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I Did Not File 2011 Taxes

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I Did Not File 2011 Taxes

I did not file 2011 taxes 35. I did not file 2011 taxes   Créditos Tributarios por Estudios Table of Contents Introduction Useful Items - You may want to see: ¿Quién Puede Reclamar un Crédito Tributario por Estudios? Gastos de Estudios CalificadosNo se Permite Beneficio Doble Ajustes a los Gastos de Estudios Calificados Introduction Para 2013, hay dos créditos tributarios para personas que paguen gastos de enseñanza superior (postsecundaria). I did not file 2011 taxes Éstos son: El crédito tributario de oportunidad para los estadounidenses y El crédito vitalicio por aprendizaje. I did not file 2011 taxes Este capítulo explica en términos generales estos créditos tributarios por estudios. I did not file 2011 taxes Para obtener la información detallada que necesitará para reclamar cualquiera de los créditos, y para ver ejemplos aclaratorios, consulte los capítulos 2 y 3 de la Publicación 970, Tax Benefits for Education (Beneficios tributarios por estudios), en inglés. I did not file 2011 taxes ¿Puede reclamar más de un crédito por estudios este año?   Puede escoger sólo uno de los créditos por cada estudiante por cada año. I did not file 2011 taxes Por ejemplo, si reclama el crédito tributario de oportunidad para los estadounidenses por un hijo en su declaración de impuestos de 2013, no puede tomar el crédito vitalicio por aprendizaje para 2013 si se trata del mismo hijo. I did not file 2011 taxes   Si reúne los requisitos del crédito tributario de oportunidad para los estadounidenses y también del crédito vitalicio por aprendizaje por el mismo estudiante durante el mismo año, puede reclamar sólo uno de los dos créditos, pero no ambos. I did not file 2011 taxes   Si paga gastos de estudios calificados por más de un estudiante durante el mismo año, puede reclamar el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje basado por cada estudiante y por año. I did not file 2011 taxes Esto quiere decir que, por ejemplo, puede reclamar el crédito tributario de oportunidad para los estadounidenses por un estudiante y el crédito vitalicio por aprendizaje por otro estudiante en el mismo año. I did not file 2011 taxes    Tabla 35-1. I did not file 2011 taxes Comparación de los Créditos Tributarios por Estudios Precaución: Puede reclamar el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje en la misma declaración —pero no por el mismo estudiante. I did not file 2011 taxes   Crédito tributario de oportunidad para los estadounidenses Crédito vitalicio por aprendizaje Crédito máximo Un crédito de hasta $2,500 por cada estudiante que reúne los requisitos Un crédito de hasta $2,000 por cada declaración Límite a los ingresos brutos ajustados modificados (MAGI, por sus siglas en inglés) $180,000 si es casado que presenta una declaración conjunta;  $90,000 si es soltero, cabeza de familia o viudo que reúne los requisitos $127,000 si es casado que presenta una declaración conjunta;  $63,000 si es soltero, cabeza de familia o viudo que reúne los requisitos Reembolsable o no reembolsable El 40% del crédito podría ser reembolsable El monto del crédito está limitado al monto de impuestos que tiene que pagar sobre sus ingresos sujetos a impuestos Número de años de enseñanza postsecundaria Disponible SÓLO si el estudiante no ha completado los 4 primeros años de enseñanza postsecundaria antes de 2013 Disponible para todo año de enseñanza postsecundaria y cursos para adquirir o mejorar aptitudes en el trabajo Número de años tributarios por los cuales se ofrece el crédito Disponible SÓLO por 4 años por cada estudiante que reúna los requisitos (incluido todo año en el que se haya reclamado el crédito Hope) Disponible por un número ilimitado de años Tipo de programa académico requerido El estudiante tiene que estar cursando un programa de estudios con miras a sacar una licenciatura u otro título o certificado académico acreditado El estudiante no necesita estar cursando un programa de estudios con miras a sacar una licenciatura u otro título o certificado académico acreditado Número de cursos El estudiante tiene que estar matriculado a medio tiempo como mínimo durante al menos un período académico que haya comenzado en el transcurso del año tributario Disponible para uno o más cursos Fallo condenatorio por delito grave de drogas Si para el fin de 2013 no consta fallo condenatorio alguno al estudiante por delito grave de poseer o distribuir drogas Fallos condenatorios por delito grave de drogas no hacen que el estudiante no reúna los requisitos Gastos que reúnen los requisitos Costos de matrícula y gastos de inscripción obligatorios y todos los materiales relacionados con un curso que necesita el estudiante, tanto si son comprados o no en la institución como condición de inscripción o asistencia Costos de matrícula y gastos de inscripción obligatorios (incluidas cantidades que tienen que pagarse a la institución por textos, materiales y equipo relacionados con un curso) Pagos por períodos académicos Pagos efectuados en 2013 para períodos académicos que se iniciaron en 2013 y en los tres primeros meses de 2014 Diferencias entre el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje. I did not file 2011 taxes   Existen varias diferencias entre estos dos créditos. I did not file 2011 taxes Estas diferencias se resumen en la Tabla 35-1, más adelante. I did not file 2011 taxes Useful Items - You may want to see: Publicación 970 Tax Benefits for Education (Beneficios tributarios por estudios), en inglés Formulario (e Instrucciones) 8863 Education Credits (American Opportunity and Lifetime Learning Credits) (Créditos tributarios por estudios (crédito tributario de oportunidad para los estadounidenses y crédito vitalicio por aprendizaje)), en inglés ¿Quién Puede Reclamar un Crédito Tributario por Estudios? Tal vez pueda reclamar un crédito tributario por estudios si usted, su cónyuge o un dependiente reclamado en su declaración de impuestos era estudiante matriculado en, o asistió a, una institución de enseñanza superior que reúne los requisitos. I did not file 2011 taxes Los créditos se basan en la cantidad de gastos de estudios calificados que hayan sido pagados a nombre del estudiante en 2013 por períodos académicos que comenzaron en 2013 y en los primeros tres meses de 2014. I did not file 2011 taxes Por ejemplo, si pagó $1,500 en diciembre de 2013 por una matrícula calificada por el semestre de primavera de 2014 que comience en enero de 2014, tal vez pueda usar los $1,500 en el cálculo del (de los) crédito(s) para 2013. I did not file 2011 taxes Período académico. I did not file 2011 taxes   Un período académico abarca un semestre, trimestre, cuatrimestre u otro período de estudios (como un curso de escuela de verano) según lo determine de manera razonable una institución de enseñanza superior. I did not file 2011 taxes En el caso de una institución de enseñanza superior que no tenga períodos académicos sino horas de crédito u horas de reloj, cada período de pago se puede considerar período académico. I did not file 2011 taxes Institución de enseñanza superior que reúne los requisitos. I did not file 2011 taxes   Una “institución de enseñanza superior que reúne los requisitos” es todo colegio universitario, universidad, escuela de enseñanza técnica u otra institución de enseñanza superior con derecho a participar en un programa de asistencia financiera al estudiante administrado por el Departamento de Educación de los Estados Unidos. I did not file 2011 taxes Esta clase de institución abarca prácticamente todas las instituciones acreditadas de enseñanza superior públicas, sin fines de lucro y las privadas con fines de lucro. I did not file 2011 taxes La institución de enseñanza superior debe poder indicarle si reúne los requisitos. I did not file 2011 taxes   Determinadas instituciones de enseñanza superior ubicadas en el extranjero participan también en los programas de Federal Student Aid (Asistencia Financiera al Estudiante o FSA, por sus siglas en inglés) del Departamento de Educación de los Estados Unidos. I did not file 2011 taxes ¿Quién puede reclamar los gastos de un dependiente?   Si una persona reclama al estudiante como dependiente y se permite una deducción por aquel estudiante en la declaración de dicha persona, se considera que esa persona ha pagado todos los gastos de estudios calificados del estudiante. I did not file 2011 taxes Por lo tanto, sólo esa persona puede reclamar un crédito por estudios en nombre del estudiante. I did not file 2011 taxes Si un estudiante no es reclamado como dependiente en la declaración de impuestos de otra persona, sólo el estudiante puede reclamar un crédito. I did not file 2011 taxes Gastos pagados por un tercero. I did not file 2011 taxes   Los gastos de estudios calificados pagados en nombre del estudiante por una persona que no sea el estudiante (como un pariente) se tratan como si hubiesen sido pagados por dicho estudiante. I did not file 2011 taxes Sin embargo, los gastos de estudios calificados pagados (o que se tratan como si hubiesen sido pagados) por un estudiante que es reclamado como dependiente en su declaración de impuestos, se tratan como si hubiesen sido pagados por usted. I did not file 2011 taxes Por lo tanto, a usted se le trata como si hubiese pagado los gastos que fueron pagados por el tercero. I did not file 2011 taxes Para más información y para ver un ejemplo, vea Who can Claim a Dependent's Expenses (¿Quién puede reclamar los gastos de un dependiente?) en el capítulo 2 ó 3 de la Publicación 970, en inglés. I did not file 2011 taxes ¿Quién no puede reclamar el crédito?   