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Form 1040nr Ez

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Form 1040nr Ez

Form 1040nr ez Publication 535 - Introductory Material Table of Contents IntroductionOrdering forms and publications. Form 1040nr ez Tax questions. Form 1040nr ez Future Developments What's New for 2013 What's New for 2014 Reminders Introduction This publication discusses common business expenses and explains what is and is not deductible. Form 1040nr ez The general rules for deducting business expenses are discussed in the opening chapter. Form 1040nr ez The chapters that follow cover specific expenses and list other publications and forms you may need. Form 1040nr ez Comments and suggestions. Form 1040nr ez   We welcome your comments about this publication and your suggestions for future editions. Form 1040nr ez   You can send your comments to: Internal Revenue Service Tax Forms and Publications SE:W:CAR:MP:TFP 1111 Constitution Ave. Form 1040nr ez NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Form 1040nr ez Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Form 1040nr ez   You can send us comments from www. Form 1040nr ez irs. Form 1040nr ez gov/formspubs/. Form 1040nr ez Click on “More Information” and then on “Give us feedback. Form 1040nr ez ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax publications. Form 1040nr ez Ordering forms and publications. Form 1040nr ez   Visit www. Form 1040nr ez irs. Form 1040nr ez gov/formspubs/ to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. Form 1040nr ez Internal Revenue Service 1201 N. Form 1040nr ez Mitsubishi Motorway Bloomington, IL 61705-6613 We cannot answer tax questions sent to either the “Comments and suggestions” or “Ordering forms and publications” address. Form 1040nr ez Tax questions. Form 1040nr ez   If you have a tax-related question, please go to Help With Tax Questions on IRS. Form 1040nr ez gov. Form 1040nr ez If you've looked around our site and still didn't find the answer to your general tax question, please call our toll-free tax assistance line at 1-800-829-1040 for individual tax questions or 1-800-829-4933 for business tax questions. Form 1040nr ez Future Developments For the latest information about developments related to Publication 535, such as legislation enacted after it was published, go to www. Form 1040nr ez irs. Form 1040nr ez gov/pub535. Form 1040nr ez What's New for 2013 The following items highlight some changes in the tax law for 2013. Form 1040nr ez Optional safe harbor method to determine the business use of a home deduction. Form 1040nr ez  Beginning in 2013, you can use the optional safe harbor method to determine the deduction for the business use of your home. Form 1040nr ez For more information, see chapter 1. Form 1040nr ez Standard mileage rate. Form 1040nr ez  Beginning in 2013, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 56. Form 1040nr ez 5 cents per mile. Form 1040nr ez For more information, see chapter 11. Form 1040nr ez Additional Medicare Tax. Form 1040nr ez  Beginning in 2013, a 0. Form 1040nr ez 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 if single, head of household, or qualifying widow(er) with dependent child. Form 1040nr ez Medicare wages and self-employment income are combined to determine if your income exceeds the threshold. Form 1040nr ez RRTA compensation should be separately compared to the threshold. Form 1040nr ez For more information, see chapter 5 or visit www. Form 1040nr ez irs. Form 1040nr ez gov and enter the following words in the search box: Additional Medicare Tax. Form 1040nr ez Retiree drug subsidy. Form 1040nr ez  Beginning in 2013, sponsors of certain qualified retiree prescription drug plans must account for the subsidy received by reducing the amount of qualified retiree prescription drug plans expense by the subsidy received (taking into account the taxpayer's accounting method). Form 1040nr ez For more information, visit www. Form 1040nr ez irs. Form 1040nr ez gov and enter the following words in the search box: Retiree drug subsidy. Form 1040nr ez What's New for 2014 The following item highlights a change in the tax law for 2014. Form 1040nr ez Standard mileage rate. Form 1040nr ez  Beginning in 2014, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 56 cents per mile. Form 1040nr ez Film and television productions costs. Form 1040nr ez  The election to expense film and