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H&r block coupons 2012 printable Publication 523 - Main Content Table of Contents Main HomeVacant land. H&r block coupons 2012 printable Factors used to determine main home. H&r block coupons 2012 printable Figuring Gain or LossSelling Price Amount Realized Adjusted Basis Amount of Gain or Loss Dispositions Other Than Sales Determining BasisCost As Basis Basis Other Than Cost Adjusted Basis Excluding the GainMaximum Exclusion Ownership and Use Tests Reduced Maximum Exclusion Nonqualified Use Business Use or Rental of HomeUnrecaptured section 1250 gain. H&r block coupons 2012 printable Property Used Partly for Business or Rental Reporting the SaleSeller-financed mortgage. H&r block coupons 2012 printable Individual taxpayer identification number (ITIN). H&r block coupons 2012 printable More information. H&r block coupons 2012 printable Comprehensive Examples Special SituationsException for sales to related persons. H&r block coupons 2012 printable Deducting Taxes in the Year of SaleForm 1099-S. H&r block coupons 2012 printable More information. H&r block coupons 2012 printable Recapturing (Paying Back) a Federal Mortgage Subsidy Recapture of First-Time Homebuyer CreditExample. H&r block coupons 2012 printable Worksheets How To Get Tax HelpLow Income Taxpayer Clinics Main Home This section explains the term “main home. H&r block coupons 2012 printable ” Usually, the home you live in most of the time is your main home and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. H&r block coupons 2012 printable To exclude gain under the rules in this publication, you in most cases must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale. H&r block coupons 2012 printable Land. H&r block coupons 2012 printable   If you sell the land on which your main home is located, but not the house itself, you cannot exclude any gain you have from the sale of the land. H&r block coupons 2012 printable Example. H&r block coupons 2012 printable You buy a piece of land and move your main home to it. H&r block coupons 2012 printable Then, you sell the land on which your main home was located. H&r block coupons 2012 printable This sale is not considered a sale of your main home, and you cannot exclude any gain on the sale of the land. H&r block coupons 2012 printable Vacant land. H&r block coupons 2012 printable   The sale of vacant land is not a sale of your main home unless: The vacant land is adjacent to land containing your home, You owned and used the vacant land as part of your main home, The separate sale of your home satisfies the requirements for exclusion and occurs within 2 years before or 2 years after the date of the sale of the vacant land, and The other requirements for excluding gain from the sale of a main home have been satisfied with respect to the vacant land. H&r block coupons 2012 printable If these requirements are met, the sale of the home and the sale of the vacant land are treated as one sale and only one maximum exclusion can be applied to any gain. H&r block coupons 2012 printable See Excluding the Gain , later. H&r block coupons 2012 printable The destruction of your home is treated as a sale of your home. H&r block coupons 2012 printable As a result, you may be able to meet these requirements if you sell vacant land used as a part of your main home within 2 years from the date of the destruction of your main home. H&r block coupons 2012 printable For information, see Publication 547. H&r block coupons 2012 printable More than one home. H&r block coupons 2012 printable   If you have more than one home, you can exclude gain only from the sale of your main home. H&r block coupons 2012 printable You must include in income the gain from the sale of any other home. H&r block coupons 2012 printable If you have two homes and live in each of them, your main home is ordinarily the one you live in most of the time during the year. H&r block coupons 2012 printable Example 1. H&r block coupons 2012 printable You own two homes, one in New York and one in Florida. H&r block coupons 2012 printable From 2009 through 2013, you live in the New York home for 7 months and in the Florida residence for 5 months of each year. H&r block coupons 2012 printable In the absence of facts and circumstances indicating otherwise, the New York home is your main home. H&r block coupons 2012 printable You would be eligible to exclude the gain from the sale of the New York home but not of the Florida home in 2013. H&r block coupons 2012 printable Example 2. H&r block coupons 2012 printable You own a house, but you live in another house that you rent. H&r block coupons 2012 printable The rented house is your main home. H&r block coupons 2012 printable Example 3. H&r block coupons 2012 printable You own two homes, one in Virginia and one in New Hampshire. H&r block coupons 2012 printable In 2009 and 2010, you lived in the Virginia home. H&r block coupons 2012 printable In 2011 and 2012, you lived in the New Hampshire home. H&r block coupons 2012 printable In 2013, you lived again in the Virginia home. H&r block coupons 2012 printable Your main home in 2009, 2010, and 2013 is the Virginia home. H&r block coupons 2012 printable Your main home in 2011 and 2012 is the New Hampshire home. H&r block coupons 2012 printable You would be eligible to exclude gain from the sale of either home (but not both) in 2013. H&r block coupons 2012 printable Factors used to determine main home. H&r block coupons 2012 printable   In addition to the amount of time you live in each home, other factors are relevant in determining which home is your main home. H&r block coupons 2012 printable Those factors include the following. H&r block coupons 2012 printable Your place of employment. H&r block coupons 2012 printable The location of your family members' main home. H&r block coupons 2012 printable Your mailing address for bills and correspondence. H&r block coupons 2012 printable The address listed on your: Federal and state tax returns, Driver's license, Car registration, and Voter registration card. H&r block coupons 2012 printable The location of the banks you use. H&r block coupons 2012 printable The location of recreational clubs and religious organizations of which you are a member. H&r block coupons 2012 printable Property used partly as your main home. H&r block coupons 2012 printable   If you use only part of the property as your main home, the rules discussed in this publication apply only to the gain or loss on the sale of that part of the property. H&r block coupons 2012 printable For details, see Business Use or Rental of Home , later. H&r block coupons 2012 printable Figuring Gain or Loss To figure the gain or loss on the sale of your main home, you must know the selling price, the amount realized, and the adjusted basis. H&r block coupons 2012 printable Subtract the adjusted basis from the amount realized to get your gain or loss. H&r block coupons 2012 printable     Selling price     − Selling expenses       Amount realized     − Adjusted basis       Gain or loss   Gain. H&r block coupons 2012 printable   Gain is the excess of the amount realized over the adjusted basis of the property. H&r block coupons 2012 printable Loss. H&r block coupons 2012 printable   Loss is the excess of the adjusted basis over the amount realized for the property. H&r block coupons 2012 printable Selling Price The selling price is the total amount you receive for your home. H&r block coupons 2012 printable It includes money and the fair market value of any other property or any other services you receive and all notes, mortgages or other debts assumed by the buyer as part of the sale. H&r block coupons 2012 printable Personal property. H&r block coupons 2012 printable   The selling price of your home does not include amounts you received for personal property sold with your home. H&r block coupons 2012 printable Personal property is property that is not a permanent part of the home. H&r block coupons 2012 printable Examples are furniture, draperies, rugs, a washer and dryer, and lawn equipment. H&r block coupons 2012 printable Separately stated amounts you received for these items should not be shown on Form 1099-S (discussed later). H&r block coupons 2012 printable Any gains from sales of personal property must be included in your income, but not as part of the sale of your home. H&r block coupons 2012 printable Payment by employer. H&r block coupons 2012 printable   You may have to sell your home because of a job transfer. H&r block coupons 2012 printable If your employer pays you for a loss on the sale or for your selling expenses, do not include the payment as part of the selling price. H&r block coupons 2012 printable Your employer will include it as wages in box 1 of your Form W-2 and you will include it in your income on Form 1040, line 7, or on Form 1040NR, line 8. H&r block coupons 2012 printable Option to buy. H&r block coupons 2012 printable   If you grant an option to buy your home and the option is exercised, add the amount you receive for the option to the selling price of your home. H&r block coupons 2012 printable If the option is not exercised, you must report the amount as ordinary income in the year the option expires. H&r block coupons 2012 printable Report this amount on Form 1040, line 21, or on Form 1040NR, line 21. H&r block coupons 2012 printable Form 1099-S. H&r block coupons 2012 printable   If you received Form 1099-S, box 2 (gross proceeds) should show the total amount you received for your home. H&r block coupons 2012 printable   However, box 2 will not include the fair market value of any services or property other than cash or notes you received or will receive. H&r block coupons 2012 printable Instead, box 4 will be checked to indicate your receipt or expected receipt of these items. H&r block coupons 2012 printable Amount Realized The amount realized is the selling price minus selling expenses. H&r block coupons 2012 printable Selling expenses. H&r block coupons 2012 printable   Selling expenses include: Commissions, Advertising fees, Legal fees, and Loan charges paid by the seller, such as loan placement fees or “points. H&r block coupons 2012 printable ” Adjusted Basis While you owned your home, you may have made adjustments (increases or decreases) to the basis. H&r block coupons 2012 printable This adjusted basis must be determined before you can figure gain or loss on the sale of your home. H&r block coupons 2012 printable For information on how to figure your home's adjusted basis, see Determining Basis , later. H&r block coupons 2012 printable Amount of Gain or Loss To figure the amount of gain or loss, compare the amount realized to the adjusted basis. H&r block coupons 2012 printable Gain on sale. H&r block coupons 2012 printable   If the amount realized is more than the adjusted basis, the difference is a gain and, except for any part you can exclude, generally is taxable. H&r block coupons 2012 printable Loss on sale. H&r block coupons 2012 printable   If the amount realized is less than the adjusted basis, the difference is a loss. H&r block coupons 2012 printable Generally, a loss on the sale of your main home cannot be deducted. H&r block coupons 2012 printable Jointly owned home. H&r block coupons 2012 printable   If you and your spouse sell your jointly owned home and file a joint return, you figure your gain or loss as one taxpayer. H&r block coupons 2012 printable Separate returns. H&r block coupons 2012 printable   If you file separate returns, each of you must figure your own gain or loss according to your ownership interest in the home. H&r block coupons 2012 printable Your ownership interest is generally determined by state law. H&r block coupons 2012 printable Joint owners not married. H&r block coupons 2012 printable   If you and a joint owner other than your spouse sell your jointly owned home, each of you must figure your own gain or loss according to your ownership interest in the home. H&r block coupons 2012 printable