrolled volunteer or volunteer leader of the Peace Corps. Federal tax return forms 1040ez This means that you may be able to meet the 2-year use test even if, because of your service, you did not actually live in your home for at least the required 2 years during the 5-year period ending on the date of sale. Federal tax return forms 1040ez   If this helps you qualify to exclude gain, you can choose to have the 5-year test period suspended by filing a return for the year of sale that does not include the gain. Federal tax return forms 1040ez For more information about the suspension of the 5-year test period, see Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps in Publication 523. Federal tax return forms 1040ez Married Persons If you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use tests, you can exclude up to $250,000 of the gain. Federal tax return forms 1040ez (But see Special rules for joint returns , next. Federal tax return forms 1040ez ) Special rules for joint returns. Federal tax return forms 1040ez   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. Federal tax return forms 1040ez You are married and file a joint return for the year. Federal tax return forms 1040ez Either you or your spouse meets the ownership test. Federal tax return forms 1040ez Both you and your spouse meet the use test. Federal tax return forms 1040ez During the 2-year period ending on the date of the sale, neither you nor your spouse excluded gain from the sale of another home. Federal tax return forms 1040ez If either spouse does not satisfy all these requirements, the maximum exclusion that can be claimed by the couple is the total of the maximum exclusions that each spouse would qualify for if not married and the amounts were figured separately. Federal tax return forms 1040ez For this purpose, each spouse is treated as owning the property during the period that either spouse owned the property. Federal tax return forms 1040ez Example 1—one spouse sells a home. Federal tax return forms 1040ez Emily sells her home in June 2013 for a gain of $300,000. Federal tax return forms 1040ez She marries Jamie later in the year. Federal tax return forms 1040ez She meets the ownership and use tests, but Jamie does not. Federal tax return forms 1040ez Emily can exclude up to $250,000 of gain on a separate or joint return for 2013. Federal tax return forms 1040ez The $500,000 maximum exclusion for certain joint returns does not apply because Jamie does not meet the use test. Federal tax return forms 1040ez Example 2—each spouse sells a home. Federal tax return forms 1040ez The facts are the same as in Example 1 except that Jamie also sells a home in 2013 for a gain of $200,000 before he marries Emily. Federal tax return forms 1040ez He meets the ownership and use tests on his home, but Emily does not. Federal tax return forms 1040ez Emily can exclude $250,000 of gain and Jamie can exclude $200,000 of gain on the respective sales of their individual homes. Federal tax return forms 1040ez However, Emily cannot use Jamie's unused exclusion to exclude more than $250,000 of gain. Federal tax return forms 1040ez Therefore, Emily and Jamie must recognize $50,000 of gain on the sale of Emily's home. Federal tax return forms 1040ez The $500,000 maximum exclusion for certain joint returns does not apply because Emily and Jamie do not both meet the use test for the same home. Federal tax return forms 1040ez Sale of main home by surviving spouse. Federal tax return forms 1040ez   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. Federal tax return forms 1040ez   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home. Federal tax return forms 1040ez The sale or exchange took place after 2008. Federal tax return forms 1040ez The sale or exchange took place no more than 2 years after the date of death of your spouse. Federal tax return forms 1040ez You have not remarried. Federal tax return forms 1040ez You and your spouse met the use test at the time of your spouse's death. Federal tax return forms 1040ez You or your spouse met the ownership test at the time of your spouse's death. Federal tax return forms 1040ez Neither you nor your spouse excluded gain from the sale of another home during the last 2 years. Federal tax return forms 1040ez Example. Federal tax return forms 1040ez   Harry owned and used a house as his main home since 2009. Federal tax return forms 1040ez Harry and Wilma married on July 1, 2013, and from that date they use Harry's house as their main home. Federal tax return forms 1040ez Harry died on August 15, 2013, and Wilma inherited the property. Federal tax return forms 1040ez Wilma sold the property