No puede tomar un crédito tributario por estudios si alguna de las siguientes situaciones le corresponde: Usted es reclamado como dependiente en la declaración de impuestos de otra persona, como la de sus padres. I did not file 2011 taxes Su estado civil para efectos de la declaración es casado que presenta una declaración por separado. I did not file 2011 taxes Usted (o su cónyuge) fue extranjero no residente durante cualquier parte de 2013 y no optó por ser tratado como extranjero residente para fines tributarios. I did not file 2011 taxes Sus ingresos brutos ajustados modificados (MAGI, por sus siglas en inglés) es uno de los siguientes: Crédito tributario de oportunidad para los estadounidenses: $180,000 o más si es casado que presenta la declaración conjunta, o $90,000 o más si es soltero, cabeza de familia o viudo que reúne los requisitos. I did not file 2011 taxes Crédito vitalicio por aprendizaje: $127,000 o más si es casado que presenta la declaración conjunta, o $63,000 o más si es soltero, cabeza de familia o viudo que reúne los requisitos. I did not file 2011 taxes   Por lo general, su MAGI es la cantidad de la línea 38 de su Formulario 1040 o la línea 22 del Formulario 1040A. I did not file 2011 taxes No obstante, si presenta el Formulario 2555, 2555-EZ o 4563 o si excluye ingresos de fuentes dentro de Puerto Rico, sume la cantidad excluida del ingreso a la cantidad en la línea 38 de su Formulario 1040 o de la línea 22 del Formulario 1040A. I did not file 2011 taxes Para más detalles, vea la Publicación 970, en inglés. I did not file 2011 taxes   La Figura 35-A podría ser útil al momento de determinar si puede reclamar un crédito tributario por estudios en su declaración de impuestos. I did not file 2011 taxes    El crédito tributario de oportunidad para los estadounidenses siempre será mayor que o igual al crédito vitalicio por aprendizaje para todo estudiante que reúna los requisitos para ambos créditos. I did not file 2011 taxes Sin embargo, si no se cumplen todos los requisitos correspondientes al crédito tributario de oportunidad para los estadounidenses enumerados anteriormente en la Tabla 35-1, usted no puede reclamar dicho crédito en base de este estudiante. I did not file 2011 taxes En lugar de ello, quizás podría reclamar el crédito vitalicio por aprendizaje por una parte o la totalidad de los gastos de estudios calificados de dicho estudiante. I did not file 2011 taxes Para obtener información sobre otros beneficios relacionados con los estudios, vea la Publicación 970, en inglés. I did not file 2011 taxes Gastos de Estudios Calificados Generalmente, se considera que los gastos de estudios calificados son cantidades pagadas en 2013 por matrícula y gastos escolares obligatorios para matricularse en un curso o asistir al mismo en una institución de enseñanza superior. I did not file 2011 taxes No importa si los gastos fueron pagados en efectivo, por cheque, con tarjeta de crédito o débito, o con préstamos. I did not file 2011 taxes Sólo reúnen los requisitos ciertos gastos por libros, materiales y equipos relacionados con un curso: Crédito tributario de oportunidad para los estadounidenses: Los gastos de estudios calificados abarcan cantidades gastadas en libros, materiales y equipos necesarios para cursos de un programa de estudios, ya sea o no que se compren estos materiales en la institución de enseñanza como condición para matricularse o asistir a tales cursos. I did not file 2011 taxes Crédito vitalicio por aprendizaje: Los gastos de estudios calificados abarcan cantidades gastadas en libros, materiales y equipos sólo si se tienen que pagar a la institución como condición para matricularse o asistir a cursos. I did not file 2011 taxes Los gastos de estudios calificados incluyen cuotas no académicas, tales como cuotas por actividades estudiantiles, cuotas por actividades deportivas u otros gastos no relacionados con el curso de instrucción, sólo si la cuota tiene que pagarse a la institución como condición de inscripción o asistencia. I did not file 2011 taxes Sin embargo, las cuotas por gastos personales (descritos a continuación) nunca se consideran gastos de estudios calificados. I did not file 2011 taxes Los gastos de estudios calificados no incluyen cantidades pagadas por: Gastos personales. I did not file 2011 taxes Éstos incluyen gastos de alojamiento y comida, seguros, gastos médicos (incluyendo las cuotas de servicios de salud para estudiantes), transporte y otros gastos personales similares o de familia. I did not file 2011 taxes Todo curso u otros estudios que se relacionen con deportes, juegos o pasatiempos o todo curso sin crédito académico, a menos que dicho curso o dichos estudios formen parte del programa de estudios para obtener un título del estudiante o (sólo en el caso del crédito vitalicio por aprendizaje) ayude al estudiante a adquirir o mejorar aptitudes en el trabajo. I did not file 2011 taxes Usted debe recibir el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés, de la institución que informa cualesquiera de los pagos recibidos en 2013 (encasillado 1) o las cantidades facturadas en 2013 (encasillado 2). I did not file 2011 taxes Sin embargo, la cantidad pagada (o tratada como pagada) puede ser distinta a la cantidad en el encasillado 1 ó 2 del Formulario 1098-T. I did not file 2011 taxes Al completar el Formulario 8863, en inglés, utilice sólo las cantidades que realmente pagó (además de cualquier otra cantidad tratada como pagada) en 2013, reducida cuando sea necesario, como se describe en Ajustes a los Gastos de Estudios Calificados , más adelante. I did not file 2011 taxes Los gastos de estudios calificados pagados en nombre del estudiante por una persona que no sea el estudiante (como un pariente) se tratan como si hubiesen sido pagados por dicho estudiante. I did not file 2011 taxes Los gastos de estudios calificados pagados (o que se tratan como si hubiesen sido pagados) por un estudiante que es reclamado como dependiente en su declaración de impuestos se tratan como si hubiesen sido pagados por usted. I did not file 2011 taxes Al calcular los créditos tributarios por estudios, si usted o el estudiante toman una deducción por gastos de enseñanza superior, tal como en el Anexo A o C (Formulario 1040), no pueden utilizar esos gastos como gastos de estudios calificados. I did not file 2011 taxes Los gastos de estudios calificados para cualquier período académico tienen que ser reducidos por toda ayuda económica de estudios exenta de los impuestos asignable a dicho período académico. I did not file 2011 taxes Vea Ajustes a los Gastos de Estudios Calificados , más adelante. I did not file 2011 taxes Gastos pagados por adelantado. I did not file 2011 taxes   Los gastos de estudios calificados pagados en 2013 para un período académico que comienza en los primeros tres meses de 2014 se pueden utilizar sólo en el cálculo del crédito por estudios de 2013. I did not file 2011 taxes Vea Período académico , anteriormente. I did not file 2011 taxes Por ejemplo, si usted paga $2,000 en diciembre de 2013 para matrícula calificada por el cuatrimestre del invierno de 2014 que comienza en enero de 2014, puede utilizar los $2,000 en el cálculo del crédito por estudios sólo para 2013 (si reúne todos los otros requisitos). I did not file 2011 taxes No puede utilizar cantidad alguna que haya pagado en 2012 ó 2014 para calcular su(s) crédito(s) tributario(s) por estudios de 2013. I did not file 2011 taxes Gastos pagados con un préstamo. I did not file 2011 taxes   Puede reclamar un crédito por estudios en el caso de gastos de estudios calificados que haya pagado con un préstamo. I did not file 2011 taxes Utilice los gastos para calcular el crédito tributario por estudios correspondiente al año en que se paguen los gastos y no al año en el que se pague el préstamo. I did not file 2011 taxes Trate los pagos del préstamo enviados directamente a la institución de enseñanza superior como si se hubiesen pagado en la fecha en que dicha institución abone los pagos a la cuenta del estudiante. I did not file 2011 taxes Si el estudiante se retira de uno o más cursos. I did not file 2011 taxes   Puede reclamar un crédito tributario por estudios en el caso de gastos de estudios calificados que no se le devuelvan al estudiante si el estudiante se retira de uno o más cursos. I did not file 2011 taxes No se Permite Beneficio Doble No se permite hacer lo siguiente: Deducir gastos de enseñanza superior en su declaración de impuestos sobre los ingresos (por ejemplo, un gasto de negocio) y reclamar también un crédito por estudios basándose en dichos gastos. I did not file 2011 taxes Reclamar más de un (1) crédito tributario por estudios basándose en los mismos gastos de estudios calificados. I did not file 2011 taxes Reclamar un crédito por estudios basándose en los mismos gastos utilizados para calcular la parte exenta del impuesto de distribuciones de una cuenta de ahorros para estudios Coverdell (Coverdell ESA, por su abreviatura en inglés) o un programa de matrícula calificada (QTP, por sus siglas en inglés). I did not file 2011 taxes Reclamar un crédito basándose en gastos de estudios calificados que hayan sido pagados con ayuda para estudios, tal como una beca o subvención o ayuda provista por el empleador, libres de impuestos. I did not file 2011 taxes Vea Ajustes a los Gastos de Estudios Calificados, a continuación. I did not file 2011 taxes Ajustes a los Gastos de Estudios Calificados Para cada estudiante, se tiene que restar los gastos de estudios calificados, pagados en 2013, por o en nombre de dicho estudiante bajo