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Free filing state taxes 14. Free filing state taxes   Sale of Property Table of Contents Reminder Introduction Useful Items - You may want to see: Sales and TradesWhat Is a Sale or Trade? How To Figure Gain or Loss Nontaxable Trades Transfers Between Spouses Related Party Transactions Capital Gains and LossesCapital or Ordinary Gain or Loss Capital Assets and Noncapital Assets Holding Period Nonbusiness Bad Debts Wash Sales Rollover of Gain From Publicly Traded Securities Reminder Foreign income. Free filing state taxes  If you are a U. Free filing state taxes S. Free filing state taxes citizen who sells property located outside the United States, you must report all gains and losses from the sale of that property on your tax return unless it is exempt by U. Free filing state taxes S. Free filing state taxes law. Free filing state taxes This is true whether you reside inside or outside the United States and whether or not you receive a Form 1099 from the payer. Free filing state taxes Introduction This chapter discusses the tax consequences of selling or trading investment property. Free filing state taxes It explains the following. Free filing state taxes What a sale or trade is. Free filing state taxes Figuring gain or loss. Free filing state taxes Nontaxable trades. Free filing state taxes Related party transactions. Free filing state taxes Capital gains or losses. Free filing state taxes Capital assets and noncapital assets. Free filing state taxes Holding period. Free filing state taxes Rollover of gain from publicly traded securities. Free filing state taxes Other property transactions. Free filing state taxes   Certain transfers of property are not discussed here. Free filing state taxes They are discussed in other IRS publications. Free filing state taxes These include the following. Free filing state taxes Sales of a main home, covered in chapter 15. Free filing state taxes Installment sales, covered in Publication 537, Installment Sales. Free filing state taxes Transactions involving business property, covered in Publication 544, Sales and Other Dispositions of Assets. Free filing state taxes Dispositions of an interest in a passive activity, covered in Publication 925, Passive Activity and At-Risk Rules. Free filing state taxes    Publication 550, Investment Income and Expenses (Including Capital Gains and Losses), provides a more detailed discussion about sales and trades of investment property. Free filing state taxes Publication 550 includes information about the rules covering nonbusiness bad debts, straddles, section 1256 contracts, puts and calls, commodity futures, short sales, and wash sales. Free filing state taxes It also discusses investment-related expenses. Free filing state taxes Useful Items - You may want to see: Publication 550 Investment Income and Expenses Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 8949 Sales and Other Dispositions of Capital Assets 8824 Like-Kind Exchanges Sales and Trades If you sold property such as stocks, bonds, or certain commodities through a broker during the year, you should receive, for each sale, a Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or substitute statement, from the broker. Free filing state taxes Generally, you should receive the statement by February 15 of the next year. Free filing state taxes It will show the gross proceeds from the sale. Free filing state taxes If you sold a covered security in 2013, your 1099-B (or substitute statement) will show your basis. Free filing state taxes Generally, a covered security is a security you acquired after 2010, with certain exceptions. Free filing state taxes See the Instructions for Form 8949. Free filing state taxes The IRS will also get a copy of Form 1099-B from the broker. Free filing state taxes Use Form 1099-B (or substitute statement received from your broker) to complete Form 8949. Free filing state taxes What Is a Sale or Trade? This section explains what is a sale or trade. Free filing state taxes It also explains certain transactions and events that are treated as sales or trades. Free filing state taxes A sale is generally a transfer of property for money or a mortgage, note, or other promise to pay money. Free filing state taxes A trade is a transfer of property for other property or services and may be taxed in the same way as a sale. Free filing state taxes Sale and purchase. Free filing state taxes   Ordinarily, a transaction is not a trade when you voluntarily sell property for cash and immediately buy similar property to replace it. Free filing state taxes The sale and purchase are two separate transactions. Free filing state taxes But see Like-kind exchanges under Nontaxable Trades, later. Free filing state taxes Redemption of stock. Free filing state taxes   A redemption of stock is treated as a sale or trade and is subject to the capital gain or loss provisions unless the redemption is a dividend or other distribution on stock. Free filing state taxes Dividend versus sale or trade. Free filing state taxes   Whether a redemption is treated as a sale, trade, dividend, or other distribution depends on the circumstances in each case. Free filing state taxes Both direct and indirect ownership of stock will be considered. Free filing state taxes The redemption is treated as a sale or trade of stock if: The redemption is not essentially equivalent to a dividend (see chapter 8), There is a substantially disproportionate redemption of stock, There is a complete redemption of all the stock of the corporation owned by the shareholder, or The redemption is a distribution in partial liquidation of a corporation. Free filing state taxes Redemption or retirement of bonds. Free filing state taxes   A redemption or retirement of bonds or notes at their maturity is generally treated as a sale or trade. Free filing state taxes   In addition, a significant modification of a bond is treated as a trade of the original bond for a new bond. Free filing state taxes For details, see Regulations section 1. Free filing state taxes 1001-3. Free filing state taxes Surrender of stock. Free filing state taxes   A surrender of stock by a dominant shareholder who retains ownership of more than half of the corporation's voting shares is treated as a contribution to capital rather than as an immediate loss deductible from taxable income. Free filing state taxes The surrendering shareholder must reallocate his or her basis in the surrendered shares to the shares he or she retains. Free filing state taxes Worthless securities. Free filing state taxes    Stocks, stock rights, and bonds (other than those held for sale by a securities dealer) that became completely worthless during the tax year are treated as though they were sold on the last day of the tax year. Free filing state taxes This affects whether your capital loss is long term or short term. Free filing state taxes See Holding Period , later. Free filing state taxes   Worthless securities also include securities that you abandon after March 12, 2008. Free filing state taxes To abandon a security, you must permanently surrender and relinquish all rights in the security and receive no consideration in exchange for it. Free filing state taxes All the facts and circumstances determine whether the transaction is properly characterized as an abandonment or other type of transaction, such as an actual sale or exchange, contribution to capital, dividend, or gift. Free filing state taxes    If you are a cash basis taxpayer and make payments on a negotiable promissory note that you issued for stock that became worthless, you can deduct these payments as losses in the years you actually make the payments. Free filing state taxes Do not deduct them in the year the stock became worthless. Free filing state taxes How to report loss. Free filing state taxes    Report worthless securities in Part I or Part II, whichever applies, of Form 8949. Free filing state taxes In column (a), enter “Worthless. Free filing state taxes ”    Report your worthless securities transactions on Form 8949 with the correct box checked for these transactions. Free filing state taxes See Form 8949 and the Instructions for Form 8949. Free filing state taxes For more information on Form 8949 and Schedule D (Form 1040), see Reporting Capital Gains and Losses in chapter 16. Free filing state taxes See also Schedule D (Form 1040), Form 8949, and their separate instructions. Free filing state taxes Filing a claim for refund. Free filing state taxes   If you do not claim a loss for a worthless security on your original return for the year it becomes worthless, you can file a claim for a credit or refund due to the loss. Free filing state taxes You must use Form 1040X, Amended U. Free filing state taxes S. Free filing state taxes Individual Income Tax Return, to amend your return for the year the security became worthless. Free filing state taxes You must file it within 7 years from the date your original return for that year had to be filed, or 2 years from the date you paid the tax, whichever is later. Free filing state taxes For more information about filing a claim, see Amended Returns and Claims for Refund in chapter 1. Free filing state taxes How To Figure Gain or Loss You figure gain or loss on a sale or trade of property by comparing the amount you realize with the adjusted basis of the property. Free filing state taxes Gain. Free filing state taxes   If the amount you realize from a sale or trade is more than the adjusted basis of the property you transfer, the difference is a gain. Free filing state taxes Loss. Free filing state taxes   If the adjusted basis of the property you transfer is more than the amount you realize, the difference is a loss. Free filing state taxes Adjusted basis. Free filing state taxes   The adjusted basis of property is your original cost or other original basis properly adjusted (increased or decreased) for certain items. Free filing state taxes See chapter 13 for more information about determining the adjusted basis of property. Free filing state taxes Amount realized. Free filing state taxes   The amount you realize from a sale or trade of property is everything you receive for the property minus your expenses of sale (such as redemption fees, sales commissions, sales charges, or exit fees). Free filing state taxes Amount realized includes the money you receive plus the fair market value of any property or services you receive. Free filing state taxes If you received a note or other debt instrument for the property, see How To Figure Gain or Loss in chapter 4 of Publication 550 to figure the amount realized. Free filing state taxes If you finance the buyer's purchase of your property and the debt instrument does not provide for adequate stated interest, the unstated interest that you must report as ordinary income will reduce the amount realized from the sale. Free filing state taxes For more information, see Publication 537. Free filing state taxes Fair market value. Free filing state taxes   Fair market value is the price at which the property would change hands between a buyer and a seller, neither being forced to buy or sell and both having reasonable knowledge of all the relevant facts. Free filing state taxes Example. Free filing state taxes You trade A Company stock with an adjusted basis of $7,000 for B Company stock with a fair market value of $10,000, which is your amount realized. Free filing state taxes Your gain is $3,000 ($10,000 − $7,000). Free filing state taxes Debt paid off. Free filing state taxes    A debt against the property, or against you, that is paid off as a part of the transaction, or that is assumed by the buyer, must be included in the amount realized. Free filing state taxes This is true even if neither you nor the buyer is personally liable for the debt. Free filing state taxes For example, if you sell or trade property that is subject to a nonrecourse loan, the amount you realize generally includes the full amount of the note assumed by the buyer even if the amount of the note is more than the fair market value of the property. Free filing state taxes Example. Free filing state taxes You sell stock that you had pledged as security for a bank loan of $8,000. Free filing state taxes Your basis in the stock is $6,000. Free filing state taxes The buyer pays off your bank loan and pays you $20,000 in cash. Free filing state taxes The amount realized is $28,000 ($20,000 + $8,000). Free filing state taxes Your gain is $22,000 ($28,000 − $6,000). Free filing state taxes Payment of cash. Free filing state taxes   If you trade property and cash for other property, the amount you realize is the fair market value of the property you receive. Free filing state taxes Determine your gain or loss by subtracting