on September 3, 2013, at which time she had not remarried. Federal tax return forms 1040ez Although Wilma owned and used the house for less than 2 years, Wilma is considered to have satisfied the ownership and use tests because her period of ownership and use includes the period that Harry owned and used the property before death. Federal tax return forms 1040ez Home transferred from spouse. Federal tax return forms 1040ez   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. Federal tax return forms 1040ez Use of home after divorce. Federal tax return forms 1040ez   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. Federal tax return forms 1040ez Reduced Maximum Exclusion If you fail to meet the requirements to qualify for the $250,000 or $500,000 exclusion, you may still qualify for a reduced exclusion. Federal tax return forms 1040ez This applies to those who: Fail to meet the ownership and use tests, or Have used the exclusion within 2 years of selling their current home. Federal tax return forms 1040ez In both cases, to qualify for a reduced exclusion, the sale of your main home must be due to one of the following reasons. Federal tax return forms 1040ez A change in place of employment. Federal tax return forms 1040ez Health. Federal tax return forms 1040ez Unforeseen circumstances. Federal tax return forms 1040ez Unforeseen circumstances. Federal tax return forms 1040ez   The sale of your main home is because of an unforeseen circumstance if your primary reason for the sale is the occurrence of an event that you could not reasonably have anticipated before buying and occupying your main home. Federal tax return forms 1040ez   See Publication 523 for more information and to use Worksheet 3 to figure your reduced maximum exclusion. Federal tax return forms 1040ez Business Use or Rental of Home You may be able to exclude gain from the sale of a home you have used for business or to produce rental income. Federal tax return forms 1040ez But you must meet the ownership and use tests. Federal tax return forms 1040ez Periods of nonqualified use. Federal tax return forms 1040ez   In most cases, gain from the sale or exchange of your main home will not qualify for the exclusion to the extent that the gains are allocated to periods of nonqualified use. Federal tax return forms 1040ez Nonqualified use is any period after 2008 during which neither you nor your spouse (or your former spouse) used the property as a main home with the following exceptions. Federal tax return forms 1040ez Exceptions. Federal tax return forms 1040ez   A period of nonqualified use does not include: Any portion of the 5-year period ending on the date of the sale or exchange after the last date you (or your spouse) use the property as a main home; Any period (not to exceed an aggregate period of 10 years) during which you (or your spouse) are serving on qualified official extended duty: As a member of the uniformed services; As a member of the Foreign Service of the United States; or As an employee of the intelligence community; and Any other period of temporary absence (not to exceed an aggregate period of 2 years) due to change of employment, health conditions, or such other unforeseen circumstances as may be specified by the IRS. Federal tax return forms 1040ez The gain resulting from the sale of the property is allocated between qualified and nonqualified use periods based on the amount of time the property was held for qualified and nonqualified use. Federal tax return forms 1040ez Gain from the sale or exchange of a main home allocable to periods of qualified use will continue to qualify for the exclusion for the sale of your main home. Federal tax return forms 1040ez Gain from the sale or exchange of property allocable to nonqualified use will not qualify for the exclusion. Federal tax return forms 1040ez Calculation. Federal tax return forms 1040ez   To figure the portion of the gain allocated to the period of nonqualified use, multiply the gain by the following fraction:   Total nonqualified use during the period of ownership after 2008      Total period of ownership     This calculation can be found in Worksheet 2, line 10, in Publication 523. Federal tax return forms 1040ez Example 1. Federal tax return forms 1040ez On May 23, 2007, Amy, who is unmarried for all years in this example, bought a house. Federal tax return forms 1040ez She moved in on that date and lived in it until May 31, 2009, when she moved out of the house and put it up for rent. Federal tax return forms 1040ez The house was rented from June 1, 2009, to March 31, 2011. Federal tax return forms 1040ez Amy claimed depreciation deductions in 2009 