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H&r Block Taxes

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H&r Block Taxes

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

Mission and Composition

The Advisory Committee on Tax Exempt and Government Entities (ACT) is governed by the Federal Advisory Committee Act, Public Law 92-463. The ACT is an organized public forum for discussion of relevant employee plans, exempt organizations, tax-exempt bonds, and federal, state, local and Indian tribal government issues. The ACT also enables the IRS to receive regular input on the development and implementation of IRS policy concerning these communities. ACT members present interested public's observations about current or proposed IRS policies, programs and procedures as well as suggest improvements through a yearly final report.

ACT members are appointed by the Department of the Treasury upon recommendation of the Commissioner of the IRS, and serve for two-year terms. Terms can be extended for an additional year with approval from the IRS Commissioner of Tax Exempt and Government Entities. The IRS seeks a diverse group of members representing a broad spectrum of persons experienced in employee plans, exempt organizations, tax-exempt bonds, and federal, state, local and Indian tribal governments. ACT members meet in Washington, DC approximately five times a year, each session lasting two days. Members are not paid for their time or services. Members are reimbursed for their travel-related expenses to attend working sessions and public meetings, in accordance with 5 U.S.C. 5703. View the 2013 ACT Renewal Charter.

Nomination Process

The IRS requests nominations for membership on the ACT in the fall of each year.  Subscribe to IRS Newswire to receive announcements.  Interested parties may nominate themselves or another qualified person for membership. Nominations should describe and document the proposed member's qualifications for ACT membership, including the nominee's past or current affiliations and dealings with the particular community or segment of the community that he or she wishes to represent (such as employee plans). Nominations should also specify the vacancy for which they wish to be considered.

Clearance Process

Selected nominees must go through a clearance process before appointment by the Department of the Treasury. In accordance with the Department of the Treasury Directive 21-03, the clearance process includes, among other things, pre-appointment and annual tax checks, and an FBI criminal and subversive name check, fingerprint check, and security clearance.

Read past ACT reports.

For additional information, please contact:

Internal Revenue Service
ATTN: Mark Kirbabas
Acting Designated Federal Officer for the ACT
TEGE/SE:T:CL
NCA-676
1111 Constitution Avenue, NW
Washington, DC 20224-0002