Each of you applies the rules discussed in this publication on an individual basis. H&r block coupons 2012 printable Dispositions Other Than Sales Some special rules apply to other dispositions of your main home. H&r block coupons 2012 printable Foreclosure or repossession. H&r block coupons 2012 printable   If your home was foreclosed on or repossessed, you have a disposition. H&r block coupons 2012 printable See Publication 4681 to determine if you have ordinary income, gain, or loss. H&r block coupons 2012 printable More information. H&r block coupons 2012 printable   If part of a home is used for business or rental purposes, see Foreclosures and Repossessions in chapter 1 of Publication 544 for more information. H&r block coupons 2012 printable Publication 544 has examples of how to figure gain or loss on a foreclosure or repossession. H&r block coupons 2012 printable Abandonment. H&r block coupons 2012 printable   If you abandon your home, see Publication 4681 to determine if you have ordinary income, gain, or loss. H&r block coupons 2012 printable Trading (exchanging) homes. H&r block coupons 2012 printable   If you trade your home for another home, treat the trade as a sale and a purchase. H&r block coupons 2012 printable Example. H&r block coupons 2012 printable You owned and lived in a home with an adjusted basis of $41,000. H&r block coupons 2012 printable A real estate dealer accepted your old home as a trade-in and allowed you $50,000 toward a new home priced at $80,000. H&r block coupons 2012 printable This is treated as a sale of your old home for $50,000 with a gain of $9,000 ($50,000 − $41,000). H&r block coupons 2012 printable If the dealer had allowed you $27,000 and assumed your unpaid mortgage of $23,000 on your old home, your sales price would still be $50,000 (the $27,000 trade-in allowed plus the $23,000 mortgage assumed). H&r block coupons 2012 printable Transfer to spouse. H&r block coupons 2012 printable   If you transfer your home to your spouse or you transfer it to your former spouse incident to your divorce, you in most cases have no gain or loss (unless the Exception, discussed next, applies). H&r block coupons 2012 printable This is true even if you receive cash or other consideration for the home. H&r block coupons 2012 printable As a result, the rules explained in this publication do not apply. H&r block coupons 2012 printable   If you owned your home jointly with your spouse and transfer your interest in the home to your spouse, or to your former spouse incident to your divorce, the same rule applies. H&r block coupons 2012 printable You have no gain or loss. H&r block coupons 2012 printable Exception. H&r block coupons 2012 printable   These transfer rules do not apply if your spouse or former spouse is a nonresident alien. H&r block coupons 2012 printable In that case, you generally will have a gain or loss. H&r block coupons 2012 printable More information. H&r block coupons 2012 printable    See Property Settlements in Publication 504, Divorced or Separated Individuals, for more information. H&r block coupons 2012 printable Involuntary conversion. H&r block coupons 2012 printable   You have a disposition when your home is destroyed or condemned and you receive other property or money in payment, such as insurance or a condemnation award. H&r block coupons 2012 printable This is treated as a sale and you may be able to exclude all or part of any gain from the destruction or condemnation of your home, as explained later under Special Situations (see Home destroyed or condemned ). H&r block coupons 2012 printable Determining Basis You need to know your basis in your home to figure any gain or loss when you sell it. H&r block coupons 2012 printable Your basis in your home is determined by how you got the home. H&r block coupons 2012 printable Generally, your basis is its cost if you bought it or built it. H&r block coupons 2012 printable If you got it in some other way (inheritance, gift, etc. H&r block coupons 2012 printable ), your basis is generally either its fair market value when you received it or the adjusted basis of the previous owner. H&r block coupons 2012 printable While you owned your home, you may have made adjustments (increases or decreases) to your home's basis. H&r block coupons 2012 printable The result of these adjustments is your home's adjusted basis, which is used to figure gain or loss on the sale of your home. H&r block coupons 2012 printable To figure your adjusted basis, you can use Worksheet 1, near the end of this publication. H&r block coupons 2012 printable Filled-in examples of that worksheet are included in the Comprehensive Examples , later. H&r block coupons 2012 printable Cost As Basis The cost of property is the amount you paid for it in cash, debt obligations, other property, or services. H&r block coupons 2012 printable Purchase. H&r block coupons 2012 printable   If you bought your home, your basis is its cost to you. H&r block coupons 2012 printable This includes the purchase price and certain settlement or closing costs. H&r block coupons 2012 printable In most cases, your purchase price includes your down payment and any debt, such as a first or second mortgage or notes you gave the seller in payment for the home. H&r block coupons 2012 printable If you build, or contract to build, a new home, your purchase price can include costs of construction, as discussed later. H&r block coupons 2012 printable Seller-paid points. H&r block coupons 2012 printable   If the person who sold you your home paid points on your loan, you may have to reduce your home's basis by the amount of the points, as shown in the following chart. H&r block coupons 2012 printable    IF you bought your home. H&r block coupons 2012 printable . H&r block coupons 2012 printable . H&r block coupons 2012 printable THEN reduce your home's basis by the seller-paid points. H&r block coupons 2012 printable . H&r block coupons 2012 printable . H&r block coupons 2012 printable after 1990 but before April 4, 1994 only if you deducted them as home mortgage interest in the year paid. H&r block coupons 2012 printable after April 3, 1994 even if you did not deduct them. H&r block coupons 2012 printable Settlement fees or closing costs. H&r block coupons 2012 printable   When you bought your home, you may have paid settlement fees or closing costs in addition to the contract price of the property. H&r block coupons 2012 printable You can include in your basis some of the settlement fees and closing costs you paid for buying the home, but not the fees and costs for getting a mortgage loan. H&r block coupons 2012 printable A fee paid for buying the home is any fee you would have had to pay even if you paid cash for the home (that is, without the need for financing). H&r block coupons 2012 printable   Settlement fees do not include amounts placed in escrow for the future payment of items such as taxes and insurance. H&r block coupons 2012 printable   Some of the settlement fees or closing costs that you can include in your basis are: Abstract fees (abstract of title fees), Charges for installing utility services, Legal fees (including fees for the title search and preparing the sales contract and deed), Recording fees, Survey fees, Transfer or stamp taxes, Owner's title insurance, and Any amounts the seller owes that you agree to pay, such as: Certain real estate taxes (discussed later), Back interest, Recording or mortgage fees, Charges for improvements or repairs, and Sales commissions. H&r block coupons 2012 printable   Some settlement fees and closing costs you cannot include in your basis are: Fire insurance premiums, Rent for occupancy of the house before closing, Charges for utilities or other services related to occupancy of the house before closing, Any fee or cost that you deducted as a moving expense (allowed for certain fees and costs before 1994), Charges connected with getting a mortgage loan, such as: Mortgage insurance premiums (including funding fees connected with loans guaranteed by the Department of Veterans Affairs), Loan assumption fees, Cost of a credit report, Fee for an appraisal required by a lender, and Fees for refinancing a mortgage. H&r block coupons 2012 printable Real estate taxes. H&r block coupons 2012 printable   Real estate taxes for the year you bought your home may affect your basis, as shown in the following chart. H&r block coupons 2012 printable    IF. H&r block coupons 2012 printable . H&r block coupons 2012 printable . H&r block coupons 2012 printable AND. H&r block coupons 2012 printable . H&r block coupons 2012 printable . H&r block coupons 2012 printable THEN the taxes. H&r block coupons 2012 printable . H&r block coupons 2012 printable . H&r block coupons 2012 printable you pay taxes that the seller owed on the home up to the date of sale the seller does not reimburse you are added to the basis of your home. H&r block coupons 2012 printable the seller reimburses you do not affect the basis of your home. H&r block coupons 2012 printable the seller pays taxes for you (taxes owed beginning on the date of sale) you do not reimburse the seller are subtracted from the basis of your home. H&r block coupons 2012 printable you reimburse the seller do not affect the basis of your home. H&r block coupons 2012 printable Construction. H&r block coupons 2012 printable   If you contracted to have your house built on land you own, your basis is: The cost of the land, plus The amount it cost you to complete the house, including: The cost of labor and materials, Any amounts paid to a contractor, Any architect's fees, Building permit charges, Utility meter and connection charges, and Legal fees directly connected with building the house. H&r block coupons 2012 printable   Your cost includes your down payment and any debt such as a first or second mortgage or notes you gave the seller or builder. H&r block coupons 2012 printable It also includes certain settlement or closing costs. H&r block coupons 2012 printable You may have to reduce your basis by points the seller paid for you. H&r block coupons 2012 printable For more information, see Seller-paid points and Settlement fees or closing costs , earlier. H&r block coupons 2012 printable Built by you. H&r block coupons 2012 printable   If you built all or part of your house yourself, its basis is the total amount it cost you to complete it. H&r block coupons 2012 printable Do not include in the cost of the house: The value of your own labor, or The value of any other labor you did not pay for. H&r block coupons 2012 printable Temporary housing. H&r block coupons 2012 printable   If a builder gave you temporary housing while your home was being finished, you must reduce your basis by the part of the contract price that was for the temporary housing. H&r block coupons 2012 printable To figure the amount of the reduction, multiply the contract price by a fraction. H&r block coupons 2012 printable The numerator is the value of the temporary housing, and the denominator is the sum of the value of the temporary housing plus the value of the new home. H&r block coupons 2012 printable Cooperative apartment. H&r block coupons 2012 printable   If you are a tenant-stockholder in a cooperative housing corporation, your basis in the cooperative apartment used as your home is usually the cost of your stock in the corporation. H&r block coupons 2012 printable This may include your share of a mortgage on the apartment building. H&r block coupons 2012 printable Condominium. H&r block coupons 2012 printable   To determine your basis in a condominium apartment used as your home, use the same rules as for any other home. H&r block coupons 2012 printable Basis Other Than Cost You must use a basis other than cost, such as adjusted basis or fair market value, if you received your home as a gift, inheritance, a trade, or from your spouse. H&r block coupons 2012 printable These situations are discussed in the following pages. H&r block coupons 2012 printable Also, the instructions for Worksheet 