the cash you pay plus the adjusted basis of the property you trade in from the amount you realize. Free filing state taxes If the result is a positive number, it is a gain. Free filing state taxes If the result is a negative number, it is a loss. Free filing state taxes No gain or loss. Free filing state taxes   You may have to use a basis for figuring gain that is different from the basis used for figuring loss. Free filing state taxes In this case, you may have neither a gain nor a loss. Free filing state taxes See Basis Other Than Cost in chapter 13. Free filing state taxes Nontaxable Trades This section discusses trades that generally do not result in a taxable gain or deductible loss. Free filing state taxes For more information on nontaxable trades, see chapter 1 of Publication 544. Free filing state taxes Like-kind exchanges. Free filing state taxes   If you trade business or investment property for other business or investment property of a like kind, you do not pay tax on any gain or deduct any loss until you sell or dispose of the property you receive. Free filing state taxes To be nontaxable, a trade must meet all six of the following conditions. Free filing state taxes The property must be business or investment property. Free filing state taxes You must hold both the property you trade and the property you receive for productive use in your trade or business or for investment. Free filing state taxes Neither property may be property used for personal purposes, such as your home or family car. Free filing state taxes The property must not be held primarily for sale. Free filing state taxes The property you trade and the property you receive must not be property you sell to customers, such as merchandise. Free filing state taxes The property must not be stocks, bonds, notes, choses in action, certificates of trust or beneficial interest, or other securities or evidences of indebtedness or interest, including partnership interests. Free filing state taxes However, see Special rules for mutual ditch, reservoir, or irrigation company stock, in chapter 4 of Publication 550 for an exception. Free filing state taxes Also, you can have a nontaxable trade of corporate stocks under a different rule, as discussed later. Free filing state taxes There must be a trade of like property. Free filing state taxes The trade of real estate for real estate, or personal property for similar personal property, is a trade of like property. Free filing state taxes The trade of an apartment house for a store building, or a panel truck for a pickup truck, is a trade of like property. Free filing state taxes The trade of a piece of machinery for a store building is not a trade of like property. Free filing state taxes Real property located in the United States and real property located outside the United States are not like property. Free filing state taxes Also, personal property used predominantly within the United States and personal property used predominantly outside the United States are not like property. Free filing state taxes The property to be received must be identified in writing within 45 days after the date you transfer the property given up in the trade. Free filing state taxes The property to be received must be received by the earlier of: The 180th day after the date on which you transfer the property given up in the trade, or The due date, including extensions, for your tax return for the year in which the transfer of the property given up occurs. Free filing state taxes    If you trade property with a related party in a like-kind exchange, a special rule may apply. Free filing state taxes See Related Party Transactions , later in this chapter. Free filing state taxes Also, see chapter 1 of Publication 544 for more information on exchanges of business property and special rules for exchanges using qualified intermediaries or involving multiple properties. Free filing state taxes Partly nontaxable exchange. Free filing state taxes   If you receive money or unlike property in addition to like property, and the above six conditions are met, you have a partly nontaxable trade. Free filing state taxes You are taxed on any gain you realize, but only up to the amount of the money and the fair market value of the unlike property you receive. Free filing state taxes You cannot deduct a loss. Free filing state taxes Like property and unlike property transferred. Free filing state taxes   If you give up unlike property in addition to the like property, you must recognize gain or loss on the unlike property you give up. Free filing state taxes The gain or loss is the difference between the adjusted basis of the unlike property and its fair market value. Free filing state taxes Like property and money transferred. Free filing state taxes   If all of the above conditions (1) – (6) are met, you have a nontaxable trade even if you pay money in addition to the like property. Free filing state taxes Basis of property received. Free filing state taxes   To figure the basis of the property received, see Nontaxable Exchanges in chapter 13. Free filing state taxes How to report. Free filing state taxes   You must report the trade of like property on Form 8824. Free filing state taxes If you figure a recognized gain or loss on Form 8824, report it on Schedule D (Form 1040), or on Form 4797, Sales of Business Property, whichever applies. Free filing state taxes See the instructions for Line 22 in the Instructions for Form 8824. Free filing state taxes   For information on using Form 4797, see chapter 4 of Publication 544. Free filing state taxes Corporate stocks. Free filing state taxes   The following trades of corporate stocks generally do not result in a taxable gain or a deductible loss. Free filing state taxes Corporate reorganizations. Free filing state taxes   In some instances, a company will give you common stock for preferred stock, preferred stock for common stock, or stock in one corporation for stock in another corporation. Free filing state taxes If this is a result of a merger, recapitalization, transfer to a controlled corporation, bankruptcy, corporate division, corporate acquisition, or other corporate reorganization, you do not recognize gain or loss. Free filing state taxes Stock for stock of the same corporation. Free filing state taxes   You can exchange common stock for common stock or preferred stock for preferred stock in the same corporation without having a recognized gain or loss. Free filing state taxes This is true for a trade between two stockholders as well as a trade between a stockholder and the corporation. Free filing state taxes Convertible stocks and bonds. Free filing state taxes   You generally will not have a recognized gain or loss if you convert bonds into stock or preferred stock into common stock of the same corporation according to a conversion privilege in the terms of the bond or the preferred stock certificate. Free filing state taxes Property for stock of a controlled corporation. Free filing state taxes   If you transfer property to a corporation solely in exchange for stock in that corporation, and immediately after the trade you are in control of the corporation, you ordinarily will not recognize a gain or loss. Free filing state taxes This rule applies both to individuals and to groups who transfer property to a corporation. Free filing state taxes It does not apply if the corporation is an investment company. Free filing state taxes   For this purpose, to be in control of a corporation, you or your group of transferors must own, immediately after the exchange, at least 80% of the total combined voting power of all classes of stock entitled to vote and at least 80% of the outstanding shares of each class of nonvoting stock of the corporation. Free filing state taxes   If this provision applies to you, you may have to attach to your return a complete statement of all facts pertinent to the exchange. Free filing state taxes For details, see Regulations section 1. Free filing state taxes 351-3. Free filing state taxes Additional information. Free filing state taxes   For more information on trades of stock, see Nontaxable Trades in chapter 4 of Publication 550. Free filing state taxes Insurance policies and annuities. Free filing state taxes   You will not have a recognized gain or loss if the insured or annuitant is the same under both contracts and you trade: A life insurance contract for another life insurance contract or for an endowment or annuity contract or for a qualified long-term care insurance contract, An endowment contract for another endowment contract that provides for regular payments beginning at a date no later than the beginning date under the old contract or for an annuity contract or for a qualified long-term insurance contract, An annuity contract for annuity contract or for a qualified long-term care insurance contract, or A qualified long-term care insurance contract for a qualified long-term care insurance contract. Free filing state taxes   You also may not have to recognize gain or loss on an exchange of a portion of an annuity contract for another annuity contract. Free filing state taxes For transfers completed before October 24, 2011, see Revenue Ruling 2003-76 in Internal Revenue Bulletin 2003-33 and Revenue Procedure 2008-24 in Internal Revenue Bulletin 2008-13. Free filing state taxes Revenue Ruling 2003-76 is available at www. Free filing state taxes irs. Free filing state taxes gov/irb/2003-33_IRB/ar11. Free filing state taxes html. Free filing state taxes Revenue Procedure 2008-24 is available at www. Free filing state taxes irs. Free filing state taxes gov/irb/2008-13_IRB/ar13. Free filing state taxes html. Free filing state taxes For transfers completed on or after October 24, 2011, see Revenue Ruling 2003-76, above, and Revenue Procedure 2011-38, in Internal Revenue Bulletin 2011-30. Free filing state taxes Revenue Procedure 2011-38 is available at www. Free filing state taxes irs. Free filing state taxes gov/irb/2011-30_IRB/ar09. Free filing state taxes html. Free filing state taxes   For tax years beginning after December 31, 2010, amounts received as an annuity for a period of 10 years or more, or for the lives of one or more individuals, under any portion of an annuity, endowment, or life insurance contract, are treated as a separate contract and are considered partial annuities. Free filing state taxes A portion of an annuity, endowment, or life insurance contract may be annuitized, provided that the annuitization period is for 10 years or more or for the lives of one or more individuals. Free filing state taxes The investment in the contract is allocated between the part of the contract from which amounts are received as an annuity and the part of the contract from which amounts are not received as an annuity. Free filing state taxes   Exchanges of contracts not included in this list, such as an annuity contract for an endowment contract, or an annuity or endowment contract for a life insurance contract, are taxable. Free filing state taxes Demutualization of life insurance companies. Free filing state taxes   If you received stock in exchange for your equity interest as a policyholder or an annuitant, you generally will not have a recognized gain or loss. Free filing state taxes See Demutualization of Life Insurance Companies in Publication 550. Free filing state taxes U. Free filing state taxes S. Free filing state taxes Treasury notes or bonds. Free filing state taxes   You can trade certain issues of U. Free filing state taxes S. Free filing state taxes Treasury obligations for other issues designated by the Secretary of the Treasury, with no gain or loss recognized on the trade. Free filing state taxes See Savings bonds traded in chapter 1 of Publication 550 for more information. Free filing state taxes Transfers Between Spouses Generally, no gain or loss is recognized on a transfer of property from an individual to (or in trust for the benefit of) a spouse, or if incident to a divorce, a former spouse. Free filing state taxes This nonrecognition rule does not apply in the following situations. Free filing state taxes The recipient spouse or former spouse is a nonresident alien. Free filing state taxes Property is transferred in trust and liability exceeds basis. Free filing state taxes Gain must be recognized to the extent the amount of the liabilities assumed by the trust, plus any liabilities on the property, exceed the adjusted basis of the property. Free filing state taxes For other situations, see Transfers Between Spouses in chapter 4 of Publication 550. Free filing state taxes Any transfer of property to a spouse or former spouse on which gain or loss is not recognized is treated by the recipient as a gift and is not considered a sale or exchange. Free