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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

California Department of Consumer Affairs

Website: California Department of Consumer Affairs

Address: California Department of Consumer Affairs
Consumer Information Division
1625 N. Market Blvd., Suite N 112
Sacramento, CA 95834

Phone Number: 916- 445-1254

Toll-free: 1-800-952-5210

TTY: 916-928-1227; 1-800-326-2297

California Office of the Attorney General

Website: California Office of the Attorney General

Address: California Office of the Attorney General
Public Inquiry Unit
PO Box 944255
Sacramento, CA 94244-2550

Phone Number: 916-322-3360

Toll-free: 1-800-952-5225 (CA)

TTY: 1-800-735-2929

Contractors State License Board

Website: Contractors State License Board

Address: Contractors State License Board
9821 Business Park Dr.
Sacramento, CA 95827

Phone Number: 916-255-3900 (Headquarters) 916-255-2924 (Northern CA.) 562-345-7600 (Southern CA.)

Toll-free: 1-800-321-2752

California Bureau of Automotive Repair

Website: California Bureau of Automotive Repair

Address: California Bureau of Automotive Repair
Department of Consumer Affairs
10949 N. Mather Blvd.
Rancho Cordova, CA 95670

Toll-free: 1-800-952-5210 (Consumer Questions) 1-866-799-3811 (Complaint Intake)

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County Consumer Protection Offices

Stanislaus County District Attorney's Office

Website: Stanislaus County District Attorney's Office

Address: Stanislaus County District Attorney's Office
Consumer Protection Unit
832 12th St., Suite 300
Modesto, CA 95354

Phone Number: 209-525-5550

Ventura County District Attorney's Office

Website: Ventura County District Attorney's Office

Address: Ventura County District Attorney's Office
Consumer Mediation Section
800 S. Victoria Ave.
Ventura, CA 93009

Phone Number: 805-654-3110

Toll-free: 1-800-660-5474 ext 3110 (Ventura)

Contra Costa County District Attorneys Office

Website: Contra Costa County District Attorneys Office (Consumer protection division of Contra Costa)

Address: Contra Costa County District Attorneys Office
Special Operations Division- Consumer Division
900 Ward St., 4th Floor
Martinez, CA 94553

Phone Number: 925-957-8604

Fresno County District Attorney's Office

Website: Fresno County District Attorney's Office

Address: Fresno County District Attorney's Office
Consumer Protection Division
929 L St.
Fresno, CA 93721

Phone Number: 559-600-3156

Kern County District Attorney's Office

Website: Kern County District Attorney's Office

Address: Kern County District Attorney's Office
Consumer Protection Unit
Justice Building

1215 Truxtun Ave., 4th Floor
Bakersfield, CA 93301

Phone Number: 661-868-7600

Los Angeles County Department of Consumer Affairs

Website: Los Angeles County Department of Consumer Affairs

Address: Los Angeles County Department of Consumer Affairs
500 W. Temple St., Room B-96
Los Angeles, CA 90012-2722

Phone Number: 213-974-1452

Toll-free: 1-800-593-8222 (L.A. County)

TTY: 213-626-0913

Marin County District Attorney's Office

Website: Marin County District Attorney's Office

Address: Marin County District Attorney's Office
Consumer Protection Unit
Hall of Justice, Room 130
3501 Civic Center Dr.
San Rafael, CA 94903

Phone Number: 415-473-6450 415-473-6495 (Mediation)

Monterey County District Attorney's Office

Website: Monterey County District Attorney's Office (District attorneys page)

Address: Monterey County District Attorney's Office
Consumer Protection Division
1200 Aguajito Rd., Room 301
Monterey, CA 93940

Phone Number: 831-755-5073 (Salinas) 831-647-7770 (Monterey) 831-385-8373 (King City)

Napa County District Attorney's Office

Website: Napa County District Attorney's Office (Napa County website)

Address: Napa County District Attorney's Office
Consumer Affairs
931 Parkway Mall
Napa, CA 94559

Phone Number: 707-253-4059 (Hotline)

Orange County District Attorney's Office

Website: Orange County District Attorney's Office

Address: Orange County District Attorney's Office
Consumer Protection Unit
401 Civic Center Dr., W
Santa Ana, CA 92701

Phone Number: 714-834-6553

San Diego County District Attorney's Office

Website: San Diego County District Attorney's Office

Address: San Diego County District Attorney's Office
Consumer Protection Unit
330 W. Broadway
San Diego, CA 92101

Phone Number: 619-531-4040 619-531-3507 (Consumer Fraud Hotline)

San Francisco County District Attorney's Office

Website: San Francisco County District Attorney's Office

Address: San Francisco County District Attorney's Office
Special Operations Division- Consumer Protection Unit
732 Brannan St.
San Francisco, CA 94102

Phone Number: 415-551-9595 (Hotline)

San Luis Obispo County District Attorneys Office

Website: San Luis Obispo County District Attorneys Office

Address: San Luis Obispo County District Attorneys Office
Economic Crime Unit
Consumer Advisory

County Courthouse Annex
1050 Monterey St., Room 223
San Luis Obispo, CA 93408

Phone Number: 805-781-5856

San Mateo County District Attorneys Office

Website: San Mateo County District Attorneys Office

Address: San Mateo County District Attorneys Office
Consumer Environmental & Protection Unit
Hall of Justice and Records
400 County Center, 3rd Floor
Redwood City, CA 94063

Phone Number: 650-363-4651 650-363-4636 (Complaints)

Santa Barbara County District Attorney's Office

Website: Santa Barbara County District Attorney's Office

Address: Santa Barbara County District Attorney's Office
Consumer Mediation Services
1112 Santa Barbara St.
Santa Maria, CA 93101

Phone Number: 805-568-2300

Santa Clara County District Attorney's Office

Website: Santa Clara County District Attorney's Office

Address: Santa Clara County District Attorney's Office
Consumer Protection Unit
70 W. Hedding St.
West Wing
San Jose, CA 95110