television production costs does not apply to productions that begin in 2014. Form 1040nr ez For more information, see chapter 7. Form 1040nr ez Reminders The following reminders and other items may help you file your tax return. Form 1040nr ez IRS e-file (Electronic Filing) You can file your tax returns electronically using an IRS e-file option. Form 1040nr ez The benefits of IRS e-file include faster refunds, increased accuracy, and acknowledgment of IRS receipt of your return. Form 1040nr ez You can use one of the following IRS e-file options. Form 1040nr ez Use an authorized IRS e-file provider. Form 1040nr ez Use a personal computer. Form 1040nr ez Visit a Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) site. Form 1040nr ez For details on these fast filing methods, see your income tax package. Form 1040nr ez Form 1099 MISC. Form 1040nr ez  File Form 1099-MISC, Miscellaneous Income, for each person to whom you have paid during the year in the course of your trade or business at least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, and crop insurance proceeds. Form 1040nr ez See the Instructions for Form 1099-MISC for more information and additional reporting requirements. Form 1040nr ez Photographs of missing children. Form 1040nr ez  The Internal Revenue Service is a proud partner with the National Center for Missing & Exploited Children. Form 1040nr ez Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Form 1040nr ez You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) (24-hours a day, 7 days a week) if you recognize a child. Form 1040nr ez Prev  Up  Next   Home   More Online Publications
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The Form 1040nr Ez

Form 1040nr ez 4. Form 1040nr ez   Reporting Gains and Losses Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Information Returns Schedule D and Form 8949Long and Short Term Net Gain or Loss Treatment of Capital Losses Capital Gains Tax Rates Form 4797Mark-to-market election. Form 1040nr ez Introduction This chapter explains how to report capital gains and losses and ordinary gains and losses from sales, exchanges, and other dispositions of property. Form 1040nr ez Although this discussion refers to Schedule D (Form 1040) and Form 8949, many of the rules discussed here also apply to taxpayers other than individuals. Form 1040nr ez However, the rules for property held for personal use usually will not apply to taxpayers other than individuals. Form 1040nr ez Topics - This chapter discusses: Information returns Schedule D (Form 1040) Form 4797 Form 8949 Useful Items - You may want to see: Publication 550 Investment Income and Expenses 537 Installment Sales Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 1099-B Proceeds From Broker and Barter Exchange Transactions 1099-S Proceeds From Real Estate Transactions 4684 Casualties and Thefts 4797 Sales of Business Property 6252 Installment Sale Income 6781 Gains and Losses from Section 1256 Contracts and Straddles 8824 Like-Kind Exchanges 8949 Sales and Other Dispositions of Capital Assets See chapter 5 for information about getting publications and forms. Form 1040nr ez Information Returns If you sell or exchange certain assets, you should receive an information return showing the proceeds of the sale. Form 1040nr ez This information is also provided to the IRS. Form 1040nr ez Form 1099-B. Form 1040nr ez   If you sold property, such as stocks, bonds, or certain commodities, through a broker, you should receive Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or a substitute statement from the broker. Form 1040nr ez Use the Form 1099-B or a substitute statement to complete Form 8949 and/or Schedule D. Form 1040nr ez Whether or not you receive 1099-B, you must report all taxable sales of stock, bonds, commodities, etc. Form 1040nr ez on Form 8949 and/or Schedule D, as applicable. Form 1040nr ez For more information on figuring gains and losses from these transactions, see chapter 4 in Publication 550. Form 1040nr ez For information on reporting the gains and losses, see the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040). Form 1040nr ez Form 1099-S. Form 1040nr ez   An information return must be provided on certain real estate transactions. Form 1040nr ez Generally, the person responsible for closing the transaction (the “real estate reporting person”) must report on Form 1099-S sales or exchanges of the following types of property. Form 