Page Last Reviewed or Updated: 16-Sep-2013

The H&r Block Taxes

H&r block taxes Publication 4492-B - Main Content Table of Contents DefinitionsMidwestern Disaster Areas Applicable Disaster Date Charitable Giving IncentivesTemporary Suspension of Limits on Charitable Contributions Standard Mileage Rate for Charitable Use of Vehicles Mileage Reimbursements to Charitable Volunteers Casualty and Theft LossesTime limit for making election. H&r block taxes Replacement Period for Nonrecognition of Gain Net Operating Losses IRAs and Other Retirement PlansDefinitions Taxation of Qualified Disaster Recovery Assistance Distributions Repayment of Qualified Disaster Recovery Assistance Distributions Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Loans From Qualified Plans Additional Tax Relief for IndividualsEarned Income Credit and Child Tax Credit Additional Exemption for Housing Individuals Displaced by the Severe Storms, Tornadoes, or Flooding Education Credits Recapture of Federal Mortgage Subsidy Exclusion of Certain Cancellations of Indebtedness by Reason of the Severe Storms, Tornadoes, or Flooding Tax Relief for Temporary Relocation Additional Tax Relief for BusinessesEmployee Retention Credit Employer Housing Credit and Exclusion Demolition and Clean-up Costs Increase in Rehabilitation Tax Credit Request for Copy or Transcript of Tax Return How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). H&r block taxes Definitions The following definitions are used throughout this publication. H&r block taxes Midwestern Disaster Areas A Midwestern disaster area is an area for which a major disaster was declared by the President during the period beginning on May 20, 2008, and ending on July 31, 2008, in the state of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, or Wisconsin, as a result of severe storms, tornadoes, or flooding that occurred on the applicable disaster date. H&r block taxes See Tables 1 and 2 for a list of the counties included in the Midwestern disaster areas. H&r block taxes Applicable Disaster Date The term “applicable disaster date” as used in this publication, refers to the date on which the severe storms, tornadoes, or flooding occurred in the Midwestern disaster areas. H&r block taxes You will need to know this date when using this publication for the various tax provisions. H&r block taxes Table 1 The counties listed in Table 1 below are eligible for all tax provisions shown in this publication. H&r block taxes Applicable Disaster Dates* State Affected Counties—Midwestern Disaster Areas 05/02/2008through05/12/2008 Arkansas Arkansas, Benton, Cleburne, Conway, Crittenden, Grant, Lonoke, Mississippi, Phillips, Pulaski, Saline, and Van Buren. H&r block taxes 06/01/2008through07/22/2008 Illinois Adams, Calhoun, Clark, Coles, Crawford, Cumberland, Douglas, Edgar, Hancock, Henderson, Jasper, Jersey, Lake, Lawrence, Mercer, Rock Island, Whiteside, and Winnebago. H&r block taxes 05/30/2008through06/27/2008 Indiana Adams, Bartholomew, Brown, Clay, Daviess, Dearborn, Decatur, Gibson, Grant, Greene, Hamilton, Hancock, Hendricks, Henry, Huntington, Jackson, Jefferson, Jennings, Johnson, Knox, Lawrence, Madison, Marion, Monroe, Morgan, Owen, Parke, Pike, Posey, Putnam, Randolph, Ripley, Rush, Shelby, Sullivan, Tippecanoe, Vermillion, Vigo, Washington, and Wayne. H&r block taxes 05/25/2008through08/13/2008 Iowa Adair, Adams, Allamakee, Appanoose, Audubon, Benton, Black Hawk, Boone, Bremer, Buchanan, Butler, Cass, Cedar, Cerro Gordo, Chickasaw, Clarke, Clayton, Clinton, Crawford, Dallas, Davis, Decatur, Delaware, Des Moines, Dubuque, Fayette, Floyd, Franklin, Fremont, Greene, Grundy, Guthrie, Hamilton, Hancock, Hardin, Harrison, Henry, Howard, Humboldt, Iowa, Jackson, Jasper, Johnson, Jones, Keokuk, Kossuth, Lee, Linn, Louisa, Lucas, Madison, Mahaska, Marion, Marshall, Mills, Mitchell, Monona, Monroe, Montgomery, Muscatine, Page, Polk, Pottawattamie, Poweshiek, Ringgold, Scott, Story, Tama, Union, Van Buren, Wapello, Warren, Washington, Webster, Winnebago, Winneshiek, Worth, and Wright. H&r block taxes 05/10/2008through05/11/2008 Missouri Barry, Jasper, and Newton. H&r block taxes 06/01/2008through08/13/2008 Missouri Adair, Andrew, Callaway, Cass, Chariton, Clark, Gentry, Greene, Harrison, Holt, Johnson, Lewis, Lincoln, Linn, Livingston, Macon, Marion, Monroe, Nodaway, Pike, Putnam, Ralls, St. H&r block taxes Charles, Stone, Taney, Vernon, and Webster. H&r block taxes 05/22/2008through06/24/2008 Nebraska Buffalo, Butler, Colfax, Custer, Dawson, Douglas, Gage, Hamilton, Holt, Jefferson, Kearney, Lancaster, Platte, Richardson, Sarpy, and Saunders. H&r block taxes 06/05/2008through07/25/2008 Wisconsin Adams, Calumet, Crawford, Columbia, Dane, Dodge, Fond du Lac, Grant, Green, Green Lake, Iowa, Jefferson, Juneau, Kenosha, La Crosse, Manitowoc, Marquette, Milwaukee, Monroe, Ozaukee, Racine, Richland, Rock, Sauk, Sheboygan, Vernon, Walworth, Washington, Waukesha, and Winnebago. H&r block taxes *For more details, go to www. H&r block taxes fema. H&r block taxes gov Table 2 The counties listed in Table 2 below are eligible for all of the special tax provisions shown in this publication except the following. H&r block taxes Charitable Giving Incentives. H&r block taxes Net Operating Losses. H&r block taxes Education Credits. H&r block taxes Recapture of Federal Mortgage Subsidy. H&r block taxes Tax Relief for Temporary Relocation. H&r block taxes Employee Retention Credit. H&r block taxes Employer Housing Credit and Exclusion. H&r block taxes Demolition and Clean-up Costs. H&r block taxes Increase in Rehabilitation Credit. H&r block taxes Applicable Disaster Dates* State Affected Counties—Midwestern Disaster Areas 06/01/2008through07/22/2008 Illinois Greene, Madison, Monroe, Pike, Randolph, St. H&r block taxes Clair, and Scott. H&r block taxes 05/30/2008through06/27/2008 Indiana Benton, Boone, Fountain, Franklin, Jay, Montgomery, Ohio, Switzerland, Union, and Wabash. H&r block taxes 05/25/2008through08/13/2008 Iowa Carroll, Cherokee, Lyon, Palo Alto, Pocahontas, Taylor, and Wayne. H&r block taxes 05/22/2008through06/16/2008 Kansas Barber, Barton, Bourbon, Brown, Butler, Chautauqua, Cherokee, Clark, Clay, Comanche, Cowley, Crawford, Decatur, Dickinson, Edwards, Elk, Ellis, Ellsworth, Franklin, Gove, Graham, Harper, Haskell, Hodgeman, Jackson, Jewell, Kingman, Kiowa, Lane, Linn, Logan, Mitchell, Montgomery, Ness, Norton, Osborne, Pawnee, Phillips, Pratt, Reno, Republic, Riley, Rooks, Rush, Saline, Seward, Sheridan, Smith, Stafford, Sumner, Thomas, Trego, Wallace, and Wilson. H&r block taxes 06/06/2008through06/13/2008 Michigan Allegan, Barry, Eaton, Ingham, Lake, Manistee, Mason, Missaukee, Osceola, Ottawa, Saginaw, and Wexford. H&r block taxes 06/06/2008through06/12/2008 Minnesota Cook, Fillmore, Freeborn, Houston, Mower, and Nobles. H&r block taxes 06/01/2008through08/13/2008 Missouri Atchison, Audrain, Bates, Buchanan, Cape Girardeau, Carroll, Christian, Daviess, Grundy, Howard, Jefferson, Knox, Mercer, Miller, Mississippi, Morgan, New Madrid, Pemiscot, Perry, Pettis, Platte, Polk, Randolph, Ray, Saline, Schuyler, Scotland, Shelby, St. H&r block taxes Genevieve, St. H&r block taxes Louis, the Independent City of St. H&r block taxes Louis, Scott, Sullivan, and Worth. H&r block taxes 04/23/2008through04/26/2008 Nebraska Gage, Johnson, Morrill, Nemaha, and Pawnee. H&r block taxes 05/22/2008through06/24/2008 Nebraska Adams, Blaine, Boone, Boyd, Brown, Burt, Cass, Chase, Cherry, Cuming, Dundy, Fillmore, Frontier, Furnas, Garfield, Gosper, Greeley, Hall, Hayes, Howard, Johnson, Keya Paha, Lincoln, Logan, Loup, Merrick, McPherson, Morrill, Nance, Nemaha, Otoe, Phelps, Polk, Red Willow, Rock, Saline, Seward, Sherman, Stanton, Thayer, Thomas, Thurston, Valley, Webster, Wheeler, and York. H&r block taxes 06/27/2008 Nebraska Dodge, Douglas, Sarpy, and Saunders. H&r block taxes 06/05/2008through07/25/2008 Wisconsin Lafayette. H&r block taxes * For more details, go to www. H&r block taxes fema. H&r block taxes gov Charitable Giving Incentives Temporary Suspension of Limits on Charitable Contributions This benefit applies only to the counties in Table 1. H&r block taxes Individuals. H&r block taxes   Qualified contributions are not subject to the overall limit on itemized deductions or the 50% of adjusted gross income (AGI) limit. H&r block taxes A qualified