Phone Number: 408-792-2880

Santa Cruz County District Attorney's Office

Website: Santa Cruz County District Attorney's Office

Address: Santa Cruz County District Attorney's Office
Consumer Affairs Unit
701 Ocean St., Room 200
Santa Cruz, CA 95060

Phone Number: 831-454-2050

TTY: 831-454-2123

Solano County District Attorney's Office

Website: Solano County District Attorney's Office

Phone Number: 707-784-6859

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City Consumer Protection Offices

Los Angeles City Attorney's Office

Website: Los Angeles City Attorney's Office

Address: Los Angeles City Attorney's Office
Consumer Protection Unit
200 N. Main St.,
800 City Hall East
Los Angeles, CA 90012

Phone Number: 213-978-8070

TTY: 213-978-8310

San Diego City Attorney's Office

Website: San Diego City Attorney's Office

Address: San Diego City Attorney's Office
Consumer and Environmental Protection Unit
1200 Third Ave., #1620
San Diego, CA 92101

Phone Number: 619-533-5600

TTY: 619-702-7198

Santa Monica City Attorneys Office

Website: Santa Monica City Attorneys Office

Address: Santa Monica City Attorneys Office
Consumer Protection Unit
1685 Main St., 3rd Floor
Santa Monica, CA 90401

Phone Number: 310-458-8336

TTY: 310-458-8696

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Department of Business Oversight

Website: Department of Business Oversight

Address: Department of Business Oversight
Consumer Services
1515 K St., Suite 200
Sacramento, CA 95814

Phone Number: 916-327-7585

Toll-free: 1-866-275-2677 (CA)

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Department of Insurance

Website: Department of Insurance

Address: Department of Insurance
Consumer Services Division
300 S. Spring St., South Tower
Los Angeles, CA 90013

Phone Number: 213-897-8921

Toll-free: 1-800-927-4357 (CA)

TTY: 1-800-482-4833

Department of Managed Health Care, California HMO Help Center

Website: Department of Managed Health Care, California HMO Help Center

Address: Department of Managed Health Care, California HMO Help Center
980 9th St., Suite 500
Sacramento, CA 95814-2725

Toll-free: 1-888-466-2219

TTY: 1-877-688-9891

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Department of Business Oversight

Website: Department of Business Oversight

Address: Department of Business Oversight
Consumer Services
1515 K St., Suite 200
Sacramento, CA 95814

Toll-free: 1-866-275-2677

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Public Utilities Commission

Website: Public Utilities Commission

Address: Public Utilities Commission
Consumer Affairs Branch
505 Van Ness Ave.
San Francisco, CA 94102

Phone Number: 415-703-2782

Toll-free: 1-800-649-7570 (CA)