1040nr ez Land (improved or unimproved), including air space. Form 1040nr ez An inherently permanent structure, including any residential, commercial, or industrial building. Form 1040nr ez A condominium unit and its related fixtures and common elements (including land). Form 1040nr ez Stock in a cooperative housing corporation. Form 1040nr ez If you sold or exchanged any of the above types of property, the “real estate reporting person” must give you a copy of Form 1099-S or a statement containing the same information as the Form 1099-S. Form 1040nr ez The “real estate reporting person” could include the buyer's attorney, your attorney, the title or escrow company, a mortgage lender, your broker, the buyer's broker, or the person acquiring the biggest interest in the property. Form 1040nr ez   For more information see chapter 4 in Publication 550. Form 1040nr ez Also, see the Instructions for Form 8949. Form 1040nr ez Schedule D and Form 8949 Form 8949. Form 1040nr ez   Individuals, corporations, and partnerships, use Form 8949 to report the following. Form 1040nr ez    Sales or exchanges of capital assets, including stocks, bonds, etc. Form 1040nr ez , and real estate (if not reported on another form or schedule such as Form 4684, 4797, 6252, 6781, or 8824). Form 1040nr ez Include these transactions even if you did not receive a Form 1099-B or 1099-S. Form 1040nr ez Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for business or profit. Form 1040nr ez Nonbusiness bad debts. Form 1040nr ez   Individuals, If you are filing a joint return, complete as many copies of Form 8949 as you need to report all of your and your spouse's transactions. Form 1040nr ez You and your spouse may list your transactions on separate forms or you may combine them. Form 1040nr ez However, you must include on your Schedule D the totals from all Forms 8949 for both you and your spouse. Form 1040nr ez    Corporations and electing large partnerships also use Form 8949 to report their share of gain or loss from a partnership, S Corporation, estate or trust. Form 1040nr ez   Business entities meeting certain criteria, may have an exception to some of the normal requirements for completing Form 8949. Form 1040nr ez See the Instructions for Form 8949. Form 1040nr ez Schedule D. Form 1040nr ez    Use Schedule D (Form 1040) to figure the overall gain or loss from transactions reported on Form 8949, and to report certain transactions you do not have to report on Form 8949. Form 1040nr ez Before completing Schedule D, you may have to complete other forms as shown below. Form 1040nr ez    Complete all applicable lines of Form 8949 before completing lines 1b, 2, 3, 8b, 9, or 10 of your applicable Schedule D. Form 1040nr ez Enter on Schedule D the combined totals from all your Forms 8949. Form 1040nr ez For a sale, exchange, or involuntary conversion of business property, complete Form 4797 (discussed later). Form 1040nr ez For a like-kind exchange, complete Form 8824. Form 1040nr ez See Reporting the exchange under Like-Kind Exchanges in chapter 1. Form 1040nr ez For an installment sale, complete Form 6252. Form 1040nr ez See Publication 537. Form 1040nr ez For an involuntary conversion due to casualty or theft, complete Form 4684. Form 1040nr ez See Publication 547, Casualties, Disasters, and Thefts. Form 1040nr ez For a disposition of an interest in, or property used in, an activity to which the at-risk rules apply, complete Form 6198, At-Risk Limitations. Form 1040nr ez See Publication 925, Passive Activity and At-Risk Rules. Form 1040nr ez For a disposition of an interest in, or property used in, a passive activity, complete Form 8582, Passive Activity Loss Limitations. Form 1040nr ez See Publication 925. Form 1040nr ez For gains and losses from section 1256 contracts and straddles, complete Form 6781. Form 1040nr ez See Publication 550. Form 1040nr ez Personal-use property. Form 1040nr ez   Report gain on the sale or exchange of property held for personal use (such as your home) on Form 8949 and Schedule D (Form 1040), as applicable. Form 1040nr ez Loss from the sale or exchange of property held for personal use is not deductible. Form 1040nr ez But if you had a loss from the sale or exchange of real estate held for personal use for which you received a Form 1099-S, report the transaction on Form 8949 and Schedule D, even though the loss is not deductible. Form 1040nr ez See the Instructions for Schedule D (Form 1040) and the Instructions for Form 8949 for information on how to report the transaction. Form 1040nr ez Long and Short Term Where you report a capital gain or loss depends on how long you own the asset before you sell or exchange it. Form 1040nr ez The time you own an asset before disposing of it is the holding period. Form 1040nr ez If you received a Form 1099-B, (or substitute statement) box 1c may help you determine whether the gain or loss is short-term or long-term. Form 1040nr ez If you hold a capital asset 1 year or less, the gain or loss from its disposition is short term. Form 1040nr ez Report it in Part I of Form 8949 and/or Schedule D, as applicable. Form 1040nr ez If you hold a capital asset longer than 1 year, the gain or loss from its disposition is long term. Form 1040nr ez Report it in Part II of Form 8949 and/or Schedule D, as applicable. Form 1040nr ez   Table 4-1. Form 1040nr ez Do I Have a Short-Term or Long-Term Gain or Loss? IF you hold the property. Form 1040nr ez . Form 1040nr ez . Form 1040nr ez  THEN you have a. Form 1040nr ez . Form 1040nr ez . Form 1040nr ez 1 year or less, Short-term capital gain or  loss. Form 1040nr ez More than 1 year, Long-term capital gain or  loss. Form 1040nr ez These distinctions are essential to correctly arrive at your net capital gain or loss. Form 1040nr ez Capital losses are allowed in full against capital gains plus up to $3,000 of ordinary income. Form 1040nr ez See Capital Gains Tax Rates, later. Form 1040nr ez Holding period. Form 1040nr ez   To figure if you held property longer than 1 year, start counting on the day following the day you acquired the property. Form 1040nr ez The day you disposed of the property is part of your holding period. Form 1040nr ez Example. Form 1040nr ez If you bought an asset on June 19, 2012, you should start counting on June 20, 2012. Form 1040nr ez If you sold the asset on June 19, 2013, your holding period is not longer than 1 year, but if you sold it on June 20, 2013, your holding period is longer than 1 year. Form 1040nr ez Patent property. Form 1040nr ez   If you dispose of patent property, you generally are considered to have held the property longer than 1 year, no matter how long you actually held it. Form 1040nr ez For more information, see Patents in chapter 2. Form 1040nr ez Inherited property. Form 1040nr ez   If you inherit property, you are considered to have held the property longer than 1 year, regardless of how long you actually held it. Form 1040nr ez Installment sale. Form 1040nr ez   The gain from an installment sale of an asset qualifying for long-term capital gain treatment in the year of sale continues to be long term in later tax years. Form 1040nr ez If it is short term in the year of sale, it continues to be short term when payments are received in later tax years. Form 1040nr ez    The date the installment payment is received determines the capital gains rate that should be applied not the date the asset was sold under an installment contract. Form 1040nr ez Nontaxable exchange. Form 1040nr ez   If you acquire an asset in exchange for another asset and your basis for the new asset is figured, in whole or in part, by using your basis in the old property, the holding period of the new property includes the holding period of the old property. Form 1040nr ez That is, it begins on the same day as your holding period for the old property. Form 1040nr ez Example. Form 1040nr ez You bought machinery on December 4, 2012. Form 1040nr ez On June 4, 2013, you traded this machinery for other machinery in a nontaxable exchange. Form 1040nr ez On December 5, 2013, you sold the machinery you got in the exchange. Form 1040nr ez Your holding period for this machinery began on December 5, 2012. Form 1040nr ez Therefore, you held it longer than 1 year. Form 1040nr ez Corporate liquidation. Form 1040nr ez   The holding period for property you receive in a liquidation generally starts on the day after you receive it if gain or loss is recognized. Form 1040nr ez Profit-sharing plan. Form 1040nr ez   The holding period of common stock withdrawn from a qualified contributory profit-sharing plan begins on the day following the day the plan trustee delivered the stock to the transfer agent with instructions to reissue the stock in your name. Form 1040nr ez Gift. Form 1040nr ez   If you receive a gift of property and your basis in it is figured using the donor's basis, your holding