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Irs Gov File 2009 Taxes

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Irs Gov File 2009 Taxes

Irs gov file 2009 taxes 1. Irs gov file 2009 taxes   Gain or Loss Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Sales and ExchangesGain or Loss From Sales and Exchanges Abandonments Foreclosures and RepossessionsAmount realized on a nonrecourse debt. Irs gov file 2009 taxes Amount realized on a recourse debt. Irs gov file 2009 taxes Involuntary ConversionsCondemnations Nontaxable ExchangesLike-Kind Exchanges Other Nontaxable Exchanges Transfers to Spouse Rollover of Gain From Publicly Traded Securities Gains on Sales of Qualified Small Business Stock Exclusion of Gain From Sale of DC Zone Assets Topics - This chapter discusses: Sales and exchanges Abandonments Foreclosures and repossessions Involuntary conversions Nontaxable exchanges Transfers to spouse Rollovers and exclusions for certain capital gains Useful Items - You may want to see: Publication 523 Selling Your Home 537 Installment Sales 547 Casualties, Disasters, and Thefts 550 Investment Income and Expenses 551 Basis of Assets 908 Bankruptcy Tax Guide 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 1040 U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes Individual Income Tax Return 1040X Amended U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes Individual Income Tax Return 1099-A Acquisition or Abandonment of Secured Property 1099-C Cancellation of Debt 4797 Sales of Business Property 8824 Like-Kind Exchanges 8949 Sales and Other Dispositions of Capital Assets Although the discussions in this chapter may at times refer mainly to individuals, many of the rules discussed also apply to taxpayers other than individuals. Irs gov file 2009 taxes However, the rules for property held for personal use usually will not apply to taxpayers other than individuals. Irs gov file 2009 taxes See chapter 5 for information about getting publications and forms. Irs gov file 2009 taxes Sales and Exchanges A sale is a transfer of property for money or a mortgage, note, or other promise to pay money. Irs gov file 2009 taxes An exchange is a transfer of property for other property or services. Irs gov file 2009 taxes The following discussions describe the kinds of transactions that are treated as sales or exchanges and explain how to figure gain or loss. Irs gov file 2009 taxes Sale or lease. Irs gov file 2009 taxes    Some agreements that seem to be leases may really be conditional sales contracts. Irs gov file 2009 taxes The intention of the parties to the agreement can help you distinguish between a sale and a lease. Irs gov file 2009 taxes   There is no test or group of tests to prove what the parties intended when they made the agreement. Irs gov file 2009 taxes You should consider each agreement based on its own facts and circumstances. Irs gov file 2009 taxes For more information, see chapter 3 in Publication 535, Business Expenses. Irs gov file 2009 taxes Cancellation of a lease. Irs gov file 2009 taxes    Payments received by a tenant for the cancellation of a lease are treated as an amount realized from the sale of property. Irs gov file 2009 taxes Payments received by a landlord (lessor) for the cancellation of a lease are essentially a substitute for rental payments and are taxed as ordinary income in the year in which they are received. Irs gov file 2009 taxes Copyright. Irs gov file 2009 taxes    Payments you receive for granting the exclusive use of (or right to exploit) a copyright throughout its life in a particular medium are treated as received from the sale of property. Irs gov file 2009 taxes It does not matter if the payments are a fixed amount or a percentage of receipts from the sale, performance, exhibition, or publication of the copyrighted work, or an amount based on the number of copies sold, performances given, or exhibitions made. Irs gov file 2009 taxes Nor does it matter if the payments are made over the same period as that covering the grantee's use of the copyrighted work. Irs gov file 2009 taxes   If the copyright was used in your trade or business and you held it longer than a year, the gain or loss may be a section 1231 gain or loss. Irs gov file 2009 taxes For more information, see Section 1231 Gains and Losses in chapter 3. Irs gov file 2009 taxes Easement. Irs gov file 2009 taxes   The amount received for granting an easement is subtracted from the basis of the property. Irs gov file 2009 taxes If only a specific part of the entire tract of property is affected by the easement, only the basis of that part is reduced by the amount received. Irs gov file 2009 taxes If it is impossible or impractical to separate the basis of the part of the property on which the easement is granted, the basis of the whole property is reduced by the amount received. Irs gov file 2009 taxes   Any amount received that is more than the basis to be reduced is a taxable gain. Irs gov file 2009 taxes The transaction is reported as a sale of property. Irs gov file 2009 taxes   If you transfer a perpetual easement for consideration and do not keep any beneficial interest in the part of the property affected by the easement, the transaction will be treated as a sale of property. Irs gov file 2009 taxes However, if you make a qualified conservation contribution of a restriction or easement granted in perpetuity, it is treated as a charitable contribution and not a sale or exchange, even though you keep a beneficial interest in the property affected by the easement. Irs gov file 2009 taxes   If you grant an easement on your property (for example, a right-of-way over it) under condemnation or threat of condemnation, you are considered to have made a forced sale, even though you keep the legal title. Irs gov file 2009 taxes Although you figure gain or loss on the easement in the same way as a sale of property, the gain or loss is treated as a gain or loss from a condemnation. Irs gov file 2009 taxes See Gain or Loss From Condemnations, later. Irs gov file 2009 taxes Property transferred to satisfy debt. Irs gov file 2009 taxes   A transfer of property to satisfy a debt is an exchange. Irs gov file 2009 taxes Note's maturity date extended. Irs gov file 2009 taxes   The extension of a note's maturity date is not treated as an exchange of an outstanding note for a new and different note. Irs gov file 2009 taxes Also, it is not considered a closed and completed transaction that would result in a gain or loss. Irs gov file 2009 taxes However, an extension will be treated as a taxable exchange of the outstanding note for a new and materially different note if the changes in the terms of the note are significant. Irs gov file 2009 taxes Each case must be determined by its own facts. Irs gov file 2009 taxes For more information, see Regulations section 1. Irs gov file 2009 taxes 1001-3. Irs gov file 2009 taxes Transfer on death. Irs gov file 2009 taxes   The transfer of property of a decedent to an executor or administrator of the estate, or to the heirs or beneficiaries, is not a sale or exchange or other disposition. Irs gov file 2009 taxes No taxable gain or deductible loss results from the transfer. Irs gov file 2009 taxes Bankruptcy. Irs gov file 2009 taxes   Generally, a transfer (other than by sale or exchange) of property from a debtor to a bankruptcy estate is not treated as a disposition. Irs gov file 2009 taxes Consequently, the transfer generally does not result in gain or loss. Irs gov file 2009 taxes For more information, see Publication 908, Bankruptcy Tax Guide. Irs gov file 2009 taxes Gain or Loss From Sales and Exchanges You usually realize gain or loss when property is sold or exchanged. Irs gov file 2009 taxes A gain is the amount you realize from a sale or exchange of property that is more than its adjusted basis. Irs gov file 2009 taxes A loss is the adjusted basis of the property that is more than the amount you realize. Irs gov file 2009 taxes   Table 1-1. Irs gov file 2009 taxes How To Figure Whether You Have a Gain or Loss IF your. Irs gov file 2009 taxes . Irs gov file 2009 taxes . Irs gov file 2009 taxes THEN you have a. Irs gov file 2009 taxes . Irs gov file 2009 taxes . Irs gov file 2009 taxes Adjusted basis is more than the amount realized, Loss. Irs gov file 2009 taxes Amount realized is more than the adjusted basis, Gain. Irs gov file 2009 taxes Basis. Irs gov file 2009 taxes   You must know the basis of your property to determine whether you have a gain or loss from its sale or other disposition. Irs gov file 2009 taxes The basis of property you buy is usually its cost. Irs gov file 2009 taxes However, if you acquired the property by gift, inheritance, or in some way other than buying it, you must use a basis other than its cost. Irs gov file 2009 taxes See Basis Other Than Cost in Publication 551, Basis of Assets. Irs gov file 2009 taxes Special rules apply to property acquired from a decedent who died in 2010 and the executor made the election to file Form 8939, Allocation of Increase in Basis for Property Received From a Decedent. Irs gov file 2009 taxes See Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, for details. Irs gov file 2009 taxes Adjusted basis. Irs gov file 2009 taxes   The adjusted basis of property is your original cost or other basis plus (increased by) certain additions and minus (decreased by) certain deductions. Irs gov file 2009 taxes Increases include costs of any improvements having a useful life of more than 1 year. Irs gov file 2009 taxes Decreases include depreciation and casualty losses. Irs gov file 2009 taxes For more details and additional examples, see Adjusted Basis in Publication 551. Irs gov file 2009 taxes Amount realized. Irs gov file 2009 taxes   The amount you realize from a sale or exchange is the total of all money you receive plus the fair market value (defined below) of all property or services you receive. Irs gov file 2009 taxes The amount you realize also includes any of your liabilities that were assumed by the buyer and any liabilities to which the property you transferred is subject, such as real estate taxes or a mortgage. Irs gov file 2009 taxes Fair market value. Irs gov file 2009 taxes   Fair market value (FMV) is the price at which the property would change hands between a buyer and a seller when both have reasonable knowledge of all the necessary facts and neither is being forced to buy or sell. Irs gov file 2009 taxes If parties with adverse interests place a value on property in an arm's-length transaction, that is strong evidence of FMV. Irs gov file 2009 taxes If there is a stated price for services, this price is treated as the FMV unless there is evidence to the contrary. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes You used a building in your business that cost you $70,000. Irs gov file 2009 taxes You made certain permanent improvements at a cost of $20,000 and deducted depreciation totaling $10,000. Irs gov file 2009 taxes You sold the building for $100,000 plus property having an FMV of $20,000. Irs gov file 2009 taxes The buyer assumed your real estate taxes of $3,000 and a mortgage of $17,000 on the building. Irs gov file 2009 taxes The selling expenses were $4,000. Irs gov file 2009 taxes Your gain on the sale is figured as follows. Irs gov file 2009 taxes Amount realized:     Cash $100,000   FMV of property received 20,000   Real estate taxes assumed by buyer 3,000   Mortgage assumed by  buyer 17,000   Total 140,000   Minus: Selling expenses 4,000 $136,000 Adjusted basis:     Cost of building $70,000   Improvements 20,000   Total $90,000   Minus: Depreciation 10,000   Adjusted basis   $80,000 Gain on sale $56,000 Amount recognized. Irs gov file 2009 taxes   Your gain or loss realized from a sale or exchange of property is usually a recognized gain or loss for tax purposes. Irs gov file 2009 taxes Recognized gains must be included in gross income. Irs gov file 2009 taxes Recognized losses are deductible from gross income. Irs gov file 2009 taxes However, your gain or loss realized from certain exchanges of property is not recognized for tax purposes. Irs gov file 2009 taxes See Nontaxable Exchanges, later. Irs gov file 2009 taxes Also, a loss from the sale or other disposition of property held for personal use is not deductible, except in the case of a casualty or theft. Irs gov file 2009 taxes Interest in property. Irs gov file 2009 taxes   The amount you realize from the disposition of a life interest in property, an interest in property for a set number of years, or an income interest in a trust is a recognized gain under certain circumstances. Irs gov file 2009 taxes If you received the interest as a gift, inheritance, or in a transfer from a spouse or former spouse incident to a divorce, the amount realized is a recognized gain. Irs gov file 2009 taxes Your basis in the property is disregarded. Irs gov file 2009 taxes This rule does not apply if all interests in the property are disposed of at the same time. Irs gov file 2009 taxes Example 1. Irs gov file 2009 taxes Your father dies and leaves his farm to you for life with a remainder interest to your younger brother. Irs gov file 2009 taxes You decide to sell your life interest in the farm. Irs gov file 2009 taxes The entire amount you receive is a recognized gain. Irs gov file 2009 taxes Your basis in the farm is disregarded. Irs gov file 2009 taxes Example 2. Irs gov file 2009 taxes The facts are the same as in Example 1, except that your brother joins you in selling the farm. Irs gov file 2009 taxes The entire interest in the property is sold, so your basis in the farm is not disregarded. Irs gov file 2009 taxes Your gain or loss is the difference between your share of the sales price and your adjusted basis in the farm. Irs gov file 2009 taxes Canceling a sale of real property. Irs gov file 2009 taxes   If you sell real property under a sales contract that allows the buyer to return the property for a full refund and the buyer does so, you may not have to recognize gain or loss on the sale. Irs gov file 2009 taxes If the buyer returns the property in the year of sale, no gain or loss is recognized. Irs gov file 2009 taxes This cancellation of the sale in the same year it occurred places both you and the buyer in the same positions you were in before the sale. Irs gov file 2009 taxes If the buyer returns the property in a later tax year, you must recognize gain (or loss, if allowed) in the year of the sale. Irs gov file 2009 taxes When the property is returned in a later year, you acquire a new basis in the property. Irs gov file 2009 taxes That basis is equal to the amount you pay to the buyer. Irs gov file 2009 taxes Bargain Sale If you sell or exchange property for less than fair market value with the intent of making a gift, the transaction is partly a sale or exchange and partly a gift. Irs gov file 2009 taxes You have a gain if the amount realized is more than your adjusted basis in the property. Irs gov file 2009 taxes However, you do not have a loss if the amount realized is less than the adjusted basis of the property. Irs gov file 2009 taxes Bargain sales to charity. Irs gov file 2009 taxes   A bargain sale of property to a charitable organization is partly a sale or exchange and partly a charitable contribution. Irs gov file 2009 taxes If a charitable deduction for the contribution is allowable, you must allocate your adjusted basis in the property between the part sold and the part contributed based on the fair market value of each. Irs gov file 2009 taxes The adjusted basis of the part sold is figured as follows. Irs gov file 2009 taxes Adjusted basis of entire property × Amount realized (fair market value of part sold)   Fair market value of entire property   Based on this allocation rule, you will have a gain even if the amount realized is not more than your adjusted basis in the property. Irs gov file 2009 taxes This allocation rule does not apply if a charitable contribution deduction is not allowable. Irs gov file 2009 taxes   See Publication 526, Charitable Contributions, for information on figuring your charitable contribution. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes You sold property with a fair market value of $10,000 to a charitable organization for $2,000 and are allowed a deduction for your contribution. Irs gov file 2009 taxes Your adjusted basis in the property is $4,000. Irs gov file 2009 taxes Your gain on the sale is $1,200, figured as follows. Irs gov file 2009 taxes Sales price $2,000 Minus: Adjusted basis of part sold ($4,000 × ($2,000 ÷ $10,000)) 800 Gain on the sale $1,200 Property Used Partly for Business or Rental Generally, if you sell or exchange property you used partly for business or rental purposes and partly for personal purposes, you must figure the gain or loss on the sale or exchange as though you had sold two separate pieces of property. Irs gov file 2009 taxes You must subtract depreciation you took or could have taken from the basis of the business or rental part. Irs gov file 2009 taxes However, see the special rule below for a home used partly for business or rental. Irs gov file 2009 taxes You must allocate the selling price, selling expenses, and the basis of the property between the business or rental part and the personal part. Irs gov file 2009 taxes Gain or loss on the business or rental part of the property may be a capital gain or loss or an ordinary gain or loss, as discussed in chapter 3 under Section 1231 Gains and Losses. Irs gov file 2009 taxes Any gain on the personal part of the property is a capital gain. Irs gov file 2009 taxes You cannot deduct a loss on the personal part. Irs gov file 2009 taxes Home used partly for business or rental. Irs gov file 2009 taxes    If you use property partly as a home and partly for business or to produce rental income, the computation and treatment of any gain on the sale depends partly on whether the business or rental part of the property is part of your home or separate from it. Irs gov file 2009 taxes See Property Used Partly for Business or Rental, in Publication 523. Irs gov file 2009 taxes Property Changed to Business or Rental Use You cannot deduct a loss on the sale of property you purchased or constructed for use as your home and used as your home until the time of sale. Irs gov file 2009 taxes You can deduct a loss on the sale of property you acquired for use as your home but changed to business or rental property and used as business or rental property at the time of sale. Irs gov file 2009 taxes However, if the adjusted basis of the property at the time of the change was more than its fair market value, the loss you can deduct is limited. Irs gov file 2009 taxes Figure the loss you can deduct as follows. Irs gov file 2009 taxes Use the lesser of the property's adjusted basis or fair market value at the time of the change. Irs gov file 2009 taxes Add to (1) the cost of any improvements and other increases to basis since the change. Irs gov file 2009 taxes Subtract from (2) depreciation and any other decreases to basis since the change. Irs gov file 2009 taxes Subtract the amount you realized on the sale from the result in (3). Irs gov file 2009 taxes If the amount you realized is more than the result in (3), treat this result as zero. Irs gov file 2009 taxes The result in (4) is the loss you can deduct. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes You changed your main home to rental property 5 years ago. Irs gov file 2009 taxes At the time of the change, the adjusted basis of your home was $75,000 and the fair market value was $70,000. Irs gov file 2009 taxes This year, you sold the property for $55,000. Irs gov file 2009 taxes You made no improvements to the property but you have depreciation expense of $12,620 over the 5 prior years. Irs gov file 2009 taxes Although your loss on the sale is $7,380 [($75,000 − $12,620) − $55,000], the amount you can deduct as a loss is limited to $2,380, figured as follows. Irs gov file 2009 taxes Lesser of adjusted basis or fair market value at time of the change $70,000 Plus: Cost of any improvements and any other additions to basis after the change -0-   70,000 Minus: Depreciation and any other decreases to basis after the change 12,620   57,380 Minus: Amount you realized from the sale 55,000 Deductible loss $2,380 Gain. Irs gov file 2009 taxes   If you have a gain on the sale, you generally must recognize the full amount of the gain. Irs gov file 2009 taxes You figure the gain by subtracting your adjusted basis from your amount realized, as described earlier. Irs gov file 2009 taxes   You may be able to exclude all or part of the gain if you 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 gov file 2009 taxes However, you may not be able to exclude the part of the gain allocated to any period of nonqualified use. Irs gov file 2009 taxes   For more information, see Business Use or Rental of Home in Publication 523. Irs gov file 2009 taxes In addition, special rules apply if the home sold was acquired in a like-kind exchange. Irs gov file 2009 taxes See Special Situations in Publication 523. Irs gov file 2009 taxes Also see Like-Kind Exchanges, later. Irs gov file 2009 taxes Abandonments The abandonment of property is a disposition of property. Irs gov file 2009 taxes You abandon property when you voluntarily and permanently give up possession and use of the property with the intention of ending your ownership but without passing it on to anyone else. Irs gov file 2009 taxes Generally, abandonment is not treated as a sale or exchange of the property. Irs gov file 2009 taxes If the amount you realize (if any) is more than your adjusted basis, then you have a gain. Irs gov file 2009 taxes If your adjusted basis is more than the amount you realize (if any), then you have a loss. Irs gov file 2009 taxes Loss from abandonment of business or investment property is deductible as a loss. Irs gov file 2009 taxes A loss from an abandonment of business or investment property that is not treated as a sale or exchange generally is an ordinary loss. Irs gov file 2009 taxes This rule also applies to leasehold improvements the lessor made for the lessee that were abandoned. Irs gov file 2009 taxes If the property is foreclosed on or repossessed in lieu of abandonment, gain or loss is figured as discussed later under Foreclosure and Repossessions. Irs gov file 2009 taxes The abandonment loss is deducted in the tax year in which the loss is sustained. Irs gov file 2009 taxes If the abandoned property is secured by debt, special rules apply. Irs gov file 2009 taxes The tax consequences of abandonment of property that is secured by debt depend on whether you are personally liable for the debt (recourse debt) or you are not personally liable for the debt (nonrecourse debt). Irs gov file 2009 taxes For more information, including examples, see chapter 3 of Publication 4681. Irs gov file 2009 taxes You cannot deduct any loss from abandonment of your home or other property held for personal use only. Irs gov file 2009 taxes Cancellation of debt. Irs gov file 2009 taxes   If the abandoned property secures a debt for which you are personally liable and the debt is canceled, you may realize ordinary income equal to the canceled debt. Irs gov file 2009 taxes This income is separate from any loss realized from abandonment of the property. Irs gov file 2009 taxes   You must report this income on your tax return unless one of the following applies. Irs gov file 2009 taxes The cancellation is intended as a gift. Irs gov file 2009 taxes The debt is qualified farm debt. Irs gov file 2009 taxes The debt is qualified real property business debt. Irs gov file 2009 taxes You are insolvent or bankrupt. Irs gov file 2009 taxes The debt is qualified principal residence indebtedness. Irs gov file 2009 taxes File Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), to report the income exclusion. Irs gov file 2009 taxes For more information, including other exceptions and exclusion, see Publication 4681. Irs gov file 2009 taxes Forms 1099-A and 1099-C. Irs gov file 2009 taxes   If you abandon property that secures a loan and the lender knows the property has been abandoned, the lender should send you Form 1099-A showing information you need to figure your loss from the abandonment. Irs gov file 2009 taxes However, if your debt is canceled and the lender must file Form 1099-C, the lender may include the information about the abandonment on that form instead of on Form 1099-A, and send you Form 1099-C only. Irs gov file 2009 taxes The lender must file Form 1099-C and send you a copy if the amount of debt canceled is $600 or more and the lender is a financial institution, credit union, federal government agency, or any organization that has a significant trade or business of lending money. Irs gov file 2009 taxes For abandonments of property and debt cancellations occurring in 2013, these forms should be sent to you by January 31, 2014. Irs gov file 2009 taxes Foreclosures and Repossessions If you do not make payments you owe on a loan secured by property, the lender may foreclose on the loan or repossess the property. Irs gov file 2009 taxes The foreclosure or repossession is treated as a sale or exchange from which you may realize gain or loss. Irs gov file 2009 taxes This is true even if you voluntarily return the property to the lender. Irs gov file 2009 taxes You also may realize ordinary income from cancellation of debt if the loan balance is more than the fair market value of the property. Irs gov file 2009 taxes Buyer's (borrower's) gain or loss. Irs gov file 2009 taxes   You figure and report gain or loss from a foreclosure or repossession in the same way as gain or loss from a sale or exchange. Irs gov file 2009 taxes The gain or loss is the difference between your adjusted basis in the transferred property and the amount realized. Irs gov file 2009 taxes See Gain or Loss From Sales and Exchanges, earlier. Irs gov file 2009 taxes You can use Table 1-2 to figure your gain or loss from a foreclosure or repossession. Irs gov file 2009 taxes Amount realized on a nonrecourse debt. Irs gov file 2009 taxes   If you are not personally liable for repaying the debt (nonrecourse debt) secured by the transferred property, the amount you realize includes the full debt canceled by the transfer. Irs gov file 2009 taxes The full canceled debt is included even if the fair market value of the property is less than the canceled debt. Irs gov file 2009 taxes Example 1. Irs gov file 2009 taxes Chris bought a new car for $15,000. Irs gov file 2009 taxes He paid $2,000 down and borrowed the remaining $13,000 from the dealer's credit company. Irs gov file 2009 taxes Chris is not personally liable for the loan (nonrecourse debt), but pledges the new car as security. Irs gov file 2009 taxes The credit company repossessed the car because he stopped making loan payments. Irs gov file 2009 taxes The balance due after taking into account the payments Chris made was $10,000. Irs gov file 2009 taxes The fair market value of the car when repossessed was $9,000. Irs gov file 2009 taxes The amount Chris realized on the repossession is $10,000. Irs gov file 2009 taxes That is the outstanding amount of the debt canceled by the repossession, even though the car's fair market value is less than $10,000. Irs gov file 2009 taxes Chris figures his gain or loss on the repossession by comparing the amount realized ($10,000) with his adjusted basis ($15,000). Irs gov file 2009 taxes He has a $5,000 nondeductible loss. Irs gov file 2009 taxes Example 2. Irs gov file 2009 taxes Abena paid $200,000 for her home. Irs gov file 2009 taxes She paid $15,000 down and borrowed the remaining $185,000 from a bank. Irs gov file 2009 taxes Abena is not personally liable for the loan (nonrecourse debt), but pledges the house as security. Irs gov file 2009 taxes The bank foreclosed on the loan because Abena stopped making payments. Irs gov file 2009 taxes When the bank foreclosed on the loan, the balance due was $180,000, the fair market value of the house was $170,000, and Abena's adjusted basis was $175,000 due to a casualty loss she had deducted. Irs gov file 2009 taxes The amount Abena realized on the foreclosure is $180,000, the balance due and debt canceled by the foreclosure. Irs gov file 2009 taxes She figures her gain or loss by comparing the amount realized ($180,000) with her adjusted basis ($175,000). Irs gov file 2009 taxes She has a $5,000 realized gain. Irs gov file 2009 taxes Amount realized on a recourse debt. Irs gov file 2009 taxes   If you are personally liable for the debt (recourse debt), the amount realized on the foreclosure or repossession includes the lesser of: The outstanding debt immediately before the transfer reduced by any amount for which you remain personally liable immediately after the transfer, or The fair market value of the transferred property. Irs gov file 2009 taxes You are treated as receiving ordinary income from the canceled debt for the part of the debt that is more than the fair market value. Irs gov file 2009 taxes The amount realized does not include the canceled debt that is your income from cancellation of debt. Irs gov file 2009 taxes See Cancellation of debt, below. Irs gov file 2009 taxes Seller's (lender's) gain or loss on repossession. Irs gov file 2009 taxes   If you finance a buyer's purchase of property and later acquire an interest in it through foreclosure or repossession, you may have a gain or loss on the acquisition. Irs gov file 2009 taxes For more information, see Repossession in Publication 537. Irs gov file 2009 taxes    Table 1-2. Irs gov file 2009 taxes Worksheet for Foreclosures and Repossessions Part 1. Irs gov file 2009 taxes Use Part 1 to figure your ordinary income from the cancellation of debt upon foreclosure or repossession. Irs gov file 2009 taxes Complete this part only  if you were personally liable for