TTY: 1-866-836-7825

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The Irs Forms Publications

Irs forms publications 15. Irs forms publications   Selling Your Home Table of Contents Reminder Introduction Useful Items - You may want to see: Main Home Figuring Gain or LossSelling Price Amount Realized Adjusted Basis Amount of Gain or Loss Dispositions Other Than Sales Determining Basis Excluding the GainMaximum Exclusion Ownership and Use Tests Reduced Maximum Exclusion Business Use or Rental of Home Reporting the SaleSeller-financed mortgage. Irs forms publications More information. Irs forms publications Special SituationsException for sales to related persons. Irs forms publications Recapturing (Paying Back) a Federal Mortgage Subsidy Reminder Home sold with undeducted points. Irs forms publications  If you have not deducted all the points you paid to secure a mortgage on your old home, you may be able to deduct the remaining points in the year of the sale. Irs forms publications See Mortgage ending early under Points in chapter 23. Irs forms publications Introduction This chapter explains the tax rules that apply when you sell your main home. Irs forms publications In most cases, your main home is the one in which you live most of the time. Irs forms publications If you sold your main home in 2013, you may be able to exclude from income any gain up to a limit of $250,000 ($500,000 on a joint return in most cases). Irs forms publications See Excluding the Gain , later. Irs forms publications Generally, if you can exclude all the gain, you do not need to report the sale on your tax return. Irs forms publications If you have gain that cannot be excluded, it is taxable. Irs forms publications Report it on Form 8949, Sales and Other Dispositions of Capital Assets, and Schedule D (Form 1040). Irs forms publications You may also have to complete Form 4797, Sales of Business Property. Irs forms publications See Reporting the Sale , later. Irs forms publications If you have a loss on the sale, you generally cannot deduct it on your return. Irs forms publications However, you may need to report it. Irs forms publications See Reporting the Sale , later. Irs forms publications The following are main topics in this chapter. Irs forms publications Figuring gain or loss. Irs forms publications Basis. Irs forms publications Excluding the gain. Irs forms publications Ownership and use tests. Irs forms publications Reporting the sale. Irs forms publications Other topics include the following. Irs forms publications Business use or rental of home. Irs forms publications Recapturing a federal mortgage subsidy. Irs forms publications Useful Items - You may want to see: Publication 523 Selling Your Home 530 Tax Information for Homeowners 547 Casualties, Disasters, and Thefts Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 982 Reduction of Tax Attributes Due to Discharge of Indebtedness 8828 Recapture of Federal Mortgage Subsidy 8949 Sales and Other Dispositions of Capital Assets Main Home This section explains the term “main home. Irs forms publications ” Usually, the home you live in most of the time is your main home and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. Irs forms publications To exclude gain under the rules of this chapter, you in most cases must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale. Irs forms publications Land. Irs forms publications   If you sell the land on which your main home is located, but not the house itself, you cannot exclude any gain you have from the sale of the land. Irs forms publications However, if you sell vacant land used as part of your main home and that is adjacent to it, you may be able to exclude the gain from the sale under certain circumstances. Irs forms publications See Vacant land under Main Home in Publication 523 for more information. Irs forms publications Example. Irs forms publications You buy a piece of land and move your main home to it. Irs forms publications Then you sell the land on which your main home was located. Irs forms publications This sale is not considered a sale of your main home, and you cannot exclude any gain on the sale of the land. Irs forms publications More than one home. Irs forms publications   If you have more than one home, you can exclude gain only from the sale of your main home. Irs forms publications You must include in income gain from the sale of any other home. Irs forms publications If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time during the year. Irs forms publications Example 1. Irs forms publications You own two homes, one in New York and one in Florida. Irs forms publications From 2009 through 2013, you live in the New York home for 7 months and in the Florida residence for 5 months of each year. Irs forms publications In the absence of facts and circumstances indicating otherwise, the New York home is your main home. Irs forms publications You would be eligible to exclude the gain from the sale of the New York home but not of the Florida home in 2013. Irs forms publications Example 2. Irs forms publications You own a house, but you live in another house that you rent. Irs forms publications The rented house is your main home. Irs forms publications Example 3. Irs forms publications You own two homes, one in Virginia and one in New Hampshire. Irs forms publications In 2009 and 2010, you lived in the Virginia home. Irs forms publications In 2011 and 2012, you lived in the New Hampshire home. Irs forms publications In 2013, you lived again in the Virginia home. Irs forms publications Your main home in 2009, 2010, and 2013 is the Virginia home. Irs forms publications Your main home in 2011 and 2012 is the New Hampshire home. Irs forms publications You would be eligible to exclude gain from the sale of either home (but not both) in 2013. Irs forms publications Property used partly as your main home. Irs forms publications   If you use only part of the property as your main home, the rules discussed in this publication apply only to the gain or loss on the sale of that part of the property. Irs forms publications For details, see Business Use or Rental of Home , later. Irs forms publications Figuring Gain or Loss To figure the gain or loss on the sale of your main home, you must know the selling price, the amount realized, and the adjusted basis. Irs forms publications Subtract the adjusted basis from the amount realized to get your gain or loss. Irs forms publications     Selling price     − Selling expenses       Amount realized       Amount realized     − Adjusted basis       Gain or loss   Selling Price The selling price is the total amount you receive for your home. Irs forms publications It includes money and the fair market value of any other property or any other services you receive and all notes, mortgages or other debts assumed by the buyer as part of the sale. Irs forms publications Payment by employer. Irs forms publications   You may have to sell your home because of a job transfer. Irs forms publications If your employer pays you for a loss on the sale or for your selling expenses, do not include the payment as part of the selling price. Irs forms publications Your employer will include it as wages in box 1 of your Form W-2, and you will include it in your income on Form 1040, line 7. Irs forms publications Option to buy. Irs forms publications   If you grant an option to buy your home and the option is exercised, add the amount you receive for the option to the selling price of your home. Irs forms publications If the option is not exercised, you must report the amount as ordinary income in the year the option expires. Irs forms publications Report this amount on Form 1040, line 21. Irs forms publications Form 1099-S. Irs forms publications   If you received Form 1099-S, Proceeds From Real Estate Transactions, box 2 (Gross proceeds) should show the total amount you received for your home. Irs forms publications   However, box 2 will not include the fair market value of any services or property other than cash or notes you received or will receive. Irs forms publications Instead, box 4 will be checked to indicate your receipt or expected receipt of these items. Irs forms publications Amount Realized The amount realized is the selling price minus selling expenses. Irs forms publications Selling expenses. Irs forms publications   Selling expenses include: Commissions, Advertising fees, Legal fees, and Loan charges paid by the seller, such as loan placement fees or “points. Irs forms publications ” Adjusted Basis While you owned your home, you