through 2011 totaling $10,000. Federal tax return forms 1040ez Amy moved back into the house on April 1, 2011, and lived there until she sold it on January 31, 2013, for a gain of $200,000. Federal tax return forms 1040ez During the 5-year period ending on the date of the sale (January 31, 2008-January 31, 2013), Amy owned and lived in the house for more than 2 years as shown in the following table. Federal tax return forms 1040ez Five Year Period Used as  Home Used as  Rental 1/31/08 – 5/31/09 16 months       6/1/09 – 3/31/11   22 months 4/1/11 – 1/31/13 22 months         38 months 22 months During the period Amy owned the house (2,080 days), her period of nonqualified use was 668 days. Federal tax return forms 1040ez Amy divides 668 by 2,080 and obtains a decimal (rounded to at least three decimal places) of 0. Federal tax return forms 1040ez 321. Federal tax return forms 1040ez To figure her gain attributable to the period of nonqualified use, she multiplies $190,000 (the gain not attributable to the $10,000 depreciation deduction) by 0. Federal tax return forms 1040ez 321. Federal tax return forms 1040ez Because the gain attributable to periods of nonqualified use is $60,990, Amy can exclude $129,010 of her gain. Federal tax return forms 1040ez Example 2. Federal tax return forms 1040ez William owned and used a house as his main home from 2007 through 2010. Federal tax return forms 1040ez On January 1, 2011, he moved to another state. Federal tax return forms 1040ez He rented his house from that date until April 30, 2013, when he sold it. Federal tax return forms 1040ez During the 5-year period ending on the date of sale (May 1, 2008-April 30, 2013), William owned and lived in the house for more than 2 years. Federal tax return forms 1040ez He must report the sale on Form 4797 because it was rental property at the time of sale. Federal tax return forms 1040ez Because the period of nonqualified use does not include any part of the 5-year period after the last date William lived in the house, he has no period of nonqualified use. Federal tax return forms 1040ez Because he met the ownership and use tests, he can exclude gain up to $250,000. Federal tax return forms 1040ez However, he cannot exclude the part of the gain equal to the depreciation he claimed or could have claimed for renting the house, as explained next. Federal tax return forms 1040ez Depreciation after May 6, 1997. Federal tax return forms 1040ez   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. Federal tax return forms 1040ez If you can show by adequate records or other evidence that the depreciation allowed was less than the amount allowable, then you may limit the amount of gain recognized to the depreciation allowed. Federal tax return forms 1040ez See Publication 544 for more information. Federal tax return forms 1040ez Property used partly for business or rental. Federal tax return forms 1040ez   If you used property partly as a home and partly for business or to produce rental income, see Publication 523. Federal tax return forms 1040ez Reporting the Sale Do not report the 2013 sale of your main home on your tax return unless: You have a gain and do not qualify to exclude all of it, You have a gain and choose not to exclude it, or You received Form 1099-S. Federal tax return forms 1040ez If any of these conditions apply, report the entire gain or loss. Federal tax return forms 1040ez For details on how to report the gain or loss, see the Instructions for Schedule D (Form 1040) and the Instructions for Form 8949. Federal tax return forms 1040ez If you used the home for business or to produce rental income, you may have to use Form 4797 to report the sale of the business or rental part (or the sale of the entire property if used entirely for business or rental). Federal tax return forms 1040ez See Business Use or Rental of Home in Publication 523 and the Instructions for Form 4797. Federal tax return forms 1040ez Installment sale. Federal tax return forms 1040ez    Some sales are made under arrangements that provide for part or all of the selling price to be paid in a later year. Federal tax return forms 1040ez These sales are called “installment sales. Federal tax return forms 1040ez ” If you finance the buyer's purchase of your home yourself instead of having the buyer get a loan or mortgage from a bank, you probably have an installment sale. Federal tax return forms 1040ez You may be able to report the part of the gain you cannot exclude on the installment basis. Federal tax return forms 1040ez    Use Form 6252, Installment Sale Income, to report the sale. Federal tax return forms 1040ez Enter your exclusion on line 15 