filing state taxes The recipient's basis in the property will be the same as the adjusted basis of the giver immediately before the transfer. Free filing state taxes This carryover basis rule applies whether the adjusted basis of the transferred property is less than, equal to, or greater than either its fair market value at the time of transfer or any consideration paid by the recipient. Free filing state taxes This rule applies for purposes of determining loss as well as gain. Free filing state taxes Any gain recognized on a transfer in trust increases the basis. Free filing state taxes A transfer of property is incident to a divorce if the transfer occurs within 1 year after the date on which the marriage ends, or if the transfer is related to the ending of the marriage. Free filing state taxes Related Party Transactions Special rules apply to the sale or trade of property between related parties. Free filing state taxes Gain on sale or trade of depreciable property. Free filing state taxes   Your gain from the sale or trade of property to a related party may be ordinary income, rather than capital gain, if the property can be depreciated by the party receiving it. Free filing state taxes See chapter 3 of Publication 544 for more information. Free filing state taxes Like-kind exchanges. Free filing state taxes   Generally, if you trade business or investment property for other business or investment property of a like kind, no gain or loss is recognized. Free filing state taxes See Like-kind exchanges , earlier, under Nontaxable Trades. Free filing state taxes   This rule also applies to trades of property between related parties, defined next under Losses on sales or trades of property. Free filing state taxes However, if either you or the related party disposes of the like property within 2 years after the trade, you both must report any gain or loss not recognized on the original trade on your return filed for the year in which the later disposition occurs. Free filing state taxes See Related Party Transactions in chapter 4 of Publication 550 for exceptions. Free filing state taxes Losses on sales or trades of property. Free filing state taxes   You cannot deduct a loss on the sale or trade of property, other than a distribution in complete liquidation of a corporation, if the transaction is directly or indirectly between you and the following related parties. Free filing state taxes Members of your family. Free filing state taxes This includes only your brothers and sisters, half-brothers and half-sisters, spouse, ancestors (parents, grandparents, etc. Free filing state taxes ), and lineal descendants (children, grandchildren, etc. Free filing state taxes ). Free filing state taxes A partnership in which you directly or indirectly own more than 50% of the capital interest or the profits interest. Free filing state taxes A corporation in which you directly or indirectly own more than 50% in value of the outstanding stock. Free filing state taxes (See Constructive ownership of stock , later. Free filing state taxes ) A tax-exempt charitable or educational organization directly or indirectly controlled, in any manner or by any method, by you or by a member of your family, whether or not this control is legally enforceable. Free filing state taxes   In addition, a loss on the sale or trade of property is not deductible if the transaction is directly or indirectly between the following related parties. Free filing state taxes A grantor and fiduciary, or the fiduciary and beneficiary, of any trust. Free filing state taxes Fiduciaries of two different trusts, or the fiduciary and beneficiary of two different trusts, if the same person is the grantor of both trusts. Free filing state taxes A trust fiduciary and a corporation of which more than 50% in value of the outstanding stock is directly or indirectly owned by or for the trust, or by or for the grantor of the trust. Free filing state taxes A corporation and a partnership if the same persons own more than 50% in value of the outstanding stock of the corporation and more than 50% of the capital interest, or the profits interest, in the partnership. Free filing state taxes Two S corporations if the same persons own more than 50% in value of the outstanding stock of each corporation. Free filing state taxes Two corporations, one of which is an S corporation, if the same persons own more than 50% in value of the outstanding stock of each corporation. Free filing state taxes An executor and a beneficiary of an estate (except in the case of a sale or trade to satisfy a pecuniary bequest). Free filing state taxes Two corporations that are members of the same controlled group. Free filing state taxes (Under certain conditions, however, these losses are not disallowed but must be deferred. Free filing state taxes ) Two partnerships if the same persons own, directly or indirectly, more than 50% of the capital interests or the profit interests in both partnerships. Free filing state taxes Multiple property sales or trades. Free filing state taxes   If you sell or trade to a related party a number of blocks of stock or pieces of property in a lump sum, you must figure the gain or loss separately for each block of stock or piece of property. Free filing state taxes The gain on each item may be taxable. Free filing state taxes However, you cannot deduct the loss on any item. Free filing state taxes Also, you cannot reduce gains from the sales of any of these items by losses on the sales of any of the other items. Free filing state taxes Indirect transactions. Free filing state taxes   You cannot deduct your loss on the sale of stock through your broker if, under a prearranged plan, a related party buys the same stock you had owned. Free filing state taxes This does not apply to a trade between related parties through an exchange that is purely coincidental and is not prearranged. Free filing state taxes Constructive ownership of stock. Free filing state taxes   In determining whether a person directly or indirectly owns any of the outstanding stock of a corporation, the following rules apply. Free filing state taxes Rule 1. Free filing state taxes   Stock directly or indirectly owned by or for a corporation, partnership, estate, or trust is considered owned proportionately by or for its shareholders, partners, or beneficiaries. Free filing state taxes Rule 2. Free filing state taxes   An individual is considered to own the stock directly or indirectly owned by or for his or her family. Free filing state taxes Family includes only brothers and sisters, half-brothers and half-sisters, spouse, ancestors, and lineal descendants. Free filing state taxes Rule 3. Free filing state taxes   An individual owning, other than by applying rule 2, any stock in a corporation is considered to own the stock directly or indirectly owned by or for his or her partner. Free filing state taxes Rule 4. Free filing state taxes   When applying rule 1, 2, or 3, stock constructively owned by a person under rule 1 is treated as actually owned by that person. Free filing state taxes But stock constructively owned by an individual under rule 2 or rule 3 is not treated as owned by that individual for again applying either rule 2 or rule 3 to make another person the constructive owner of the stock. Free filing state taxes Property received from a related party. Free filing state taxes    If you sell or trade at a gain property you acquired from a related party, you recognize the gain only to the extent it is more than the loss previously disallowed to the related party. Free filing state taxes This rule applies only if you are the original transferee and you acquired the property by purchase or exchange. Free filing state taxes This rule does not apply if the related party's loss was disallowed because of the wash sale rules described in chapter 4 of Publication 550 under Wash Sales. Free filing state taxes   If you sell or trade at a loss property you acquired from a related party, you cannot recognize the loss that was not allowed to the related party. Free filing state taxes Example 1. Free filing state taxes Your brother sells you stock for $7,600. Free filing state taxes His cost basis is $10,000. Free filing state taxes Your brother cannot deduct the loss of $2,400. Free filing state taxes Later, you sell the same stock to an unrelated party for $10,500, realizing a gain of $2,900. Free filing state taxes Your reportable gain is $500 (the $2,900 gain minus the $2,400 loss not allowed to your brother). Free filing state taxes Example 2. Free filing state taxes If, in Example 1, you sold the stock for $6,900 instead of $10,500, your recognized loss is only $700 (your $7,600 basis minus $6,900). Free filing state taxes You cannot deduct the loss that was not allowed to your brother. Free filing state taxes Capital Gains and Losses This section discusses the tax treatment of gains and losses from different types of investment transactions. Free filing state taxes Character of gain or loss. Free filing state taxes   You need to classify your gains and losses as either ordinary or capital gains or losses. Free filing state taxes You then need to classify your capital gains and losses as either short term or long term. Free filing state taxes If you have long-term gains and losses, you must identify your 28% rate gains and losses. Free filing state taxes If you have a net capital gain, you must also identify any unrecaptured section 1250 gain. Free filing state taxes   The correct classification and identification helps you figure the limit on capital losses and the correct tax on capital gains. Free filing state taxes Reporting capital gains and losses is explained in chapter 16. Free filing state taxes Capital or Ordinary Gain or Loss If you have a taxable gain or a deductible loss from a transaction, it may be either a capital gain or loss or an ordinary gain or loss, depending on the circumstances. Free filing state taxes Generally, a sale or trade of a capital asset (defined next) results in a capital gain or loss. Free filing state taxes A sale or trade of a noncapital asset generally results in ordinary gain or loss. Free filing state taxes Depending on the circumstances, a gain or loss on a sale or trade of property used in a trade or business may be treated as either capital or ordinary, as explained in Publication 544. Free filing state taxes In some situations, part of your gain or loss may be a capital gain or loss and part may be an ordinary gain or loss. Free filing state taxes Capital Assets and Noncapital Assets For the most part, everything you own and use for personal purposes, pleasure, or investment is a capital asset. Free filing state taxes Some examples are: Stocks or bonds held in your personal account, A house owned and used by you and your family, Household furnishings, A car used for pleasure or commuting, Coin or stamp collections, Gems and jewelry, and Gold, silver, or any other metal. Free filing state taxes Any property you own is a capital asset, except the following noncapital assets. Free filing state taxes Property held mainly for sale to customers or property that will physically become a part of the merchandise for sale to customers. Free filing state taxes For an exception, see Capital Asset Treatment for Self-Created Musical Works , later. Free filing state taxes Depreciable property used in your trade or business, even if fully depreciated. Free filing state taxes Real property used in your trade or business. Free filing state taxes A copyright, a literary, musical, or artistic composition, a letter or memorandum, or similar property that is: Created by your personal efforts, Prepared or produced for you (in the case of a letter, memorandum, or similar property), or Acquired under circumstances (for example, by gift) entitling you to the basis of the person who created the property or for whom it was prepared or produced. Free filing state taxes For an exception to this rule, see Capital Asset Treatment for Self-Created Musical Works , later. Free filing state taxes Accounts or notes receivable acquired in the ordinary course of a trade or business for services rendered or from the sale of property described in (1). Free filing state taxes U. Free filing state taxes S. Free filing state taxes Government publications that you received from the government free or for less than the normal sales price, or that you acquired under circumstances entitling you to the basis of someone who received the publications free or for less than the normal sales price. Free filing state taxes Certain commodities derivative financial instruments held by commodities derivatives dealers. Free filing state taxes Hedging transactions, but only if the transaction is clearly identified as a hedging transaction before