may have made adjustments (increases or decreases) to the basis. Irs forms publications This adjusted basis must be determined before you can figure gain or loss on the sale of your home. Irs forms publications For information on how to figure your home's adjusted basis, see Determining Basis , later. Irs forms publications Amount of Gain or Loss To figure the amount of gain or loss, compare the amount realized to the adjusted basis. Irs forms publications Gain on sale. Irs forms publications   If the amount realized is more than the adjusted basis, the difference is a gain and, except for any part you can exclude, in most cases is taxable. Irs forms publications Loss on sale. Irs forms publications   If the amount realized is less than the adjusted basis, the difference is a loss. Irs forms publications A loss on the sale of your main home cannot be deducted. Irs forms publications Jointly owned home. Irs forms publications   If you and your spouse sell your jointly owned home and file a joint return, you figure your gain or loss as one taxpayer. Irs forms publications Separate returns. Irs forms publications   If you file separate returns, each of you must figure your own gain or loss according to your ownership interest in the home. Irs forms publications Your ownership interest is generally determined by state law. Irs forms publications Joint owners not married. Irs forms publications   If you and a joint owner other than your spouse sell your jointly owned home, each of you must figure your own gain or loss according to your ownership interest in the home. Irs forms publications Each of you applies the rules discussed in this chapter on an individual basis. Irs forms publications Dispositions Other Than Sales Some special rules apply to other dispositions of your main home. Irs forms publications Foreclosure or repossession. Irs forms publications   If your home was foreclosed on or repossessed, you have a disposition. Irs forms publications See Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments, to determine if you have ordinary income, gain, or loss. Irs forms publications Abandonment. Irs forms publications   If you abandon your home, see Publication 4681 to determine if you have ordinary income, gain, or loss. Irs forms publications Trading (exchanging) homes. Irs forms publications   If you trade your old home for another home, treat the trade as a sale and a purchase. Irs forms publications Example. Irs forms publications You owned and lived in a home with an adjusted basis of $41,000. Irs forms publications A real estate dealer accepted your old home as a trade-in and allowed you $50,000 toward a new home priced at $80,000. Irs forms publications This is treated as a sale of your old home for $50,000 with a gain of $9,000 ($50,000 – $41,000). Irs forms publications If the dealer had allowed you $27,000 and assumed your unpaid mortgage of $23,000 on your old home, your sales price would still be $50,000 (the $27,000 trade-in allowed plus the $23,000 mortgage assumed). Irs forms publications Transfer to spouse. Irs forms publications   If you transfer your home to your spouse or you transfer it to your former spouse incident to your divorce, you in most cases have no gain or loss. Irs forms publications This is true even if you receive cash or other consideration for the home. Irs forms publications As a result, the rules in this chapter do not apply. Irs forms publications More information. Irs forms publications   If you need more information, see Transfer to spouse in Publication 523 and Property Settlements in Publication 504, Divorced or Separated Individuals. Irs forms publications Involuntary conversion. Irs forms publications   You have a disposition when your home is destroyed or condemned and you receive other property or money in payment, such as insurance or a condemnation award. Irs forms publications This is treated as a sale and you may be able to exclude all or part of any gain from the destruction or condemnation of your home, as explained later under Special Situations . Irs forms publications Determining Basis You need to know your basis in your home to figure any gain or loss when you sell it. Irs forms publications Your basis in your home is determined by how you got the home. Irs forms publications Generally, your basis is its cost if you bought it or built it. Irs forms publications If you got it in some other way (inheritance, gift, etc. Irs forms publications ), your basis is generally either its fair market value when you received it or the adjusted basis of the previous owner. Irs forms publications While you owned your home, you may have made adjustments (increases or decreases) to your home's basis. Irs forms publications The result of these adjustments is your home's adjusted basis, which is used to figure gain or loss on the sale of your home. Irs forms publications See Adjusted Basis , later. Irs forms publications You can find more information on basis and adjusted basis in chapter 13 of this publication and in Publication 523. Irs forms publications Cost As Basis The cost of property is the amount you paid for it in cash, debt obligations, other property, or services. Irs forms publications Purchase. Irs forms publications   If you bought your home, your basis is its cost to you. Irs forms publications This includes the purchase price and certain settlement or closing costs. Irs forms publications In most cases, your purchase price includes your down payment and any debt, such as a first or second mortgage or notes you gave the seller in payment for the home. Irs forms publications If you build, or contract to build, a new home, your purchase price can include costs of construction, as discussed in Publication 523. Irs forms publications Settlement fees or closing costs. Irs forms publications   When you bought your home, you may have paid settlement fees or closing costs in addition to the contract price of the property. Irs forms publications You can include in your basis some of the settlement fees and closing costs you paid for buying the home, but not the fees and costs for getting a mortgage loan. Irs forms publications A fee paid for buying the home is any fee you would have had to pay even if you paid cash for the home (that is, without the need for financing). Irs forms publications    Chapter 13 lists some of the settlement fees and closing costs that you can include in the basis of property, including your home. Irs forms publications It also lists some settlement costs that cannot be included in basis. Irs forms publications   Also see Publication 523 for additional items and a discussion of basis other than cost. Irs forms publications Adjusted Basis Adjusted basis is your cost or other basis increased or decreased by certain amounts. Irs forms publications To figure your adjusted basis, you can use Worksheet 1 in Publication 523. Irs forms publications Do not use Worksheet 1 if you acquired an interest in your home from a decedent who died in 2010 and whose executor filed Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent. Irs forms publications Increases to basis. Irs forms publications   These include the following. Irs forms publications Additions and other improvements that have a useful life of more than 1 year. Irs forms publications Special assessments for local improvements. Irs forms publications Amounts you spent after a casualty to restore damaged property. Irs forms publications Improvements. Irs forms publications   These add to the value of your home, prolong its useful life, or adapt it to new uses. Irs forms publications You add the cost of additions and other improvements to the basis of your property. Irs forms publications   For example, putting a recreation room or another bathroom in your unfinished basement, putting up a new fence, putting in new plumbing or wiring, putting on a new roof, or paving your unpaved driveway are improvements. Irs forms publications An addition to your house, such as a new deck, a sunroom, or a new garage, is also an improvement. Irs forms publications Repairs. Irs forms publications   These maintain your home in good condition but do not add to its value or prolong its life. Irs forms publications You do not add their cost to the basis of your property. Irs forms publications   Examples of repairs include repainting your house inside or outside, fixing your gutters or floors, repairing leaks or plastering, and replacing broken window panes. Irs forms publications Decreases to basis. Irs forms publications   These include the following. Irs forms