of Form 6252. Federal tax return forms 1040ez Seller-financed mortgage. Federal tax return forms 1040ez   If you sell your home and hold a note, mortgage, or other financial agreement, the payments you receive in most cases consist of both interest and principal. Federal tax return forms 1040ez You must separately report as interest income the interest you receive as part of each payment. Federal tax return forms 1040ez If the buyer of your home uses the property as a main or second home, you must also report the name, address, and social security number (SSN) of the buyer on line 1 of Schedule B (Form 1040A or 1040). Federal tax return forms 1040ez The buyer must give you his or her SSN, and you must give the buyer your SSN. Federal tax return forms 1040ez Failure to meet these requirements may result in a $50 penalty for each failure. Federal tax return forms 1040ez If either you or the buyer does not have and is not eligible to get an SSN, see Social Security Number in chapter 1. Federal tax return forms 1040ez More information. Federal tax return forms 1040ez   For more information on installment sales, see Publication 537, Installment Sales. Federal tax return forms 1040ez Special Situations The situations that follow may affect your exclusion. Federal tax return forms 1040ez Sale of home acquired in a like-kind exchange. Federal tax return forms 1040ez   You cannot claim the exclusion if: You acquired your home in a like-kind exchange (also known as a section 1031 exchange), or your basis in your home is determined by reference to the basis of the home in the hands of the person who acquired the property in a like-kind exchange (for example, you received the home from that person as a gift), and You sold the home during the 5-year period beginning with the date your home was acquired in the like-kind exchange. Federal tax return forms 1040ez Gain from a like-kind exchange is not taxable at the time of the exchange. Federal tax return forms 1040ez This means that gain will not be taxed until you sell or otherwise dispose of the property you receive. Federal tax return forms 1040ez To defer gain from a like-kind exchange, you must have exchanged business or investment property for business or investment property of a like kind. Federal tax return forms 1040ez For more information about like-kind exchanges, see Publication 544, Sales and Other Dispositions of Assets. Federal tax return forms 1040ez Home relinquished in a like-kind exchange. Federal tax return forms 1040ez   If you use your main home partly for business or rental purposes and then exchange the home for another property, see Publication 523. Federal tax return forms 1040ez Expatriates. Federal tax return forms 1040ez   You cannot claim the exclusion if the expatriation tax applies to you. Federal tax return forms 1040ez The expatriation tax applies to certain U. Federal tax return forms 1040ez S. Federal tax return forms 1040ez citizens who have renounced their citizenship (and to certain long-term residents who have ended their residency). Federal tax return forms 1040ez For more information about the expatriation tax, see Expatriation Tax in chapter 4 of Publication 519, U. Federal tax return forms 1040ez S. Federal tax return forms 1040ez Tax Guide for Aliens. Federal tax return forms 1040ez Home destroyed or condemned. Federal tax return forms 1040ez   If your home was destroyed or condemned, any gain (for example, because of insurance proceeds you received) qualifies for the exclusion. Federal tax return forms 1040ez   Any part of the gain that cannot be excluded (because it is more than the maximum exclusion) can be postponed under the rules explained in: Publication 547, in the case of a home that was destroyed, or Publication 544, chapter 1, in the case of a home that was condemned. Federal tax return forms 1040ez Sale of remainder interest. Federal tax return forms 1040ez   Subject to the other rules in this chapter, you can choose to exclude gain from the sale of a remainder interest in your home. Federal tax return forms 1040ez If you make this choice, you cannot choose to exclude gain from your sale of any other interest in the home that you sell separately. Federal tax return forms 1040ez Exception for sales to related persons. Federal tax return forms 1040ez   You cannot exclude gain from the sale of a remainder interest in your home to a related person. Federal tax return forms 1040ez Related persons include your brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. Federal tax return forms 1040ez ), and lineal descendants (children, grandchildren, etc. Federal tax return forms 1040ez ). Federal tax return forms 