las siguientes reglas. I did not file 2011 taxes El resultado es la cantidad ajustada en gastos de estudios calificados por cada estudiante. I did not file 2011 taxes Ayuda económica para estudios exenta de impuestos. I did not file 2011 taxes   Si en 2013 recibió ayuda económica para estudios que está exenta de impuestos, reste la cantidad de la ayuda económica para estudios exenta de impuestos asignable para cada período académico de la cantidad de gastos de estudios calificados para cada período académico. I did not file 2011 taxes Vea Período académico , anteriormente. I did not file 2011 taxes   La ayuda económica para estudios exenta de impuestos incluye: Partes no sujetas a impuestos de becas de estudios y becas de investigación (vea el capítulo 12 de esta publicación y el capítulo 1 de la Publicación 970, en inglés), La parte no sujeta a impuestos de subvenciones federales Pell (vea el capítulo 1 de la Publicación 970, en inglés), La parte no sujeta a impuestos de ayuda económica para estudios provista por el empleador (vea la Publicación 970, en inglés), Ayuda económica para estudios para veteranos (vea el capítulo 1 de la Publicación 970, en inglés) y Cualquier otro pago no sujeto a impuestos (libre de impuestos) (que no sean regalos ni herencias) recibido como ayuda económica para estudios. I did not file 2011 taxes   Por lo general, toda beca de estudios o de investigación es tratada como una ayuda económica para estudios exenta de impuestos. I did not file 2011 taxes Sin embargo, una beca de estudios o de investigación no será tratada como dicha ayuda al punto de que el estudiante la incluye como ingreso bruto (si el estudiante tiene que presentar una declaración de impuestos) para el año en que reciba la beca de estudios o de investigación y le corresponde uno de los siguientes: La beca de estudios o de investigación (o cualquier parte de dicha beca) tiene que ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés, o La beca de estudios o de investigación (o cualquier parte de dicha beca) puede ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés. I did not file 2011 taxes Podría aumentar el valor combinado del crédito tributario por estudios y cierta ayuda económica para estudios si el estudiante incluye alguna o toda ayuda económica para estudios del ingreso en el año en que recibió dicha ayuda. I did not file 2011 taxes Para detalles, vea Adjustments of Qualified Education Expenses (Ajustes a los gastos de estudios calificados) en los capítulos 2 y 3 de la Publicación 970, en inglés. I did not file 2011 taxes Cierta ayuda económica para estudios exenta de impuestos recibida después de 2013 podría ser tratada como un reembolso de gastos de estudios calificados que se pagaron en 2013. I did not file 2011 taxes Esta ayuda económica para estudios exenta de impuestos es toda ayuda económica para estudios exenta de impuestos que usted o cualquier otro ha recibido después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 (o atribuible a la matrícula de una institución de enseñanza superior que reúne los requisitos durante 2013). I did not file 2011 taxes Si dicha ayuda económica para estudios exenta de impuestos se recibe después de 2013 pero antes de que presente su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos, más adelante. I did not file 2011 taxes Si dicha ayuda económica para estudios exenta de impuestos se recibe después de 2013 y después que presenta su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 y después que presenta su declaración de impuestos sobre los ingresos, más adelante. I did not file 2011 taxes Reembolsos. I did not file 2011 taxes   Un reembolso de gastos de estudios calificados puede reducir gastos de estudios calificados por el año tributable o puede requerir que recupere (reintegre) el crédito tributario por estudios que reclamó en un año anterior. I did not file 2011 taxes Cierta ayuda económica para estudios exenta de impuestos recibida después de 2013 puede ser tratada como un reembolso. I did not file 2011 taxes Vea Ayuda económica para estudios exenta de impuestos, anteriormente. I did not file 2011 taxes Reembolsos recibidos en 2013. I did not file 2011 taxes   Por cada estudiante, calcule los gastos de estudios calificados ajustados de 2013 sumando todos los gastos de estudios calificados pagados en 2013 y reste todos los reembolsos de esos gastos recibidos de la institución de enseñanza superior que reúne los requisitos durante 2013. I did not file 2011 taxes Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos. I did not file 2011 taxes   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagado en nombre de un estudiante en 2013 y el reembolso es recibido antes de que presente su declaración de impuestos sobre los ingresos de 2013, reste la cantidad de gastos de estudios calificados de 2013 por la cantidad del reembolso. I did not file 2011 taxes Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos. I did not file 2011 taxes   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 y el reembolso es recibido después de presentar su declaración de impuestos sobre los ingresos de 2013, podría verse obligado a reintegrar parte o todo el crédito tributario por estudios que reclamó. I did not file 2011 taxes Vea Recuperar (reintegrar) el crédito, a continuación. I did not file 2011 taxes Recuperar (reintegrar) el crédito. I did not file 2011 taxes   Si después de haber presentado su declaración de impuestos sobre los ingresos de 2013, recibe alguna ayuda económica para estudios exenta de impuestos o cualquier reembolso correspondiente a gastos de estudios calificados que haya pagado en 2013, tiene que recuperar (reintegrar) todo crédito en exceso. I did not file 2011 taxes Cuando se vuelve a calcular la cantidad de gastos de estudios calificados ajustados de 2013, reste de dichos gastos la cantidad de la ayuda económica para estudios exenta de impuestos o el (los) reembolso(s) que haya recibido. I did not file 2011 taxes Entonces se calcula nuevamente su(s) crédito(s) tributario(s) por estudios de 2013 y se calcula la cantidad por la cual su impuesto adeudado de 2013 hubiera aumentado si hubiese reclamado dicho(s) crédito(s) nuevamente calculado(s). I did not file 2011 taxes Incluya esa cantidad como un impuesto adicional para el año en que la ayuda económica o el reembolso fueron recibidos. I did not file 2011 taxes Ejemplo. I did not file 2011 taxes   Usted pagó $8,000 por matrícula y gastos escolares de su hijo en diciembre de 2013 por el semestre de primavera que comienza en enero de 2014. I did not file 2011 taxes Usted presentó su declaración de impuestos de 2013 el 3 de febrero de 2014 y reclamó un crédito vitalicio por aprendizaje de $1,600 ($8,000 de gastos de estudios calificados multiplicado por 0. I did not file 2011 taxes 20). I did not file 2011 taxes Usted no reclamó otros créditos tributarios. I did not file 2011 taxes Después de haber presentado su declaración, su hijo se retiró de dos cursos y usted recibió un reembolso de $1,400. I did not file 2011 taxes Tiene que volver a calcular su crédito vitalicio por aprendizaje de 2013 usando $6,600 ($1,400 del reembolso que se resta de los gastos de estudios calificados de $8,000). I did not file 2011 taxes El crédito nuevamente calculado es $1,320 y su impuesto adeudado aumentó por $280. I did not file 2011 taxes Tiene que incluir el resultado de $280 (lo que queda después de que haya restado $1,320 (el crédito nuevamente calculado) de $1,600 (el crédito que había reclamado originalmente)) como un impuesto adicional en su declaración de impuestos sobre los ingresos de 2014. I did not file 2011 taxes Para determinar en dónde incluir dicho impuesto adicional, vea las instrucciones de su declaración de impuestos sobre los ingresos de 2014. I did not file 2011 taxes    Si también paga gastos de estudios calificados en 2014 para un período académico que comienza en los primeros tres meses de 2014 y recibe ayuda económica para estudios exenta de impuestos o un reembolso como se explicó anteriormente, usted puede escoger reducir sus gastos de estudios calificados para el 2014 en vez de reducir sus gastos para 2013. I did not file 2011 taxes Cantidades que no reducen los gastos de estudios calificados. I did not file 2011 taxes   No reste de los gastos de estudios calificados las cantidades pagadas con fondos que el estudiante reciba como: Pagos por servicios, como salarios; Un préstamo; Un regalo; Una herencia o Un retiro de la cuenta de ahorros personal del estudiante. I did not file 2011 taxes   No reste de los gastos de estudios calificados ninguna beca de estudios o beca de investigación reclamada como ingresos en la declaración de ingresos del estudiante en las siguientes situaciones: El uso del dinero está limitado, por los términos de la beca de estudios o de investigación, a los costos de asistencia (como alojamiento y comida) que no sean gastos de estudios calificados, como se definen en el capítulo 1 de la Publicación 970, en inglés. I did not file 2011 taxes El uso del dinero no está limitado. I did not file 2011 taxes   Para ver ejemplos, consulte el capítulo 2 de la Publicación 970, en inglés. I did not file 2011 taxes Please click here for the text description of the image. I did not file 2011 taxes Figura 35-A ¿Puede usted reclamar el crédito por Estudios para 2013? Prev  Up  Next   Home   More Online Publications
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The I Did Not File 2011 Taxes