1 (near the end of the publication) address each of these issues. H&r block coupons 2012 printable Other special rules may apply in certain situations. H&r block coupons 2012 printable If you converted the property, or some part of it, to business or rental use, see Property Changed to Business or Rental Use, in Publication 551. H&r block coupons 2012 printable Home received as gift. H&r block coupons 2012 printable   Use the following chart to find the basis of a home you received as a gift. H&r block coupons 2012 printable IF the donor's adjusted basis at the time of the gift was. H&r block coupons 2012 printable . H&r block coupons 2012 printable . H&r block coupons 2012 printable THEN your basis is. H&r block coupons 2012 printable . H&r block coupons 2012 printable . H&r block coupons 2012 printable more than the fair market value of the home at that time the same as the donor's adjusted basis at the time of the gift. H&r block coupons 2012 printable   Exception: If using the donor's adjusted basis results in a loss when you sell the home, you must use the fair market value of the home at the time of the gift as your basis. H&r block coupons 2012 printable If using the fair market value results in a gain, you have neither gain nor loss. H&r block coupons 2012 printable equal to or less than the fair market value at that time, and you received the gift before 1977 the smaller of the: • donor's adjusted basis, plus  any federal gift tax paid on  the gift, or • the home's fair market value  at the time of the gift. H&r block coupons 2012 printable equal to or less than the fair market value at that time, and you received the gift after 1976 the same as the donor's adjusted basis, plus the part of any federal gift tax paid that is due to the net increase in value of the home (explained next). H&r block coupons 2012 printable Fair market value. H&r block coupons 2012 printable   The fair market value of property at the time of the gift is the value of the property as appraised for purposes of the federal gift tax. H&r block coupons 2012 printable If the gift was not subject to the federal gift tax, the fair market value is the value as appraised for the purposes of a state gift tax. H&r block coupons 2012 printable Part of federal gift tax due to net increase in value. H&r block coupons 2012 printable   Figure the part of the federal gift tax paid that is due to the net increase in value of the home by multiplying the total federal gift tax paid by a fraction. H&r block coupons 2012 printable The numerator of the fraction is the net increase in the value of the home, and the denominator is the value of the home for gift tax purposes after reduction by any annual exclusion and marital or charitable deduction that applies to the gift. H&r block coupons 2012 printable The net increase in the value of the home is its fair market value minus the donor's adjusted basis immediately before the gift. H&r block coupons 2012 printable Home acquired from a decedent who died before or after 2010. H&r block coupons 2012 printable   If you inherited your home from a decedent who died before or after 2010, your basis is the fair market value of the property on the date of the decedent's death (or the later alternate valuation date chosen by the personal representative of the estate). H&r block coupons 2012 printable If an estate tax return was filed or required to be filed, the value of the property listed on the estate tax return is your basis. H&r block coupons 2012 printable If a federal estate tax return did not have to be filed, your basis in the home is the same as its appraised value at the date of death, for purposes of state inheritance or transmission taxes. H&r block coupons 2012 printable Surviving spouse. H&r block coupons 2012 printable   If you are a surviving spouse and you owned your home jointly, your basis in the home will change. H&r block coupons 2012 printable The new basis for the interest your spouse owned will be its fair market value on the date of death (or alternate valuation date). H&r block coupons 2012 printable The basis in your interest will remain the same. H&r block coupons 2012 printable Your new basis in the home is the total of these two amounts. H&r block coupons 2012 printable   If you and your spouse owned the home either as tenants by the entirety or as joint tenants with right of survivorship, you will each be considered to have owned one-half of the home. H&r block coupons 2012 printable Example. H&r block coupons 2012 printable Your jointly owned home (owned as joint tenants with right of survivorship) had an adjusted basis of $50,000 on the date of your spouse's death, and the fair market value on that date was $100,000. H&r block coupons 2012 printable Your new basis in the home is $75,000 ($25,000 for one-half of the adjusted basis plus $50,000 for one-half of the fair market value). H&r block coupons 2012 printable Community property. H&r block coupons 2012 printable   In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), each spouse is usually considered to own half of the community property. H&r block coupons 2012 printable When either spouse dies, the total fair market value of the community property becomes the basis of the entire property, including the part belonging to the surviving spouse. H&r block coupons 2012 printable For this to apply, at least half the value of the community property interest must be includible in the decedent's gross estate, whether or not the estate must file a return. H&r block coupons 2012 printable   For more information about community property, see Publication 555, Community Property. H&r block coupons 2012 printable    If you are selling a home in which you acquired an interest from a decedent who died in 2010, see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, to determine your basis. H&r block coupons 2012 printable Home received as trade. H&r block coupons 2012 printable   If you acquired your home as a trade for other property, in most cases, the basis of your home is the fair market value (at the time of the trade) of the property you gave up. H&r block coupons 2012 printable If you traded one home for another, you have made a sale and purchase. H&r block coupons 2012 printable In that case, you may have a gain. H&r block coupons 2012 printable See Trading (exchanging) homes under Dispositions Other Than Sales, earlier, for an example of figuring the gain. H&r block coupons 2012 printable Home received from spouse. H&r block coupons 2012 printable   If you received your home from your spouse or from your former spouse incident to your divorce, your basis in the home depends on the date of the transfer. H&r block coupons 2012 printable Transfers after July 18, 1984. H&r block coupons 2012 printable   If you received the home after July 18, 1984, there was no gain or loss on the transfer. H&r block coupons 2012 printable In most cases, your basis in this home is the same as your spouse's (or former spouse's) adjusted basis just before you received it. H&r block coupons 2012 printable This rule applies even if you received the home in exchange for cash, the release of marital rights, the assumption of liabilities, or other considerations. H&r block coupons 2012 printable   If you owned a home jointly with your spouse and your spouse transferred his or her interest in the home to you, in most cases, your basis in the half interest received from your spouse is the same as your spouse's adjusted basis just before the transfer. H&r block coupons 2012 printable This also applies if your former spouse transferred his or her interest in the home to you incident to your divorce. H&r block coupons 2012 printable Your basis in the half interest you already owned does not change. H&r block coupons 2012 printable Your new basis in the home is the total of these two amounts. H&r block coupons 2012 printable Transfers before July 19, 1984. H&r block coupons 2012 printable   If you received your home before July 19, 1984, in exchange for your release of marital rights, in most cases, your basis in the home is generally its fair market value at the time you received it. H&r block coupons 2012 printable More information. H&r block coupons 2012 printable   For more information on property received from a spouse or former spouse, see Property Settlements in Publication 504. H&r block coupons 2012 printable Involuntary conversion. H&r block coupons 2012 printable   If your home is destroyed or condemned, you may receive insurance proceeds or a condemnation award. H&r block coupons 2012 printable If you acquired a replacement home with these proceeds, the basis is its cost decreased by any gain not recognized on the conversion under the rules explained in: Publication 547, in the case of a home that was destroyed, or Chapter 1 of Publication 544, in the case of a home that was condemned. H&r block coupons 2012 printable Example. H&r block coupons 2012 printable A fire destroyed your home that you owned and used for only 6 months. H&r block coupons 2012 printable The home had an adjusted basis of $80,000 and the insurance company paid you $130,000 for the loss. H&r block coupons 2012 printable Your gain is $50,000 ($130,000 − $80,000). H&r block coupons 2012 printable You bought a replacement home for $100,000. H&r block coupons 2012 printable The part of your gain that is taxable is $30,000 ($130,000 − $100,000), the unspent part of the payment from the insurance company. H&r block coupons 2012 printable The rest of the gain ($20,000) is not taxable, so that amount reduces your basis in the new home. H&r block coupons 2012 printable The basis of the new home is figured as follows. H&r block coupons 2012 printable Cost of replacement home $100,000 Minus: Gain not recognized 20,000 Basis of the replacement home $80,000 More information. H&r block coupons 2012 printable   For more information about basis, see Publication 551. H&r block coupons 2012 printable Adjusted Basis Adjusted basis is your cost or other basis increased or decreased by certain amounts. H&r block coupons 2012 printable To figure your adjusted basis, you can use Worksheet 1, found toward the end of this publication. H&r block coupons 2012 printable Filled-in examples of that worksheet are included in Comprehensive Examples , later. H&r block coupons 2012 printable Recordkeeping. H&r block coupons 2012 printable You should keep records to prove your home's adjusted basis. H&r block coupons 2012 printable Ordinarily, you must keep records for 3 years after the due date for filing your return for the tax year in which you sold your home. H&r block coupons 2012 printable But if you sold a home before May 7, 1997, and postponed tax on any gain, the basis of that home affects the basis of the new home you bought. H&r block coupons 2012 printable Keep records proving the basis of both homes as long as they are needed for tax purposes. H&r block coupons 2012 printable The records you should keep include: Proof of the home's purchase price and purchase expenses; Receipts and other records for all improvements, additions, and other items that affect the home's adjusted basis; Any worksheets or other computations you used to figure the adjusted basis of the home you sold, the gain or loss on the sale, the exclusion, and the taxable gain; Any Form 982 you filed to exclude any discharge of qualified principal residence indebtedness; Any Form 2119, Sale of Your Home, you filed to postpone gain from the sale of a previous home before May 7, 1997; and Any worksheets you used to prepare Form 2119, such as the Adjusted Basis of Home Sold Worksheet or the Capital Improvements Worksheet from the Form 2119 instructions, or other source of computations. H&r block coupons 2012 printable Increases to Basis These include the following. H&r block coupons 2012 printable Additions and other improvements that have a useful life of more than 1 year. H&r block coupons 2012 printable Special assessments for local improvements. H&r block coupons 2012 printable Amounts