the close of the day on which it was acquired, originated, or entered into. Free filing state taxes Supplies of a type you regularly use or consume in the ordinary course of your trade or business. Free filing state taxes Investment Property Investment property is a capital asset. Free filing state taxes Any gain or loss from its sale or trade is generally a capital gain or loss. Free filing state taxes Gold, silver, stamps, coins, gems, etc. Free filing state taxes   These are capital assets except when they are held for sale by a dealer. Free filing state taxes Any gain or loss you have from their sale or trade generally is a capital gain or loss. Free filing state taxes Stocks, stock rights, and bonds. Free filing state taxes   All of these (including stock received as a dividend) are capital assets except when held for sale by a securities dealer. Free filing state taxes However, if you own small business stock, see Losses on Section 1244 (Small Business) Stock , later, and Losses on Small Business Investment Company Stock, in chapter 4 of Publication 550. Free filing state taxes Personal Use Property Property held for personal use only, rather than for investment, is a capital asset, and you must report a gain from its sale as a capital gain. Free filing state taxes However, you cannot deduct a loss from selling personal use property. Free filing state taxes Capital Asset Treatment for Self-Created Musical Works You can elect to treat musical compositions and copyrights in musical works as capital assets when you sell or exchange them if: Your personal efforts created the property, or You acquired the property under circumstances (for example, by gift) entitling you to the basis of the person who created the property or for whom it was prepared or produced. Free filing state taxes You must make a separate election for each musical composition (or copyright in a musical work) sold or exchanged during the tax year. Free filing state taxes You must make the election on or before the due date (including extensions) of the income tax return for the tax year of the sale or exchange. Free filing state taxes You must make the election on Form 8949 by treating the sale or exchange as the sale or exchange of a capital asset, according to Form 8949, Schedule D (Form 1040), and their separate instructions. Free filing state taxes For more information on Form 8949 and Schedule D (Form 1040), see Reporting Capital Gains and Losses in chapter 16. Free filing state taxes See also Schedule D (Form 1040), Form 8949, and their separate instructions. Free filing state taxes You can revoke the election if you have IRS approval. Free filing state taxes To get IRS approval, you must submit a request for a letter ruling under the appropriate IRS revenue procedure. Free filing state taxes See, for example, Rev. Free filing state taxes Proc. Free filing state taxes 2013-1, corrected by Announcement 2013–9, and amplified and modified by Rev. Free filing state taxes Proc. Free filing state taxes 2013–32, available at www. Free filing state taxes irs. Free filing state taxes gov/irb/2013-01_IRB/ar06. Free filing state taxes html. Free filing state taxes Alternatively, you are granted an automatic 6-month extension from the due date of your income tax return (excluding extensions) to revoke the election, provided you timely file your income tax return, and within this 6-month extension period, you file Form 1040X that treats the sale or exchange as the sale or exchange of property that is not a capital asset. Free filing state taxes Discounted Debt Instruments Treat your gain or loss on the sale, redemption, or retirement of a bond or other debt instrument originally issued at a discount or bought at a discount as capital gain or loss, except as explained in the following discussions. Free filing state taxes Short-term government obligations. Free filing state taxes   Treat gains on short-term federal, state, or local government obligations (other than tax-exempt obligations) as ordinary income up to your ratable share of the acquisition discount. Free filing state taxes This treatment applies to obligations with a fixed maturity date not more than 1 year from the date of issue. Free filing state taxes Acquisition discount is the stated redemption price at maturity minus your basis in the obligation. Free filing state taxes   However, do not treat these gains as income to the extent you previously included the discount in income. Free filing state taxes See Discount on Short-Term Obligations in chapter 1 of Publication 550. Free filing state taxes Short-term nongovernment obligations. Free filing state taxes   Treat gains on short-term nongovernment obligations as ordinary income up to your ratable share of original issue discount (OID). Free filing state taxes This treatment applies to obligations with a fixed maturity date of not more than 1 year from the date of issue. Free filing state taxes   However, to the extent you previously included the discount in income, you do not have to include it in income again. Free filing state taxes See Discount on Short-Term Obligations in chapter 1 of Publication 550. Free filing state taxes Tax-exempt state and local government bonds. Free filing state taxes   If these bonds were originally issued at a discount before September 4, 1982, or you acquired them before March 2, 1984, treat your part of OID as tax-exempt interest. Free filing state taxes To figure your gain or loss on the sale or trade of these bonds, reduce the amount realized by your part of OID. Free filing state taxes   If the bonds were issued after September 3, 1982, and acquired after March 1, 1984, increase the adjusted basis by your part of OID to figure gain or loss. Free filing state taxes For more information on the basis of these bonds, see Discounted Debt Instruments in chapter 4 of Publication 550. Free filing state taxes   Any gain from market discount is usually taxable on disposition or redemption of tax-exempt bonds. Free filing state taxes If you bought the bonds before May 1, 1993, the gain from market discount is capital gain. Free filing state taxes If you bought the bonds after April 30, 1993, the gain is ordinary income. Free filing state taxes   You figure the market discount by subtracting the price you paid for the bond from the sum of the original issue price of the bond and the amount of accumulated OID from the date of issue that represented interest to any earlier holders. Free filing state taxes For more information, see Market Discount Bonds in chapter 1 of Publication 550. Free filing state taxes    A loss on the sale or other disposition of a tax-exempt state or local government bond is deductible as a capital loss. Free filing state taxes Redeemed before maturity. Free filing state taxes   If a state or local bond issued before June 9, 1980, is redeemed before it matures, the OID is not taxable to you. Free filing state taxes   If a state or local bond issued after June 8, 1980, is redeemed before it matures, the part of OID earned while you hold the bond is not taxable to you. Free filing state taxes However, you must report the unearned part of OID as a capital gain. Free filing state taxes Example. Free filing state taxes On July 2, 2002, the date of issue, you bought a 20-year, 6% municipal bond for $800. Free filing state taxes The face amount of the bond was $1,000. Free filing state taxes The $200 discount was OID. Free filing state taxes At the time the bond was issued, the issuer had no intention of redeeming it before it matured. Free filing state taxes The bond was callable at its face amount beginning 10 years after the issue date. Free filing state taxes The issuer redeemed the bond at the end of 11 years (July 2, 2013) for its face amount of $1,000 plus accrued annual interest of $60. Free filing state taxes The OID earned during the time you held the bond, $73, is not taxable. Free filing state taxes The $60 accrued annual interest also is not taxable. Free filing state taxes However, you must report the unearned part of OID ($127) as a capital gain. Free filing state taxes Long-term debt instruments issued after 1954 and before May 28, 1969 (or before July 2, 1982, if a government instrument). Free filing state taxes   If you sell, trade, or redeem for a gain one of these debt instruments, the part of your gain that is not more than your ratable share of the OID at the time of the sale or redemption is ordinary income. Free filing state taxes The rest of the gain is capital gain. Free filing state taxes If, however, there was an intention to call the debt instrument before maturity, all of your gain that is not more than the entire OID is treated as ordinary income at the time of the sale. Free filing state taxes This treatment of taxable gain also applies to corporate instruments issued after May 27, 1969, under a written commitment that was binding on May 27, 1969, and at all times thereafter. Free filing state taxes Long-term debt instruments issued after May 27, 1969 (or after July 1, 1982, if a government instrument). Free filing state taxes   If you hold one of these debt instruments, you must include a part of OID in your gross income each year you own the instrument. Free filing state taxes Your basis in that debt instrument is increased by the amount of OID that you have included in your gross income. Free filing state taxes See Original Issue Discount (OID) in chapter 7 for information about OID that you must report on your tax return. Free filing state taxes   If you sell or trade the debt instrument before maturity, your gain is a capital gain. Free filing state taxes However, if at the time the instrument was originally issued there was an intention to call it before its maturity, your gain generally is ordinary income to the extent of the entire OID reduced by any amounts of OID previously includible in your income. Free filing state taxes In this case, the rest of the gain is capital gain. Free filing state taxes Market discount bonds. Free filing state taxes   If the debt instrument has market discount and you chose to include the discount in income as it accrued, increase your basis in the debt instrument by the accrued discount to figure capital gain or loss on its disposition. Free filing state taxes If you did not choose to include the discount in income as it accrued, you must report gain as ordinary interest income up to the instrument's accrued market discount. Free filing state taxes The rest of the gain is capital gain. Free filing state taxes See Market Discount Bonds in chapter 1 of Publication 550. Free filing state taxes   A different rule applies to market discount bonds issued before July 19, 1984, and purchased by you before May 1, 1993. Free filing state taxes See Market discount bonds under Discounted Debt Instruments in chapter 4 of Publication 550. Free filing state taxes Retirement of debt instrument. Free filing state taxes   Any amount you receive on the retirement of a debt instrument is treated in the same way as if you had sold or traded that instrument. Free filing state taxes Notes of individuals. Free filing state taxes   If you hold an obligation of an individual issued with OID after March 1, 1984, you generally must include the OID in your income currently, and your gain or loss on its sale or retirement is generally capital gain or loss. Free filing state taxes An exception to this treatment applies if the obligation is a loan between individuals and all the following requirements are met. Free filing state taxes The lender is not in the business of lending money. Free filing state taxes The amount of the loan, plus the amount of any outstanding prior loans, is $10,000 or less. Free filing state taxes Avoiding federal tax is not one of the principal purposes of the loan. Free filing state taxes   If the exception applies, or the obligation was issued before March 2, 1984, you do not include the OID in your income currently. Free filing state taxes When you sell or redeem the obligation, the part of your gain that is not more than your accrued share of OID at that time is ordinary income. Free filing state taxes The rest of the gain, if any, is capital gain. Free filing state taxes Any loss on the sale or redemption is capital loss. Free filing state taxes Deposit in Insolvent or Bankrupt Financial Institution If you lose money you have on deposit in a bank, credit union, or other financial institution that becomes insolvent or bankrupt, you may be able to deduct your loss in one of three ways. Free filing state taxes Ordinary loss. Free filing state taxes Casualty loss. Free filing state taxes Nonbusiness bad debt (short-term capital loss). Free filing state taxes  For more information, see Deposit in Insolvent or Bankrupt Financial Institution, in chapter 4 of