publications Discharge of qualified principal residence indebtedness that was excluded from income. Irs forms publications Some or all of the cancellation of debt income that was excluded due to your bankruptcy or insolvency. Irs forms publications For details, see Publication 4681. Irs forms publications Gain you postponed from the sale of a previous home before May 7, 1997. Irs forms publications Deductible casualty losses. Irs forms publications Insurance payments you received or expect to receive for casualty losses. Irs forms publications Payments you received for granting an easement or right-of-way. Irs forms publications Depreciation allowed or allowable if you used your home for business or rental purposes. Irs forms publications Energy-related credits allowed for expenditures made on the residence. Irs forms publications (Reduce the increase in basis otherwise allowable for expenditures on the residence by the amount of credit allowed for those expenditures. Irs forms publications ) Adoption credit you claimed for improvements added to the basis of your home. Irs forms publications Nontaxable payments from an adoption assistance program of your employer you used for improvements you added to the basis of your home. Irs forms publications Energy conservation subsidy excluded from your gross income because you received it (directly or indirectly) from a public utility after 1992 to buy or install any energy conservation measure. Irs forms publications An energy conservation measure is an installation or modification primarily designed either to reduce consumption of electricity or natural gas or to improve the management of energy demand for a home. Irs forms publications District of Columbia first-time homebuyer credit (allowed on the purchase of a principal residence in the District of Columbia beginning on August 5, 1997 and before January 1, 2012). Irs forms publications General sales taxes (allowed beginning 2004 and ending before 2014) claimed as an itemized deduction on Schedule A (Form 1040) that were imposed on the purchase of personal property, such as a houseboat used as your home or a mobile home. Irs forms publications Discharges of qualified principal residence indebtedness. Irs forms publications   You may be able to exclude from gross income a discharge of qualified principal residence indebtedness. Irs forms publications This exclusion applies to discharges made after 2006 and before 2014. Irs forms publications If you choose to exclude this income, you must reduce (but not below zero) the basis of the principal residence by the amount excluded from your gross income. Irs forms publications   File Form 982 with your tax return. Irs forms publications See the form's instructions for detailed information. Irs forms publications Recordkeeping. Irs forms publications You should keep records to prove your home's adjusted basis. Irs forms publications Ordinarily, you must keep records for 3 years after the due date for filing your return for the tax year in which you sold your home. Irs forms publications But if you sold a home before May 7, 1997, and postponed tax on any gain, the basis of that home affects the basis of the new home you bought. Irs forms publications Keep records proving the basis of both homes as long as they are needed for tax purposes. Irs forms publications The records you should keep include: Proof of the home's purchase price and purchase expenses, Receipts and other records for all improvements, additions, and other items that affect the home's adjusted basis, Any worksheets or other computations you used to figure the adjusted basis of the home you sold, the gain or loss on the sale, the exclusion, and the taxable gain, Any Form 982 you filed to report any discharge of qualified principal residence indebtedness, Any Form 2119, Sale of Your Home, you filed to postpone gain from the sale of a previous home before May 7, 1997, and Any worksheets you used to prepare Form 2119, such as the Adjusted Basis of Home Sold Worksheet or the Capital Improvements Worksheet from the Form 2119 instructions, or other source of computations. Irs forms publications Excluding the Gain You may qualify to exclude from your income all or part of any gain from the sale of your main home. Irs forms publications This means that, if you qualify, you will not have to pay tax on the gain up to the limit described under Maximum Exclusion , next. Irs forms publications To qualify, you must meet the ownership and use tests described later. Irs forms publications You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. Irs forms publications You can use Worksheet 2 in Publication 523 to figure the amount of your exclusion and your taxable gain, if any. Irs forms publications If you have any taxable gain from the sale of your home, you may have to increase your withholding or make estimated tax payments. Irs forms publications See Publication 505, Tax Withholding and Estimated Tax. Irs forms publications Maximum Exclusion You can exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. Irs forms publications You meet the ownership test. Irs forms publications You meet the use test. Irs forms publications During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. Irs forms publications For details on gain allocated to periods of nonqualified use, see Periods of nonqualified use , later. Irs forms publications You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . Irs forms publications Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. Irs forms publications This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). Irs forms publications Exception. Irs forms publications   If you owned and lived in the property as your main home for less than 2 years, you can still claim an exclusion in some cases. Irs forms publications However, the maximum amount you may be able to exclude will be reduced. Irs forms publications See Reduced Maximum Exclusion , later. Irs forms publications Example 1—home owned and occupied for at least 2 years. Irs forms publications Mya bought and moved into her main home in September 2011. Irs forms publications She sold the home at a gain in October 2013. Irs forms publications During the 5-year period ending on the date of sale in October 2013, she owned and lived in the home for more than 2 years. Irs forms publications She meets the ownership and use tests. Irs forms publications Example 2—ownership test met but use test not met. Irs forms publications Ayden bought a home, lived in it for 6 months, moved out, and never occupied the home again. Irs forms publications He later sold the home for a gain. Irs forms publications He owned the home during the entire 5-year period ending on the date of sale. Irs forms publications He meets the ownership test but not the use test. Irs forms publications He cannot exclude any part of his gain on the sale unless he qualified for a reduced maximum exclusion (explained later). Irs forms publications Period of Ownership and Use The required 2 years of ownership and use during the 5-year period ending on the date of the sale do not have to be continuous nor do they both have to occur at the same time. Irs forms publications You meet the tests if you can show that you owned and lived in the property as your main home for either 24 full months or 730 days (365 × 2) during the 5-year period ending on the date of sale. Irs forms publications Temporary absence. Irs forms publications   Short temporary absences for vacations or other seasonal absences, even if you rent out the property during the absences, are counted as periods of use. Irs forms publications The following examples assume that the reduced maximum exclusion (discussed later) does not apply to the sales. Irs forms publications Example 1. Irs forms publications David Johnson, who is single, bought and moved into his home on February 1, 2011. Irs forms publications Each year during 2011 and 2012, David left his home for a 2-month summer vacation. Irs forms publications David sold the house on March 1, 2013. Irs forms publications Although the total time David used his home is less than 2 years (21 months), he meets the requirement and may exclude gain. Irs forms publications The 2-month vacations are short temporary absences and are counted as periods of use in determining whether David used the home for the required 2 years. Irs forms publications Example 2. Irs forms publications Professor Paul Beard, who is single, bought and moved into a house on August 18, 2010. Irs forms publications He lived in it as his main home