you spent after a casualty to restore damaged property. H&r block coupons 2012 printable Improvements. H&r block coupons 2012 printable   These add to the value of your home, prolong its useful life, or adapt it to new uses. H&r block coupons 2012 printable You add the cost of additions and other improvements to the basis of your property. H&r block coupons 2012 printable   The following chart lists some other examples of improvements. H&r block coupons 2012 printable Examples of Improvements That Increase Basis Additions Bedroom Bathroom Deck Garage Porch Patio Heating & Air Conditioning Heating system Central air conditioning Furnace Duct work Central humidifier Filtration system Lawn & Grounds Landscaping Driveway Walkway Fence  Retaining wall Sprinkler system Swimming pool  Miscellaneous Storm windows, doors New roof Central vacuum Wiring upgrades Satellite dish Security system  Plumbing Septic system Water heater Soft water system Filtration system  Interior Improvements Built-in appliances  Kitchen modernization  Flooring Wall-to-wall carpeting  Insulation Attic Walls Floors Pipes and duct work Improvements no longer part of home. H&r block coupons 2012 printable   Your home's adjusted basis does not include the cost of any improvements that are replaced and are no longer part of the home. H&r block coupons 2012 printable Example. H&r block coupons 2012 printable You put wall-to-wall carpeting in your home 15 years ago. H&r block coupons 2012 printable Later, you replaced that carpeting with new wall-to-wall carpeting. H&r block coupons 2012 printable The cost of the old carpeting you replaced is no longer part of your home's adjusted basis. H&r block coupons 2012 printable Repairs. H&r block coupons 2012 printable   These maintain your home in good condition but do not add to its value or prolong its life. H&r block coupons 2012 printable You do not add their cost to the basis of your property. H&r block coupons 2012 printable Examples. H&r block coupons 2012 printable Repainting your house inside or outside, fixing your gutters or floors, repairing leaks or plastering, and replacing broken window panes are examples of repairs. H&r block coupons 2012 printable Exception. H&r block coupons 2012 printable   The entire job is considered an improvement if items that would otherwise be considered repairs are done as part of an extensive remodeling or restoration of your home. H&r block coupons 2012 printable For example, if you have a casualty and your home is damaged, increase your basis by the amount you spend on repairs that restore the property to its pre-casualty condition. H&r block coupons 2012 printable Decreases to Basis These include the following. H&r block coupons 2012 printable Discharge of qualified principal residence indebtedness that was excluded from income (but not below zero). H&r block coupons 2012 printable For details, see Publication 4681. H&r block coupons 2012 printable Some or all of the cancellation of debt income that was excluded due to your bankruptcy or insolvency. H&r block coupons 2012 printable For details, see Publication 4681. H&r block coupons 2012 printable Gain you postponed from the sale of a previous home before May 7, 1997. H&r block coupons 2012 printable Deductible casualty losses. H&r block coupons 2012 printable Insurance payments you received or expect to receive for casualty losses. H&r block coupons 2012 printable Payments you received for granting an easement or right-of-way. H&r block coupons 2012 printable Depreciation allowed or allowable if you used your home for business or rental purposes. H&r block coupons 2012 printable Energy-related credits allowed for expenditures made on the residence. H&r block coupons 2012 printable (Reduce the increase in basis otherwise allowable for expenditures on the residence by the amount of credit allowed for those expenditures. H&r block coupons 2012 printable ) Adoption credit you claimed for improvements added to the basis of your home. H&r block coupons 2012 printable Nontaxable payments from an adoption assistance program of your employer you used for improvements you added to the basis of your home. H&r block coupons 2012 printable Energy conservation subsidy excluded from your gross income because you received it (directly or indirectly) from a public utility after 1992 to buy or install any energy conservation measure. H&r block coupons 2012 printable An energy conservation measure is an installation or modification primarily designed either to reduce consumption of electricity or natural gas or to improve the management of energy demand for a home. H&r block coupons 2012 printable District of Columbia first-time homebuyer credit allowed on the purchase of a principal residence in the District of Columbia. H&r block coupons 2012 printable General sales taxes claimed as an itemized deduction on Schedule A (Form 1040) that were imposed on the purchase of personal property, such as a houseboat used as your home or a mobile home. H&r block coupons 2012 printable Discharges of qualified principal residence indebtedness. H&r block coupons 2012 printable   You may be able to exclude from gross income a discharge of qualified principal residence indebtedness. H&r block coupons 2012 printable This exclusion applies to discharges made after 2006 and before 2014. H&r block coupons 2012 printable If you choose to exclude this income, you must reduce (but not below zero) the basis of your principal residence by the amount excluded from gross income. H&r block coupons 2012 printable   File Form 982 with your tax return. H&r block coupons 2012 printable See the form's instructions for detailed information. H&r block coupons 2012 printable    A decrease in basis due to a discharge of qualified principal residence indebtedness that is excluded from income occurs only if you retain ownership of the principal residence after a discharge. H&r block coupons 2012 printable In most cases, this would occur in a refinancing or a restructuring of the mortgage. H&r block coupons 2012 printable Excluding the Gain You may qualify to exclude from your income all or part of any gain from the sale of your main home. H&r block coupons 2012 printable This means that, if you qualify, you will not have to pay tax on the gain up to the limit described under Maximum Exclusion , next. H&r block coupons 2012 printable To qualify, you must meet the ownership and use tests described later. H&r block coupons 2012 printable You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. H&r block coupons 2012 printable This choice can be made (or revoked) at any time before the expiration of a 3-year period beginning on the due date of your return (not including extensions) for the year of the sale. H&r block coupons 2012 printable You can use Worksheet 2 (near the end of this publication) to figure the amount of your exclusion and your taxable gain, if any. H&r block coupons 2012 printable If you have any taxable gain from the sale of your home, you may have to increase your withholding or make estimated tax payments. H&r block coupons 2012 printable See Publication 505, Tax Withholding and Estimated Tax. H&r block coupons 2012 printable Maximum Exclusion You can exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. H&r block coupons 2012 printable You meet the ownership test. H&r block coupons 2012 printable You meet the use test. H&r block coupons 2012 printable During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. H&r block coupons 2012 printable For details on gain allocated to periods of nonqualified use, see Nonqualified Use , later. H&r block coupons 2012 printable If you and another person owned the home jointly but file separate returns, each of you can exclude up to $250,000 of gain from the sale of your interest in the home if each of you meets the three conditions just listed. H&r block coupons 2012 printable You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . H&r block coupons 2012 printable Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. H&r block coupons 2012 printable This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). H&r block coupons 2012 printable Exception. H&r block coupons 2012 printable   If you owned and lived in the property as your main home for less than 2 years, you can still claim an exclusion in some cases. H&r block coupons 2012 printable However, the maximum amount you may be able to exclude will be reduced. H&r block coupons 2012 printable See Reduced Maximum Exclusion , later. H&r block coupons 2012 printable Example 1—home owned and occupied for at least 2 years. H&r block coupons 2012 printable Mya bought and moved into her main home in September 2011. H&r block coupons 2012 printable She sold the home at a gain in October 2013. H&r block coupons 2012 printable During the 5-year period ending on the date of sale in October 2013, she owned and lived in the home for more than 2 years. H&r block coupons 2012 printable She meets the ownership and use tests. H&r block coupons 2012 printable Example 2—ownership test met but use test not met. H&r block coupons 2012 printable Ayden bought a home, lived in it for 6 months, moved out, and never occupied the home again. H&r block coupons 2012 printable He later sold the home for a gain in June 2013. H&r block coupons 2012 printable He owned the home during the entire 5-year period ending on the date of sale. H&r block coupons 2012 printable He meets the ownership test but not the use test. H&r block coupons 2012 printable He cannot exclude any part of his gain on the sale unless he qualified for a reduced maximum exclusion (explained later). H&r block coupons 2012 printable Period of Ownership and Use The required 2 years of ownership and use during the 5-year period ending on the date of the sale do not have to be continuous nor do they both have to occur at the same time. H&r block coupons 2012 printable You meet the tests if you can show that you owned and lived in the property as your main home for either 24 full months or 730 days (365 × 2) during the 5-year period ending on the date of sale. H&r block coupons 2012 printable Example. H&r block coupons 2012 printable Naomi bought and moved into a house in July 2009. H&r block coupons 2012 printable She lived there for 13 months and then moved in with a friend. H&r block coupons 2012 printable She later moved back into her house and lived there for 12 months until she sold it in August 2013. H&r block coupons 2012 printable Naomi meets the ownership and use tests because, during the 5-year period ending on the date of sale, she owned the house for more than 2 years and lived in it for a total of 25 (13 + 12) months. H&r block coupons 2012 printable Temporary absence. H&r block coupons 2012 printable   Short temporary absences for vacations or other seasonal absences, even if you rent out the property during the absences, are counted as periods of use. H&r block coupons 2012 printable The following examples assume that the reduced maximum exclusion (discussed later) does not apply to the sales. H&r block coupons 2012 printable Example 1. H&r block coupons 2012 printable David Johnson, who is single, bought and moved into his home on February 1, 2011. H&r block coupons 2012 printable Each year during 2011 and 2012, David left his home for a 2-month summer vacation. H&r block coupons 2012 printable David sold the house on March 1, 2013. H&r block coupons 2012 printable Although the total time David lived in his home is less than 2 years (21 months), he meets the use requirement and may exclude gain. H&r block coupons 2012 printable The 2-month vacations are short temporary absences and are counted as periods of use in determining whether David used the home for the required 2 years. H&r block coupons 2012 printable Example 2. H&r block coupons 2012 printable Professor Paul Beard, who is single, bought and moved into a house in December 2010, went abroad for a 1-year sabbatical leave in January 2012, returned to the house in January 2013, and sold it at a gain in