1040ez Related persons also include certain corporations, partnerships, trusts, and exempt organizations. Federal tax return forms 1040ez Recapturing (Paying Back) a Federal Mortgage Subsidy If you financed your home under a federally subsidized program (loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates), you may have to recapture all or part of the benefit you received from that program when you sell or otherwise dispose of your home. Federal tax return forms 1040ez You recapture the benefit by increasing your federal income tax for the year of the sale. Federal tax return forms 1040ez You may have to pay this recapture tax even if you can exclude your gain from income under the rules discussed earlier; that exclusion does not affect the recapture tax. Federal tax return forms 1040ez Loans subject to recapture rules. Federal tax return forms 1040ez   The recapture applies to loans that: Came from the proceeds of qualified mortgage bonds, or Were based on mortgage credit certificates. Federal tax return forms 1040ez The recapture also applies to assumptions of these loans. Federal tax return forms 1040ez When recapture applies. Federal tax return forms 1040ez   Recapture of the federal mortgage subsidy applies only if you meet both of the following conditions. Federal tax return forms 1040ez You sell or otherwise dispose of your home at a gain within the first 9 years after the date you close your mortgage loan. Federal tax return forms 1040ez Your income for the year of disposition is more than that year's adjusted qualifying income for your family size for that year (related to the income requirements a person must meet to qualify for the federally subsidized program). Federal tax return forms 1040ez When recapture does not apply. Federal tax return forms 1040ez   Recapture does not apply in any of the following situations. Federal tax return forms 1040ez Your mortgage loan was a qualified home improvement loan (QHIL) of not more than $15,000 used for alterations, repairs, and improvements that protect or improve the basic livability or energy efficiency of your home. Federal tax return forms 1040ez Your mortgage loan was a QHIL of not more than $150,000 in the case of a QHIL used to repair damage from Hurricane Katrina to homes in the hurricane disaster area; a QHIL funded by a qualified mortgage bond that is a qualified Gulf Opportunity Zone Bond; or a QHIL for an owner-occupied home in the Gulf Opportunity Zone (GO Zone), Rita GO Zone, or Wilma GO Zone. Federal tax return forms 1040ez For more information, see Publication 4492, Information for Taxpayers Affected by Hurricanes Katrina, Rita, and Wilma. Federal tax return forms 1040ez Also see Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas. Federal tax return forms 1040ez The home is disposed of as a result of your death. Federal tax return forms 1040ez You dispose of the home more than 9 years after the date you closed your mortgage loan. Federal tax return forms 1040ez You transfer the home to your spouse, or to your former spouse incident to a divorce, where no gain is included in your income. Federal tax return forms 1040ez You dispose of the home at a loss. Federal tax return forms 1040ez Your home is destroyed by a casualty, and you replace it on its original site within 2 years after the end of the tax year when the destruction happened. Federal tax return forms 1040ez The replacement period is extended for main homes destroyed in a federally declared disaster area, a Midwestern disaster area, the Kansas disaster area, and the Hurricane Katrina disaster area. Federal tax return forms 1040ez For more information, see Replacement Period in Publication 547. Federal tax return forms 1040ez You refinance your mortgage loan (unless you later meet the conditions listed previously under When recapture applies ). Federal tax return forms 1040ez Notice of amounts. Federal tax return forms 1040ez   At or near the time of settlement of your mortgage loan, you should receive a notice that provides the federally subsidized amount and other information you will need to figure your recapture tax. Federal tax return forms 1040ez How to figure and report the recapture. Federal tax return forms 1040ez    The recapture tax is figured on Form 8828. Federal tax return forms 1040ez If you sell your home and your mortgage is subject to recapture rules, you must file Form 8828 even if you do not owe a recapture tax. Federal tax return forms 1040ez Attach Form 8828 to your Form 1040. Federal tax return forms 1040ez For more information, see Form 8828 and its instructions. Federal tax return forms 1040ez Prev  Up  Next   Home   More Online Publications