period includes the donor's holding period. Form 1040nr ez For more information on basis, see Publication 551, Basis of Assets. Form 1040nr ez Real property. Form 1040nr ez   To figure how long you held real property, start counting on the day after you received title to it or, if earlier, the day after you took possession of it and assumed the burdens and privileges of ownership. Form 1040nr ez   However, taking possession of real property under an option agreement is not enough to start the holding period. Form 1040nr ez The holding period cannot start until there is an actual contract of sale. Form 1040nr ez The holding period of the seller cannot end before that time. Form 1040nr ez Repossession. Form 1040nr ez   If you sell real property but keep a security interest in it and then later repossess it, your holding period for a later sale includes the period you held the property before the original sale, as well as the period after the repossession. Form 1040nr ez Your holding period does not include the time between the original sale and the repossession. Form 1040nr ez That is, it does not include the period during which the first buyer held the property. Form 1040nr ez Nonbusiness bad debts. Form 1040nr ez   Nonbusiness bad debts are short-term capital losses. Form 1040nr ez For information on nonbusiness bad debts, see chapter 4 of Publication 550. Form 1040nr ez    Net Gain or Loss The totals for short-term capital gains and losses and the totals for long-term capital gains and losses must be figured separately. Form 1040nr ez Net short-term capital gain or loss. Form 1040nr ez   Combine your short-term capital gains and losses, including your share of short-term capital gains or losses from partnerships, S corporations, and fiduciaries and any short-term capital loss carryover. Form 1040nr ez Do this by adding all your short-term capital gains. Form 1040nr ez Then add all your short-term capital losses. Form 1040nr ez Subtract the lesser total from the other. Form 1040nr ez The result is your net short-term capital gain or loss. Form 1040nr ez Net long-term capital gain or loss. Form 1040nr ez   Follow the same steps to combine your long-term capital gains and losses. Form 1040nr ez Include the following items. Form 1040nr ez Net section 1231 gain from Part I, Form 4797, after any adjustment for nonrecaptured section 1231 losses from prior tax years. Form 1040nr ez Capital gain distributions from regulated investment companies (mutual funds) and real estate investment trusts. Form 1040nr ez Your share of long-term capital gains or losses from partnerships, S corporations, and fiduciaries. Form 1040nr ez Any long-term capital loss carryover. Form 1040nr ez The result from combining these items with other long-term capital gains and losses is your net long-term capital gain or loss. Form 1040nr ez Net gain. Form 1040nr ez   If the total of your capital gains is more than the total of your capital losses, the difference is taxable. Form 1040nr ez Different tax rates may apply to the part that is a net capital gain. Form 1040nr ez See Capital Gains Tax Rates, later. Form 1040nr ez Net loss. Form 1040nr ez   If the total of your capital losses is more than the total of your capital gains, the difference is deductible. Form 1040nr ez But there are limits on how much loss you can deduct and when you can deduct it. Form 1040nr ez See Treatment of Capital Losses, next. Form 1040nr ez    Treatment of Capital Losses If your capital losses are more than your capital gains, you can deduct the difference as a capital loss deduction even if you do not have ordinary income to offset it. Form 1040nr ez The yearly limit on the amount of the capital loss you can deduct is $3,000 ($1,500 if you are married and file a separate return). Form 1040nr ez Table 4-2. Form 1040nr ez Holding Period for Different Types of Acquisitions Type of acquisition: When your holding period starts: Stocks and bonds bought on a securities market Day after trading date you bought security. Form 1040nr ez Ends on trading date you sold security. Form 1040nr ez U. Form 1040nr ez S. Form 1040nr ez Treasury notes and bonds If bought at auction, day after notification of bid acceptance. Form 1040nr ez If bought through subscription, day after subscription was submitted. Form 1040nr ez Nontaxable exchanges Day after date you acquired old property. Form 1040nr ez Gift If your basis is giver's adjusted basis, same day