contribution is a charitable contribution paid in cash or by check to a 50% limit organization if you make an election to have the 50% limit not apply to these contributions. H&r block taxes   A qualified contribution must also meet all of the following requirements. H&r block taxes Be paid after May 1, 2008, and before January 1, 2009. H&r block taxes The contribution must be for relief efforts in one or more Midwestern disaster areas. H&r block taxes Documentation must be provided by the donee organization that the contribution was used (or will be used) for relief efforts in one or more Midwestern disaster areas. H&r block taxes   Your deduction for qualified contributions is limited to your AGI minus your deduction for all other charitable contributions. H&r block taxes You can carry over any contributions you are not able to deduct for 2008 because of this limit. H&r block taxes In 2009, the carryover of your unused qualified contributions is subject to the 50% of AGI limit. H&r block taxes Exception. H&r block taxes   Qualified contributions do not include contributions to certain private foundations described in section 509(a)(3) or contributions for the establishment of a new, or maintenance of an existing, donor advised fund. H&r block taxes Corporations. H&r block taxes   A corporation can elect to deduct qualified cash contributions without regard to the 10% of taxable income limit if the contributions were paid after May 1, 2008, and before January 1, 2009, to a qualified charitable organization (other than certain private foundations described in section 509(a)(3) or contributions for the establishment of a new, or maintenance of an existing, donor advised fund), for relief efforts in one or more Midwestern disaster areas. H&r block taxes Documentation must be provided by the donee organization that the contribution was used (or will be used) for relief efforts in one or more Midwestern disaster areas. H&r block taxes The corporation's deduction for these qualified contributions is limited to 100% of taxable income (as modified for the 10% limit) minus the corporation's deduction for all other charitable contributions. H&r block taxes Any qualified contributions over this limit can be carried over to the next 5 years, subject to the 10% of taxable income limit. H&r block taxes Partners and shareholders. H&r block taxes   Each partner in a partnership and each shareholder in an S corporation must make a separate election to have the appropriate limit not apply. H&r block taxes More information. H&r block taxes   For more information, see Publication 526 or Publication 542, Corporations. H&r block taxes Publication 526 includes a worksheet you can use to figure your deduction if any limits apply to your charitable contributions. H&r block taxes Standard Mileage Rate for Charitable Use of Vehicles This benefit applies only to the counties in Table 1. H&r block taxes The following are special standard mileage rates in effect for 2008 for the cost of operating your vehicle for providing charitable services related only to the severe storms, tornadoes, or flooding. H&r block taxes 36 cents per mile for the period beginning on the applicable disaster date through June 30, 2008. H&r block taxes 41 cents per mile for the period July 1 through December 31, 2008. H&r block taxes Mileage Reimbursements to Charitable Volunteers This benefit applies only to the counties in Table 1. H&r block taxes You can exclude from income amounts you receive as mileage reimbursements for the use of a private passenger vehicle for the benefit of a qualified charitable organization in providing relief related to the severe storms, tornadoes, or flooding during the period beginning on the applicable disaster date, and ending on December 31, 2008. H&r block taxes You cannot claim a deduction or credit for amounts you exclude. H&r block taxes You must keep records of miles driven, time, place (or use), and purpose of the mileage. H&r block taxes The amount you can exclude cannot exceed the standard business mileage rate (shown below) for expenses incurred during the following periods. H&r block taxes 50. H&r block taxes 5 cents per mile for the period beginning on the applicable disaster date through June 30, 2008. H&r block taxes 58. H&r block taxes 5 cents per mile for the period July 1 through December 31, 2008. H&r block taxes Casualty and Theft Losses This benefit applies to the counties in both Tables 1 and 2. H&r block taxes The following paragraphs explain changes to casualty and theft losses that were caused by the severe storms, tornadoes, or flooding in the Midwestern disaster areas. H&r block taxes For more information, see Publication 547. H&r block taxes Limits on personal casualty or theft losses. H&r block taxes   Losses of personal use property that arose in a Midwestern disaster area on or after the applicable disaster date are not subject to the $100 or 10% of AGI limits. H&r block taxes Qualifying losses include losses from casualties and thefts that arose in a Midwestern disaster area that were attributable to the severe storms, tornadoes, or flooding. H&r block taxes When completing Form 4684, do not include on line 17 any losses that arose in a Midwestern disaster area. H&r block taxes A loss arising in a Midwestern disaster area is not considered a loss attributable to a federally declared disaster for purposes of that line and cannot be added to your standard deduction. H&r block taxes When to deduct the loss. H&r block taxes   Casualty and theft losses are generally deductible only in the year the casualty occurred or the theft was discovered. H&r block taxes However, you can elect to deduct losses caused by the severe storms, tornadoes, or flooding on your return for the prior year. H&r block taxes Special instructions for individuals who elect to claim a Midwestern disaster area casualty or theft loss for 2007. H&r block taxes   Individuals filing or amending their 2007 tax return for casualty or theft losses that were attributable to the severe storms, tornadoes, or flooding should: Enter “Midwestern Disaster Area” at the top of Form 1040 or Form 1040X, and Complete the 2008 version of Form 4684. H&r block taxes Cross out “2008” and enter “2007” at the top of Form 4684. H&r block taxes Time limit for making election. H&r block taxes   You must make this election to claim your casualty or theft loss in 2007 by the later of the following dates. H&r block taxes The due date (without extensions) for filing your 2008 income tax return. H&r block taxes The due date (with extensions) for filing your 2007 income tax return. H&r block taxes Example. H&r block taxes If you are a calendar year individual taxpayer, you have until April 15, 2009, to amend your 2007 tax return to claim a casualty or theft loss that occurred during 2008. H&r block taxes Replacement Period for Nonrecognition of Gain This benefit applies to the counties in both Tables 1 and 2. H&r block taxes Generally, an involuntary conversion occurs when property is damaged, destroyed, stolen, seized, requisitioned, or condemned, and you receive other property or money in payment, such as insurance or a condemnation award. H&r block taxes Generally, you do not have to report a gain (if any) if you replace the property within 2 years (4 years for a main home in a federally declared disaster area). H&r block taxes However, for property that was involuntarily converted on or after the applicable disaster date, as a result of the severe storms, tornadoes, or flooding, a 5-year replacement period applies if substantially all of the use of the replacement property is in a Midwestern disaster area. H&r block taxes For more information, see the Instructions for Form 4684. H&r block taxes Net Operating Losses This benefit applies only to the counties in Table 1. H&r block taxes Qualified disaster recovery assistance loss. H&r block taxes   Generally, you can carry a net operating loss (NOL) back to the 2 tax years before the NOL year. H&r block taxes However, the portion of an NOL that is a qualified disaster recovery assistance loss can be carried back to the 5 tax years before the NOL year. H&r block taxes In addition, the 90% limit on the alternative tax NOL deduction (ATNOLD) does not apply to such portion of the ATNOLD. H&r block taxes   A qualified disaster recovery assistance loss is the smaller