I did not file 2011 taxes 4. I did not file 2011 taxes   Interest Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Allocation of InterestOrder of funds spent. I did not file 2011 taxes Payments from checking accounts. I did not file 2011 taxes Amounts paid within 30 days. I did not file 2011 taxes Optional method for determining date of reallocation. I did not file 2011 taxes Interest on a segregated account. I did not file 2011 taxes How to report. I did not file 2011 taxes Interest You Can DeductStatement. I did not file 2011 taxes Expenses paid to obtain a mortgage. I did not file 2011 taxes Prepayment penalty. I did not file 2011 taxes De minimis OID. I did not file 2011 taxes Constant-yield method. I did not file 2011 taxes Loan or mortgage ends. I did not file 2011 taxes Interest You Cannot DeductPenalties. I did not file 2011 taxes Who is a key person? Exceptions for pre-June 1997 contracts. I did not file 2011 taxes Interest allocated to unborrowed policy cash value. I did not file 2011 taxes Capitalization of Interest When To Deduct InterestPrepaid interest. I did not file 2011 taxes Discounted loan. I did not file 2011 taxes Refunds of interest. I did not file 2011 taxes Prepaid interest. I did not file 2011 taxes Discounted loan. I did not file 2011 taxes Tax deficiency. I did not file 2011 taxes Related person. I did not file 2011 taxes Below-Market LoansLimit on forgone interest for gift loans of $100,000 or less. I did not file 2011 taxes Introduction This chapter discusses the tax treatment of business interest expense. I did not file 2011 taxes Business interest expense is an amount charged for the use of money you borrowed for business activities. I did not file 2011 taxes Topics - This chapter discusses: Allocation of interest Interest you can deduct Interest you cannot deduct Capitalization of interest When to deduct interest Below-market loans Useful Items - You may want to see: Publication 537 Installment Sales 550 Investment Income and Expenses 936 Home Mortgage Interest Deduction Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch E (Form 1040) Supplemental Income and Loss Sch K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. I did not file 2011 taxes Sch K-1 (Form 1120S) Shareholder's Share of Income, Deductions, Credits, etc. I did not file 2011 taxes 1098 Mortgage Interest Statement 3115 Application for Change in Accounting Method 4952 Investment Interest Expense Deduction 8582 Passive Activity Loss Limitations See chapter 12 for information about getting publications and forms. I did not file 2011 taxes Allocation of Interest The rules for deducting interest vary, depending on whether the loan proceeds are used for business, personal, or investment activities. I did not file 2011 taxes If you use the proceeds of a loan for more than one type of expense, you must allocate the interest based on the use of the loan's proceeds. I did not file 2011 taxes Allocate your interest expense to the following categories. I did not file 2011 taxes Nonpassive trade or business activity interest Passive trade or business activity interest Investment interest Portfolio interest Personal interest In general, you allocate interest on a loan the same way you allocate the loan proceeds. I did not file 2011 taxes You allocate loan proceeds by tracing disbursements to specific uses. I did not file 2011 taxes The easiest way to trace disbursements to specific uses is to keep the proceeds of a particular loan separate from any other funds. I did not file 2011 taxes Secured loan. I did not file 2011 taxes   The allocation of loan proceeds and the related interest is not generally affected by the use of property that secures the loan. I did not file 2011 taxes Example. I did not file 2011 taxes You secure a loan with property used in your business. I did not file 2011 taxes You use the loan proceeds to buy an automobile for personal use. I did not file 2011 taxes You must allocate interest expense on the loan to personal use (purchase of the automobile) even though the loan is secured by business property. I did not file 2011 taxes    If the property that secures the loan is your home, you generally do not allocate the loan proceeds or the related interest. I did not file 2011 taxes The interest is usually deductible as qualified home mortgage interest, regardless of how the loan proceeds are used. I did not file 2011 taxes For more information, see Publication 936. I did not file 2011 taxes Allocation period. I did not file 2011 taxes   The period for which a loan is allocated to a particular use begins on the date the proceeds are used and ends on the earlier of the following dates. I did not file 2011 taxes The date the loan is repaid. I did not file 2011 taxes The date the loan is reallocated to another use. I did not file 2011 taxes Proceeds not disbursed to borrower. I did not file 2011 taxes   Even if the lender disburses the loan proceeds to a third party, the allocation of the loan is still based on your use of the funds. I did not file 2011 taxes This applies whether you pay for property, services, or anything else by incurring a loan, or you take property subject to a debt. I did not file 2011 taxes Proceeds deposited in borrower's account. I did not file 2011 taxes   Treat loan proceeds deposited in an account as property held for investment. I did not file 2011 taxes It does not matter whether the account pays interest. I did not file 2011 taxes Any interest you pay on the loan is investment interest expense. I did not file 2011 taxes If you withdraw the proceeds of the loan, you must reallocate the loan based on the use of the funds. I did not file 2011 taxes Example. I did not file 2011 taxes Celina, a calendar-year taxpayer, borrows $100,000 on January 4 and immediately uses the proceeds to open a checking account. I did not file 2011 taxes No other amounts are deposited in the account during the year and no part of the loan principal is repaid during the year. I did not file 2011 taxes On April 2, Celina uses $20,000 from the checking account for a passive activity expenditure. I did not file 2011 taxes On September 4, Celina uses an additional $40,000 from the account for personal purposes. I did not file 2011 taxes Under the interest allocation rules, the entire $100,000 loan is treated as property held for investment for the period from January 4 through April 1. I did not file 2011 taxes From April 2 through September 3, Celina must treat $20,000 of the loan as used in the passive activity and $80,000 of the loan as property held for investment. I did not file 2011 taxes From September 4 through December 31, she must treat $40,000 of the loan as used for personal purposes, $20,000 as used in the passive activity, and $40,000 as property held for investment. I did not file 2011 taxes Order of funds spent. I did not file 2011 taxes   Generally, you treat loan proceeds deposited in an account as used (spent) before either of the following amounts. I did not file 2011 taxes Any unborrowed amounts held in the same account. I did not file 2011 taxes Any amounts deposited after these loan proceeds. I did not file 2011 taxes Example. I did not file 2011 taxes On January 9, Olena opened a checking account, depositing $500 of the proceeds of Loan A and $1,000 of unborrowed funds. I did not file 2011 taxes The following table shows the transactions in her account during the tax year. I did not file 2011 taxes Date Transaction January 9 $500 proceeds of Loan A and $1,000 unborrowed funds deposited January 14 $500 proceeds of Loan B  deposited February 19 $800 used for personal purposes February 27 $700 used for passive activity June 19 $1,000 proceeds of Loan C  deposited November 20 $800 used for an investment December 18 $600 used for personal purposes Olena treats the $800 used for personal purposes as made from the $500 proceeds of Loan A and $300 of the proceeds of Loan B. I did not file 2011 taxes She treats the $700 used for a passive activity as made from the remaining $200 proceeds of Loan B and $500 of unborrowed funds. I did not file 2011 taxes She treats the $800 used for an investment as made entirely from the proceeds of Loan C. I did not file 2011 taxes She treats the $600 used for personal purposes as made from the remaining $200 proceeds of Loan C and $400 of unborrowed funds. I did not file 2011 taxes For the periods during which loan proceeds are held in the account, Olena treats them as property held for investment. I did not file 2011 taxes Payments from checking accounts. I did not file 2011 taxes   Generally, you treat a payment from a checking or similar account as made at the time the check is written if you mail or deliver it to the payee within a reasonable period after you write it. I did not file 2011 taxes You can treat checks written on the same day as written in any order. I did not file 2011 taxes Amounts paid within 30 days. I did not file 2011 taxes   If you receive loan proceeds in cash or if the loan proceeds are deposited in an account, you can treat any payment (up to the amount of the proceeds) made from any account you own, or from cash, as made from those proceeds. I did not file 2011 taxes This applies to any payment made within 30 days before or after the proceeds are received in cash or deposited in your account. I did not file 2011 taxes   If the loan proceeds are deposited in an account, you can apply this rule even if the rules stated earlier under Order of funds spent would otherwise require you to treat the proceeds as used for other purposes. I did not file 2011 taxes If you apply this rule to any payments, disregard those payments (and the proceeds from which they are made) when applying the rules stated under Order of funds spent. I did not file 2011 taxes   If you received the loan proceeds in cash, you can treat