Publication 550. Free filing state taxes Sale of Annuity The part of any gain on the sale of an annuity contract before its maturity date that is based on interest accumulated on the contract is ordinary income. Free filing state taxes Losses on Section 1244 (Small Business) Stock You can deduct as an ordinary loss, rather than as a capital loss, your loss on the sale, trade, or worthlessness of section 1244 stock. Free filing state taxes Report the loss on Form 4797, line 10. Free filing state taxes Any gain on section 1244 stock is a capital gain if the stock is a capital asset in your hands. Free filing state taxes Report the gain on Form 8949. Free filing state taxes See Losses on Section 1244 (Small Business) Stock in chapter 4 of Publication 550. Free filing state taxes For more information on Form 8949 and Schedule D (Form 1040), see Reporting Capital Gains and Losses in chapter 16. Free filing state taxes See also Schedule D (Form 1040), Form 8949, and their separate instructions. Free filing state taxes Holding Period If you sold or traded investment property, you must determine your holding period for the property. Free filing state taxes Your holding period determines whether any capital gain or loss was a short-term or long-term capital gain or loss. Free filing state taxes Long-term or short-term. Free filing state taxes   If you hold investment property more than 1 year, any capital gain or loss is a long-term capital gain or loss. Free filing state taxes If you hold the property 1 year or less, any capital gain or loss is a short-term capital gain or loss. Free filing state taxes   To determine how long you held the investment property, begin counting on the date after the day you acquired the property. Free filing state taxes The day you disposed of the property is part of your holding period. Free filing state taxes Example. Free filing state taxes If you bought investment property on February 6, 2012, and sold it on February 6, 2013, your holding period is not more than 1 year and you have a short-term capital gain or loss. Free filing state taxes If you sold it on February 7, 2013, your holding period is more than 1 year and you will have a long-term capital gain or loss. Free filing state taxes Securities traded on established market. Free filing state taxes   For securities traded on an established securities market, your holding period begins the day after the trade date you bought the securities, and ends on the trade date you sold them. Free filing state taxes    Do not confuse the trade date with the settlement date, which is the date by which the stock must be delivered and payment must be made. Free filing state taxes Example. Free filing state taxes You are a cash method, calendar year taxpayer. Free filing state taxes You sold stock at a gain on December 30, 2013. Free filing state taxes According to the rules of the stock exchange, the sale was closed by delivery of the stock 4 trading days after the sale, on January 6, 2014. Free filing state taxes You received payment of the sales price on that same day. Free filing state taxes Report your gain on your 2013 return, even though you received the payment in 2014. Free filing state taxes The gain is long term or short term depending on whether you held the stock more than 1 year. Free filing state taxes Your holding period ended on December 30. Free filing state taxes If you had sold the stock at a loss, you would also report it on your 2013 return. Free filing state taxes U. Free filing state taxes S. Free filing state taxes Treasury notes and bonds. Free filing state taxes   The holding period of U. Free filing state taxes S. Free filing state taxes Treasury notes and bonds sold at auction on the basis of yield starts the day after the Secretary of the Treasury, through news releases, gives notification of acceptance to successful bidders. Free filing state taxes The holding period of U. Free filing state taxes S. Free filing state taxes Treasury notes and bonds sold through an offering on a subscription basis at a specified yield starts the day after the subscription is submitted. Free filing state taxes Automatic investment service. Free filing state taxes   In determining your holding period for shares bought by the bank or other agent, full shares are considered bought first and any fractional shares are considered bought last. Free filing state taxes Your holding period starts on the day after the bank's purchase date. Free filing state taxes If a share was bought over more than one purchase date, your holding period for that share is a split holding period. Free filing state taxes A part of the share is considered to have been bought on each date that stock was bought by the bank with the proceeds of available funds. Free filing state taxes Nontaxable trades. Free filing state taxes   If you acquire investment property in a trade for other investment property and your basis for the new property is determined, in whole or in part, by your basis in the old property, your holding period for the new property begins on the day following the date you acquired the old property. Free filing state taxes Property received as a gift. Free filing state taxes   If you receive a gift of property and your basis is determined by the donor's adjusted basis, your holding period is considered to have started on the same day the donor's holding period started. Free filing state taxes   If your basis is determined by the fair market value of the property, your holding period starts on the day after the date of the gift. Free filing state taxes Inherited property. Free filing state taxes   Generally, if you inherited investment property, your capital gain or loss on any later disposition of that property is long-term capital gain or loss. Free filing state taxes This is true regardless of how long you actually held the property. Free filing state taxes However, if you inherited property from someone who died in 2010, see the information below. Free filing state taxes Inherited property from someone who died in 2010. Free filing state taxes   If you inherit investment property from a decedent who died in 2010, and the executor of the decedent's estate made the election to file Form 8939, refer to the information provided by the executor or see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, to determine your holding period. Free filing state taxes Real property bought. Free filing state taxes   To figure how long you have held real property bought under an unconditional contract, begin counting on the day after you received title to it or on the day after you took possession of it and assumed the burdens and privileges of ownership, whichever happened first. Free filing state taxes However, taking delivery or possession of real property under an option agreement is not enough to start the holding period. Free filing state taxes The holding period cannot start until there is an actual contract of sale. Free filing state taxes The holding period of the seller cannot end before that time. Free filing state taxes Real property repossessed. Free filing state taxes   If you sell real property but keep a security interest in it, and then later repossess the property under the terms of the sales contract, your holding period for a later sale includes the period you held the property before the original sale and the period after the repossession. Free filing state taxes Your holding period does not include the time between the original sale and the repossession. Free filing state taxes That is, it does not include the period during which the first buyer held the property. Free filing state taxes Stock dividends. Free filing state taxes   The holding period for stock you received as a taxable stock dividend begins on the date of distribution. Free filing state taxes   The holding period for new stock you received as a nontaxable stock dividend begins on the same day as the holding period of the old stock. Free filing state taxes This rule also applies to stock acquired in a “spin-off,” which is a distribution of stock or securities in a controlled corporation. Free filing state taxes Nontaxable stock rights. Free filing state taxes   Your holding period for nontaxable stock rights begins on the same day as the holding period of the underlying stock. Free filing state taxes The holding period for stock acquired through the exercise of stock rights begins on the date the right was exercised. Free filing state taxes Nonbusiness Bad Debts If someone owes you money that you cannot collect, you have a bad debt. Free filing state taxes You may be able to deduct the amount owed to you when you figure your tax for the year the debt becomes worthless. Free filing state taxes Generally, nonbusiness bad debts are bad debts that did not come from operating your trade or business, and are deductible as short-term capital losses. Free filing state taxes To be deductible, nonbusiness bad debts must be totally worthless. Free filing state taxes You cannot deduct a partly worthless nonbusiness debt. Free filing state taxes Genuine debt required. Free filing state taxes   A debt must be genuine for you to deduct a loss. Free filing state taxes A debt is genuine if it arises from a debtor-creditor relationship based on a valid and enforceable obligation to repay a fixed or determinable sum of money. Free filing state taxes Basis in bad debt required. Free filing state taxes    To deduct a bad debt, you must have a basis in it—that is, you must have already included the amount in your income or loaned out your cash. Free filing state taxes For example, you cannot claim a bad debt deduction for court-ordered child support not paid to you by your former spouse. Free filing state taxes If you are a cash method taxpayer (as most individuals are), you generally cannot take a bad debt deduction for unpaid salaries, wages, rents, fees, interest, dividends, and similar items. Free filing state taxes When deductible. Free filing state taxes   You can take a bad debt deduction only in the year the debt becomes worthless. Free filing state taxes You do not have to wait until a debt is due to determine whether it is worthless. Free filing state taxes A debt becomes worthless when there is no longer any chance that the amount owed will be paid. Free filing state taxes   It is not necessary to go to court if you can show that a judgment from the court would be uncollectible. Free filing state taxes You must only show that you have taken reasonable steps to collect the debt. Free filing state taxes Bankruptcy of your debtor is generally good evidence of the worthlessness of at least a part of an unsecured and unpreferred debt. Free filing state taxes How to report bad debts. Free filing state taxes    Deduct nonbusiness bad debts as short-term capital losses on Form 8949. Free filing state taxes    Make sure you report your bad debt(s) (and any other short-term transactions for which you did not receive a Form 1099-B) on Form 8949, Part I, with box C checked. Free filing state taxes    For more information on Form 8949 and Schedule D (Form 1040), see Reporting Capital Gains and Losses in chapter 16. Free filing state taxes See also Schedule D (Form 1040), Form 8949, and their separate instructions. Free filing state taxes   For each bad debt, attach a statement to your return that contains: A description of the debt, including the amount, and the date it became due, The name of the debtor, and any business or family relationship between you and the debtor, The efforts you made to collect the debt, and Why you decided the debt was worthless. Free filing state taxes For example, you could show that the borrower has declared bankruptcy, or that legal action to collect would probably not result in payment of any part of the debt. Free filing state taxes Filing a claim for refund. Free filing state taxes    If you do not deduct a bad debt on your original return for the year it becomes worthless, you can file a claim for a credit or refund due to the bad debt. Free filing state taxes To do this, use Form 1040X to amend your return for the year the debt became worthless. Free filing state taxes You must file it within 7 years from the date your original return for that year had to be filed, or 2 years from the date you paid the tax, whichever is later. Free filing state taxes For more information about filing a claim, see Amended Returns and Claims for Refund in chapter 1. Free filing state taxes Additional information. Free filing state taxes   For more information, see Nonbusiness Bad Debts in Publication 550. Free filing state taxes For information on business bad debts, see chapter 10 of Publication 535, Business Expenses. Free filing state taxes Wash Sales You cannot deduct losses from sales or trades of stock or securities