of: The excess of the NOL for the year over the specified liability loss for the year to which a 10-year carryback applies, or The total of the following deductions (to the extent they are taken into account in computing the NOL for the tax year): Qualified disaster recovery assistance casualty loss (as defined below), Moving expenses paid or incurred on or after the applicable disaster date, and before January 1, 2011, for the employment of an individual whose main home was in a Midwestern disaster area before the applicable disaster date, who was unable to remain in that home because of the severe storms, tornadoes, or flooding, and whose main job location (after the move) is in a Midwestern disaster area, Temporary housing expenses paid or incurred on or after the applicable disaster date, and before January 1, 2011, to house employees of the taxpayer whose main job location is in a Midwestern disaster area, Depreciation or amortization allowable for any qualified disaster recovery assistance property (even if you elected not to claim the special disaster recovery assistance depreciation allowance for such property) for the year placed in service, and Repair expenses (including expenses for the removal of debris) paid or incurred on or after the applicable disaster date, and before January 1, 2011, for any damage from the severe storms, tornadoes, or flooding to property located in a Midwestern disaster area. H&r block taxes Qualified disaster recovery assistance casualty loss. H&r block taxes   A qualified disaster recovery assistance casualty loss is any deductible section 1231 loss of property located in a Midwestern disaster area if the loss was caused by the severe storms, tornadoes, or flooding. H&r block taxes For this purpose, the amount of the loss is reduced by any recognized gain from an involuntary conversion caused by the severe storms, tornadoes, or flooding of property located in a Midwestern disaster area. H&r block taxes Any such loss taken into account in figuring your qualified disaster recovery assistance loss is not eligible for the election to be treated as having occurred in the previous tax year. H&r block taxes More information. H&r block taxes   For more information on NOLs, see Publication 536 or Publication 542, Corporations. H&r block taxes IRAs and Other Retirement Plans New rules provide for tax-favored withdrawals, repayments, and loans from certain retirement plans for taxpayers who suffered economic losses as a result of the severe storms, tornadoes, or flooding. H&r block taxes Definitions Qualified disaster recovery assistance distribution. H&r block taxes   A qualified disaster recovery assistance distribution is any distribution you received from an eligible retirement plan if all of the following apply. H&r block taxes The distribution was made on or after the applicable disaster date and before January 1, 2010. H&r block taxes Your main home was located in a Midwestern disaster area on the applicable disaster date. H&r block taxes You sustained an economic loss because of the severe storms, tornadoes, or flooding and your main home was in a Midwestern disaster area on the applicable disaster date. H&r block taxes Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. H&r block taxes   If (1) through (3) above apply, you can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified disaster recovery assistance distribution, regardless of whether the distribution was made on account of the severe storms, tornadoes, or flooding. H&r block taxes Qualified disaster recovery assistance distributions are permitted without regard to your need or the actual amount of your economic loss. H&r block taxes   The total of your qualified disaster recovery assistance distributions from all plans is limited to $100,000. H&r block taxes If you have distributions in excess of $100,000 from more than one type of plan, such as a 401(k) plan and an IRA, you can allocate the $100,000 limit among the plans any way you choose. H&r block taxes   A reduction or offset (on or after the applicable disaster date) of your account balance in an eligible retirement plan in order to repay a loan can also be designated as a qualified disaster recovery assistance distribution. H&r block taxes Eligible retirement plan. H&r block taxes   An eligible retirement plan can be any of the following. H&r block taxes A qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan). H&r block taxes A qualified annuity plan. H&r block taxes A tax-sheltered annuity contract. H&r block taxes A governmental section 457 deferred compensation plan. H&r block taxes A traditional, SEP, SIMPLE, or Roth IRA. H&r block taxes Main home. H&r block taxes   Generally, your main home is the home where you live most of the time. H&r block taxes A temporary absence due to special circumstances, such as illness, education, business, military service, evacuation, or vacation, will not change your main home. H&r block taxes Taxation of Qualified Disaster Recovery Assistance Distributions This benefit applies to the counties in both Tables 1 and 2. H&r block taxes Qualified disaster recovery assistance distributions are included in income in equal amounts over three years. H&r block taxes However, if you elect, you can include the entire distribution in your income in the year it was received. H&r block taxes Qualified disaster recovery assistance distributions are not subject to the additional 10% tax (or the additional 25% tax for certain distributions from SIMPLE IRAs) on early distributions from qualified retirement plans (including IRAs). H&r block taxes However, any distributions you receive in excess of the $100,000 qualified disaster recovery assistance distribution limit may be subject to the additional tax on early distributions. H&r block taxes For more information, see Form 8930. H&r block taxes Repayment of Qualified Disaster Recovery Assistance Distributions This benefit applies to the counties in both Tables 1 and 2. H&r block taxes If you choose, you generally can repay any portion of a qualified disaster recovery assistance distribution that is eligible for tax-free rollover treatment to an eligible retirement plan. H&r block taxes Also, you can repay a qualified disaster recovery assistance distribution made on account of a hardship from a retirement plan. H&r block taxes However, see Exceptions later for qualified disaster recovery assistance distributions you cannot repay. H&r block taxes You have three years from the day after the date you received the distribution to make a repayment. H&r block taxes Amounts that are repaid are treated as a qualified rollover and are not included in income. H&r block taxes Also, a repayment of a qualified disaster recovery assistance distribution to an IRA is not counted when figuring the one-rollover-per-year limitation. H&r block taxes See Form 8930 for more information on how to report repayments. H&r block taxes Exceptions. H&r block taxes   You cannot repay the following types of distributions. H&r block taxes Qualified disaster recovery assistance distributions received as a beneficiary (other than a surviving spouse). H&r block taxes Required minimum distributions. H&r block taxes Periodic payments (other than from an IRA) that are for: A period of 10 years or more, Your life or life expectancy, or The joint lives or joint life expectancies of you and your beneficiary. H&r block taxes Repayment of Qualified Distributions for the Purchase or Construction of a Main Home This benefit applies to the counties in both Tables 1 and 2. H&r block taxes If you received a qualified distribution to purchase or construct a main home in a Midwestern disaster area, you can repay part or all of that distribution on or after the applicable disaster date, but no later than March 3, 2009, to an eligible retirement plan. H&r block taxes For this purpose, an eligible retirement plan is any plan, annuity, or IRA to which a qualified rollover can be made. H&r block taxes To be a qualified distribution, the distribution must meet all of the following requirements. H&r block taxes The distribution is a hardship distribution from a 401(k) plan, a hardship distribution from a tax-sheltered annuity contract, or a qualified first-time homebuyer distribution from an IRA. H&r block taxes The distribution was received after the date that was 6 months