the payment as made on the date you received the cash instead of the date you actually made the payment. I did not file 2011 taxes Example. I did not file 2011 taxes Giovanni gets a loan of $1,000 on August 4 and receives the proceeds in cash. I did not file 2011 taxes Giovanni deposits $1,500 in an account on August 18 and on August 28 writes a check on the account for a passive activity expense. I did not file 2011 taxes Also, Giovanni deposits his paycheck, deposits other loan proceeds, and pays his bills during the same period. I did not file 2011 taxes Regardless of these other transactions, Giovanni can treat $1,000 of the deposit he made on August 18 as being paid on August 4 from the loan proceeds. I did not file 2011 taxes In addition, Giovanni can treat the passive activity expense he paid on August 28 as made from the $1,000 loan proceeds treated as deposited in the account. I did not file 2011 taxes Optional method for determining date of reallocation. I did not file 2011 taxes   You can use the following method to determine the date loan proceeds are reallocated to another use. I did not file 2011 taxes You can treat all payments from loan proceeds in the account during any month as taking place on the later of the following dates. I did not file 2011 taxes The first day of that month. I did not file 2011 taxes The date the loan proceeds are deposited in the account. I did not file 2011 taxes However, you can use this optional method only if you treat all payments from the account during the same calendar month in the same way. I did not file 2011 taxes Interest on a segregated account. I did not file 2011 taxes   If you have an account that contains only loan proceeds and interest earned on the account, you can treat any payment from that account as being made first from the interest. I did not file 2011 taxes When the interest earned is used up, any remaining payments are from loan proceeds. I did not file 2011 taxes Example. I did not file 2011 taxes You borrowed $20,000 and used the proceeds of this loan to open a new savings account. I did not file 2011 taxes When the account had earned interest of $867, you withdrew $20,000 for personal purposes. I did not file 2011 taxes You can treat the withdrawal as coming first from the interest earned on the account, $867, and then from the loan proceeds, $19,133 ($20,000 − $867). I did not file 2011 taxes All the interest charged on the loan from the time it was deposited in the account until the time of the withdrawal is investment interest expense. I did not file 2011 taxes The interest charged on the part of the proceeds used for personal purposes ($19,133) from the time you withdrew it until you either repay it or reallocate it to another use is personal interest expense. I did not file 2011 taxes The interest charged on the loan proceeds you left in the account ($867) continues to be investment interest expense until you either repay it or reallocate it to another use. I did not file 2011 taxes Loan repayment. I did not file 2011 taxes   When you repay any part of a loan allocated to more than one use, treat it as being repaid in the following order. I did not file 2011 taxes Personal use. I did not file 2011 taxes Investments and passive activities (other than those included in (3)). I did not file 2011 taxes Passive activities in connection with a rental real estate activity in which you actively participate. I did not file 2011 taxes Former passive activities. I did not file 2011 taxes Trade or business use and expenses for certain low-income housing projects. I did not file 2011 taxes Line of credit (continuous borrowings). I did not file 2011 taxes   The following rules apply if you have a line of credit or similar arrangement. I did not file 2011 taxes Treat all borrowed funds on which interest accrues at the same fixed or variable rate as a single loan. I did not file 2011 taxes Treat borrowed funds or parts of borrowed funds on which interest accrues at different fixed or variable rates as different loans. I did not file 2011 taxes Treat these loans as repaid in the order shown on the loan agreement. I did not file 2011 taxes Loan refinancing. I did not file 2011 taxes   Allocate the replacement loan to the same uses to which the repaid loan was allocated. I did not file 2011 taxes Make the allocation only to the extent you use the proceeds of the new loan to repay any part of the original loan. I did not file 2011 taxes Debt-financed distribution. I did not file 2011 taxes   A debt-financed distribution occurs when a partnership or S corporation borrows funds and allocates those funds to distributions made to partners or shareholders. I did not file 2011 taxes The manner in which you report the interest expense associated with the distributed debt proceeds depends on your use of those proceeds. I did not file 2011 taxes How to report. I did not file 2011 taxes   If the proceeds were used in a nonpassive trade or business activity, report the interest on Schedule E (Form 1040), line 28; enter “interest expense” and the name of the partnership or S corporation in column (a) and the amount in column (h). I did not file 2011 taxes If the proceeds were used in a passive activity, follow the Instructions for Form 8582, Passive Activity Loss Limitations, to determine the amount of interest expense that can be reported on Schedule E (Form 1040), line 28; enter “interest expense” and the name of the partnership in column (a) and the amount in column (f). I did not file 2011 taxes If the proceeds were used in an investment activity, enter the interest on Form 4952. I did not file 2011 taxes If the proceeds are used for personal purposes, the interest is generally not deductible. I did not file 2011 taxes Interest You Can Deduct You can generally deduct as a business expense all interest you pay or accrue during the tax year on debts related to your trade or business. I did not file 2011 taxes Interest relates to your trade or business if you use the proceeds of the loan for a trade or business expense. I did not file 2011 taxes It does not matter what type of property secures the loan. I did not file 2011 taxes You can deduct interest on a debt only if you meet all the following requirements. I did not file 2011 taxes You are legally liable for that debt. I did not file 2011 taxes Both you and the lender intend that the debt be repaid. I did not file 2011 taxes You and the lender have a true debtor-creditor relationship. I did not file 2011 taxes Partial liability. I did not file 2011 taxes   If you are liable for part of a business debt, you can deduct only your share of the total interest paid or accrued. I did not file 2011 taxes Example. I did not file 2011 taxes You and your brother borrow money. I did not file 2011 taxes You are liable for 50% of the note. I did not file 2011 taxes You use your half of the loan in your business, and you make one-half of the loan payments. I did not file 2011 taxes You can deduct your half of the total interest payments as a business deduction. I did not file 2011 taxes Mortgage. I did not file 2011 taxes   Generally, mortgage interest paid or accrued on real estate you own legally or equitably is deductible. I did not file 2011 taxes However, rather than deducting the interest currently, you may have to add it to the cost basis of the property as explained later under Capitalization of Interest. I did not file 2011 taxes Statement. I did not file 2011 taxes   If you paid $600 or more of mortgage interest (including certain points) during the year on any one mortgage, you generally will receive a Form 1098 or a similar statement. I did not file 2011 taxes You will receive the statement if you pay interest to a person (including a financial institution or a cooperative housing corporation) in the course of that person's trade or business. I did not file 2011 taxes A governmental unit is a person for purposes of furnishing the statement. I did not file 2011 taxes   If you receive a refund of interest you overpaid in an earlier year, this amount will be reported in box 3 of Form 1098. I did not file 2011 taxes You cannot deduct this amount. I did not file 2011 taxes For information on how to report this refund, see Refunds of interest, later in this chapter. I did not file 2011 taxes Expenses paid to obtain a mortgage. I did not file 2011 taxes   Certain expenses you pay to obtain a mortgage cannot be deducted as interest. I did not file 2011 taxes These expenses, which include mortgage commissions, abstract fees, and recording fees, are capital expenses. I did not file 2011 taxes If the property mortgaged is business or income-producing property, you can amortize the costs over the life of the mortgage. I did not file 2011 taxes Prepayment penalty. I did not file 2011 taxes   If you pay off your mortgage early and pay the lender a penalty for doing this, you can deduct the penalty as interest. I did not file 2011 taxes Interest on employment tax deficiency. I did not file 2011 taxes   Interest charged on employment taxes assessed on your business is deductible. I did not file 2011 taxes Original issue discount (OID). I did not file 2011 taxes   OID is a form of interest. I did not file 2011 taxes A loan (mortgage or other debt) generally has OID when its proceeds are less than its principal amount. I did not file 2011 taxes The OID is the difference between the stated redemption price at maturity and the issue price of the loan. I did not file 2011 taxes   A loan's stated redemption price at maturity is the sum of all amounts (principal and interest) payable on it other than qualified stated interest. I did