continuously until January 5, 2012, when he went abroad for a 1-year sabbatical leave. Irs forms publications On February 6, 2013, 1 month after returning from the leave, Paul sold the house at a gain. Irs forms publications Because his leave was not a short temporary absence, he cannot include the period of leave to meet the 2-year use test. Irs forms publications He cannot exclude any part of his gain, because he did not use the residence for the required 2 years. Irs forms publications Ownership and use tests met at different times. Irs forms publications   You can meet the ownership and use tests during different 2-year periods. Irs forms publications However, you must meet both tests during the 5-year period ending on the date of the sale. Irs forms publications Example. Irs forms publications Beginning in 2002, Helen Jones lived in a rented apartment. Irs forms publications The apartment building was later converted to condominiums, and she bought her same apartment on December 3, 2010. Irs forms publications In 2011, Helen became ill and on April 14 of that year she moved to her daughter's home. Irs forms publications On July 12, 2013, while still living in her daughter's home, she sold her condominium. Irs forms publications Helen can exclude gain on the sale of her condominium because she met the ownership and use tests during the 5-year period from July 13, 2008, to July 12, 2013, the date she sold the condominium. Irs forms publications She owned her condominium from December 3, 2010, to July 12, 2013 (more than 2 years). Irs forms publications She lived in the property from July 13, 2008 (the beginning of the 5-year period), to April 14, 2011 (more than 2 years). Irs forms publications The time Helen lived in her daughter's home during the 5-year period can be counted toward her period of ownership, and the time she lived in her rented apartment during the 5-year period can be counted toward her period of use. Irs forms publications Cooperative apartment. Irs forms publications   If you sold stock as a tenant-stockholder in a cooperative housing corporation, the ownership and use tests are met if, during the 5-year period ending on the date of sale, you: Owned the stock for at least 2 years, and Lived in the house or apartment that the stock entitles you to occupy as your main home for at least 2 years. Irs forms publications Exceptions to Ownership and Use Tests The following sections contain exceptions to the ownership and use tests for certain taxpayers. Irs forms publications Exception for individuals with a disability. Irs forms publications   There is an exception to the use test if: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year during the 5-year period before the sale of your home. Irs forms publications Under this exception, you are considered to live in your home during any time within the 5-year period that you own the home and live in a facility (including a nursing home) licensed by a state or political subdivision to care for persons in your condition. Irs forms publications If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. Irs forms publications Previous home destroyed or condemned. Irs forms publications   For the ownership and use tests, you add the time you owned and lived in a previous home that was destroyed or condemned to the time you owned and lived in the replacement home on whose sale you wish to exclude gain. Irs forms publications This rule applies if any part of the basis of the home you sold depended on the basis of the destroyed or condemned home. Irs forms publications Otherwise, you must have owned and lived in the same home for 2 of the 5 years before the sale to qualify for the exclusion. Irs forms publications Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps. Irs forms publications   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve on “qualified official extended duty” as a member of the uniformed services or Foreign Service of the United States, or as an employee of the intelligence community. Irs forms publications You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve outside the United States either as an employee of the Peace Corps on "qualified official extended duty" or as an enrolled volunteer or volunteer leader of the Peace Corps. Irs forms publications This means that you may be able to meet the 2-year use test even if, because of your service, you did not actually live in your home for at least the required 2 years during the 5-year period ending on the date of sale. Irs forms publications   If this helps you qualify to exclude gain, you can choose to have the 5-year test period suspended by filing a return for the year of sale that does not include the gain. Irs forms publications For more information about the suspension of the 5-year test period, see Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps in Publication 523. Irs forms publications Married Persons If you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use tests, you can exclude up to $250,000 of the gain. Irs forms publications (But see Special rules for joint returns , next. Irs forms publications ) Special rules for joint returns. Irs forms publications   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. Irs forms publications You are married and file a joint return for the year. Irs forms publications Either you or your spouse meets the ownership test. Irs forms publications Both you and your spouse meet the use test. Irs forms publications During the 2-year period ending on the date of the sale, neither you nor your spouse excluded gain from the sale of another home. Irs forms publications If either spouse does not satisfy all these requirements, the maximum exclusion that can be claimed by the couple is the total of the maximum exclusions that each spouse would qualify for if not married and the amounts were figured separately. Irs forms publications For this purpose, each spouse is treated as owning the property during the period that either spouse owned the property. Irs forms publications Example 1—one spouse sells a home. Irs forms publications Emily sells her home in June 2013 for a gain of $300,000. Irs forms publications She marries Jamie later in the year. Irs forms publications She meets the ownership and use tests, but Jamie does not. Irs forms publications Emily can exclude up to $250,000 of gain on a separate or joint return for 2013. Irs forms publications The $500,000 maximum exclusion for certain joint returns does not apply because Jamie does not meet the use test. Irs forms publications Example 2—each spouse sells a home. Irs forms publications The facts are the same as in Example 1 except that Jamie also sells a home in 2013 for a gain of $200,000 before he marries Emily. Irs forms publications He meets the ownership and use tests on his home, but Emily does not. Irs forms publications Emily can exclude $250,000 of gain and Jamie can exclude $200,000 of gain on the respective sales of their individual homes. Irs forms publications However, Emily cannot use Jamie's unused exclusion to exclude more than $250,000 of gain. Irs forms publications Therefore, Emily and Jamie must recognize $50,000 of gain on the sale of Emily's home. Irs forms publications The $500,000 maximum exclusion for certain joint returns does not apply because Emily and Jamie do not both meet the use test for the same home. Irs forms publications Sale of main home by surviving spouse. Irs forms publications   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. Irs forms publications   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home. Irs forms publications The sale or exchange took place after 2008. Irs forms publications The sale or exchange took place no more than 2 years after the date of death of your spouse. Irs forms publications You have not remarried. Irs forms publications You and your spouse met the use test at the time of your spouse's death. Irs forms publications You or your spouse met the ownership test at the time of your spouse's death. Irs forms publications Neither you nor your spouse excluded gain from the sale of another home during the last 2 years. Irs forms publications Example. Irs forms publications   Harry owned and used a house as his main home since 2009. Irs forms publications Harry and Wilma married on July 1, 2013, and from that date they use Harry's house as their main home. Irs forms publications Harry died on August 15, 2013, and Wilma inherited the property. Irs forms publications Wilma sold the property on September 3, 2013, at which time she had not remarried. Irs