the debt. Irs gov file 2009 taxes Otherwise,  go to Part 2. Irs gov file 2009 taxes   1. Irs gov file 2009 taxes Enter the amount of outstanding debt immediately before the transfer of   property reduced by any amount for which you remain personally liable after   the transfer of property   2. Irs gov file 2009 taxes Enter the fair market value of the transferred property   3. Irs gov file 2009 taxes Ordinary income from cancellation of debt upon foreclosure or    repossession. Irs gov file 2009 taxes * Subtract line 2 from line 1. Irs gov file 2009 taxes   If less than zero, enter zero   Part 2. Irs gov file 2009 taxes Figure your gain or loss from foreclosure or repossession. Irs gov file 2009 taxes   4. Irs gov file 2009 taxes If you completed Part 1, enter the smaller of line 1 or line 2. Irs gov file 2009 taxes   If you did not complete Part 1, enter the outstanding debt immediately before   the transfer of property   5. Irs gov file 2009 taxes Enter any proceeds you received from the foreclosure sale   6. Irs gov file 2009 taxes Add lines 4 and 5   7. Irs gov file 2009 taxes Enter the adjusted basis of the transferred property   8. Irs gov file 2009 taxes Gain or loss from foreclosure or repossession. Irs gov file 2009 taxes Subtract line 7  from line 6   * The income may not be taxable. Irs gov file 2009 taxes See Cancellation of debt. Irs gov file 2009 taxes Cancellation of debt. Irs gov file 2009 taxes   If property that is repossessed or foreclosed on secures a debt for which you are personally liable (recourse debt), you generally must report as ordinary income the amount by which the canceled debt is more than the fair market value of the property. Irs gov file 2009 taxes This income is separate from any gain or loss realized from the foreclosure or repossession. Irs gov file 2009 taxes Report the income from cancellation of a debt related to a business or rental activity as business or rental income. Irs gov file 2009 taxes    You can use Table 1-2 to figure your income from cancellation of debt. Irs gov file 2009 taxes   You must report this income on your tax return unless one of the following applies. Irs gov file 2009 taxes The cancellation is intended as a gift. Irs gov file 2009 taxes The debt is qualified farm debt. Irs gov file 2009 taxes The debt is qualified real property business debt. Irs gov file 2009 taxes You are insolvent or bankrupt. Irs gov file 2009 taxes The debt is qualified principal residence indebtedness. Irs gov file 2009 taxes File Form 982 to report the income exclusion. Irs gov file 2009 taxes Example 1. Irs gov file 2009 taxes Assume the same facts as in Example 1 under Amount realized on a nonrecourse debt, earlier, except Chris is personally liable for the car loan (recourse debt). Irs gov file 2009 taxes In this case, the amount he realizes is $9,000. Irs gov file 2009 taxes This is the lesser of the canceled debt ($10,000) or the car's fair market value ($9,000). Irs gov file 2009 taxes Chris figures his gain or loss on the repossession by comparing the amount realized ($9,000) with his adjusted basis ($15,000). Irs gov file 2009 taxes He has a $6,000 nondeductible loss. Irs gov file 2009 taxes He also is treated as receiving ordinary income from cancellation of debt. Irs gov file 2009 taxes That income is $1,000 ($10,000 − $9,000). Irs gov file 2009 taxes This is the part of the canceled debt not included in the amount realized. Irs gov file 2009 taxes Example 2. Irs gov file 2009 taxes Assume the same facts as in Example 2 under Amount realized on a nonrecourse debt, earlier, except Abena is personally liable for the loan (recourse debt). Irs gov file 2009 taxes In this case, the amount she realizes is $170,000. Irs gov file 2009 taxes This is the lesser of the canceled debt ($180,000) or the fair market value of the house ($170,000). Irs gov file 2009 taxes Abena figures her gain or loss on the foreclosure by comparing the amount realized ($170,000) with her adjusted basis ($175,000). Irs gov file 2009 taxes She has a $5,000 nondeductible loss. Irs gov file 2009 taxes She also is treated as receiving ordinary income from cancellation of debt. Irs gov file 2009 taxes (The debt is not exempt from tax as discussed under Cancellation of debt, above. Irs gov file 2009 taxes ) That income is $10,000 ($180,000 − $170,000). Irs gov file 2009 taxes This is the part of the canceled debt not included in the amount realized. Irs gov file 2009 taxes Forms 1099-A and 1099-C. Irs gov file 2009 taxes   A lender who acquires an interest in your property in a foreclosure or repossession should send you Form 1099-A showing the information you need to figure your gain or loss. Irs gov file 2009 taxes However, if the lender also cancels part of your debt and must file Form 1099-C, the lender may include the information about the foreclosure or repossession on that form instead of on Form 1099-A and send you Form 1099-C only. Irs gov file 2009 taxes The lender must file Form 1099-C and send you a copy if the amount of debt canceled is $600 or more and the lender is a financial institution, credit union, federal government agency, or any organization that has a significant trade or business of lending money. Irs gov file 2009 taxes For foreclosures or repossessions occurring in 2013, these forms should be sent to you by January 31, 2014. Irs gov file 2009 taxes Involuntary Conversions An involuntary conversion occurs when your property is destroyed, stolen, condemned, or disposed of under the threat of condemnation and you receive other property or money in payment, such as insurance or a condemnation award. Irs gov file 2009 taxes Involuntary conversions are also called involuntary exchanges. Irs gov file 2009 taxes Gain or loss from an involuntary conversion of your property is usually recognized for tax purposes unless the property is your main home. Irs gov file 2009 taxes You report the gain or deduct the loss on your tax return for the year you realize it. Irs gov file 2009 taxes You cannot deduct a loss from an involuntary conversion of property you held for personal use unless the loss resulted from a casualty or theft. Irs gov file 2009 taxes However, depending on the type of property you receive, you may not have to report a gain on an involuntary conversion. Irs gov file 2009 taxes Generally, you do not report the gain if you receive property that is similar or related in service or use to the converted property. Irs gov file 2009 taxes Your basis for the new property is the same as your basis for the converted property. Irs gov file 2009 taxes This means that the gain is deferred until a taxable sale or exchange occurs. Irs gov file 2009 taxes If you receive money or property that is not similar or related in service or use to the involuntarily converted property and you buy qualifying replacement property within a certain period of time, you can elect to postpone reporting the gain on the property purchased. Irs gov file 2009 taxes This publication explains the treatment of a gain or loss from a condemnation or disposition under the threat of condemnation. Irs gov file 2009 taxes If you have a gain or loss from the destruction or theft of property, see Publication 547. Irs gov file 2009 taxes Condemnations A condemnation is the process by which private property is legally taken for public use without the owner's consent. Irs gov file 2009 taxes The property may be taken by the federal government, a state government, a political subdivision, or a private organization that has the power to legally take it. Irs gov file 2009 taxes The owner receives a condemnation award (money or property) in exchange for the property taken. Irs gov file 2009 taxes A condemnation is like a forced sale, the owner being the seller and the condemning authority being the buyer. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes A local government authorized to acquire land for public parks informed you that it wished to acquire your property. Irs gov file 2009 taxes After the local government took action to condemn your property, you went to court to keep it. Irs gov file 2009 taxes But, the court decided in favor of the local government, which took your property and paid you an amount fixed by the court. Irs gov file 2009 taxes This is a condemnation of private property for public use. Irs gov file 2009 taxes Threat of condemnation. Irs gov file 2009 taxes   A threat of condemnation exists if a representative of a government body or a public official authorized to acquire property for public use informs you that the government body or official has decided to acquire your property. Irs gov file 2009 taxes You must have reasonable grounds to believe that, if you do not sell voluntarily, your property will be condemned. Irs gov file 2009 taxes   The sale of your property to someone other than the condemning authority will also qualify as an involuntary conversion, provided you have reasonable grounds to believe that your property will be condemned. Irs gov file 2009 taxes If the buyer of this property knows at the time of purchase that it will be condemned and sells it to the condemning authority, this sale also qualifies as an involuntary conversion. Irs gov file 2009 taxes Reports of condemnation. Irs gov file 2009 taxes   A threat of condemnation exists if you learn of a decision to acquire your property for public use through a report in a newspaper or other news medium, and this report is confirmed by a representative of the government body or public official involved. Irs gov file 2009 taxes You must have reasonable grounds to believe that they will take necessary steps to condemn your property if you do not sell voluntarily. Irs gov file 2009 taxes If you relied on oral statements made by a government representative or public official, the Internal Revenue Service (IRS) may ask you to get written confirmation of the statements. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes Your property lies along public utility lines. Irs gov file 2009 taxes The utility company has the authority to condemn your property. Irs gov file 2009 taxes The company informs you that it intends to acquire your property by negotiation or condemnation. Irs gov file 2009 taxes A threat of condemnation exists when you receive the notice. Irs gov file 2009 taxes Related property voluntarily sold. Irs gov file 2009 taxes   A voluntary sale of your property may be treated as a forced sale that qualifies as an involuntary conversion if the property had a substantial economic relationship to property of yours that was condemned. Irs gov file 2009 taxes A substantial economic relationship exists if together the properties were one economic unit. Irs gov file 2009 taxes You also must show that the condemned property could not reasonably or adequately be replaced. Irs gov file 2009 taxes You can elect to postpone reporting the gain by buying replacement property. Irs gov file 2009 taxes See Postponement of Gain, later. Irs gov file 2009 taxes Gain or Loss From Condemnations If your property was condemned or disposed of under the threat of condemnation, figure your gain or loss by comparing the adjusted basis of your condemned property with your net condemnation award. Irs gov file 2009 taxes If your net condemnation award is more than the adjusted basis of the condemned property, you have a gain. Irs gov file 2009 taxes You can postpone reporting gain from a condemnation if you buy replacement property. Irs gov file 2009 taxes If only part of your property is condemned, you can treat the cost of restoring the remaining part to its former usefulness as the cost of replacement property. Irs gov file 2009 taxes See Postponement of Gain, later. Irs gov file 2009 taxes If your net condemnation award is less than your adjusted basis, you have a loss. Irs gov file 2009 taxes If your loss is from property you held for personal use, you cannot deduct it. Irs gov file 2009 taxes You must report any deductible loss in the tax year it happened. Irs gov file 2009 taxes You can use Part 2 of Table 1-3 to figure your gain or loss from a condemnation award. Irs gov file 2009 taxes Main home condemned. Irs gov file 2009 taxes   If you have a gain because your main home is condemned, you generally can exclude the gain from your income as if you had sold or exchanged your home. Irs gov file 2009 taxes You may be able to exclude up to $250,000 of the gain (up to $500,000 if married filing jointly). Irs gov file 2009 taxes For information on this exclusion, see Publication 523. Irs gov file 2009 taxes If your gain is more than you can exclude but you buy replacement property, you may be able to postpone reporting the rest of the gain. Irs gov file 2009 taxes See Postponement of Gain, later. Irs gov file 2009 taxes Table 1-3. Irs gov file 2009 taxes Worksheet for Condemnations Part 1. Irs gov file 2009 taxes Gain from severance damages. Irs gov file 2009 taxes  If you did not receive severance damages, skip Part 1 and go to Part 2. Irs gov file 2009 taxes   1. Irs gov file 2009 taxes Enter gross severance damages received   2. Irs gov file 2009 taxes Enter your expenses in getting severance damages   3. Irs gov file 2009 taxes Subtract line 2 from line 1. Irs gov file 2009 taxes If less than zero, enter -0-   4. Irs gov file 2009 taxes Enter any special assessment on remaining property taken out of your award   5. Irs gov file 2009 taxes Net severance damages. Irs gov file 2009 taxes Subtract line 4 from line 3. Irs gov file 2009 taxes If less than zero, enter -0-   6. Irs gov file 2009 taxes Enter the adjusted basis of the remaining property   7. Irs gov file 2009 taxes Gain from severance damages. Irs gov file 2009 taxes Subtract line 6 from line 5. Irs gov file 2009 taxes If less than zero, enter -0-   8. Irs gov file 2009 taxes Refigured adjusted basis of the remaining property. Irs gov file 2009 taxes Subtract line 5 from line 6. Irs gov file 2009 taxes If less than zero, enter -0-   Part 2. Irs gov file 2009 taxes Gain or loss from condemnation award. Irs gov file 2009 taxes   9. Irs gov file 2009 taxes Enter the gross condemnation award received   10. Irs gov file 2009 taxes Enter your expenses in getting the condemnation award   11. Irs gov file 2009 taxes If you completed Part 1, and line 4 is more than line 3, subtract line 3 from line 4. Irs gov file 2009 taxes If you did not complete Part 1, but a special assessment was taken out of your award, enter that amount. Irs gov file 2009 taxes Otherwise, enter -0-   12. Irs gov file 2009 taxes Add lines 10 and 11   13. Irs gov file 2009 taxes Net condemnation award. Irs gov file 2009 taxes Subtract line 12 from line 9   14. Irs gov file 2009 taxes Enter the adjusted basis of the condemned property   15. Irs gov file 2009 taxes Gain from condemnation award. Irs gov file 2009 taxes If line 14 is more than line 13, enter -0-. Irs gov file 2009 taxes Otherwise, subtract line 14 from  line 13 and skip line 16   16. Irs gov file 2009 taxes Loss from condemnation award. Irs gov file 2009 taxes Subtract line 13 from line 14     (Note: You cannot deduct the amount on line 16 if the condemned property was held for personal use. Irs gov file 2009 taxes )   Part 3. Irs gov file 2009 taxes Postponed gain from condemnation. Irs gov file 2009 taxes  (Complete only if line 7 or line 15 is more than zero and you bought qualifying replacement property or made expenditures to restore the usefulness of your remaining property. Irs gov file 2009 taxes )   17. Irs gov file 2009 taxes If you completed Part 1, and line 7 is more than zero, enter the amount from line 5. Irs gov file 2009 taxes Otherwise, enter -0-   18. Irs gov file 2009 taxes If line 15 is more than zero, enter the amount from line 13. Irs gov file 2009 taxes Otherwise, enter -0-   19. Irs gov file 2009 taxes Add lines 17 and 18. Irs gov file 2009 taxes If the condemned property was your main home, subtract from this total the gain you excluded from your income and enter the result   20. Irs gov file 2009 taxes Enter the total cost of replacement property and any expenses to restore the usefulness of your remaining property   21. Irs gov file 2009 taxes Subtract line 20 from line 19. Irs gov file 2009 taxes If less than zero, enter -0-   22. Irs gov file 2009 taxes If you completed Part 1, add lines 7 and 15. Irs gov file 2009 taxes Otherwise, enter the amount from line 15. Irs gov file 2009 taxes If the condemned property was your main home, subtract from this total the gain you excluded from your income and enter the result   23. Irs gov file 2009 taxes Recognized gain. Irs gov file 2009 taxes Enter the smaller of line 21 or line 22. Irs gov file 2009 taxes   24. Irs gov file 2009 taxes Postponed gain. Irs gov file 2009 taxes Subtract line 23 from line 22. Irs gov file 2009 taxes If less than zero, enter -0-   Condemnation award. Irs gov file 2009 taxes   A condemnation award is the money you are paid or the value of other property you receive for your condemned property. Irs gov file 2009 taxes The award is also the amount you are paid for the sale of your property under threat of condemnation. Irs gov file 2009 taxes Payment of your debts. Irs gov file 2009 taxes   Amounts taken out of the award to pay your debts are considered paid to you. Irs gov file 2009 taxes Amounts the government pays directly to the holder of a mortgage or lien against your property are part of your award, even if the debt attaches to the property and is not your personal liability. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes The state condemned your property for public use. Irs gov file 2009 taxes The award was set at $200,000. Irs gov file 2009 taxes The state paid you only $148,000 because it paid $50,000 to your mortgage holder and $2,000 accrued real estate taxes. Irs gov file 2009 taxes You are considered to have received the entire $200,000 as a condemnation award. Irs gov file 2009 taxes Interest on award. Irs gov file 2009 taxes   If the condemning authority pays you interest for its delay in paying your award, it is not part of the condemnation award. Irs gov file 2009 taxes You must report the interest separately as ordinary income. Irs gov file 2009 taxes Payments to relocate. Irs gov file 2009 taxes   Payments you receive to relocate and replace housing because you have been displaced from your home, business, or farm as a result of federal or federally assisted programs are not part of the condemnation award. Irs gov file 2009 taxes Do not include them in your income. Irs gov file 2009 taxes Replacement housing payments used to buy new property are included in the property's basis as part of your cost. Irs gov file 2009 taxes Net condemnation award. Irs gov file 2009 taxes   A net condemnation award is the total award you received, or are considered to have received, for the condemned property minus your expenses of obtaining the award. Irs gov file 2009 taxes If only a part of your property was condemned, you also must reduce the award by any special assessment levied against the part of the property you retain. Irs gov file 2009 taxes This is discussed later under Special assessment taken out of award. Irs gov file 2009 taxes Severance damages. Irs gov file 2009 taxes    Severance damages are not part of the award paid for the property condemned. Irs gov file 2009 taxes They are paid to you if part of your property is condemned and the value of the part you keep is decreased because of the condemnation. Irs gov file 2009 taxes   For example, you may receive severance damages if your property is subject to flooding because you sell flowage easement rights (the condemned property) under threat of condemnation. Irs gov file 2009 taxes Severance damages also may be given to you if, because part of your property is condemned for a highway, you must replace fences, dig new wells or ditches, or plant trees to restore your remaining property to the same usefulness it had before the condemnation. Irs gov file 2009 taxes   The contracting parties should agree on the specific amount of severance damages in writing. Irs gov file 2009 taxes If this is not done, all proceeds from the condemning authority are considered awarded for your condemned property. Irs gov file 2009 taxes   You cannot make a completely new allocation of the total award after the transaction is completed. Irs gov file 2009 taxes However, you can show how much of the award both parties intended for severance damages. Irs gov file 2009 taxes The severance damages part of the award is determined from all the facts and circumstances. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes You sold part of your property to the state under threat of condemnation. Irs gov file 2009 taxes The contract you and the condemning authority signed showed only the total purchase price. Irs gov file 2009 taxes It did not specify a fixed sum for severance damages. Irs gov file 2009 taxes However, at settlement, the condemning authority gave you closing papers showing clearly the part of the purchase price that was for severance damages. Irs gov file 2009 taxes You may treat this part as severance damages. Irs gov file 2009 taxes Treatment of severance damages. Irs gov file 2009 taxes   Your net severance damages are treated as the amount realized from an involuntary conversion of the remaining part of your property. Irs gov file 2009 taxes Use them to reduce the basis of the remaining property. Irs gov file 2009 taxes If the amount of severance damages is based on damage to a specific part of the property you kept, reduce the basis of only that part by the net severance damages. Irs gov file 2009 taxes   If your net severance damages are more than the basis of your retained property, you have a gain. Irs gov file 2009 taxes You may be able to postpone reporting the gain. Irs gov file 2009 taxes See Postponement of Gain, later. Irs gov file 2009 taxes    You can use Part 1 of Table 1-3 to figure any gain from severance damages and to refigure the adjusted basis of the remaining part of your property. Irs gov file 2009 taxes Net severance damages. Irs gov file 2009 taxes   To figure your net severance damages, you first must reduce your severance damages by your expenses in obtaining the damages. Irs gov file 2009 taxes You then reduce them by any special assessment (described later) levied against the remaining part of the property and retained out of the award by the condemning authority. Irs gov file 2009 taxes The balance is your net severance damages. Irs gov file 2009 taxes Expenses of obtaining a condemnation award and severance damages. Irs gov file 2009 taxes   Subtract the expenses of obtaining a condemnation award, such as legal, engineering, and appraisal fees, from the total award. Irs gov file 2009 taxes Also, subtract the expenses of obtaining severance damages, which may include similar expenses, from the severance damages paid to you. Irs gov file 2009 taxes If you cannot determine which part of your expenses is for each part of the condemnation proceeds, you must make a proportionate allocation. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes You receive a condemnation award and severance damages. Irs gov file 2009 taxes One-fourth of the total was designated as severance damages in your agreement with the condemning authority. Irs gov file 2009 taxes You had legal expenses for the entire condemnation proceeding. Irs gov file 2009 taxes You cannot determine how much of your legal expenses is for each part of the condemnation proceeds. Irs gov file 2009 taxes You must allocate one-fourth of your legal expenses to the severance damages and the other three-fourths to the condemnation award. Irs gov file 2009 taxes Special assessment retained out of award. Irs gov file 2009 taxes   When only part of your property is condemned, a special assessment levied against the remaining property may be retained by the governing body out of your condemnation award. Irs gov file 2009 taxes An assessment may be levied if the remaining part of your property benefited by the improvement resulting from the condemnation. Irs gov file 2009 taxes Examples of improvements that may cause a special assessment are widening a street and installing a sewer. Irs gov file 2009 taxes   To figure your net condemnation award, you must reduce the amount of the award by the assessment retained out of the award. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes To widen the street in front of your home, the city condemned a 25-foot deep strip of your land. Irs gov file 2009 taxes You were awarded $5,000 for this and spent $300 to get the award. Irs gov file 2009 taxes Before paying the award, the city levied a special assessment of $700 for the street improvement against your remaining property. Irs gov file 2009 taxes The city then paid you only $4,300. Irs gov file 2009 taxes Your net award is $4,000 ($5,000 total award minus $300 expenses in obtaining the award and $700 for the special assessment retained). Irs gov file 2009 taxes If the $700 special assessment was not retained out of the award and you were paid $5,000, your net award would be $4,700 ($5,000 − $300). Irs gov file 2009 taxes The net award would not change, even if you later paid the assessment from the amount you received. Irs gov file 2009 taxes Severance damages received. Irs gov file 2009 taxes   If severance damages are included in the condemnation proceeds, the special assessment retained out of the severance damages is first used to reduce the severance damages. Irs gov file 2009 taxes Any balance of the special assessment is used to reduce the condemnation award. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes You were awarded $4,000 for the condemnation of your property and $1,000 for severance damages. Irs gov file 2009 taxes You spent $300 to obtain the severance damages. Irs gov file 2009 taxes A special assessment of $800 was retained out of the award. Irs gov file 2009 taxes The $1,000 severance damages are reduced to zero by first subtracting the $300 expenses and then $700 of the special assessment. Irs gov file 2009 taxes Your $4,000 condemnation award is reduced by the $100 balance of the special assessment, leaving a $3,900 net condemnation award. Irs gov file 2009 taxes Part business or rental. Irs gov file 2009 taxes   If you used part of your condemned property as your home and part as business or rental property, treat each part as a separate property. Irs gov file 2009 taxes Figure your gain or loss separately because gain or loss on each part may be treated differently. Irs gov file 2009 taxes   Some examples of this type of property are a building in which you live and operate a grocery, and a building in which you live on the first floor and rent out the second floor. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes You sold your building for $24,000 under threat of condemnation to a public utility company that had the authority to condemn. Irs gov file 2009 taxes You rented half the building and lived in the other half. Irs gov file 2009 taxes You paid $25,000 for the building and spent an additional $1,000 for a new roof. Irs gov file 2009 taxes You claimed allowable depreciation of $4,600 on the rental half. Irs gov file 2009 taxes You spent $200 in legal expenses to obtain the condemnation award. Irs gov file 2009 taxes Figure your gain or loss as follows. Irs gov file 2009 taxes     Resi- dential Part Busi- ness Part 1) Condemnation award received $12,000 $12,000 2) Minus: Legal expenses, $200 100 100 3) Net condemnation award $11,900 $11,900 4) Adjusted basis:       ½ of original cost, $25,000 $12,500 $12,500   Plus: ½ of cost of roof, $1,000 500 500   Total $13,000 $13,000 5) Minus: Depreciation   4,600 6) Adjusted basis, business part   $8,400 7) (Loss) on residential property ($1,100)   8) Gain on business property $3,500 The loss on the residential part of the property is not deductible. Irs gov file 2009 taxes Postponement of Gain Do not report the gain on condemned property if you receive only property that is similar or related in service or use to the condemned property. Irs gov file 2009 taxes Your basis for the new property is the same as your basis for the old. Irs gov file 2009 taxes Money or unlike property received. Irs gov file 2009 taxes   You ordinarily must report the gain if you receive money or unlike property. Irs gov file 2009 taxes You can elect to postpone reporting the gain if you buy property that is similar or related in service or use to the condemned property within the replacement period, discussed later. Irs gov file 2009 taxes You also can elect to postpone reporting the gain if you buy a controlling interest (at least 80%) in a corporation owning property that is similar or related in service or use to the condemned property. Irs gov file 2009 taxes See Controlling interest in a corporation, later. Irs gov file 2009 taxes   To postpone reporting all the gain, you must buy replacement property costing at least as much as the amount realized for the condemned property. Irs gov file 2009 taxes If the cost of the replacement property is less than the amount realized, you must report the gain up to the unspent part of the amount realized. Irs gov file 2009 taxes   The basis of the replacement property is its cost, reduced by the postponed gain. Irs gov file 2009 taxes Also, if your replacement property is stock in a corporation that owns property similar or related in service or use, the corporation generally will reduce its basis in its assets by the amount by which you reduce your basis in the stock. Irs gov file 2009 taxes See Controlling interest in a corporation, later. Irs gov file 2009 taxes You can use Part 3 of Table 1-3 to figure the gain you must report and your postponed gain. Irs gov file 2009 taxes Postponing gain on severance damages. Irs gov file 2009 taxes   If you received severance damages for part of your property because another part was condemned and you buy replacement property, you can