before the day after the applicable disaster date. H&r block taxes The distribution was to be used to purchase or construct a main home in a Midwestern disaster area that was not purchased or constructed because of the severe storms, tornadoes, or flooding. H&r block taxes Amounts that are repaid before March 4, 2009, are treated as a qualified rollover and are not included in income. H&r block taxes Also, a repayment of a qualified distribution to an IRA is not counted when figuring the one-rollover-per-year limitation. H&r block taxes A qualified distribution not repaid before March 4, 2009, may be taxable for 2007 or 2008 and subject to the additional 10% tax (or the additional 25% tax for certain SIMPLE IRAs) on early distributions. H&r block taxes You must file Form 8930 if you received a qualified distribution that you repaid, in whole or in part, before March 4, 2009. H&r block taxes Loans From Qualified Plans This benefit applies to the counties in both Tables 1 and 2. H&r block taxes The following benefits are available to qualified individuals. H&r block taxes Increases to the limits for distributions treated as loans from employer plans. H&r block taxes A 1-year suspension for payments due on plan loans. H&r block taxes Qualified individual. H&r block taxes   You are a qualified individual if your main home was located in a Midwestern disaster area on the applicable disaster date and you had an economic loss because of the severe storms, tornadoes, or flooding. H&r block taxes Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. H&r block taxes Limits on plan loans. H&r block taxes   The $50,000 limit for distributions treated as plan loans is increased to $100,000. H&r block taxes In addition, the limit based on 50% of your vested accrued benefit is increased to 100% of that benefit. H&r block taxes If your main home was located in a Midwestern disaster area, the higher limits apply only to loans received during the period beginning on October 3, 2008, and ending on December 31, 2009. H&r block taxes One-year suspension of loan payments. H&r block taxes   Payments on plan loans outstanding on or after the applicable disaster date, may be suspended for 1 year by the plan administrator. H&r block taxes To qualify for the suspension, the due date for any loan payment must occur during the period beginning on the applicable disaster date and ending on December 31, 2009. H&r block taxes Additional Tax Relief for Individuals Earned Income Credit and Child Tax Credit This benefit applies to the counties in both Tables 1 and 2. H&r block taxes You can elect to use your 2007 earned income to figure your earned income credit (EIC) and additional child tax credit for 2008 if: Your 2008 earned income is less than your 2007 earned income, and At least one of the following statements is true. H&r block taxes Your main home on the applicable disaster date was in a Midwestern disaster area as shown in Table 1. H&r block taxes Your main home on the applicable disaster date was in a Midwestern disaster area as shown in Table 2, and you were displaced from that home because of the severe storms, tornadoes, or flooding. H&r block taxes Earned income. H&r block taxes    For the purpose of this election, your earned income for both the EIC and the additional child tax credit is the amount of earned income used to figure your EIC, even if you did not take the EIC and even if that amount is different than your earned income for the additional child tax credit. H&r block taxes If you are claiming only the additional child tax credit, you must figure the amount of your earned income for EIC purposes to determine your eligibility to make the election and the amount of the credit. H&r block taxes Joint returns. H&r block taxes   If you file a joint return, you qualify to make this election even if only one spouse meets the requirements. H&r block taxes If you make the election, your 2007 earned income is the sum of your 2007 earned income and your spouse's 2007 earned income. H&r block taxes Making the election. H&r block taxes   If you make the election to use your 2007 earned income, the election applies for figuring both the EIC and the additional child tax credit. H&r block taxes However, you can make the election for the additional child tax credit even if you do not take the EIC. H&r block taxes   Electing to use your 2007 earned income can increase or decrease your EIC. H&r block taxes Take the following steps to decide whether to make the election. H&r block taxes Figure your 2008 EIC using your 2007 earned income. H&r block taxes Figure your 2008 additional child tax credit using your 2007 earned income for EIC purposes. H&r block taxes Add the results of (1) and (2). H&r block taxes Figure your 2008 EIC using your 2008 earned income. H&r block taxes Figure your 2008 additional child tax credit using your 2008 earned income for additional child tax credit purposes. H&r block taxes Add the results of (4) and (5). H&r block taxes Compare the results of (3) and (6). H&r block taxes If (3) is larger than (6), it is to your benefit to make the election. H&r block taxes If (3) is equal to or smaller than (6), making the election will not help you. H&r block taxes   If you elect to use your 2007 earned income and you are claiming the EIC, enter “PYEI” and the amount of your 2007 earned income on the dotted line next to line 64a of Form 1040, on the line next to line 40a of Form 1040A, or in the space to the left of line 8a of Form 1040EZ. H&r block taxes   If you elect to use your 2007 earned income and you are claiming the additional child tax credit, enter your 2007 earned income for EIC purposes (even if you did not claim the EIC) on Form 8812, Additional Child Tax Credit, line 4a, and check the box on that line. H&r block taxes Getting your 2007 tax return information. H&r block taxes   If you do not have your 2007 tax records, you can get the amount of earned income used to figure your 2007 EIC by calling 1-866-562-5227. H&r block taxes You can also get this information by visiting the IRS website at www. H&r block taxes irs. H&r block taxes gov. H&r block taxes   If you prefer to figure your 2007 earned income yourself, copies or transcripts of your filed and processed tax returns can help you reconstruct your tax records. H&r block taxes See Request for Copy or Transcript of Tax Return on page 11. H&r block taxes Additional Exemption for Housing Individuals Displaced by the Severe Storms, Tornadoes, or Flooding This benefit applies to the counties in both Tables 1 and 2. H&r block taxes You can claim an additional exemption amount of $500 for providing housing in your main home for each individual displaced by the severe storms, tornadoes, or flooding. H&r block taxes The additional exemption amount is claimed on Form 8914. H&r block taxes You can claim an additional exemption amount only one time for a specific individual. H&r block taxes If you claimed an additional exemption amount for an individual in 2008, you cannot claim that amount again for the same individual in 2009. H&r block taxes The maximum additional exemption amount you can claim for all displaced individuals is $2,000. H&r block taxes Any additional exemption amount you claimed for displaced individuals in 2008 will reduce the $2,000 maximum for 2009. H&r block taxes The $2,000 limit applies to a husband and wife, whether the husband and wife file joint returns or separate returns. H&r block taxes If married filing separately, the $2,000 can be divided in $500 increments between the spouses. H&r block taxes For example, if one spouse claims an additional exemption amount for one displaced individual, the other spouse, if otherwise eligible, can claim additional exemption amounts for three different displaced individuals. H&r block taxes If two or more taxpayers share the same main home, only one taxpayer in that main home can claim the additional exemption amount for a specific displaced individual. H&r block taxes In order for you to be considered to have provided housing, you must have a legal interest in the main home (that is, own or rent the home). H&r block taxes To qualify as a displaced individual, the individual: Must have had his or her main home in a Midwestern disaster area on the applicable disaster date, and he or she must have been displaced from that home. H&r block taxes