forms publications Although Wilma owned and used the house for less than 2 years, Wilma is considered to have satisfied the ownership and use tests because her period of ownership and use includes the period that Harry owned and used the property before death. Irs forms publications Home transferred from spouse. Irs forms publications   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. Irs forms publications Use of home after divorce. Irs forms publications   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. Irs forms publications Reduced Maximum Exclusion If you fail to meet the requirements to qualify for the $250,000 or $500,000 exclusion, you may still qualify for a reduced exclusion. Irs forms publications This applies to those who: Fail to meet the ownership and use tests, or Have used the exclusion within 2 years of selling their current home. Irs forms publications In both cases, to qualify for a reduced exclusion, the sale of your main home must be due to one of the following reasons. Irs forms publications A change in place of employment. Irs forms publications Health. Irs forms publications Unforeseen circumstances. Irs forms publications Unforeseen circumstances. Irs forms publications   The sale of your main home is because of an unforeseen circumstance if your primary reason for the sale is the occurrence of an event that you could not reasonably have anticipated before buying and occupying your main home. Irs forms publications   See Publication 523 for more information and to use Worksheet 3 to figure your reduced maximum exclusion. Irs forms publications Business Use or Rental of Home You may be able to exclude gain from the sale of a home you have used for business or to produce rental income. Irs forms publications But you must meet the ownership and use tests. Irs forms publications Periods of nonqualified use. Irs forms publications   In most cases, gain from the sale or exchange of your main home will not qualify for the exclusion to the extent that the gains are allocated to periods of nonqualified use. Irs forms publications Nonqualified use is any period after 2008 during which neither you nor your spouse (or your former spouse) used the property as a main home with the following exceptions. Irs forms publications Exceptions. Irs forms publications   A period of nonqualified use does not include: Any portion of the 5-year period ending on the date of the sale or exchange after the last date you (or your spouse) use the property as a main home; Any period (not to exceed an aggregate period of 10 years) during which you (or your spouse) are serving on qualified official extended duty: As a member of the uniformed services; As a member of the Foreign Service of the United States; or As an employee of the intelligence community; and Any other period of temporary absence (not to exceed an aggregate period of 2 years) due to change of employment, health conditions, or such other unforeseen circumstances as may be specified by the IRS. Irs forms publications The gain resulting from the sale of the property is allocated between qualified and nonqualified use periods based on the amount of time the property was held for qualified and nonqualified use. Irs forms publications Gain from the sale or exchange of a main home allocable to periods of qualified use will continue to qualify for the exclusion for the sale of your main home. Irs forms publications Gain from the sale or exchange of property allocable to nonqualified use will not qualify for the exclusion. Irs forms publications Calculation. Irs forms publications   To figure the portion of the gain allocated to the period of nonqualified use, multiply the gain by the following fraction:   Total nonqualified use during the period of ownership after 2008      Total period of ownership     This calculation can be found in Worksheet 2, line 10, in Publication 523. Irs forms publications Example 1. Irs forms publications On May 23, 2007, Amy, who is unmarried for all years in this example, bought a house. Irs forms publications She moved in on that date and lived in it until May 31, 2009, when she moved out of the house and put it up for rent. Irs forms publications The house was rented from June 1, 2009, to March 31, 2011. Irs forms publications Amy claimed depreciation deductions in 2009 through 2011 totaling $10,000. Irs forms publications Amy moved back into the house on April 1, 2011, and lived there until she sold it on January 31, 2013, for a gain of $200,000. Irs forms publications During the 5-year period ending on the date of the sale (January 31, 2008-January 31, 2013), Amy owned and lived in the house for more than 2 years as shown in the following table. Irs forms publications Five Year Period Used as  Home Used as  Rental 1/31/08 – 5/31/09 16 months       6/1/09 – 3/31/11   22 months 4/1/11 – 1/31/13 22 months         38 months 22 months During the period Amy owned the house (2,080 days), her period of nonqualified use was 668 days. Irs forms publications Amy divides 668 by 2,080 and obtains a decimal (rounded to at least three decimal places) of 0. Irs forms publications 321. Irs forms publications To figure her gain attributable to the period of nonqualified use, she multiplies $190,000 (the gain not attributable to the $10,000 depreciation deduction) by 0. Irs forms publications 321. Irs forms publications Because the gain attributable to periods of nonqualified use is $60,990, Amy can exclude $129,010 of her gain. Irs forms publications Example 2. Irs forms publications William owned and used a house as his main home from 2007 through 2010. Irs forms publications On January 1, 2011, he moved to another state. Irs forms publications He rented his house from that date until April 30, 2013, when he sold it. Irs forms publications During the 5-year period ending on the date of sale (May 1, 2008-April 30, 2013), William owned and lived in the house for more than 2 years. Irs forms publications He must report the sale on Form 4797 because it was rental property at the time of sale. Irs forms publications Because the period of nonqualified use does not include any part of the 5-year period after the last date William lived in the house, he has no period of nonqualified use. Irs forms publications Because he met the ownership and use tests, he can exclude gain up to $250,000. Irs forms publications However, he cannot exclude the part of the gain equal to the depreciation he claimed or could have claimed for renting the house, as explained next. Irs forms publications Depreciation after May 6, 1997. Irs forms publications   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. Irs forms publications If you can show by adequate records or other evidence that the depreciation allowed was less than the amount allowable, then you may limit the amount of gain recognized to the depreciation allowed. Irs forms publications See Publication 544 for more information. Irs forms publications Property used partly for business or rental. Irs forms publications   If you used property partly as a home and partly for business or to produce rental income, see Publication 523. Irs forms publications Reporting the Sale Do not report the 2013 sale of your main home on your tax return unless: You have a gain and do not qualify to exclude all of it, You have a gain and choose not to exclude it, or You received Form 1099-S. Irs forms publications If any of these conditions apply, report the entire gain or loss. Irs forms publications For details on how to report the gain or loss, see the Instructions for Schedule D (Form 1040) and the Instructions for Form 8949. Irs forms publications If you used the home for business or to produce rental income, you may have to use Form 4797 to report the sale of the business or rental part (or the sale of the entire property if used entirely for business or rental). Irs forms publications See Business Use or Rental of Home in Publication 523 and the Instructions for Form 4797. Irs forms publications Installment sale. Irs forms publications    Some sales are made under arrangements that provide for part or all of the selling price to be paid in a later year. Irs forms publications These sales are called “installment sales. Irs forms publications ” If you finance the buyer's purchase of your home yourself instead of having the buyer get a loan or mortgage from a bank, you probably have an installment sale. Irs forms publications You may be able to report the part of the gain you cannot exclude on the installment basis. Irs forms publications    Use Form 6252, Installment