not file 2011 taxes Qualified stated interest is stated interest that is unconditionally payable in cash or property (other than another loan of the issuer) at least annually over the term of the loan at a single fixed rate. I did not file 2011 taxes You generally deduct OID over the term of the loan. I did not file 2011 taxes Figure the amount to deduct each year using the constant-yield method, unless the OID on the loan is de minimis. I did not file 2011 taxes De minimis OID. I did not file 2011 taxes   The OID is de minimis if it is less than one-fourth of 1% (. I did not file 2011 taxes 0025) of the stated redemption price of the loan at maturity multiplied by the number of full years from the date of original issue to maturity (the term of the loan). I did not file 2011 taxes   If the OID is de minimis, you can choose one of the following ways to figure the amount you can deduct each year. I did not file 2011 taxes On a constant-yield basis over the term of the loan. I did not file 2011 taxes On a straight-line basis over the term of the loan. I did not file 2011 taxes In proportion to stated interest payments. I did not file 2011 taxes In its entirety at maturity of the loan. I did not file 2011 taxes You make this choice by deducting the OID in a manner consistent with the method chosen on your timely filed tax return for the tax year in which the loan is issued. I did not file 2011 taxes Example. I did not file 2011 taxes On January 1, 2013, you took out a $100,000 discounted loan and received $98,500 in proceeds. I did not file 2011 taxes The loan will mature on January 1, 2023 (a 10-year term), and the $100,000 principal is payable on that date. I did not file 2011 taxes Interest of $10,000 is payable on January 1 of each year, beginning January 1, 2014. I did not file 2011 taxes The $1,500 OID on the loan is de minimis because it is less than $2,500 ($100,000 × . I did not file 2011 taxes 0025 × 10). I did not file 2011 taxes You choose to deduct the OID on a straight-line basis over the term of the loan. I did not file 2011 taxes Beginning in 2013, you can deduct $150 each year for 10 years. I did not file 2011 taxes Constant-yield method. I did not file 2011 taxes   If the OID is not de minimis, you must use the constant-yield method to figure how much you can deduct each year. I did not file 2011 taxes You figure your deduction for the first year using the following steps. I did not file 2011 taxes Determine the issue price of the loan. I did not file 2011 taxes Generally, this equals the proceeds of the loan. I did not file 2011 taxes If you paid points on the loan (as discussed later), the issue price generally is the difference between the proceeds and the points. I did not file 2011 taxes Multiply the result in (1) by the yield to maturity. I did not file 2011 taxes Subtract any qualified stated interest payments from the result in (2). I did not file 2011 taxes This is the OID you can deduct in the first year. I did not file 2011 taxes   To figure your deduction in any subsequent year, follow the above steps, except determine the adjusted issue price in step (1). I did not file 2011 taxes To get the adjusted issue price, add to the issue price any OID previously deducted. I did not file 2011 taxes Then follow steps (2) and (3) above. I did not file 2011 taxes   The yield to maturity is generally shown in the literature you receive from your lender. I did not file 2011 taxes If you do not have this information, consult your lender or tax advisor. I did not file 2011 taxes In general, the yield to maturity is the discount rate that, when used in computing the present value of all principal and interest payments, produces an amount equal to the principal amount of the loan. I did not file 2011 taxes Example. I did not file 2011 taxes The facts are the same as in the previous example, except that you deduct the OID on a constant yield basis over the term of the loan. I did not file 2011 taxes The yield to maturity on your loan is 10. I did not file 2011 taxes 2467%, compounded annually. I did not file 2011 taxes For 2013, you can deduct $93 [($98,500 × . I did not file 2011 taxes 102467) − $10,000]. I did not file 2011 taxes For 2014, you can deduct $103 [($98,593 × . I did not file 2011 taxes 102467) − $10,000]. I did not file 2011 taxes Loan or mortgage ends. I did not file 2011 taxes   If your loan or mortgage ends, you may be able to deduct any remaining OID in the tax year in which the loan or mortgage ends. I did not file 2011 taxes A loan or mortgage may end due to a refinancing, prepayment, foreclosure, or similar event. I did not file 2011 taxes If you refinance with the original lender, you generally cannot deduct the remaining OID in the year in which the refinancing occurs, but you may be able to deduct it over the term of the new mortgage or loan. I did not file 2011 taxes See Interest paid with funds borrowed from original lender under Interest You Cannot Deduct, later. I did not file 2011 taxes Points. I did not file 2011 taxes   The term “points” is used to describe certain charges paid, or treated as paid, by a borrower to obtain a loan or a mortgage. I did not file 2011 taxes These charges are also called loan origination fees, maximum loan charges, discount points, or premium charges. I did not file 2011 taxes If any of these charges (points) are solely for the use of money, they are interest. I did not file 2011 taxes   Because points are prepaid interest, you generally cannot deduct the full amount in the year paid. I did not file 2011 taxes However, you can choose to fully deduct points in the year paid if you meet certain tests. I did not file 2011 taxes For exceptions to the general rule, see Publication 936. I did not file 2011 taxes The points reduce the issue price of the loan and result in original issue discount (OID), deductible as explained in the preceding discussion. I did not file 2011 taxes Partial payments on a nontax debt. I did not file 2011 taxes   If you make partial payments on a debt (other than a debt owed the IRS), the payments are applied, in general, first to interest and any remainder to principal. I did not file 2011 taxes You can deduct only the interest. I did not file 2011 taxes This rule does not apply when it can be inferred that the borrower and lender understood that a different allocation of the payments would be made. I did not file 2011 taxes Installment purchase. I did not file 2011 taxes   If you make an installment purchase of business property, the contract between you and the seller generally provides for the payment of interest. I did not file 2011 taxes If no interest or a low rate of interest is charged under the contract, a portion of the stated principal amount payable under the contract may be recharacterized as interest (unstated interest). I did not file 2011 taxes The amount recharacterized as interest reduces your basis in the property and increases your interest expense. I did not file 2011 taxes For more information on installment sales and unstated interest, see Publication 537. I did not file 2011 taxes Interest You Cannot Deduct Certain interest payments cannot be deducted. I did not file 2011 taxes In addition, certain other expenses that may seem to be interest but are not, cannot be deducted as interest. I did not file 2011 taxes You cannot currently deduct interest that must be capitalized, and you generally cannot deduct personal interest. I did not file 2011 taxes Interest paid with funds borrowed from original lender. I did not file 2011 taxes   If you use the cash method of accounting, you cannot deduct interest you pay with funds borrowed from the original lender through a second loan, an advance, or any other arrangement similar to a loan. I did not file 2011 taxes You can deduct the interest expense once you start making payments on the new loan. I did not file 2011 taxes   When you make a payment on the new loan, you first apply the payment to interest and then to the principal. I did not file 2011 taxes All amounts you apply to the interest on the first loan are deductible, along with any interest you pay on the second loan, subject to any limits that apply. I did not file 2011 taxes Capitalized interest. I did not file 2011 taxes   You cannot currently deduct interest you are required to capitalize under the uniform capitalization rules. I did not file 2011 taxes See Capitalization of Interest, later. I did not file 2011 taxes In addition, if you buy property and pay interest owed by the seller (for example, by assuming the debt and any interest accrued on the property), you cannot deduct the interest. I did not file 2011 taxes Add this interest to the basis of the property. I did not file 2011 taxes Commitment fees or standby charges. I did not file 2011 taxes   Fees you incur to have business funds available on a standby basis, but not for the actual use of the funds, are not deductible as interest payments. I did not file 2011 taxes You may be able to deduct them as business expenses. I did not file 2011 taxes   If the funds are for inventory or certain property used in your business, the fees are indirect costs and you generally must capitalize them under the uniform capitalization rules. I did not file 2011 taxes See Capitalization of Interest, later. I did not file 2011 taxes Interest on income tax. I did not file 2011 taxes   Interest charged on income tax assessed on your individual income tax return is not a business deduction even though the tax due is related to income from your trade or business. I did not file 2011 taxes Treat this interest as a business deduction only in figuring a net operating loss deduction. I did not file 2011 taxes Penalties. I did not file 2011 taxes   Penalties on underpaid deficiencies and underpaid estimated tax are not interest. I did not file 2011 taxes You cannot deduct them. I did not file 2011 taxes Generally, you cannot deduct any fines or penalties. I did not file 2011 taxes Interest on loans with respect to life insurance policies. I did not file 2011 taxes   You generally cannot deduct interest on a debt incurred with respect to any life insurance, annuity, or endowment contract that covers any individual unless that individual is a key person. I did not file 2011 taxes   If the policy or contract covers a key person, you can deduct the interest on up to $50,000 of debt for that person. I did not file 2011 taxes However, the deduction for any month cannot be more than the interest figured using Moody's Composite Yield on Seasoned Corporate Bonds (formerly known as Moody's Corporate Bond Yield Average-Monthly Average Corporates) (Moody's rate) for that month. I did not file 2011 taxes Who is a key person?   