as giver's holding period began. Form 1040nr ez If your basis is FMV, day after date of gift. Form 1040nr ez Real property bought Generally, day after date you received title to the property. Form 1040nr ez Real property repossessed Day after date you originally received title to the property, but does not include time between the original sale and date of repossession. Form 1040nr ez Capital loss carryover. Form 1040nr ez   Generally, you have a capital loss carryover if either of the following situations applies to you. Form 1040nr ez Your net loss is more than the yearly limit. Form 1040nr ez Your taxable income without your deduction for exemptions is less than zero. Form 1040nr ez If either of these situations applies to you for 2013, see Capital Losses under Reporting Capital Gains and Losses in chapter 4 of Publication 550 to figure the amount you can carryover to 2014. Form 1040nr ez Example. Form 1040nr ez Bob and Gloria Sampson sold property in 2013. Form 1040nr ez The sale resulted in a capital loss of $7,000. Form 1040nr ez The Sampsons had no other capital transactions. Form 1040nr ez On their joint 2013 return, the Sampsons deduct $3,000, the yearly limit. Form 1040nr ez They had taxable income of $2,000. Form 1040nr ez The unused part of the loss, $4,000 ($7,000 − $3,000), is carried over to 2014. Form 1040nr ez If the Sampsons' capital loss had been $2,000, it would not have been more than the yearly limit. Form 1040nr ez Their capital loss deduction would have been $2,000. Form 1040nr ez They would have no carryover to 2014. Form 1040nr ez Short-term and long-term losses. Form 1040nr ez   When you carry over a loss, it retains its original character as either long term or short term. Form 1040nr ez A short-term loss you carry over to the next tax year is added to short-term losses occurring in that year. Form 1040nr ez A long-term loss you carry over to the next tax year is added to long-term losses occurring in that year. Form 1040nr ez A long-term capital loss you carry over to the next year reduces that year's long-term gains before its short-term gains. Form 1040nr ez   If you have both short-term and long-term losses, your short-term losses are used first against your allowable capital loss deduction. Form 1040nr ez If, after using your short-term losses, you have not reached the limit on the capital loss deduction, use your long-term losses until you reach the limit. Form 1040nr ez To figure your capital loss carryover from 2013 to 2014 use the Capital Loss Carryover Worksheet in the 2013 Instructions for Schedule D (Form 1040). Form 1040nr ez Joint and separate returns. Form 1040nr ez   On a joint return, the capital gains and losses of spouses are figured as the gains and losses of an individual. Form 1040nr ez If you are married and filing a separate return, your yearly capital loss deduction is limited to $1,500. Form 1040nr ez Neither you nor your spouse can deduct any part of the other's loss. Form 1040nr ez   If you and your spouse once filed separate returns and are now filing a joint return, combine your separate capital loss carryovers. Form 1040nr ez However, if you and your spouse once filed jointly and are now filing separately, any capital loss carryover from the joint return can be deducted only on the return of the spouse who actually had the loss. Form 1040nr ez Death of taxpayer. Form 1040nr ez   Capital losses cannot be carried over after a taxpayer's death. Form 1040nr ez They are deductible only on the final income tax return filed on the decedent's behalf. Form 1040nr ez The yearly limit discussed earlier still applies in this situation. Form 1040nr ez Even if the loss is greater than the limit, the decedent's estate cannot deduct the difference or carry it over to following years. Form 1040nr ez Corporations. Form 1040nr ez   A corporation can deduct capital losses only up to the amount of its capital gains. Form 1040nr ez In other words, if a corporation has a net capital loss, it cannot be deducted in the current tax year. Form 1040nr ez It must be carried to other tax years and deducted from capital gains occurring in those years. Form 1040nr ez For more information, see Publication 542. Form 1040nr ez Capital Gains Tax Rates The tax rates that apply to a net capital gain are generally lower than the tax rates that apply to other income. Form 1040nr ez These lower rates are called the maximum capital gains rates. Form 1040nr ez The