Sale Income, to report the sale. Irs forms publications Enter your exclusion on line 15 of Form 6252. Irs forms publications Seller-financed mortgage. Irs forms publications   If you sell your home and hold a note, mortgage, or other financial agreement, the payments you receive in most cases consist of both interest and principal. Irs forms publications You must separately report as interest income the interest you receive as part of each payment. Irs forms publications If the buyer of your home uses the property as a main or second home, you must also report the name, address, and social security number (SSN) of the buyer on line 1 of Schedule B (Form 1040A or 1040). Irs forms publications The buyer must give you his or her SSN, and you must give the buyer your SSN. Irs forms publications Failure to meet these requirements may result in a $50 penalty for each failure. Irs forms publications If either you or the buyer does not have and is not eligible to get an SSN, see Social Security Number in chapter 1. Irs forms publications More information. Irs forms publications   For more information on installment sales, see Publication 537, Installment Sales. Irs forms publications Special Situations The situations that follow may affect your exclusion. Irs forms publications Sale of home acquired in a like-kind exchange. Irs forms publications   You cannot claim the exclusion if: You acquired your home in a like-kind exchange (also known as a section 1031 exchange), or your basis in your home is determined by reference to the basis of the home in the hands of the person who acquired the property in a like-kind exchange (for example, you received the home from that person as a gift), and You sold the home during the 5-year period beginning with the date your home was acquired in the like-kind exchange. Irs forms publications Gain from a like-kind exchange is not taxable at the time of the exchange. Irs forms publications This means that gain will not be taxed until you sell or otherwise dispose of the property you receive. Irs forms publications To defer gain from a like-kind exchange, you must have exchanged business or investment property for business or investment property of a like kind. Irs forms publications For more information about like-kind exchanges, see Publication 544, Sales and Other Dispositions of Assets. Irs forms publications Home relinquished in a like-kind exchange. Irs forms publications   If you use your main home partly for business or rental purposes and then exchange the home for another property, see Publication 523. Irs forms publications Expatriates. Irs forms publications   You cannot claim the exclusion if the expatriation tax applies to you. Irs forms publications The expatriation tax applies to certain U. Irs forms publications S. Irs forms publications citizens who have renounced their citizenship (and to certain long-term residents who have ended their residency). Irs forms publications For more information about the expatriation tax, see Expatriation Tax in chapter 4 of Publication 519, U. Irs forms publications S. Irs forms publications Tax Guide for Aliens. Irs forms publications Home destroyed or condemned. Irs forms publications   If your home was destroyed or condemned, any gain (for example, because of insurance proceeds you received) qualifies for the exclusion. Irs forms publications   Any part of the gain that cannot be excluded (because it is more than the maximum exclusion) can be postponed under the rules explained in: Publication 547, in the case of a home that was destroyed, or Publication 544, chapter 1, in the case of a home that was condemned. Irs forms publications Sale of remainder interest. Irs forms publications   Subject to the other rules in this chapter, you can choose to exclude gain from the sale of a remainder interest in your home. Irs forms publications If you make this choice, you cannot choose to exclude gain from your sale of any other interest in the home that you sell separately. Irs forms publications Exception for sales to related persons. Irs forms publications   You cannot exclude gain from the sale of a remainder interest in your home to a related person. Irs forms publications Related persons include your brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. Irs forms publications ), and lineal descendants (children, grandchildren, etc. Irs forms publications ). Irs forms publications Related persons also include certain corporations, partnerships, trusts, and exempt organizations. Irs forms publications Recapturing (Paying Back) a Federal Mortgage Subsidy 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. Irs forms publications You recapture the benefit by increasing your federal income tax for the year of the sale. Irs forms publications You may have to pay this recapture tax even if you can exclude your gain from income under the rules discussed earlier; that exclusion does not affect the recapture tax. Irs forms publications Loans subject to recapture rules. Irs forms publications   The recapture applies to loans that: Came from the proceeds of qualified mortgage bonds, or Were based on mortgage credit certificates. Irs forms publications The recapture also applies to assumptions of these loans. Irs forms publications When recapture applies. Irs forms publications   Recapture of the federal mortgage subsidy applies only if you meet both of the following conditions. Irs forms publications You sell or otherwise dispose of your home at a gain within the first 9 years after the date you close your mortgage loan. Irs forms publications Your income for the year of disposition is more than that year's adjusted qualifying income for your family size for that year (related to the income requirements a person must meet to qualify for the federally subsidized program). Irs forms publications When recapture does not apply. Irs forms publications   Recapture does not apply in any of the following situations. Irs forms publications Your mortgage loan was a qualified home improvement loan (QHIL) of not more than $15,000 used for alterations, repairs, and improvements that protect or improve the basic livability or energy efficiency of your home. Irs forms publications Your mortgage loan was a QHIL of not more than $150,000 in the case of a QHIL used to repair damage from Hurricane Katrina to homes in the hurricane disaster area; a QHIL funded by a qualified mortgage bond that is a qualified Gulf Opportunity Zone Bond; or a QHIL for an owner-occupied home in the Gulf Opportunity Zone (GO Zone), Rita GO Zone, or Wilma GO Zone. Irs forms publications For more information, see Publication 4492, Information for Taxpayers Affected by Hurricanes Katrina, Rita, and Wilma. Irs forms publications Also see Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas. Irs forms publications The home is disposed of as a result of your death. Irs forms publications You dispose of the home more than 9 years after the date you closed your mortgage loan. Irs forms publications You transfer the home to your spouse, or to your former spouse incident to a divorce, where no gain is included in your income. Irs forms publications You dispose of the home at a loss. Irs forms publications Your home is destroyed by a casualty, and you replace it on its original site within 2 years after the end of the tax year when the destruction happened. Irs forms publications The replacement period is extended for main homes destroyed in a federally declared disaster area, a Midwestern disaster area, the Kansas disaster area, and the Hurricane Katrina disaster area. Irs forms publications For more information, see Replacement Period in Publication 547. Irs forms publications You refinance your mortgage loan (unless you later meet the conditions listed previously under When recapture applies ). Irs forms publications Notice of amounts. Irs forms publications   At or near the time of settlement of your mortgage loan, you should receive a notice that provides the federally subsidized amount and other information you will need to figure your recapture tax. Irs forms publications How to figure and report the recapture. Irs forms publications    The recapture tax is figured on Form 8828. Irs forms publications If you sell your home and your mortgage is subject to recapture rules, you must file Form 8828 even if you do not owe a recapture tax. Irs forms publications Attach Form 8828 to your Form 1040. Irs forms publications For more information, see Form 8828 and its instructions. Irs forms publications Prev  Up  Next   Home   More Online Publications