A key person is an officer or 20% owner. I did not file 2011 taxes However, the number of individuals you can treat as key persons is limited to the greater of the following. I did not file 2011 taxes Five individuals. I did not file 2011 taxes The lesser of 5% of the total officers and employees of the company or 20 individuals. I did not file 2011 taxes Exceptions for pre-June 1997 contracts. I did not file 2011 taxes   You can generally deduct the interest if the contract was issued before June 9, 1997, and the covered individual is someone other than an employee, officer, or someone financially interested in your business. I did not file 2011 taxes If the contract was purchased before June 21, 1986, you can generally deduct the interest no matter who is covered by the contract. I did not file 2011 taxes Interest allocated to unborrowed policy cash value. I did not file 2011 taxes   Corporations and partnerships generally cannot deduct any interest expense allocable to unborrowed cash values of life insurance, annuity, or endowment contracts. I did not file 2011 taxes This rule applies to contracts issued after June 8, 1997, that cover someone other than an officer, director, employee, or 20% owner. I did not file 2011 taxes For more information, see section 264(f) of the Internal Revenue Code. I did not file 2011 taxes Capitalization of Interest Under the uniform capitalization rules, you generally must capitalize interest on debt equal to your expenditures to produce real property or certain tangible personal property. I did not file 2011 taxes The property must be produced by you for use in your trade or business or for sale to customers. I did not file 2011 taxes You cannot capitalize interest related to property that you acquire in any other manner. I did not file 2011 taxes Interest you paid or incurred during the production period must be capitalized if the property produced is designated property. I did not file 2011 taxes Designated property is any of the following. I did not file 2011 taxes Real property. I did not file 2011 taxes Tangible personal property with a class life of 20 years or more. I did not file 2011 taxes Tangible personal property with an estimated production period of more than 2 years. I did not file 2011 taxes Tangible personal property with an estimated production period of more than 1 year if the estimated cost of production is more than $1 million. I did not file 2011 taxes Property you produce. I did not file 2011 taxes   You produce property if you construct, build, install, manufacture, develop, improve, create, raise, or grow it. I did not file 2011 taxes Treat property produced for you under a contract as produced by you up to the amount you pay or incur for the property. I did not file 2011 taxes Carrying charges. I did not file 2011 taxes   Carrying charges include taxes you pay to carry or develop real estate or to carry, transport, or install personal property. I did not file 2011 taxes You can choose to capitalize carrying charges not subject to the uniform capitalization rules if they are otherwise deductible. I did not file 2011 taxes For more information, see chapter 7. I did not file 2011 taxes Capitalized interest. I did not file 2011 taxes   Treat capitalized interest as a cost of the property produced. I did not file 2011 taxes You recover your interest when you sell or use the property. I did not file 2011 taxes If the property is inventory, recover capitalized interest through cost of goods sold. I did not file 2011 taxes If the property is used in your trade or business, recover capitalized interest through an adjustment to basis, depreciation, amortization, or other method. I did not file 2011 taxes Partnerships and S corporations. I did not file 2011 taxes   The interest capitalization rules are applied first at the partnership or S corporation level. I did not file 2011 taxes The rules are then applied at the partners' or shareholders' level to the extent the partnership or S corporation has insufficient debt to support the production or construction costs. I did not file 2011 taxes   If you are a partner or a shareholder, you may have to capitalize interest you incur during the tax year for the production costs of the partnership or S corporation. I did not file 2011 taxes You may also have to capitalize interest incurred by the partnership or S corporation for your own production costs. I did not file 2011 taxes To properly capitalize interest under these rules, you must be given the required information in an attachment to the Schedule K-1 you receive from the partnership or S corporation. I did not file 2011 taxes Additional information. I did not file 2011 taxes   The procedures for applying the uniform capitalization rules are beyond the scope of this publication. I did not file 2011 taxes For more information, see sections 1. I did not file 2011 taxes 263A-8 through 1. I did not file 2011 taxes 263A-15 of the regulations and Notice 88-99. I did not file 2011 taxes Notice 88-99 is in Cumulative Bulletin 1988-2. I did not file 2011 taxes When To Deduct Interest If the uniform capitalization rules, discussed under Capitalization of Interest, earlier, do not apply to you, deduct interest as follows. I did not file 2011 taxes Cash method. I did not file 2011 taxes   Under the cash method, you can generally deduct only the interest you actually paid during the tax year. I did not file 2011 taxes You cannot deduct a promissory note you gave as payment because it is a promise to pay and not an actual payment. I did not file 2011 taxes Prepaid interest. I did not file 2011 taxes   You generally cannot deduct any interest paid before the year it is due. I did not file 2011 taxes Interest paid in advance can be deducted only in the tax year in which it is due. I did not file 2011 taxes Discounted loan. I did not file 2011 taxes   If interest or a discount is subtracted from your loan proceeds, it is not a payment of interest and you cannot deduct it when you get the loan. I did not file 2011 taxes For more information, see Original issue discount (OID) under Interest You Can Deduct, earlier. I did not file 2011 taxes Refunds of interest. I did not file 2011 taxes   If you pay interest and then receive a refund in the same tax year of any part of the interest, reduce your interest deduction by the refund. I did not file 2011 taxes If you receive the refund in a later tax year, include the refund in your income to the extent the deduction for the interest reduced your tax. I did not file 2011 taxes Accrual method. I did not file 2011 taxes   Under an accrual method, you can deduct only interest that has accrued during the tax year. I did not file 2011 taxes Prepaid interest. I did not file 2011 taxes   See Prepaid interest, earlier. I did not file 2011 taxes Discounted loan. I did not file 2011 taxes   See Discounted loan, earlier. I did not file 2011 taxes Tax deficiency. I did not file 2011 taxes   If you contest a federal income tax deficiency, interest does not accrue until the tax year the final determination of liability is made. I did not file 2011 taxes If you do not contest the deficiency, then the interest accrues in the year the tax was asserted and agreed to by you. I did not file 2011 taxes   However, if you contest but pay the proposed tax deficiency and interest, and you do not designate the payment as a cash bond, then the interest is deductible in the year paid. I did not file 2011 taxes Related person. I did not file 2011 taxes   If you use an accrual method, you cannot deduct interest owed to a related person who uses the cash method until payment is made and the interest is includible in the gross income of that person. I did not file 2011 taxes The relationship is determined as of the end of the tax year for which the interest would otherwise be deductible. I did not file 2011 taxes See section 267 of the Internal Revenue Code for more information. I did not file 2011 taxes Below-Market Loans If you receive a below-market gift or demand loan and use the proceeds in your trade or business, you may be able to deduct the forgone interest. I did not file 2011 taxes See Treatment of gift and demand loans, later, in this discussion. I did not file 2011 taxes A below-market loan is a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. I did not file 2011 taxes A gift or demand loan that is a below-market loan generally is considered an arm's-length transaction in which you, the borrower, are considered as having received both the following. I did not file 2011 taxes A loan in exchange for