in a wash sale. Free filing state taxes A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you: Buy substantially identical stock or securities, Acquire substantially identical stock or securities in a fully taxable trade, Acquire a contract or option to buy substantially identical stock or securities, or Acquire substantially identical stock for your individual retirement account (IRA) or Roth IRA. Free filing state taxes If your loss was disallowed because of the wash sale rules, add the disallowed loss to the cost of the new stock or securities (except in (4) above). Free filing state taxes The result is your basis in the new stock or securities. Free filing state taxes This adjustment postpones the loss deduction until the disposition of the new stock or securities. Free filing state taxes Your holding period for the new stock or securities includes the holding period of the stock or securities sold. Free filing state taxes For more information, see Wash Sales, in chapter 4 of Publication 550. Free filing state taxes Rollover of Gain From Publicly Traded Securities You may qualify for a tax-free rollover of certain gains from the sale of publicly traded securities. Free filing state taxes This means that if you buy certain replacement property and make the choice described in this section, you postpone part or all of your gain. Free filing state taxes You postpone the gain by adjusting the basis of the replacement property as described in Basis of replacement property , later. Free filing state taxes This postpones your gain until the year you dispose of the replacement property. Free filing state taxes You qualify to make this choice if you meet all the following tests. Free filing state taxes You sell publicly traded securities at a gain. Free filing state taxes Publicly traded securities are securities traded on an established securities market. Free filing state taxes Your gain from the sale is a capital gain. Free filing state taxes During the 60-day period beginning on the date of the sale, you buy replacement property. Free filing state taxes This replacement property must be either common stock of, or a partnership interest in a specialized small business investment company (SSBIC). Free filing state taxes This is any partnership or corporation licensed by the Small Business Administration under section 301(d) of the Small Business Investment Act of 1958, as in effect on May 13, 1993. Free filing state taxes Amount of gain recognized. Free filing state taxes   If you make the choice described in this section, you must recognize gain only up to the following amount. Free filing state taxes The amount realized on the sale, minus The cost of any common stock or partnership interest in an SSBIC that you bought during the 60-day period beginning on the date of sale (and did not previously take into account on an earlier sale of publicly traded securities). Free filing state taxes  If this amount is less than the amount of your gain, you can postpone the rest of your gain, subject to the limit described next. Free filing state taxes If this amount is equal to or more than the amount of your gain, you must recognize the full amount of your gain. Free filing state taxes Limit on gain postponed. Free filing state taxes   The amount of gain you can postpone each year is limited to the smaller of: $50,000 ($25,000 if you are married and file a separate return), or $500,000 ($250,000 if you are married and file a separate return), minus the amount of gain you postponed for all earlier years. Free filing state taxes Basis of replacement property. Free filing state taxes   You must subtract the amount of postponed gain from the basis of your replacement property. Free filing state taxes How to report and postpone gain. Free filing state taxes    See How to report and postpone gain under Rollover of Gain From Publicly Traded Securities in chapter 4 of Publication 550 for details. Free filing state taxes Prev  Up  Next   Home   More Online Publications
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The Free Filing State Taxes

Free filing state taxes Publication 1544 - Main Content Table of Contents Why Report These Payments? Who Must File Form 8300?What Payments Must Be Reported? What Is Cash? Taxpayer Identification Number (TIN) What Is a Related Transaction? What About Suspicious Transactions? When, Where, and What To File Examples Penalties How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Free filing state taxes Why Report These Payments? Drug dealers and smugglers often use large cash payments to “launder” money from illegal activities. Free filing state taxes Laundering means converting “dirty” or illegally-gained money to “clean” money. Free filing state taxes The government can often trace this laundered money through the payments you report. Free filing state taxes Laws passed by Congress require you to report these payments. Free filing state taxes Your compliance with these laws provides valuable information that can stop those who evade taxes and those who profit from the drug trade and other criminal activities. Free filing state taxes The USA PATRIOT Act of 2001 increased the scope of these laws to help trace funds used for terrorism. Free filing state taxes Who Must File Form 8300? Generally, any person in a trade or business who receives more than $10,000 in cash in a single transaction or in related transactions must file Form 8300. Free filing state taxes For example, you may have to file Form 8300 if you are a dealer in jewelry, furniture, boats, aircraft, or automobiles; a pawnbroker; an attorney; a real estate broker; an insurance company; or a travel agency. Free filing state taxes Special rules for clerks of federal or state courts are discussed later under Bail received by court clerks. Free filing state taxes However, you do not have to file Form 8300 if the transaction is not related to your trade or business. Free filing state taxes For example, if you own a jewelry store and sell your personal automobile for more than $10,000 in cash, you would not submit a Form 8300 for that transaction. Free filing state taxes Transaction defined. Free filing state taxes    A “transaction” occurs when: Goods, services, or property are sold; Property is rented; Cash is exchanged for other cash; A contribution is made to a trust or escrow account; A loan is made or repaid; or Cash is converted to a negotiable instrument, such as a check or a bond. Free filing state taxes Person defined. Free filing state taxes   A “person” includes an individual, a company, a corporation, a partnership, an association, a trust, or an estate. Free filing state taxes   Exempt organizations, including employee plans, are also “persons. Free filing state taxes ” However, exempt organizations do not have to file Form 8300 for a more-than-$10,000 charitable cash contribution they receive since it is not received in the course of a trade or business. Free filing state taxes Foreign transactions. Free filing state taxes   You do not have to file Form 8300 if the entire transaction (including the receipt of cash) takes place outside of: The 50 states, The District of Columbia, Puerto Rico, or A possession or territory of the United States. Free filing state taxes However, you must file Form 8300 if any part of the transaction (including the receipt of cash) occurs in Puerto Rico or a possession or territory of the United States and you are subject to the Internal Revenue Code. Free filing state taxes Bail received by court clerks. Free filing state taxes   Any clerk of a federal or state court who receives more than $10,000 in cash as bail for an individual charged with any of the following criminal offenses must file Form 8300: Any federal offense involving a controlled substance, Racketeering, Money laundering, and Any state offense substantially similar to (1), (2), or (3) above. Free filing state taxes For more information about the rules that apply to court clerks, see Section 1. Free filing state taxes 6050I-2 of the Income Tax Regulations. Free filing state taxes What Payments Must Be Reported? You must file Form 8300 to report cash paid to you if it is: Over $10,000, Received as: One lump sum of over $10,000, Installment payments that cause the total cash received within 1 year of the initial payment to total more than $10,000, or Other previously unreportable payments that cause the total cash received within a 12-month period to total more than $10,000, Received in the course of your trade or business, Received from the same buyer (or agent), and Received in a single transaction or in related transactions (defined later). Free filing state taxes What Is Cash? Cash is: The coins and currency of the United States (and any other country), and A cashier's check, bank draft, traveler's check, or money order you receive, if it has a face amount of $10,000 or less and you receive it in: A designated reporting transaction (defined later), or Any transaction in which you know the payer is trying to avoid the reporting of the transaction on Form 8300. Free filing state taxes Cash may include a cashier's check even if it is called a “treasurer's check” or “bank check. Free filing state taxes ” Cash does not include a check drawn on an individual's personal account. Free filing state taxes A cashier's check, bank draft, traveler's check, or money order with a face amount of more than $10,000 is not treated as cash. Free filing state taxes These items are not defined as cash and you do not have to file Form 8300 when you receive them because, if they were bought with currency, the bank or other financial institution that issued them must file a report on FinCEN Form 104. Free filing state taxes Example 1. Free filing state taxes You are a coin dealer. Free filing state taxes Bob Green buys gold coins from you for $13,200. Free filing state taxes He pays for them with $6,200 in U. Free filing state taxes S. Free filing state taxes currency and a cashier's check having a face amount of $7,000. Free filing state taxes The cashier's check is treated as cash. Free filing state taxes You have received more than $10,000 cash and must file Form 8300 for this transaction. Free filing state taxes Example 2. Free filing state taxes You are a retail jeweler. Free filing state taxes Mary North buys an item of jewelry from you for $12,000. Free filing state taxes She pays for it with a personal check payable to you in the amount of $9,600 and traveler's checks totaling $2,400. Free filing state taxes Because the personal check is not treated as cash, you have not received more than $10,000 cash in the transaction. Free filing state taxes You do not have to file Form 8300. Free filing state taxes Example 3. Free filing state taxes You are a boat dealer. Free filing state taxes Emily Jones buys a boat from you for $16,500. Free filing state taxes She pays for it with a cashier's check payable to you in the amount of $16,500. Free filing state taxes The cashier's check is not treated as cash because its face amount is more than $10,000. Free filing state taxes You do not have to file Form 8300 for this transaction. Free filing state taxes Designated Reporting Transaction A designated reporting transaction is the retail sale of any of the following: A consumer durable, such as an automobile or boat. Free filing state taxes A consumer durable is property, other than land or buildings, that: Is suitable for personal use, Can reasonably be expected to last at least 1 year under ordinary use, Has a sales price of more than $10,000, and Can be seen or touched (tangible property). Free filing state taxes For example, a $20,000 car is a consumer durable, but a $20,000 dump truck or factory machine is not. Free filing state taxes The car is a consumer durable even if you sell it to a buyer who will use it in a business. Free filing state taxes A collectible (for example, a work of art, rug, antique, metal, gem, stamp, or coin). Free filing state taxes Travel or entertainment, if the total sales price of all items sold for the same trip or entertainment event in one transaction (or related transactions) is more than $10,000. Free filing state taxes To figure the total sales price of all items sold for a trip or entertainment event, you include the sales price of items such as airfare, hotel rooms, and admission tickets. Free filing state taxes Example. Free filing state taxes You are a travel agent. Free filing state taxes Ed Johnson asks you to charter a passenger airplane to take a group to a sports event in another city. Free filing state taxes He also asks you to book hotel rooms and admission tickets for the group. Free filing state taxes In payment, he gives you two money orders, each for $6,000. Free filing state taxes You have received more than $10,000 cash