term “net capital gain” means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss. Form 1040nr ez For 2013, the maximum tax rates for individuals are 0%, 15%, 20%, 25%, and 28%. Form 1040nr ez Also, individuals, use the Qualified Dividends and Capital Gain Worksheet in the Instructions for Form 1040, or the Schedule D Tax Computation Worksheet in the Instructions for Schedule D (Form 1040) (whichever applies) to figure your tax if you have qualified dividends or net capital gain. Form 1040nr ez For more information, see chapter 4 of Publication 550. Form 1040nr ez Also see the Instructions for Schedule D (Form 1040). Form 1040nr ez Unrecaptured section 1250 gain. Form 1040nr ez   Generally, this is the part of any long-term capital gain on section 1250 property (real property) that is due to depreciation. Form 1040nr ez Unrecaptured section 1250 gain cannot be more than the net section 1231 gain or include any gain otherwise treated as ordinary income. Form 1040nr ez Use the worksheet in the Schedule D instructions to figure your unrecaptured section 1250 gain. Form 1040nr ez For more information about section 1250 property and net section 1231 gain, see chapter 3. Form 1040nr ez Form 4797 Use Form 4797 to report: The sale or exchange of: Property used in your trade or business; Depreciable and amortizable property; Oil, gas, geothermal, or other mineral properties; and Section 126 property. Form 1040nr ez The involuntary conversion (from other than casualty or theft) of property used in your trade or business and capital assets held in connection with a trade or business or a transaction entered into for profit. Form 1040nr ez The disposition of noncapital assets (other than inventory or property held primarily for sale to customers in the ordinary course of your trade or business). Form 1040nr ez The disposition of capital assets not reported on Schedule D. Form 1040nr ez The gain or loss (including any related recapture) for partners and S corporation shareholders from certain section 179 property dispositions by partnerships (other than electing large partnerships) and S corporations. Form 1040nr ez The computation of recapture amounts under sections 179 and 280F(b)(2) when the business use of section 179 or listed property decreases to 50% or less. Form 1040nr ez Gains or losses treated as ordinary gains or losses, if you are a trader in securities or commodities and made a mark-to-market election under Internal Revenue Code section 475(f). Form 1040nr ez You can use Form 4797 with Form 1040, 1065, 1120, or 1120S. Form 1040nr ez Section 1231 gains and losses. Form 1040nr ez   Show any section 1231 gains and losses in Part I. Form 1040nr ez Carry a net gain to Schedule D (Form 1040) as a long-term capital gain. Form 1040nr ez Carry a net loss to Part II of Form 4797 as an ordinary loss. Form 1040nr ez   If you had any nonrecaptured net section 1231 losses from the preceding 5 tax years, reduce your net gain by those losses and report the amount of the reduction as an ordinary gain in Part II. Form 1040nr ez Report any remaining gain on Schedule D (Form 1040). Form 1040nr ez See Section 1231 Gains and Losses in chapter 3. Form 1040nr ez Ordinary gains and losses. Form 1040nr ez   Show any ordinary gains and losses in Part II. Form 1040nr ez This includes a net loss or a recapture of losses from prior years figured in Part I of Form 4797. Form 1040nr ez It also includes ordinary gain figured in Part III. Form 1040nr ez Mark-to-market election. Form 1040nr ez   If you made a mark-to-market election, you should report all gains and losses from trading as ordinary gains and losses in Part II of Form 4797, instead of as capital gains and losses on Form 8949 and Schedule D (Form 1040). Form 1040nr ez See the Instructions for Form 4797. Form 1040nr ez Also see Special Rules for Traders in Securities, in chapter 4 of Publication 550. Form 1040nr ez Ordinary income from depreciation. Form 1040nr ez   Figure the ordinary income from depreciation on personal property and additional depreciation on real property (as discussed in chapter 3) in Part III. Form 1040nr ez Carry the ordinary income to Part II of Form 4797 as an ordinary gain. Form 1040nr ez Carry any remaining gain to Part I as section 1231 gain, unless it is from a casualty or theft. Form 1040nr ez Carry any remaining gain from a casualty or theft to Form 4684. Form 1040nr ez Prev  Up  Next   Home   More Online Publications