If the individual's main home was located in a Midwestern disaster area as shown in Table 2, that home must have been damaged by the severe storms, tornadoes, or flooding or the individual must have been evacuated from that home because of the severe storms, tornadoes, or flooding, Must have been provided housing in your main home for a period of at least 60 consecutive days ending in the tax year in which the exemption is claimed, and Cannot be your spouse or dependent. H&r block taxes You cannot claim the additional exemption amount if you received rent (or any other amount) from any source for providing the housing. H&r block taxes You are permitted to receive payments or reimbursements that do not relate to normal housing costs, including the following. H&r block taxes Food, clothing, or personal items consumed or used by the displaced individual. H&r block taxes Reimbursement for the cost of any long distance telephone calls made by the displaced individual. H&r block taxes Reimbursement for the cost of gasoline for the displaced individual's use of your vehicle. H&r block taxes However, you cannot claim the additional exemption amount if you received any reimbursement for the extra costs of heat, electricity, or water used by the displaced individual. H&r block taxes Also, you must report on Form 8914 the displaced individual's social security number or individual taxpayer identification number to claim an additional exemption amount. H&r block taxes For more information, see Form 8914. H&r block taxes Education Credits This benefit applies only to the counties in Table 1. H&r block taxes The education credits have been expanded for students attending an eligible educational institution located in a Midwestern disaster area (Midwestern disaster area students) for any tax year beginning in 2008 or 2009. H&r block taxes The Hope credit for a Midwestern disaster area student is increased to 100% of the first $2,400 in qualified education expenses and 50% of the next $2,400 of qualified education expenses for a maximum credit of $3,600 per student. H&r block taxes The lifetime learning credit rate for a Midwestern disaster area student is increased from 20% to 40%. H&r block taxes The definition of qualified education expenses for a Midwestern disaster area student also has been expanded. H&r block taxes This expanded definition also applies to the tuition and fees deduction claimed on Form 8917. H&r block taxes In addition to tuition and fees required for the student's enrollment or attendance at an eligible educational institution, qualified education expenses for a Midwestern disaster area student include the following. H&r block taxes Books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. H&r block taxes For a special needs student, expenses that are necessary for that person's enrollment or attendance at an eligible educational institution. H&r block taxes For a student who is at least a half-time student, the reasonable costs of room and board, but only to the extent that the costs are not more than the greater of the following two amounts. H&r block taxes The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. H&r block taxes The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. H&r block taxes You will need to contact the eligible educational institution for qualified room and board costs. H&r block taxes For more information, see Form 8863. H&r block taxes See Form 8917 for the tuition and fees deduction. H&r block taxes Recapture of Federal Mortgage Subsidy This benefit applies only to the counties in Table 1. H&r block taxes Generally, if you financed your home under a federally subsidized program (loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates), you may have to recapture all or part of the benefit you received from that program when you sell or otherwise dispose of your home. H&r block taxes However, you do not have to recapture any benefit if your mortgage loan was a qualified home improvement loan of not more than $15,000. H&r block taxes This amount is increased to $150,000 if the loan was provided before 2011 and was used to alter, repair, or improve an existing owner-occupied residence in a Midwestern disaster area as shown in Table 1. H&r block taxes Exclusion of Certain Cancellations of Indebtedness by Reason of the Severe Storms, Tornadoes, or Flooding This benefit applies to the counties in both Tables 1 and 2. H&r block taxes Generally, discharges of nonbusiness debts (such as mortgages) made on or after the applicable disaster date and before January 1, 2010, are excluded from income for individuals whose main home was in a Midwestern disaster area on the applicable disaster date. H&r block taxes If the individual's main home was located in a Midwestern disaster area as shown in Table 2, the individual also must have had an economic loss because of the severe storms, tornadoes, or flooding. H&r block taxes Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. H&r block taxes This relief does not apply to any debt secured by real property located outside a Midwestern disaster area. H&r block taxes You may also have to reduce certain tax attributes by the amount excluded. H&r block taxes For more information, see Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). H&r block taxes Tax Relief for Temporary Relocation This benefit applies only to the counties in Table 1. H&r block taxes The IRS can adjust the internal revenue laws to ensure that taxpayers do not lose a deduction or credit or experience a change of filing status in 2008 or 2009 as a result of a temporary relocation caused by the severe storms, tornadoes, or flooding. H&r block taxes However, any such adjustment must ensure that an individual is not taken into account by more than one taxpayer for the same tax benefit. H&r block taxes The IRS has exercised this authority as follows. H&r block taxes In determining whether you furnished over one-half of the cost of maintaining a household, you can exclude from total household costs any assistance received from the government or charitable organizations because you were temporarily relocated as a result of the severe storms, tornadoes, or flooding. H&r block taxes In determining whether you provided more than one-half of an individual's support, you can disregard any assistance received from the government or charitable organizations because you were temporarily relocated as a result of the severe storms, tornadoes, or flooding. H&r block taxes You can treat as a student an individual who enrolled in school before the applicable disaster date, and who is unable to attend classes because of the severe storms, tornadoes, or flooding, for each month of the enrollment period that individual is prevented by the severe storms, tornadoes, or flooding from attending school as planned. H&r block taxes Additional Tax Relief for Businesses Employee Retention Credit This benefit applies only to the counties in Table 1. H&r block taxes An eligible employer who conducted an active trade or business in a Midwestern disaster area can claim the employee retention credit. H&r block taxes The credit is 40% of qualified wages for each eligible employee (up to a maximum of $6,000 in qualified wages per employee). H&r block taxes Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). H&r block taxes Use Form 5884-A to claim the credit. H&r block taxes Employers affected by the severe storms, tornadoes, or flooding. H&r block taxes   The following definitions apply to employers affected by the severe storms, tornadoes, or flooding. H&r block taxes Eligible employer. H&r block taxes   For this purpose, an eligible employer is any employer who meets all of the following. H&r block taxes Employed an average of not more than 200 employees on business days during the tax year before the applicable disaster date. H&r block taxes Conducted an active trade or business on the applicable disaster date in a Midwestern disaster area. H&r block taxes Whose trade or business was inoperable on any day after the applicable disaster date and before January 1, 2009, because of the damage caused by the severe storms, tornadoes, or flooding. H&r block taxes Eligible employee. H&r block taxes   For this purpose, an eligible employee is an employee whose principal place of employment on the applicable disaster date with such eligible