in this designated reporting transaction. Free filing state taxes You must file Form 8300. Free filing state taxes Retail sale. Free filing state taxes   The term “retail sale” means any sale made in the course of a trade or business that consists mainly of making sales to ultimate consumers. Free filing state taxes   Thus, if your business consists mainly of making sales to ultimate consumers, all sales you make in the course of that business are retail sales. Free filing state taxes This includes any sales of items that will be resold. Free filing state taxes Broker or intermediary. Free filing state taxes   A designated reporting transaction includes the retail sale of items (1), (2), or (3) of the preceding list, even if the funds are received by a broker or other intermediary, rather than directly by the seller. Free filing state taxes Exceptions to Definition of Cash A cashier's check, bank draft, traveler's check, or money order you received in a designated reporting transaction is not treated as cash if one of the following exceptions applies. Free filing state taxes Exception for certain bank loans. Free filing state taxes   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if it is the proceeds from a bank loan. Free filing state taxes As proof that it is from a bank loan, you may rely on a copy of the loan document, a written statement or lien instruction from the bank, or similar proof. Free filing state taxes Example. Free filing state taxes You are a car dealer. Free filing state taxes Mandy White buys a new car from you for $11,500. Free filing state taxes She pays you with $2,000 of U. Free filing state taxes S. Free filing state taxes currency and a cashier's check for $9,500 payable to you and her. Free filing state taxes You can tell that the cashier's check is the proceeds of a bank loan because it includes instructions to you to have a lien put on the car as security for the loan. Free filing state taxes For this reason, the cashier's check is not treated as cash. Free filing state taxes You do not have to file Form 8300 for the transaction. Free filing state taxes Exception for certain installment sales. Free filing state taxes   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if it is received in payment on a promissory note or an installment sales contract (including a lease that is considered a sale for federal tax purposes). Free filing state taxes However, this exception applies only if: You use similar notes or contracts in other sales to ultimate consumers in the ordinary course of your trade or business, and The total payments for the sale that you receive on or before the 60th day after the sale are 50% or less of the purchase price. Free filing state taxes Exception for certain down payment plans. Free filing state taxes   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if you received it in payment for a consumer durable or collectible, and all three of the following statements are true. Free filing state taxes You receive it under a payment plan requiring: One or more down payments, and Payment of the rest of the purchase price by the date of sale. Free filing state taxes You receive it more than 60 days before the date of sale. Free filing state taxes You use payment plans with the same or substantially similar terms when selling to ultimate consumers in the ordinary course of your trade or business. Free filing state taxes Exception for travel and entertainment. Free filing state taxes   A cashier's check, bank draft, traveler's check, or money order received for travel or entertainment is not treated as cash if all three of the following statements are true. Free filing state taxes You receive it under a payment plan requiring: One or more down payments, and Payment of the rest of the purchase price by the earliest date that any travel or entertainment item (such as airfare) is furnished for the trip or entertainment event. Free filing state taxes You receive it more than 60 days before the date on which the final payment is due. Free filing state taxes You use payment plans with the same or substantially similar terms when selling to ultimate consumers in the ordinary course of your trade or business. Free filing state taxes Taxpayer Identification Number (TIN) You must furnish the correct TIN of the person or persons from whom you receive the cash. Free filing state taxes If the transaction is conducted on the behalf of another person or persons, you must furnish the TIN of that person or persons. Free filing state taxes If you do not know a person's TIN, you have to ask for it. Free filing state taxes You may be subject to penalties for an incorrect or missing TIN. Free filing state taxes There are three types of TINs. Free filing state taxes The TIN for an individual, including a sole proprietor, is the individual's social security number (SSN). Free filing state taxes The TIN for a nonresident alien individual who needs a TIN but is not eligible to get an SSN is an IRS individual taxpayer identification number (ITIN). Free filing state taxes An ITIN has nine digits, similar to an SSN. Free filing state taxes The TIN for other persons, including corporations, partnerships, and estates, is the employer identification number (EIN). Free filing state taxes Exception. Free filing state taxes   You are not required to provide the TIN of a person who is a nonresident alien individual or a foreign organization if that person or foreign organization: Does not have income effectively connected with the conduct of a U. Free filing state taxes S. Free filing state taxes trade or business; Does not have an office or place of business, or a fiscal or paying agent in the United States; Does not file a federal tax return; Does not furnish a withholding certificate described in §1. Free filing state taxes 1441-1(e)(2) or (3) or 1. Free filing state taxes 1441-5(c)(2)(iv) or (3)(iii) to the extent required under 1. Free filing state taxes 1441-1(e)(4)(vii); Does not have to furnish a TIN on any return, statement, or other document as required by the income tax regulations under section 897 or 1445; or In the case of a nonresident alien individual, the individual has not chosen to file a joint federal income tax return with a spouse who is a U. Free filing state taxes S. Free filing state taxes citizen or resident. Free filing state taxes What Is a Related Transaction? Any transactions between a buyer (or an agent of the buyer) and a seller that occur within a 24-hour period are related transactions. Free filing state taxes If you receive over $10,000 in cash during two or more transactions with one buyer in a 24-hour period, you must treat the transactions as one transaction and report the payments on Form 8300. Free filing state taxes For example, if you sell two products for $6,000 each to the same customer in 1 day and the customer pays you in cash, these are related transactions. Free filing state taxes Because they total $12,000 (more than $10,000), you must file Form 8300. Free filing state taxes More than 24 hours between transactions. Free filing state taxes   Transactions are related even if they are more than 24 hours apart if you know, or have reason to know, that each is one of a series of connected transactions. Free filing state taxes   For example, you are a travel agent. Free filing state taxes A client pays you $8,000 in cash for a trip. Free filing state taxes Two days later, the same client pays you $3,000 more in cash to include another person on the trip. Free filing state taxes These are related transactions, and you must file Form 8300 to report them. Free filing state taxes What About Suspicious Transactions? If you receive $10,000 or less in cash, you may voluntarily file Form 8300 if the transaction appears to be suspicious. Free filing state taxes A transaction is suspicious if it appears that a person is trying to cause you not to file Form 8300 or is trying to cause you to file a false or incomplete Form 8300, or if there is a sign of possible illegal activity. Free filing state taxes If you are suspicious, you are encouraged to call the local IRS Criminal Investigation Division as soon as possible. Free filing state taxes Or, you can call the FinCEN Financial Institution Hotline toll free at 1-866-556-3974. Free filing state taxes When, Where, and What To File The amount you receive and when you receive it determine when you must file. Free filing state taxes Generally, you must file Form 8300 within 15 days after receiving a payment. Free filing state taxes If the Form 8300 due date (the 15th or last day you can timely file the form) falls on a Saturday, Sunday, or legal holiday, it is delayed until the next day that is not a Saturday, Sunday, or legal holiday. Free filing state taxes More than one payment. Free filing state taxes   In some transactions, the buyer may arrange to pay you in cash installment payments. Free filing state taxes If the first payment is more than $10,000, you must file Form 8300 within 15 days. Free filing state taxes If the first payment is not more than $10,000, you must add the first payment and any later payments made within 1 year of the first payment. Free filing state taxes When the total cash payments are more than $10,000, you must file Form 8300 within 15 days. Free filing state taxes   After you file Form 8300, you must start a new count of cash payments received from that buyer. Free filing state taxes If you receive more than $10,000 in additional cash payments from that buyer within a 12-month period, you must file another Form 8300. Free filing state taxes You must file the form within 15 days of the payment that causes the additional payments to total more than $10,000. Free filing state taxes   If you are already required to file Form 8300 and you receive additional payments within the 15 days before you must file, you can report all the payments on one form. Free filing state taxes Example. Free filing state taxes On January 10, you receive a cash payment of $11,000. Free filing state taxes You receive additional cash payments on the same transaction of $4,000 on February 15, $5,000 on March 20, and $6,000 on May 12. Free filing state taxes By January 25, you must file a Form 8300 for the $11,000 payment. Free filing state taxes By May 27, you must file an additional Form 8300 for the additional payments that total $15,000. Free filing state taxes Amending a Report?   If you are amending a report, check box 1a at the top of Form 8300. Free filing state taxes Complete the form in its entirety (Parts I-IV) and include the amended information. Free filing state taxes Do not attach a copy of the original report. Free filing state taxes Where to file. Free filing state taxes   Mail the form to the address given in the Form 8300 instructions. Free filing state taxes Required statement to buyer. Free filing state taxes   You must give a written or electronic statement to each person named on any Form 8300 you must file. Free filing state taxes You can give the statement electronically only if the recipient agrees to receive it in that format. Free filing state taxes The statement must show the name and address of your business, the name and phone number of a contact person, and the total amount of reportable cash you received from the person during the year. Free filing state taxes It must state that you are also reporting this information to the IRS. Free filing state taxes   You must send this statement to the buyer by January 31 of the year after the year in which you received the cash that caused you to file the form. Free filing state taxes    You must keep a copy of every Form 8300 you file for 5 years. Free filing state taxes Examples Example 1. Free filing state taxes Pat Brown is the sales manager for Small Town Cars. Free filing state taxes On January 6, 2009, Jane Smith buys a new car from Pat and pays $18,000 in cash. Free filing state taxes Pat asks for identification from Jane to get the necessary information to complete Form 8300. Free filing state taxes A filled-in form is shown in this publication. Free filing state taxes Pat must mail the form to the address shown in the form's instructions by January 21, 2009. Free filing state taxes He must also send a statement to Jane by January 31, 2010. Free filing state taxes Example 2. Free filing state taxes Using the same facts given in Example 1, suppose Jane had arranged to make cash payments of $6,000 each on January 6, February 6, and March 6. Free filing state taxes Pat would have to file a Form 8300 by February 26 (17 days after receiving total cash payments within 1 year over $10,000 because February 21, 2009, is a Saturday). Free filing state taxes Pat would not have to report the remaining $6,000 cash payment because it is not more than $10,000. Free filing state taxes