February 2013. H&r block coupons 2012 printable Because his leave was not a short temporary absence, he cannot include the period of leave to meet the 2-year use test. H&r block coupons 2012 printable He cannot exclude any part of his gain because he did not use the residence for the required 2 years. H&r block coupons 2012 printable Ownership and use tests met at different times. H&r block coupons 2012 printable   You can meet the ownership and use tests during different 2-year periods. H&r block coupons 2012 printable However, you must meet both tests during the 5-year period ending on the date of the sale. H&r block coupons 2012 printable Example. H&r block coupons 2012 printable Beginning in 2002, Helen Jones lived in a rented apartment. H&r block coupons 2012 printable The apartment building was later converted to condominiums, and she bought her same apartment on December 3, 2010. H&r block coupons 2012 printable In 2011, Helen became ill and on April 14 of that year she moved to her daughter's home. H&r block coupons 2012 printable On July 12, 2013, while still living in her daughter's home, she sold her condominium. H&r block coupons 2012 printable Helen can exclude gain on the sale of her condominium because she met the ownership and use tests during the 5-year period from July 13, 2008, to July 12, 2013, the date she sold the condominium. H&r block coupons 2012 printable She owned her condominium from December 3, 2010, to July 12, 2013 (more than 2 years). H&r block coupons 2012 printable She lived in the property from July 13, 2008 (the beginning of the 5-year period), to April 14, 2011 (more than 2 years). H&r block coupons 2012 printable The time Helen lived in her daughter's home during the 5-year period can be counted toward her period of ownership, and the time she lived in her rented apartment during the 5-year period can be counted toward her period of use. H&r block coupons 2012 printable Cooperative apartment. H&r block coupons 2012 printable   If you sold stock as a tenant-shareholder in a cooperative housing corporation, the ownership and use tests are met if, during the 5-year period ending on the date of sale, you: Owned the stock for at least 2 years, and Lived in the house or apartment that the stock entitled you to occupy as your main home for at least 2 years. H&r block coupons 2012 printable Exceptions to Ownership and Use Tests The following sections contain exceptions to the ownership and use tests for certain taxpayers. H&r block coupons 2012 printable Exception for individuals with a disability. H&r block coupons 2012 printable   There is an exception to the use test if: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year during the 5-year period before the sale of your home. H&r block coupons 2012 printable Under this exception, you are considered to live in your home during any time within the 5-year period that you own the home and live in a facility (including a nursing home) licensed by a state or political subdivision to care for persons in your condition. H&r block coupons 2012 printable   If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. H&r block coupons 2012 printable Previous home destroyed or condemned. H&r block coupons 2012 printable   For the ownership and use tests, you add the time you owned and lived in a previous home that was destroyed or condemned to the time you owned and lived in the replacement home on whose sale you wish to exclude gain. H&r block coupons 2012 printable This rule applies if any part of the basis of the home you sold depended on the basis of the destroyed or condemned home (see Involuntary Conversions in Publication 551). H&r block coupons 2012 printable Otherwise, you must have owned and lived in the same home for 2 of the 5 years before the sale to qualify for the exclusion. H&r block coupons 2012 printable Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps. H&r block coupons 2012 printable   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve on qualified official extended duty (defined later) as a member of the uniformed services or Foreign Service of the United States, or as an employee of the intelligence community. H&r block coupons 2012 printable You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve outside the United States either as an employee of the Peace Corps on qualified official extended duty (defined later) or as an enrolled volunteer or volunteer leader of the Peace Corps. H&r block coupons 2012 printable This means that you may be able to meet the 2-year use test even if, because of your service, you did not actually live in your home for at least the required 2 years during the 5-year period ending on the date of sale. H&r block coupons 2012 printable   If this helps you qualify to exclude gain, you can choose to have the 5-year test period suspended by filing a return for the year of sale that does not include the gain. H&r block coupons 2012 printable Example. H&r block coupons 2012 printable John bought and moved into a home in 2005. H&r block coupons 2012 printable He lived in it as his main home for 2½ years. H&r block coupons 2012 printable For the next 6 years, he did not live in it because he was on qualified official extended duty with the Army. H&r block coupons 2012 printable He then sold the home at a gain in 2013. H&r block coupons 2012 printable To meet the use test, John chooses to suspend the 5-year test period for the 6 years he was on qualified official extended duty. H&r block coupons 2012 printable This means he can disregard those 6 years. H&r block coupons 2012 printable Therefore, John's 5-year test period consists of the 5 years before he went on qualified official extended duty. H&r block coupons 2012 printable He meets the ownership and use tests because he owned and lived in the home for 2½ years during this test period. H&r block coupons 2012 printable Period of suspension. H&r block coupons 2012 printable   The period of suspension cannot last more than 10 years. H&r block coupons 2012 printable Together, the 10-year suspension period and the 5-year test period can be as long as, but no more than, 15 years. H&r block coupons 2012 printable You cannot suspend the 5-year period for more than one property at a time. H&r block coupons 2012 printable You can revoke your choice to suspend the 5-year period at any time. H&r block coupons 2012 printable Example. H&r block coupons 2012 printable Mary bought a home on April 1, 1997. H&r block coupons 2012 printable She used it as her main home until August 31, 2000. H&r block coupons 2012 printable On September 1, 2000, she went on qualified official extended duty with the Navy. H&r block coupons 2012 printable She did not live in the house again before selling it on July 31, 2013. H&r block coupons 2012 printable Mary chooses to use the entire 10-year suspension period. H&r block coupons 2012 printable Therefore, the suspension period would extend back from July 31, 2013, to August 1, 2003, and the 5-year test period would extend back to August 1, 1998. H&r block coupons 2012 printable During that period, Mary owned the house all 5 years and lived in it as her main home from August 1, 1998, until August 31, 2000, a period of more than 24 months. H&r block coupons 2012 printable She meets the ownership and use tests because she owned and lived in the home for at least 2 years during this test period. H&r block coupons 2012 printable Uniformed services. H&r block coupons 2012 printable   The uniformed services are: The Armed Forces (the Army, Navy, Air Force, Marine Corps, and Coast Guard), The commissioned corps of the National Oceanic and Atmospheric Administration, and The commissioned corps of the Public Health Service. H&r block coupons 2012 printable Foreign Service member. H&r block coupons 2012 printable   For purposes of the choice to suspend the 5-year test period for ownership and use, you are a member of the Foreign Service if you are any of the following. H&r block coupons 2012 printable A Chief of mission. H&r block coupons 2012 printable An Ambassador at large. H&r block coupons 2012 printable A member of the Senior Foreign Service. H&r block coupons 2012 printable A Foreign Service officer. H&r block coupons 2012 printable Part of the Foreign Service personnel. H&r block coupons 2012 printable Employee of the intelligence community. H&r block coupons 2012 printable   For purposes of the choice to suspend the 5-year test period for ownership and use, you are an employee of the intelligence community if you are an employee of any of the following. H&r block coupons 2012 printable The Office of the Director of National Intelligence. H&r block coupons 2012 printable The Central Intelligence Agency. H&r block coupons 2012 printable The National Security Agency. H&r block coupons 2012 printable The Defense Intelligence Agency. H&r block coupons 2012 printable The National Geospatial-Intelligence Agency. H&r block coupons 2012 printable The National Reconnaissance Office and any other office within the Department of Defense for the collection of specialized national intelligence through reconnaissance programs. H&r block coupons 2012 printable Any of the intelligence elements of the Army, the Navy, the Air Force, the Marine Corps, the Federal Bureau of Investigation, the Department of Treasury, the Department of Energy, and the Coast Guard. H&r block coupons 2012 printable The Bureau of Intelligence and Research of the Department of State. H&r block coupons 2012 printable Any of the elements of the Department of Homeland Security concerned with the analyses of foreign intelligence information. H&r block coupons 2012 printable Qualified official extended duty. H&r block coupons 2012 printable   You are on qualified official extended duty if you are on extended duty while: Serving at a duty station at least 50 miles from your main home, or Living in Government quarters under Government orders. H&r block coupons 2012 printable   You are on extended duty when you are called or ordered to active duty for a period of more than 90 days or for an indefinite period. H&r block coupons 2012 printable Married Persons If you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use tests, you can exclude up to $250,000 of the gain. H&r block coupons 2012 printable (But see Special rules for joint returns, next. H&r block coupons 2012 printable ) Special rules for joint returns. H&r block coupons 2012 printable   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. H&r block coupons 2012 printable You are married and file a joint return for the year. H&r block coupons 2012 printable Either you or your spouse meets the ownership test. H&r block coupons 2012 printable Both you and your spouse meet the use test. H&r block coupons 2012 printable During the 2-year period ending on the date of the sale, neither you nor your spouse excluded gain from the sale of another home. H&r block coupons 2012 printable If either spouse does not satisfy all these requirements, the maximum exclusion that can be claimed by the couple is the total of the maximum exclusions that each spouse would qualify for if not married and the amounts were figured separately. H&r block coupons 2012 printable For this purpose, each spouse is treated as owning the property during the period that either spouse owned the property. H&r block coupons 2012 printable Example 1—one spouse sells a home. H&r block coupons 2012 printable Emily sells her home in June 2013 for a gain of $300,000. H&r block coupons 2012 printable She marries Jamie later in the year. H&r block coupons 2012 printable She meets the ownership and use tests, but Jamie does not. H&r block coupons 2012 printable Emily can exclude up to $250,000 of gain on a separate or joint return for 2013. H&r block coupons 2012 printable The $500,000 maximum exclusion for certain joint returns does not apply because Jamie does not meet the use test. H&r block coupons 2012 printable Example 2—each spouse sells a home. H&r block coupons 2012 printable The facts are the same as in