employer was in a Midwestern disaster area. H&r block taxes An employee is not an eligible employee for purposes of the severe storms, tornadoes, or flooding if the employee is treated as an eligible employee for the work opportunity credit. H&r block taxes Qualified wages. H&r block taxes   Qualified wages are wages (up to $6,000 per employee) you paid or incurred before January 1, 2009, for an eligible employee beginning on the date your trade or business first became inoperable at the employee's principal place of employment immediately before the applicable disaster, and ending on the date your trade or business resumed significant operations at that place. H&r block taxes In addition, the wages must have been paid or incurred after the applicable disaster date. H&r block taxes    This includes wages paid even if the employee performed no services, performed services at a place of employment other than the principal place of employment, or performed services at the principal place of employment before significant operations resumed. H&r block taxes    Wages qualifying for the credit generally have the same meaning as wages subject to the Federal Unemployment Tax Act (FUTA). H&r block taxes Qualified wages also include amounts you paid for medical or hospitalization expenses in connection with sickness or accident disability. H&r block taxes Qualified wages for any employee must be reduced by the amount of any work supplementation payment you received under the Social Security Act. H&r block taxes   For agricultural employees, if the work performed by any employee during more than half of any pay period qualified under FUTA as agricultural labor, that employee's wages subject to social security and Medicare taxes are qualified wages. H&r block taxes For a special rule that applies to railroad employees, see section 51(h)(1)(B). H&r block taxes   Qualified wages do not include the following. H&r block taxes Wages paid to your dependent or a related individual. H&r block taxes See section 51(i)(1). H&r block taxes Wages paid to any employee during the period for which you received payment for the employee from a federally funded on-the-job training program. H&r block taxes Wages for services of replacement workers during a strike or lockout. H&r block taxes   For more information, see Form 5884-A. H&r block taxes Employer Housing Credit and Exclusion This benefit applies only to the counties in Table 1. H&r block taxes An employer who conducted an active trade or business in a Midwestern disaster area can claim the employer housing credit. H&r block taxes The credit is equal to 30% of the value (up to $600 per month per employee) of in-kind lodging furnished to a qualified employee (and the employee's spouse or dependents) from November 1, 2008, through May 1, 2009. H&r block taxes The value of the lodging is excluded from the income of the qualified employee but is treated as wages for purposes of taxes imposed under the Federal Insurance Contributions Act (FICA) and the Federal Unemployment Tax Act (FUTA). H&r block taxes Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). H&r block taxes The employer must use Form 5884-A to claim the credit. H&r block taxes A qualified employee is an individual who had a main home in a Midwestern disaster area on the applicable disaster date, and who performs substantially all employment services in a Midwestern disaster area for the employer furnishing the lodging. H&r block taxes The employee cannot be your dependent or a related individual. H&r block taxes See section 51(i)(1). H&r block taxes For more information, see Form 5884-A. H&r block taxes Demolition and Clean-up Costs This benefit applies only to the counties in Table 1. H&r block taxes You can elect to deduct 50% of any qualified disaster recovery assistance clean-up costs for the tax year in which the costs are paid or incurred, instead of capitalizing them. H&r block taxes Qualified disaster recovery assistance clean-up costs are any amounts paid or incurred on or after the applicable disaster date, and before January 1, 2011, for the removal of debris from, or the demolition of structures on, real property located in a Midwestern disaster area that is: Held by you for use in a trade or business or for the production of income, or Inventory or other property held primarily for sale to customers in the ordinary course of your trade or business. H&r block taxes Qualified disaster recovery assistance clean-up costs are limited to amounts necessary due to damage attributable to the severe storms, tornadoes, or flooding in the Midwestern disaster areas. H&r block taxes Increase in Rehabilitation Tax Credit This benefit applies only to the counties in Table 1. H&r block taxes The rehabilitation credit is increased for qualified rehabilitation expenditures paid or incurred on or after the applicable disaster date, and before January 1, 2012, on buildings located in a Midwestern disaster area as follows. H&r block taxes For pre-1936 buildings (other than certified historic structures), the credit percentage is increased from 10% to 13%. H&r block taxes For certified historic structures, the credit percentage is increased from 20% to 26%. H&r block taxes For more information, see Form 3468, Investment Credit. H&r block taxes Request for Copy or Transcript of Tax Return Request for copy of tax return. H&r block taxes   You can use Form 4506 to order a copy of your tax return. H&r block taxes Generally, there is a $57 fee for requesting each copy of a tax return. H&r block taxes If your main home, principal place of business, or tax records are located in a Midwestern disaster area, the fee will be waived if “Midwestern Disaster Area” is written in red across the top of the form when filed. H&r block taxes Request for transcript of tax return. H&r block taxes   You can use Form 4506-T to order a free transcript of your tax return. H&r block taxes A transcript provides most of the line entries from a tax return and usually contains the information that a third party requires. H&r block taxes You can also call 1-800-829-1040 to order a transcript. H&r block taxes How To Get Tax Help Special IRS assistance. H&r block taxes   The IRS is providing special help for those affected by the severe storms, tornadoes, or flooding, as well as survivors and personal representatives of the victims. H&r block taxes We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by recent federally declared disasters, or who have other tax issues related to the severe storms, tornadoes, or flooding. H&r block taxes Call 1-866-562-5227 Monday through FridayIn English–7 a. H&r block taxes m. H&r block taxes to 10 p. H&r block taxes m. H&r block taxes local timeIn Spanish–8 a. H&r block taxes m. H&r block taxes to 9:30 p. H&r block taxes m. H&r block taxes local time   The IRS website at www. H&r block taxes irs. H&r block taxes gov has notices and other tax relief information. H&r block taxes Check it periodically for any new guidance. H&r block taxes You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. H&r block taxes By selecting the method that is best for you, you will have quick and easy access to tax help. H&r block taxes Contacting your Taxpayer Advocate. H&r block taxes   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. H&r block taxes Here are seven things every taxpayer should know about TAS: TAS is your voice at the IRS. H&r block taxes Our service is free, confidential, and tailored to meet your needs. H&r block taxes You may be eligible for TAS help if you have tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just isn't working as it should. H&r block taxes TAS helps taxpayers whose problems are causing financial difficulty or significant cost, including the cost of professional representation. H&r block taxes This includes businesses as well as individuals. H&r block taxes TAS employees know the IRS and how to navigate it. H&r block taxes We will listen to your problem, help you understand what needs to be done to resolve it, and stay with you every step of the way until your problem is resolved. H&r block taxes TAS has at least one local taxpayer advocate in every state, the District of Columbia, and Puerto Rico. H&r block taxes You can call your local advocate, whose number is in your phone book, in Pub. H&r block taxes 1546, Taxpayer Advocate Service—Your