However, he could report it if he felt it was a suspicious transaction. Free filing state taxes Penalties There are civil penalties for failure to: File a correct Form 8300 by the date it is due, and Provide the required statement to those named in the Form 8300. Free filing state taxes If you intentionally disregard the requirement to file a correct Form 8300 by the date it is due, the penalty is the greater of: $25,000, or The amount of cash you received and were required to report (up to $100,000). Free filing state taxes There are criminal penalties for: Willful failure to file Form 8300, Willfully filing a false or fraudulent Form 8300, Stopping or trying to stop Form 8300 from being filed, and Setting up, helping to set up, or trying to set up a transaction in a way that would make it seem unnecessary to file Form 8300. Free filing state taxes If you willfully fail to file Form 8300, you can be fined up to $250,000 for individuals ($500,000 for corporations) or sentenced to up to 5 years in prison, or both. Free filing state taxes These dollar amounts are based on Section 3571 of Title 18 of the U. Free filing state taxes S. Free filing state taxes Code. Free filing state taxes The penalties for failure to file may also apply to any person (including a payer) who attempts to interfere with or prevent the seller (or business) from filing a correct Form 8300. Free filing state taxes This includes any attempt to structure the transaction in a way that would make it seem unnecessary to file Form 8300. Free filing state taxes Structuring means breaking up a large cash transaction into small cash transactions. Free filing state taxes How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Free filing state taxes By selecting the method that is best for you, you will have quick and easy access to tax help. Free filing state taxes Free help with your return. Free filing state taxes   Free help in preparing your return is available nationwide from IRS-certified volunteers. Free filing state taxes The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Free filing state taxes Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Free filing state taxes To find the nearest VITA or TCE site, visit IRS. Free filing state taxes gov or call 1-800-906-9887 or 1-800-829-1040. Free filing state taxes   As part of the TCE program, AARP offers the Tax-Aide counseling program. Free filing state taxes To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. Free filing state taxes aarp. Free filing state taxes org/money/taxaide. Free filing state taxes   For more information on these programs, go to IRS. Free filing state taxes gov and enter keyword “VITA” in the upper right-hand corner. Free filing state taxes Internet. Free filing state taxes You can access the IRS website at IRS. Free filing state taxes gov 24 hours a day, 7 days a week to: Check the status of your 2011 refund. Free filing state taxes Go to IRS. Free filing state taxes gov and click on Where's My Refund. Free filing state taxes Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Free filing state taxes If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Free filing state taxes Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Free filing state taxes E-file your return. Free filing state taxes Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Free filing state taxes Download forms, including talking tax forms, instructions, and publications. Free filing state taxes Order IRS products online. Free filing state taxes Research your tax questions online. Free filing state taxes Search publications online by topic or keyword. Free filing state taxes Use the online Internal Revenue Code, regulations, or other official guidance. Free filing state taxes View Internal Revenue Bulletins (IRBs) published in the last few years. Free filing state taxes Figure your withholding allowances using the withholding calculator online at  www. Free filing state taxes irs. Free filing state taxes gov/individuals. Free filing state taxes Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at  www. Free filing state taxes irs. Free filing state taxes gov/individuals. Free filing state taxes Sign up to receive local and national tax news by email. Free filing state taxes Get information on starting and operating a small business. Free filing state taxes Phone. Free filing state taxes Many services are available by phone. Free filing state taxes   Ordering forms, instructions, and publications. Free filing state taxes Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Free filing state taxes You should receive your order within 10 days. Free filing state taxes Asking tax questions. Free filing state taxes Call the IRS with your tax questions at 1-800-829-1040. Free filing state taxes Solving problems. Free filing state taxes You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Free filing state taxes An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Free filing state taxes Call your local Taxpayer Assistance Center for an appointment. Free filing state taxes To find the number, go to www. Free filing state taxes irs. Free filing state taxes gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Free filing state taxes TTY/TDD equipment. Free filing state taxes If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Free filing state taxes TeleTax topics. Free filing state taxes Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Free filing state taxes Refund information. Free filing state taxes You can check the status of your refund on the new IRS phone app. Free filing state taxes Download the free IRS2Go app by visiting the iTunes app store or the Android Marketplace. Free filing state taxes IRS2Go is a new way to provide you with information and tools. Free filing state taxes To check the status of your refund by phone, call 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Free filing state taxes Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Free filing state taxes If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Free filing state taxes Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Free filing state taxes If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Free filing state taxes Other refund information. Free filing state taxes To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. Free filing state taxes Evaluating the quality of our telephone services. Free filing state taxes To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Free filing state taxes One method is for a second IRS representative to listen in on or record random telephone calls. Free filing state taxes Another is to ask some callers to complete a short survey at the end of the call. Free filing state taxes Walk-in. Free filing state taxes Many products and services are available on a walk-in basis. Free filing state taxes   Products. Free filing state taxes You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Free filing state taxes Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Free filing state taxes Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Free filing state taxes Services. Free filing state taxes You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Free filing state taxes An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Free filing state taxes If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Free filing state taxes No appointment is necessary—just walk in. Free filing state taxes If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Free filing state taxes A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Free filing state taxes If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Free filing state taxes All other issues will be handled without an appointment. Free filing state taxes To find the number of your local office, go to www. Free filing state taxes irs. Free filing state taxes gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Free filing state taxes Mail. Free filing state taxes You can send your order for forms, instructions, and publications to the address below. Free filing state taxes You should receive a response within 10 days after your request is received. Free filing state taxes  Internal Revenue Service 1201 N. Free filing state taxes Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. Free filing state taxes   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Free filing state taxes Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Free filing state taxes We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Free filing state taxes Remember, the worst thing you can do is nothing at all. Free filing state taxes   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Free filing state taxes You face (or your business is facing) an immediate threat of adverse action. Free filing state taxes You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Free filing state taxes   If you qualify for our help, we’ll do everything we can to get your problem resolved. Free filing state taxes You will be assigned to one advocate who will be with you at every turn. Free filing state taxes We have offices in every state, the District of Columbia, and Puerto Rico. Free filing state taxes Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. Free filing state taxes And our services are always free. Free filing state taxes   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Free filing state taxes Our tax toolkit at www. Free filing state taxes TaxpayerAdvocate. Free filing state taxes irs. Free filing state taxes gov can help you understand these rights. Free filing state taxes   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Free filing state taxes irs. Free filing state taxes gov/advocate. Free filing state taxes You can also call our toll-free number at 1-877-777-4778. Free filing state taxes   TAS also handles large-scale or systemic problems that affect many taxpayers. Free filing state taxes If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Free filing state taxes irs. Free filing state taxes gov/advocate. Free filing state taxes Low Income Taxpayer Clinics (LITCs). Free filing state taxes   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Free filing state taxes Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Free filing state taxes These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Free filing state taxes Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Free filing state taxes For more information and to find a clinic near you, see the LITC page on www. Free filing state taxes irs. Free filing state taxes gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Free filing state taxes This publication is also available by calling 1-800-829-3676 or at your local IRS office. Free filing state taxes Free tax services. Free filing state taxes   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Free filing state taxes Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Free filing state taxes The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Free filing state taxes The majority of the information and services listed in this publication are available to you free of charge. Free filing state taxes If there is a fee associated with a resource or service, it is listed in the publication. Free filing state taxes   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Free filing state taxes DVD for tax products. Free filing state taxes You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Free filing state taxes Prior-year forms, instructions, and publications. Free filing state taxes Tax Map: an electronic research tool and finding aid. Free filing state taxes Tax law frequently asked questions. Free filing state taxes Tax Topics from the IRS telephone response system. Free filing state taxes Internal Revenue Code—Title 26 of the U. Free filing state taxes S. Free filing state taxes Code. Free filing state taxes Links to other Internet based Tax Research Materials. Free filing state taxes Fill-in, print, and save features for most tax forms. Free filing state taxes Internal Revenue Bulletins. Free filing state taxes Toll-free and email technical support. Free filing state taxes Two releases during the year. Free filing state taxes  – The first release will ship the beginning of January. Free filing state taxes  – The final release will ship the beginning of March. Free filing state taxes Purchase the DVD from National Technical Information Service (NTIS) at www. Free filing state taxes irs. Free filing state taxes gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Free filing state taxes This image is too large to be displayed in the current screen. Free filing state taxes Please click the link to view the image. Free filing state taxes Fill-in Form 8300 Prev  Up  Next   Home   More Online Publications