Example 1 except that Jamie also sells a home in 2013 for a gain of $200,000 before he marries Emily. H&r block coupons 2012 printable He meets the ownership and use tests on his home, but Emily does not. H&r block coupons 2012 printable Emily can exclude $250,000 of gain and Jamie can exclude $200,000 of gain on the respective sales of their individual homes. H&r block coupons 2012 printable However, Emily cannot use Jamie's unused exclusion to exclude more than $250,000 of gain. H&r block coupons 2012 printable Therefore, Emily and Jamie must recognize $50,000 of gain on the sale of Emily's home. H&r block coupons 2012 printable The $500,000 maximum exclusion for certain joint returns does not apply because Emily and Jamie do not both meet the use test for the same home. H&r block coupons 2012 printable Sale of main home by surviving spouse. H&r block coupons 2012 printable   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. H&r block coupons 2012 printable   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home. H&r block coupons 2012 printable The sale or exchange took place after 2008. H&r block coupons 2012 printable The sale or exchange took place no more than 2 years after the date of death of your spouse. H&r block coupons 2012 printable You have not remarried. H&r block coupons 2012 printable You and your spouse met the use test at the time of your spouse's death. H&r block coupons 2012 printable You or your spouse met the ownership test at the time of your spouse's death. H&r block coupons 2012 printable Neither you nor your spouse excluded gain from the sale of another home during the last 2 years before the date of death. H&r block coupons 2012 printable The ownership and use tests were described earlier. H&r block coupons 2012 printable Example. H&r block coupons 2012 printable Harry owned and used a house as his main home since 2009. H&r block coupons 2012 printable Harry and Wilma married on July 1, 2013, and from that date they used Harry's house as their main home. H&r block coupons 2012 printable Harry died on August 15, 2013, and Wilma inherited the property. H&r block coupons 2012 printable Wilma sold the property on September 1, 2013, at which time she had not remarried. H&r block coupons 2012 printable Although Wilma owned and used the house for less than 2 years, Wilma is considered to have satisfied the ownership and use tests because her period of ownership and use includes the period that Harry owned and used the property before death. H&r block coupons 2012 printable Home transferred from spouse. H&r block coupons 2012 printable   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. H&r block coupons 2012 printable Use of home after divorce. H&r block coupons 2012 printable   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. H&r block coupons 2012 printable Reduced Maximum Exclusion If you fail to meet the requirements to qualify for the $250,000 or $500,000 exclusion, you may still qualify for a reduced exclusion. H&r block coupons 2012 printable This applies to those who: Fail to meet the ownership and use tests, or Have used the exclusion within 2 years of selling their current home. H&r block coupons 2012 printable In both cases, to qualify for a reduced exclusion, the sale of your main home must be due to one of the following reasons. H&r block coupons 2012 printable A change in place of employment. H&r block coupons 2012 printable Health. H&r block coupons 2012 printable Unforeseen circumstances. H&r block coupons 2012 printable Qualified individual. H&r block coupons 2012 printable   For purposes of the reduced maximum exclusion, a qualified individual is any of the following. H&r block coupons 2012 printable You. H&r block coupons 2012 printable Your spouse. H&r block coupons 2012 printable A co-owner of the home. H&r block coupons 2012 printable A person whose main home is the same as yours. H&r block coupons 2012 printable Primary reason for sale. H&r block coupons 2012 printable   One of the three reasons above will be considered to be the primary reason you sold your home if either (1) or (2) is true. H&r block coupons 2012 printable You qualify under a “safe harbor. H&r block coupons 2012 printable ” This is a specific set of facts and circumstances that, if applicable, qualifies you to claim a reduced maximum exclusion. H&r block coupons 2012 printable Safe harbors corresponding to the reasons listed above are described later. H&r block coupons 2012 printable A safe harbor does not apply, but you can establish, based on facts and circumstances, that the primary reason for the sale is a change in place of employment, health, or unforeseen circumstances. H&r block coupons 2012 printable  Factors that may be relevant in determining your primary reason for sale include whether: Your sale and the circumstances causing it were close in time, The circumstances causing your sale occurred during the time you owned and used the property as your main home, The circumstances causing your sale were not reasonably foreseeable when you began using the property as your main home, Your financial ability to maintain the property became materially impaired, The suitability of the property as your main home materially changed, and During the time you owned the property, you used it as your home. H&r block coupons 2012 printable Change in Place of Employment You may qualify for a reduced exclusion if the primary reason for the sale of your main home is a change in the location of employment of a qualified individual. H&r block coupons 2012 printable Employment. H&r block coupons 2012 printable   For this purpose, employment includes the start of work with a new employer or continuation of work with the same employer. H&r block coupons 2012 printable It also includes the start or continuation of self-employment. H&r block coupons 2012 printable Distance safe harbor. H&r block coupons 2012 printable   A change in place of employment is considered to be the reason you sold your home if: The change occurred during the period you owned and used the property as your main home, and The new place of employment is at least 50 miles farther from the home you sold than was the former place of employment (or, if there was no former place of employment, the distance between your new place of employment and the home sold is at least 50 miles). H&r block coupons 2012 printable Example. H&r block coupons 2012 printable Justin was unemployed and living in a townhouse in Florida he had owned and used as his main home since 2012. H&r block coupons 2012 printable He got a job in North Carolina and sold his townhouse in 2013. H&r block coupons 2012 printable Because the distance between Justin's new place of employment and the home he sold is at least 50 miles, the sale satisfies the conditions of the distance safe harbor. H&r block coupons 2012 printable Justin's sale of his home is considered to be because of a change in place of employment, and he is entitled to claim a reduced maximum exclusion of gain from the sale. H&r block coupons 2012 printable Health The sale of your main home is because of health if your primary reason for the sale is: To obtain, provide, or facilitate the diagnosis, cure, mitigation, or treatment of disease, illness, or injury of a qualified individual, or To obtain or provide medical or personal care for a qualified individual suffering from a disease, illness, or injury. H&r block coupons 2012 printable The sale of your home is not because of health if the sale merely benefits a qualified individual's general health or well-being. H&r block coupons 2012 printable For purposes of this reason, a qualified individual includes, in addition to the individuals listed earlier under Qualified individual , any of the following family members of these individuals. H&r block coupons 2012 printable Parent, grandparent, stepmother, stepfather. H&r block coupons 2012 printable Child, grandchild, stepchild, adopted child, eligible foster child. H&r block coupons 2012 printable Brother, sister, stepbrother, stepsister, half-brother, half-sister. H&r block coupons 2012 printable Mother-in-law, father-in-law, brother-in-law, sister-in-law, son-in-law, or daughter-in-law. H&r block coupons 2012 printable Uncle, aunt, nephew, niece, or cousin. H&r block coupons 2012 printable Example. H&r block coupons 2012 printable In 2012, Chase and Lauren, spouses, bought a house that they used as their main home. H&r block coupons 2012 printable Lauren's father has a chronic disease and is unable to care for himself. H&r block coupons 2012 printable In 2013, Chase and Lauren sold their home in order to move into Lauren's father's house to provide care for him. H&r block coupons 2012 printable Because the primary reason for the sale of their home was to provide care for Lauren's father, Chase and Lauren are entitled to a reduced maximum exclusion. H&r block coupons 2012 printable Doctor's recommendation safe harbor. H&r block coupons 2012 printable   Health is considered to be the reason you sold your home if, for one or more of the reasons listed at the beginning of this discussion, a doctor recommends a change of residence. H&r block coupons 2012 printable Unforeseen Circumstances The sale of your main home is because of an unforeseen circumstance if your primary reason for the sale is the occurrence of an event that you could not reasonably have anticipated before buying and occupying that home. H&r block coupons 2012 printable You are not considered to have an unforeseen circumstance if the primary reason you sold your home was that you preferred to get a different home or because your finances improved. H&r block coupons 2012 printable Specific event safe harbors. H&r block coupons 2012 printable   Unforeseen circumstances are considered to be the reason for selling your home if any of the following events occurred while you owned and used the property as your main home. H&r block coupons 2012 printable An involuntary conversion of your home, such as when your home is destroyed or condemned. H&r block coupons 2012 printable Natural or man-made disasters or acts of war or terrorism resulting in a casualty to your home, whether or not your loss is deductible. H&r block coupons 2012 printable In the case of qualified individuals (listed earlier under Qualified individual ): Death, Unemployment (if the individual is eligible for unemployment compensation), A change in employment or self-employment status that results in the individual's inability to pay reasonable basic living expenses (listed under Reasonable basic living expenses , later) for his or her household, Divorce or legal separation under a decree of divorce or separate maintenance, or Multiple births resulting from the same pregnancy. H&r block coupons 2012 printable An event the IRS determined to be an unforeseen circumstance in published guidance of general applicability. H&r block coupons 2012 printable For example, the IRS determined the September 11, 2001, terrorist attacks to be an unforeseen circumstance. H&r block coupons 2012 printable Reasonable basic living expenses. H&r block coupons 2012 printable   Reasonable basic living expenses for your household include the following. H&r block coupons 2012 printable Amounts spent for food. H&r block coupons 2012 printable Amounts spent for clothing. H&r block coupons 2012 printable Housing and related expenses. H&r block coupons 2012 printable Medical expenses. H&r block coupons 2012 printable Transportation expenses. H&r block coupons 2012 printable Tax payments. H&r block coupons 2012 printable Court-ordered payments. H&r block coupons 2012 printable Expenses reasonably necessary to produce income. H&r block coupons 2012 printable   Any of these amounts spent to maintain an affluent or luxurious standard of living are not reasonable basic living expenses. H&r block coupons 2012 printable Nonqualified Use Gain from the sale or exchange of the main home is not excludable from income if it is allocable to periods of nonqualified use. H&r block