a note that requires the payment of interest at the applicable federal rate. I did not file 2011 taxes An additional payment in an amount equal to the forgone interest. I did not file 2011 taxes The additional payment is treated as a gift, dividend, contribution to capital, payment of compensation, or other payment, depending on the substance of the transaction. I did not file 2011 taxes Forgone interest. I did not file 2011 taxes   For any period, forgone interest is The interest that would be payable for that period if interest accrued on the loan at the applicable federal rate and was payable annually on December 31, minus Any interest actually payable on the loan for the period. I did not file 2011 taxes Applicable federal rates are published by the IRS each month in the Internal Revenue Bulletin. I did not file 2011 taxes Internal Revenue Bulletins are available on the IRS web site at www. I did not file 2011 taxes irs. I did not file 2011 taxes gov/irb. I did not file 2011 taxes You can also contact an IRS office to get these rates. I did not file 2011 taxes Loans subject to the rules. I did not file 2011 taxes   The rules for below-market loans apply to the following. I did not file 2011 taxes Gift loans (below-market loans where the forgone interest is in the nature of a gift). I did not file 2011 taxes Compensation-related loans (below-market loans between an employer and an employee or between an independent contractor and a person for whom the contractor provides services). I did not file 2011 taxes Corporation-shareholder loans. I did not file 2011 taxes Tax avoidance loans (below-market loans where the avoidance of federal tax is one of the main purposes of the interest arrangement). I did not file 2011 taxes Loans to qualified continuing care facilities under a continuing care contract (made after October 11, 1985). I did not file 2011 taxes   Except as noted in (5) above, these rules apply to demand loans (loans payable in full at any time upon the lender's demand) outstanding after June 6, 1984, and to term loans (loans that are not demand loans) made after that date. I did not file 2011 taxes Treatment of gift and demand loans. I did not file 2011 taxes   If you receive a below-market gift loan or demand loan, you are treated as receiving an additional payment (as a gift, dividend, etc. I did not file 2011 taxes ) equal to the forgone interest on the loan. I did not file 2011 taxes You are then treated as transferring this amount back to the lender as interest. I did not file 2011 taxes These transfers are considered to occur annually, generally on December 31. I did not file 2011 taxes If you use the loan proceeds in your trade or business, you can deduct the forgone interest each year as a business interest expense. I did not file 2011 taxes The lender must report it as interest income. I did not file 2011 taxes Limit on forgone interest for gift loans of $100,000 or less. I did not file 2011 taxes   For gift loans between individuals, forgone interest treated as transferred back to the lender is limited to the borrower's net investment income for the year. I did not file 2011 taxes This limit applies if the outstanding loans between the lender and borrower total $100,000 or less. I did not file 2011 taxes If the borrower's net investment income is $1,000 or less, it is treated as zero. I did not file 2011 taxes This limit does not apply to a loan if the avoidance of any federal tax is one of the main purposes of the interest arrangement. I did not file 2011 taxes Treatment of term loans. I did not file 2011 taxes   If you receive a below-market term loan other than a gift or demand loan, you are treated as receiving an additional cash payment (as a dividend, etc. I did not file 2011 taxes ) on the date the loan is made. I did not file 2011 taxes This payment is equal to the loan amount minus the present value, at the applicable federal rate, of all payments due under the loan. I did not file 2011 taxes The same amount is treated as original issue discount on the loan. I did not file 2011 taxes See Original issue discount (OID) under Interest You Can Deduct, earlier. I did not file 2011 taxes Exceptions for loans of $10,000 or less. I did not file 2011 taxes   The rules for below-market loans do not apply to any day on which the total outstanding loans between the borrower and lender is $10,000 or less. I did not file 2011 taxes This exception applies only to the following. I did not file 2011 taxes Gift loans between individuals if the loan is not directly used to buy or carry income-producing assets. I did not file 2011 taxes Compensation-related loans or corporation-shareholder loans if the avoidance of any federal tax is not a principal purpose of the interest arrangement. I did not file 2011 taxes This exception does not apply to a term loan described in (2) above that was previously subject to the below-market loan rules. I did not file 2011 taxes Those rules will continue to apply even if the outstanding balance is reduced to $10,000 or less. I did not file 2011 taxes Exceptions for loans without significant tax effect. I did not file 2011 taxes   The following loans are specifically exempted from the rules for below-market loans because their interest arrangements do not have a significant effect on the federal tax liability of the borrower or the lender. I did not file 2011 taxes Loans made available by lenders to the general public on the same terms and conditions that are consistent with the lender's customary business practices. I did not file 2011 taxes Loans subsidized by a federal, state, or municipal government that are made available under a program of general application to the public. I did not file 2011 taxes Certain employee-relocation loans. I did not file 2011 taxes Certain loans to or from a foreign person, unless the interest income would be effectively connected with the conduct of a U. I did not file 2011 taxes S. I did not file 2011 taxes trade or business and not exempt from U. I did not file 2011 taxes S. I did not file 2011 taxes tax under an income tax treaty. I did not file 2011 taxes Any other loan if the taxpayer can show that the interest arrangement has no significant effect on the federal tax liability of the lender or the borrower. I did not file 2011 taxes Whether an interest arrangement has a significant effect on the federal tax liability of the lender or the borrower will be determined by all the facts and circumstances. I did not file 2011 taxes Consider all the following factors. I did not file 2011 taxes Whether items of income and deduction generated by the loan offset each other. I did not file 2011 taxes The amount of the items. I did not file 2011 taxes The cost of complying with the below-market loan provisions if they were to apply. I did not file 2011 taxes Any reasons, other than taxes, for structuring the transaction as a below-market loan. I did not file 2011 taxes Exception for loans to qualified continuing care facilities. I did not file 2011 taxes   The below-market interest rules do not apply to a loan owed by a qualified continuing care facility under a continuing care contract if the lender or lender's spouse is age 62 or older by the end of the calendar year. I did not file 2011 taxes A qualified continuing care facility is one or more facilities (excluding nursing homes) meeting the requirements listed below. I did not file 2011 taxes Designed to provide services under continuing care contracts (defined below). I did not file 2011 taxes Includes an independent living unit, and either an assisted living or nursing facility, or both. I did not file 2011 taxes Substantially all of the independent living unit residents are covered by continuing care contracts. I did not file 2011 taxes A continuing care contract is a written contract between an individual and a qualified continuing care facility that includes all of the following conditions. I did not file 2011 taxes The individual or individual's spouse must be entitled to use the facility for the rest of their life or lives. I did not file 2011 taxes The individual or individual's spouse will be provided with housing, as appropriate for the health of the individual or individual's spouse in an: independent living unit (which has additional available facilities outside the unit for the provision of meals and other personal care), and assisted living or nursing facility available in the continuing care facility. I did not file 2011 taxes The individual or individual's spouse will be provided with assisted living or nursing care available in the continuing care facility, as required for the health of the individual or the individual's spouse. I did not file 2011 taxes For more information, see section 7872(h) of the Internal Revenue Code. I did not file 2011 taxes Sale or exchange of property. I did not file 2011 taxes   Different rules generally apply to a loan connected with the sale or exchange of property. I did not file 2011 taxes If the loan does not provide adequate stated interest, part of the principal payment may be considered interest. I did not file 2011 taxes However, there are exceptions that may require you to apply the below-market interest rate rules to these loans. I did not file 2011 taxes See Unstated Interest and Original Issue Discount (OID) in Publication 537. I did not file 2011 taxes More information. I did not file 2011 taxes   For more information on below-market loans, see section 7872 of the Internal Revenue Code and section 1. I did not file 2011 taxes 7872-5 of the regulations. I did not file 2011 taxes Prev  Up  Next   Home   More Online Publications