Voice at the IRS, and on our website at www. H&r block taxes irs. H&r block taxes gov/advocate. H&r block taxes You can also call our toll-free line at 1-877-777-4778 or TTY/TDD 1-800-829-4059. H&r block taxes You can learn about your rights and responsibilities as a taxpayer by visiting our online tax toolkit at www. H&r block taxes taxtoolkit. H&r block taxes irs. H&r block taxes gov. H&r block taxes Low Income Taxpayer Clinics (LITCs). H&r block taxes   The Low Income Taxpayer Clinic program serves individuals who have a problem with the IRS and whose income is below a certain level. H&r block taxes LITCs are independent from the IRS. H&r block taxes Most LITCs can provide representation before the IRS or in court on audits, tax collection disputes, and other issues for free or a small fee. H&r block taxes If an individual's native language is not English, some clinics can provide multilingual information about taxpayer rights and responsibilities. H&r block taxes For more information, see Publication 4134, Low Income Taxpayer Clinic List. H&r block taxes This publication is available at www. H&r block taxes irs. H&r block taxes gov, by calling 1-800-TAX-FORM (1-800-829-3676), or at your local IRS office. H&r block taxes Free tax services. H&r block taxes   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. H&r block taxes It contains lists of free tax information sources, including publications, services, and free tax education and assistance programs. H&r block taxes It also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on your telephone. H&r block taxes   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. H&r block taxes Free help with your return. H&r block taxes   Free help in preparing your return is available nationwide from IRS-trained volunteers. H&r block taxes The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. H&r block taxes Many VITA sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. H&r block taxes To find the nearest VITA or TCE site, call 1-800-829-1040. H&r block taxes   As part of the TCE program, AARP offers the Tax-Aide counseling program. H&r block taxes To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website atwww. H&r block taxes aarp. H&r block taxes org/money/taxaide. H&r block taxes   For more information on these programs, go to www. H&r block taxes irs. H&r block taxes gov and enter keyword “VITA” in the upper right-hand corner. H&r block taxes Internet. H&r block taxes You can access the IRS website at www. H&r block taxes irs. H&r block taxes gov 24 hours a day, 7 days a week to: E-file your return. H&r block taxes Find out about commercial tax preparation and e-file services available free to eligible taxpayers. H&r block taxes Check the status of your 2009 refund. H&r block taxes Go to www. H&r block taxes irs. H&r block taxes gov and click on Where's My Refund. H&r block taxes Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. H&r block taxes If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). H&r block taxes Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. H&r block taxes Download forms, instructions, and publications. H&r block taxes Order IRS products online. H&r block taxes Research your tax questions online. H&r block taxes Search publications online by topic or keyword. H&r block taxes Use the online Internal Revenue Code, Regulations, or other official guidance. H&r block taxes View Internal Revenue Bulletins (IRBs) published in the last few years. H&r block taxes Figure your withholding allowances using the withholding calculator online at www. H&r block taxes irs. H&r block taxes gov/individuals. H&r block taxes Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant. H&r block taxes Sign up to receive local and national tax news by email. H&r block taxes Get information on starting and operating a small business. H&r block taxes Phone. H&r block taxes Many services are available by phone. H&r block taxes Ordering forms, instructions, and publications. H&r block taxes Call 1-800-TAX FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. H&r block taxes You should receive your order within 10 days. H&r block taxes Asking tax questions. H&r block taxes Call the IRS with your tax questions at 1-800-829-1040. H&r block taxes Solving problems. H&r block taxes You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. H&r block taxes An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. H&r block taxes Call your local Taxpayer Assistance Center for an appointment. H&r block taxes To find the number, go to www. H&r block taxes irs. H&r block taxes gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. H&r block taxes TTY/TDD equipment. H&r block taxes If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. H&r block taxes TeleTax topics. H&r block taxes Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. H&r block taxes Refund information. H&r block taxes To check the status of your 2009 refund, call 1-800-829-1954 during business hours or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). H&r block taxes Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. H&r block taxes If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). H&r block taxes Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. H&r block taxes Refunds are sent out weekly on Fridays. H&r block taxes If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. H&r block taxes Other refund information. H&r block taxes To check the status of a prior year refund or amended return refund, call 1-800-829-1954. H&r block taxes Evaluating the quality of our telephone services. H&r block taxes To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. H&r block taxes One method is for a second IRS representative to listen in on or record random telephone calls. H&r block taxes Another is to ask some callers to complete a short survey at the end of the call. H&r block taxes Walk-in. H&r block taxes Many products and services are available on a walk-in basis. H&r block taxes Products. H&r block taxes You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. H&r block taxes Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. H&r block taxes Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. H&r block taxes Services. H&r block taxes You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. H&r block taxes An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. H&r block taxes If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. H&r block taxes No appointment is necessary—just walk in. H&r block taxes If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. H&r block taxes A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. H&r block taxes If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. H&r block taxes All other issues will be handled without an appointment. H&r block taxes To find the number of your local office, go to www. H&r block taxes irs. H&r block taxes gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. H&r block taxes Mail. H&r block taxes You can send your order for forms, instructions, and publications to the address below. H&r block taxes You should receive a response within 10 days after your request is received. H&r block taxes Internal Revenue Service1201 N. H&r block taxes Mitsubishi MotorwayBloomington, IL 61705-6613 DVD for tax products. H&r block taxes You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. H&r block taxes Prior-year forms, instructions, and publications. H&r block taxes Tax Map: an electronic research tool and finding aid. H&r block taxes Tax law frequently asked questions. H&r block taxes Tax Topics from the IRS telephone response system. H&r block taxes Internal Revenue Code—Title 26 of the U. H&r block taxes S. H&r block taxes Code. H&r block taxes Fill-in, print, and save features for most tax forms. H&r block taxes Internal Revenue Bulletins. H&r block taxes Toll-free and email technical support. H&r block taxes Two releases during the year. H&r block taxes – The first release will ship the beginning of January 2010. H&r block taxes – The final release will ship the beginning of March 2010. H&r block taxes Purchase the DVD from National Technical Information Service (NTIS) at www. H&r block taxes irs. H&r block taxes gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). H&r block taxes Prev  Up  Next   Home   More Online Publications