coupons 2012 printable Nonqualified use means any period after 2008 where neither you nor your spouse (or your former spouse) used the property as a main home, with certain exceptions (see next). H&r block coupons 2012 printable Exceptions. H&r block coupons 2012 printable   A period of nonqualified use does not include: Any portion of the 5-year period ending on the date of the sale or exchange after the last date you (or your spouse) use the property as a main home; Any period (not to exceed an aggregate period of 10 years) during which you (or your spouse) are serving on qualified official extended duty: As a member of the uniformed services; As a member of the Foreign Service of the United States; or As an employee of the intelligence community; and Any other period of temporary absence (not to exceed an aggregate period of 2 years) due to change of employment, health conditions, or such other unforeseen circumstances as may be specified by the IRS. H&r block coupons 2012 printable Calculation. H&r block coupons 2012 printable   To figure the portion of the gain allocated to the period of nonqualified use, multiply the gain (net of any depreciation allowed or allowable on the property for periods after May 6, 1997) by the following fraction:   Total nonqualified use during the period of ownership after 2008     Total period of ownership     This calculation can be found in Worksheet 2, line 10, later in this publication. H&r block coupons 2012 printable   For examples of this calculation, see Business Use or Rental of Home , next. H&r block coupons 2012 printable Business Use or Rental of Home You may be able to exclude gain from the sale of a home you have used for business or to produce rental income if you meet the ownership and use tests. H&r block coupons 2012 printable Example 1. H&r block coupons 2012 printable On May 23, 2007, Amy, who is unmarried for all years in this example, bought a house. H&r block coupons 2012 printable She moved in on that date and lived in it until May 31, 2009, when she moved out of the house and put it up for rent. H&r block coupons 2012 printable The house was rented from June 1, 2009, to March 31, 2011. H&r block coupons 2012 printable Amy claimed depreciation deductions in 2009 through 2011 totaling $10,000. H&r block coupons 2012 printable Amy moved back into the house on April 1, 2011, and lived there until she sold it on January 31, 2013, for a gain of $200,000. H&r block coupons 2012 printable During the 5-year period ending on the date of the sale (January 31, 2008–January 31, 2013), Amy owned and lived in the house for more than 2 years as shown in the following table. H&r block coupons 2012 printable Five-Year Period Used as Home Used as Rental 1/31/08 – 5/31/09 16 months   6/01/09 – 3/31/11   22 months 4/01/11 – 1/31/13 22 months     38 months 22 months       During the period Amy owned the house (2,080 days), her period of nonqualified use was 668 days. H&r block coupons 2012 printable Because the gain attributable to periods of nonqualified use is $60,990, Amy can exclude $129,010 of her gain, as shown on Worksheet 2. H&r block coupons 2012 printable Example 2. H&r block coupons 2012 printable William owned and used a house as his main home from 2007 through 2010. H&r block coupons 2012 printable On January 1, 2011, he moved to another state. H&r block coupons 2012 printable He rented his house from that date until April 30, 2013, when he sold it. H&r block coupons 2012 printable During the 5-year period ending on the date of sale (May 1, 2008-April 30, 2013), William owned and lived in the house for more than 2 years. H&r block coupons 2012 printable Because it was rental property at the time of the sale, he must report the sale on Form 4797. H&r block coupons 2012 printable Because the period of nonqualified use does not include any part of the 5-year period after the last date William lived in the house, he has no period of nonqualified use. H&r block coupons 2012 printable Because he met the ownership and use tests, he can exclude gain up to $250,000. H&r block coupons 2012 printable However, he cannot exclude the part of the gain equal to the depreciation he claimed or could have claimed for renting the house, as explained next. H&r block coupons 2012 printable Depreciation after May 6, 1997. H&r block coupons 2012 printable   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. H&r block coupons 2012 printable If you can show by adequate records or other evidence that the depreciation allowed was less than the amount allowable, then you may limit the amount of gain recognized to the depreciation allowed. H&r block coupons 2012 printable Unrecaptured section 1250 gain. H&r block coupons 2012 printable   This is the part of any long-term capital gain from the sale of your home that is due to depreciation and cannot be excluded. H&r block coupons 2012 printable To figure the amount of unrecaptured section 1250 gain to be reported on Schedule D (Form 1040), you must also take into account certain gains or losses from the sale of property other than your home. H&r block coupons 2012 printable Use the Unrecaptured Section 1250 Gain Worksheet in the Schedule D instructions for this purpose. H&r block coupons 2012 printable Worksheet 2. H&r block coupons 2012 printable Taxable Gain on Sale of Home—Completed Example 1 for Amy Part 1. H&r block coupons 2012 printable Gain or (Loss) on Sale       1. H&r block coupons 2012 printable   Selling price of home 1. H&r block coupons 2012 printable     2. H&r block coupons 2012 printable   Selling expenses (including commissions, advertising and legal fees, and seller-paid loan charges) 2. H&r block coupons 2012 printable     3. H&r block coupons 2012 printable   Subtract line 2 from line 1. H&r block coupons 2012 printable This is the amount realized 3. H&r block coupons 2012 printable     4. H&r block coupons 2012 printable   Adjusted basis of home sold (from Worksheet 1, line 13) 4. H&r block coupons 2012 printable     5. H&r block coupons 2012 printable   Gain or (loss) on the sale. H&r block coupons 2012 printable Subtract line 4 from line 3. H&r block coupons 2012 printable If this is a loss, stop here 5. H&r block coupons 2012 printable 200,000   Part 2. H&r block coupons 2012 printable Exclusion and Taxable Gain       6. H&r block coupons 2012 printable   Enter any depreciation allowed or allowable on the property for periods after May 6, 1997. H&r block coupons 2012 printable If none, enter -0- 6. H&r block coupons 2012 printable 10,000   7. H&r block coupons 2012 printable   Subtract line 6 from line 5. H&r block coupons 2012 printable If the result is less than zero, enter -0- 7. H&r block coupons 2012 printable 190,000   8. H&r block coupons 2012 printable   Aggregate number of days of nonqualified use after 2008. H&r block coupons 2012 printable If none, enter -0-. H&r block coupons 2012 printable  If line 8 is equal to zero, skip to line 12 and enter the amount from line 7 on line 12 8. H&r block coupons 2012 printable 668   9. H&r block coupons 2012 printable   Number of days taxpayer owned the property 9. H&r block coupons 2012 printable 2,080   10. H&r block coupons 2012 printable   Divide the amount on line 8 by the amount on line 9. H&r block coupons 2012 printable Enter the result as a decimal (rounded to at least 3 places). H&r block coupons 2012 printable But do not enter an amount greater than 1. H&r block coupons 2012 printable 00 10. H&r block coupons 2012 printable 0. H&r block coupons 2012 printable 321   11. H&r block coupons 2012 printable   Gain allocated to nonqualified use. H&r block coupons 2012 printable (Line 7 multiplied by line 10) 11. H&r block coupons 2012 printable 60,990   12. H&r block coupons 2012 printable   Gain eligible for exclusion. H&r block coupons 2012 printable Subtract line 11 from line 7 12. H&r block coupons 2012 printable 129,010   13. H&r block coupons 2012 printable   If you qualify to exclude gain on the sale, enter your maximum exclusion (see Maximum Exclusion ). H&r block coupons 2012 printable  If you qualify for a reduced maximum exclusion, enter the amount from Worksheet 3, line 7. H&r block coupons 2012 printable If you do  not qualify to exclude gain, enter -0- 13. H&r block coupons 2012 printable 250,000   14. H&r block coupons 2012 printable   Exclusion. H&r block coupons 2012 printable Enter the smaller of line 12 or line 13 14. H&r block coupons 2012 printable 129,010   15. H&r block coupons 2012 printable   Taxable gain. H&r block coupons 2012 printable Subtract line 14 from line 5. H&r block coupons 2012 printable Report your taxable gain as described under Reporting the Sale . H&r block coupons 2012 printable If the amount on line 6 is more than zero, complete line 16 15. H&r block coupons 2012 printable 70,990   16. H&r block coupons 2012 printable   Enter the smaller of line 6 or line 15. H&r block coupons 2012 printable Enter this amount on line 12 of the Unrecaptured Section 1250 Gain  Worksheet in the instructions for Schedule D (Form 1040) 16. H&r block coupons 2012 printable 10,000 Property Used Partly for Business or Rental If you use property partly as a home and partly for business or to produce rental income, the treatment of any gain on the sale depends partly on whether the business or rental part of the property is part of your home or separate from it. H&r block coupons 2012 printable Part of Home Used for Business or Rental If the part of your property used for business or to produce rental income is within your home, such as a room used as a home office for a business, you do not need to allocate gain on the sale of the property between the business part of the property and the part used as a home. H&r block coupons 2012 printable In addition, you do not need to report the sale of the business or rental part on Form 4797. H&r block coupons 2012 printable This is true whether or not you were entitled to claim any depreciation. H&r block coupons 2012 printable However, you cannot exclude the part of any gain equal to any depreciation allowed or allowable after May 6, 1997. H&r block coupons 2012 printable See Depreciation after May 6, 1997, earlier. H&r block coupons 2012 printable Example 1. H&r block coupons 2012 printable Ray sold his main home in 2013 at a $30,000 gain. H&r block coupons 2012 printable He has no gains or losses from the sale of property other than the gain from the sale of his home. H&r block coupons 2012 printable He meets the ownership and use tests to exclude the gain from his income. H&r block coupons 2012 printable However, he used part of the home as a business office in 2012 and claimed $500 depreciation. H&r block coupons 2012 printable Because the business office was part of his home (not separate from it), he does not have to allocate the gain on the sale between the business part of the property and the part used as a home. H&r block coupons 2012 printable In addition, he does not have to report any part of the gain on Form 4797. H&r block coupons 2012 printable Because Ray was entitled to take a depreciation deduction, he must recognize $500 of the gain as unrecaptured section 1250 gain. H&r block coupons 2012 printable He reports his gain, exclusion, and the taxable gain of $500 on Form 8949 and Schedule D (Form 1040). H&r block coupons 2012 printable Example 2. H&r block coupons 2012 printable The facts are the same as in Example 1 except that Ray was not entitled to claim depreciation for the business use of his home. H&r block coupons 2012 printable Since Ray did not claim any depreciation, he can exclude the entire $30,000 gain. H&r block coupons 2012 printable Separate Part of Property Used for Business or Rental You may have used part of your property as your home and a separate part of it for business or to produce rental income. H&r block coupons 2012 printable Examples are: A working farm on which your house was located, A duplex in w
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Tax Relief for Victims of Tropical Storm Irene in Connecticut

E-file to Remain Open through Oct. 31 for Irene Victims

CT-2011-40, Sept. 6, 2011

WASHINGTON — Victims of Tropical Storm Irene that began on Aug. 27, 2011, in Connecticut may qualify for tax relief from the Internal Revenue Service.

The President has declared the following counties a federal disaster area: Fairfield, Hartford, Litchfield, Middlesex, New Haven, New London, Tolland and Windham. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Aug. 27, and on or before Oct. 31, have been postponed to Oct. 31, 2011. This includes corporations and other businesses that previously obtained an extension until Sept. 15 to file their 2010 returns, and individuals and businesses that received a similar extension until Oct. 17. It also includes the estimated tax payment for the third quarter, normally due Sept. 15.

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Aug. 27, and on or before Sept. 12, as long as the deposits are made by Sept. 12, 2011.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.

Covered Disaster Area

The counties listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until Oct. 31 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Aug. 27 and on or before Oct. 31.

The IRS also gives affected taxpayers until Oct. 31 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Aug. 27 and on or before Oct. 31.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Aug. 27 and on or before Sept. 12 provided the taxpayer makes these deposits by Sept. 12.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “Connecticut/Tropical Storm Irene” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from this website, irs.gov, or order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.

Related Information

Disaster Assistance and Emergency Relief for Individuals and Businesses
Recent IRS Disaster Relief Announcements

 

 

Page Last Reviewed or Updated: 20-Feb-2014

The H&r Block Coupons 2012 Printable

H&r block coupons 2012 printable Publication 938 - Main Content Table of Contents Who May Request Information How To Request Information Who May Request Information The persons listed below, or their agent or representative, should follow the procedures in this publication to request tax information from the representative of the REMIC or the issuer of the CDO. H&r block coupons 2012 printable Any broker who holds a REMIC regular interest or CDO for itself or as a nominee for an actual holder. H&r block coupons 2012 printable A middleman who holds a REMIC regular interest or CDO as a nominee for an actual holder and who is required to file an information return with respect to the regular interest or CDO. H&r block coupons 2012 printable The following persons, if they hold their REMIC regular interest or CDO directly and not through a nominee. H&r block coupons 2012 printable A corporation. H&r block coupons 2012 printable A fiscal year taxpayer. H&r block coupons 2012 printable A dealer in securities or commodities required to register as such under the laws of the United States or a state. H&r block coupons 2012 printable A real estate investment trust (as defined in section 856). H&r block coupons 2012 printable An entity registered at all times during the tax year under the Investment Company Act of 1940. H&r block coupons 2012 printable A common trust fund (as defined in section 584(a)). H&r block coupons 2012 printable A financial institution such as a mutual savings bank, savings and loan association, building and loan association, cooperative bank, homestead association, credit union, industrial loan association or bank, or other similar organization. H&r block coupons 2012 printable Any trust that is exempt from tax under section 664(c) (a charitable remainder annuity trust or a charitable remainder unitrust). H&r block coupons 2012 printable A REMIC. H&r block coupons 2012 printable Note. H&r block coupons 2012 printable A person listed in (3) above who holds an interest through a nominee (instead of directly from the REMIC or the issuer of the CDO) should request the information from the nominee instead of from the REMIC or the issuer of the CDO. H&r block coupons 2012 printable The request should be made of the nominee in the same manner as specified below for requesting information from the representative. H&r block coupons 2012 printable How To Request Information Use the directory to find the representative of the REMIC or issuer of the CDO. H&r block coupons 2012 printable You can request information from the representative or issuer by telephone or mail. H&r block coupons 2012 printable If only an address is listed in the directory, you must request the information in writing. H&r block coupons 2012 printable Your request must specify the calendar quarters and the classes of REMIC regular interests or CDOs for which you need the information. H&r block coupons 2012 printable The representative or issuer must provide the information to you by the later of: The 30th day after the close of the calendar quarter for which you request the information, or The 14th day after the receipt of your request. H&r block coupons 2012 printable The representative or issuer can provide the information to you by telephone, by written statement sent by first class mail, by printing the information in a publication that is generally read by and available to persons who may request the information (for example, a webpage), or by any other method agreed to by both parties. H&r block coupons 2012 printable If the information is published, the representative or issuer must notify you by telephone or in writing of the publication in which the information will appear, the date of its appearance, and, if possible, the page number. H&r block coupons 2012 printable Prev  Up  Next   Home   More Online Publications