elect to postpone reporting gain. Irs gov file 2009 taxes See Treatment of severance damages, earlier. Irs gov file 2009 taxes You can postpone reporting all your gain if the replacement property costs at least as much as your net severance damages plus your net condemnation award (if resulting in gain). Irs gov file 2009 taxes   You also can make this election if you spend the severance damages, together with other money you received for the condemned property (if resulting in gain), to acquire nearby property that will allow you to continue your business. Irs gov file 2009 taxes If suitable nearby property is not available and you are forced to sell the remaining property and relocate in order to continue your business, see Postponing gain on the sale of related property, next. Irs gov file 2009 taxes   If you restore the remaining property to its former usefulness, you can treat the cost of restoring it as the cost of replacement property. Irs gov file 2009 taxes Postponing gain on the sale of related property. Irs gov file 2009 taxes   If you sell property that is related to the condemned property and then buy replacement property, you can elect to postpone reporting gain on the sale. Irs gov file 2009 taxes You must meet the requirements explained earlier under Related property voluntarily sold. Irs gov file 2009 taxes You can postpone reporting all your gain if the replacement property costs at least as much as the amount realized from the sale plus your net condemnation award (if resulting in gain) plus your net severance damages, if any (if resulting in gain). Irs gov file 2009 taxes Buying replacement property from a related person. Irs gov file 2009 taxes   Certain taxpayers cannot postpone reporting gain from a condemnation if they buy the replacement property from a related person. Irs gov file 2009 taxes For information on related persons, see Nondeductible Loss under Sales and Exchanges Between Related Persons in chapter 2. Irs gov file 2009 taxes   This rule applies to the following taxpayers. Irs gov file 2009 taxes C corporations. Irs gov file 2009 taxes Partnerships in which more than 50% of the capital or profits interest is owned by  C corporations. Irs gov file 2009 taxes All others (including individuals, partnerships (other than those in (2)), and S corporations) if the total realized gain for the tax year on all involuntarily converted properties on which there is realized gain of more than $100,000. Irs gov file 2009 taxes   For taxpayers described in (3) above, gains cannot be offset with any losses when determining whether the total gain is more than $100,000. Irs gov file 2009 taxes If the property is owned by a partnership, the $100,000 limit applies to the partnership and each partner. Irs gov file 2009 taxes If the property is owned by an S corporation, the $100,000 limit applies to the S corporation and each shareholder. Irs gov file 2009 taxes Exception. Irs gov file 2009 taxes   This rule does not apply if the related person acquired the property from an unrelated person within the replacement period. Irs gov file 2009 taxes Advance payment. Irs gov file 2009 taxes   If you pay a contractor in advance to build your replacement property, you have not bought replacement property unless it is finished before the end of the replacement period (discussed later). Irs gov file 2009 taxes Replacement property. Irs gov file 2009 taxes   To postpone reporting gain, you must buy replacement property for the specific purpose of replacing your condemned property. Irs gov file 2009 taxes You do not have to use the actual funds from the condemnation award to acquire the replacement property. Irs gov file 2009 taxes Property you acquire by gift or inheritance does not qualify as replacement property. Irs gov file 2009 taxes Similar or related in service or use. Irs gov file 2009 taxes   Your replacement property must be similar or related in service or use to the property it replaces. Irs gov file 2009 taxes   If the condemned property is real property you held for productive use in your trade or business or for investment (other than property held mainly for sale), like-kind property to be held either for productive use in trade or business or for investment will be treated as property similar or related in service or use. Irs gov file 2009 taxes For a discussion of like-kind property, see Like-Kind Property under Like-Kind Exchanges, later. Irs gov file 2009 taxes Owner-user. Irs gov file 2009 taxes   If you are an owner-user, similar or related in service or use means that replacement property must function in the same way as the property it replaces. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes Your home was condemned and you invested the proceeds from the condemnation in a grocery store. Irs gov file 2009 taxes Your replacement property is not similar or related in service or use to the condemned property. Irs gov file 2009 taxes To be similar or related in service or use, your replacement property must also be used by you as your home. Irs gov file 2009 taxes Owner-investor. Irs gov file 2009 taxes   If you are an owner-investor, similar or related in service or use means that any replacement property must have the same relationship of services or uses to you as the property it replaces. Irs gov file 2009 taxes You decide this by determining all the following information. Irs gov file 2009 taxes Whether the properties are of similar service to you. Irs gov file 2009 taxes The nature of the business risks connected with the properties. Irs gov file 2009 taxes What the properties demand of you in the way of management, service, and relations to your tenants. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes You owned land and a building you rented to a manufacturing company. Irs gov file 2009 taxes The building was condemned. Irs gov file 2009 taxes During the replacement period, you had a new building built on other land you already owned. Irs gov file 2009 taxes You rented out the new building for use as a wholesale grocery warehouse. Irs gov file 2009 taxes The replacement property is also rental property, so the two properties are considered similar or related in service or use if there is a similarity in all the following areas. Irs gov file 2009 taxes Your management activities. Irs gov file 2009 taxes The amount and kind of services you provide to your tenants. Irs gov file 2009 taxes The nature of your business risks connected with the properties. Irs gov file 2009 taxes Leasehold replaced with fee simple property. Irs gov file 2009 taxes   Fee simple property you will use in your trade or business or for investment can qualify as replacement property that is similar or related in service or use to a condemned leasehold if you use it in the same business and for the identical purpose as the condemned leasehold. Irs gov file 2009 taxes   A fee simple property interest generally is a property interest that entitles the owner to the entire property with unconditional power to dispose of it during his or her lifetime. Irs gov file 2009 taxes A leasehold is property held under a lease, usually for a term of years. Irs gov file 2009 taxes Outdoor advertising display replaced with real property. Irs gov file 2009 taxes   You can elect to treat an outdoor advertising display as real property. Irs gov file 2009 taxes If you make this election and you replace the display with real property in which you hold a different kind of interest, your replacement property can qualify as like-kind property. Irs gov file 2009 taxes For example, real property bought to replace a destroyed billboard and leased property on which the billboard was located qualify as property of a like-kind. Irs gov file 2009 taxes   You can make this election only if you did not claim a section 179 deduction for the display. Irs gov file 2009 taxes You cannot cancel this election unless you get the consent of the IRS. Irs gov file 2009 taxes   An outdoor advertising display is a sign or device rigidly assembled and permanently attached to the ground, a building, or any other permanent structure used to display a commercial or other advertisement to the public. Irs gov file 2009 taxes Substituting replacement property. Irs gov file 2009 taxes   Once you designate certain property as replacement property on your tax return, you cannot substitute other qualified property. Irs gov file 2009 taxes But, if your previously designated replacement property does not qualify, you can substitute qualified property if you acquire it within the replacement period. Irs gov file 2009 taxes Controlling interest in a corporation. Irs gov file 2009 taxes   You can replace property by acquiring a controlling interest in a corporation that owns property similar or related in service or use to your condemned property. Irs gov file 2009 taxes You have controlling interest if you own stock having at least 80% of the combined voting power of all classes of stock entitled to vote and at least 80% of the total number of shares of all other classes of stock of the corporation. Irs gov file 2009 taxes Basis adjustment to corporation's property. Irs gov file 2009 taxes   The basis of property held by the corporation at the time you acquired control must be reduced by your postponed gain, if any. Irs gov file 2009 taxes You are not required to reduce the adjusted basis of the corporation's properties below your adjusted basis in the corporation's stock (determined after reduction by your postponed gain). Irs gov file 2009 taxes   Allocate this reduction to the following classes of property in the order shown below. Irs gov file 2009 taxes Property that is similar or related in service or use to the condemned property. Irs gov file 2009 taxes Depreciable property not reduced in (1). Irs gov file 2009 taxes All other property. Irs gov file 2009 taxes If two or more properties fall in the same class, allocate the reduction to each property in proportion to the adjusted basis of all the properties in that class. Irs gov file 2009 taxes The reduced basis of any single property cannot be less than zero. Irs gov file 2009 taxes Main home replaced. Irs gov file 2009 taxes   If your gain from a condemnation of your main home is more than you can exclude from your income (see Main home condemned under Gain or Loss From Condemnations, earlier), you can postpone reporting the rest of the gain by buying replacement property that is similar or related in service or use. Irs gov file 2009 taxes The replacement property must cost at least as much as the amount realized from the condemnation minus the excluded gain. Irs gov file 2009 taxes   You must reduce the basis of your replacement property by the postponed gain. Irs gov file 2009 taxes Also, if you postpone reporting any part of your gain under these rules, you are treated as having owned and used the replacement property as your main home for the period you owned and used the condemned property as your main home. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes City authorities condemned your home that you had used as a personal residence for 5 years prior to the condemnation. Irs gov file 2009 taxes The city paid you a condemnation award of $400,000. Irs gov file 2009 taxes Your adjusted basis in the property was $80,000. Irs gov file 2009 taxes You realize a gain of $320,000 ($400,000 − $80,000). Irs gov file 2009 taxes You purchased a new home for $100,000. Irs gov file 2009 taxes You can exclude $250,000 of the realized gain from your gross income. Irs gov file 2009 taxes The amount realized is then treated as being $150,000 ($400,000 − $250,000) and the gain realized is $70,000 ($150,000 amount realized − $80,000 adjusted basis). Irs gov file 2009 taxes You must recognize $50,000 of the gain ($150,000 amount realized − $100,000 cost of new home). Irs gov file 2009 taxes The remaining $20,000 of realized gain is postponed. Irs gov file 2009 taxes Your basis in the new home is $80,000 ($100,000 cost − $20,000 gain postponed). Irs gov file 2009 taxes Replacement period. Irs gov file 2009 taxes   To postpone reporting your gain from a condemnation, you must buy replacement property within a certain period of time. Irs gov file 2009 taxes This is the replacement period. Irs gov file 2009 taxes   The replacement period for a condemnation begins on the earlier of the following dates. Irs gov file 2009 taxes The date on which you disposed of the condemned property. Irs gov file 2009 taxes The date on which the threat of condemnation began. Irs gov file 2009 taxes   The replacement period generally ends 2 years after the end of the first tax year in which any part of the gain on the condemnation is realized. Irs gov file 2009 taxes However, see the exceptions below. Irs gov file 2009 taxes Three-year replacement period for certain property. Irs gov file 2009 taxes   If real property held for use in a trade or business or for investment (not including property held primarily for sale) is condemned, the replacement period ends 3 years after the end of the first tax year in which any part of the gain on the condemnation is realized. Irs gov file 2009 taxes However, this 3-year replacement period cannot be used if you replace the condemned property by acquiring control of a corporation owning property that is similar or related in service or use. Irs gov file 2009 taxes Five-year replacement period for certain property. Irs gov file 2009 taxes   The replacement period ends 5 years after the end of the first tax year in which any part of the gain is realized on the compulsory or involuntary conversion of the following qualified property. Irs gov file 2009 taxes Property in any Midwestern disaster area compulsorily or involuntarily converted on or after the applicable disaster date as a result of severe storms, tornadoes, or flooding, but only if substantially all of the use of the replacement property is in a Midwestern disaster area. Irs gov file 2009 taxes Property in the Kansas disaster area compulsorily or involuntarily converted after May 3, 2007, but only if substantially all of the use of the replacement property is in the Kansas disaster area. Irs gov file 2009 taxes Property in the Hurricane Katrina disaster area compulsorily or involuntarily converted after August 24, 2005, as a result of Hurricane Katrina, but only if substantially all of the use of the replacement property is in the Hurricane Katrina disaster area. Irs gov file 2009 taxes Extended replacement period for taxpayers affected by other federally declared disasters. Irs gov file 2009 taxes    If you are affected by a federally declared disaster, the IRS may grant disaster relief by extending the periods to perform certain tax-related acts for 2013, including the replacement period, by up to one year. Irs gov file 2009 taxes For more information visit www. Irs gov file 2009 taxes irs. Irs gov file 2009 taxes gov/uac/Tax-Relief-in-Disaster-Situations. Irs gov file 2009 taxes Weather-related sales of livestock in an area eligible for federal assistance. Irs gov file 2009 taxes   Generally, if the sale or exchange of livestock is due to drought, flood, or other weather-related conditions in an area eligible for federal assistance, the replacement period ends 4 years after the close of the first tax year in which you realize any part of your gain from the sale or exchange. Irs gov file 2009 taxes    If the weather-related conditions continue for longer than 3 years, the replacement period may be extended on a regional basis until the end of your first drought-free year for the applicable region. Irs gov file 2009 taxes See Notice 2006-82. Irs gov file 2009 taxes You can find Notice 2006-82 on page 529 of Internal Revenue Bulletin 2006-39 at www. Irs gov file 2009 taxes irs. Irs gov file 2009 taxes gov/irb/2006-39_IRB/ar13. Irs gov file 2009 taxes html. Irs gov file 2009 taxes    Each year, the IRS publishes a list of counties, districts, cities, or parishes for which exceptional, extreme, or severe drought was reported during the preceding 12 months. Irs gov file 2009 taxes If you qualified for a 4-year replacement period for livestock sold or exchanged on account of drought and your replacement period is scheduled to expire at the end of 2013 (or at the end of the tax year that includes August 31, 2013), see Notice 2013-62. Irs gov file 2009 taxes You can find Notice 2013-62 on page 466 of Internal Revenue Bulletin 2013-45 at www. Irs gov file 2009 taxes irs. Irs gov file 2009 taxes gov/irb/2013-45_IRB/ar04. Irs gov file 2009 taxes html. Irs gov file 2009 taxes The replacement period will be extended under Notice 2006-82 if the applicable region is on the list included in Notice 2013-62. Irs gov file 2009 taxes Determining when gain is realized. Irs gov file 2009 taxes   If you are a cash basis taxpayer, you realize gain when you receive payments that are more than your basis in the property. Irs gov file 2009 taxes If the condemning authority makes deposits with the court, you realize gain when you withdraw (or have the right to withdraw) amounts that are more than your basis. Irs gov file 2009 taxes   This applies even if the amounts received are only partial or advance payments and the full award has not yet been determined. Irs gov file 2009 taxes A replacement will be too late if you wait for a final determination that does not take place in the applicable replacement period after you first realize gain. Irs gov file 2009 taxes   For accrual basis taxpayers, gain (if any) accrues in the earlier year when either of the following occurs. Irs gov file 2009 taxes All events have occurred that fix the right to the condemnation award and the amount can be determined with reasonable accuracy. Irs gov file 2009 taxes All or part of the award is actually or constructively received. Irs gov file 2009 taxes For example, if you have an absolute right to a part of a condemnation award when it is deposited with the court, the amount deposited accrues in the year the deposit is made even though the full amount of the award is still contested. Irs gov file 2009 taxes Replacement property bought before the condemnation. Irs gov file 2009 taxes   If you buy your replacement property after there is a threat of condemnation but before the actual condemnation and you still hold the replacement property at the time of the condemnation, you have bought your replacement property within the replacement period. Irs gov file 2009 taxes Property you acquire before there is a threat of condemnation does not qualify as replacement property acquired within the replacement period. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes On April 3, 2012, city authorities notified you that your property would be condemned. Irs gov file 2009 taxes On June 5, 2012, you acquired property to replace the property to be condemned. Irs gov file 2009 taxes You still had the new property when the city took possession of your old property on September 4, 2013. Irs gov file 2009 taxes You have made a replacement within the replacement period. Irs gov file 2009 taxes Extension. Irs gov file 2009 taxes   You can request an extension of the replacement period from the IRS director for your area. Irs gov file 2009 taxes You should apply before the end of the replacement period. Irs gov file 2009 taxes Your request should explain in detail why you need an extension. Irs gov file 2009 taxes The IRS will consider a request filed within a reasonable time after the replacement period if you can show reasonable cause for the delay. Irs gov file 2009 taxes An extension of the replacement period will be granted if you can show reasonable cause for not making the replacement within the regular period. Irs gov file 2009 taxes   Ordinarily, requests for extensions are granted near the end of the replacement period or the extended replacement period. Irs gov file 2009 taxes Extensions are usually limited to a period of 1 year or less. Irs gov file 2009 taxes The high market value or scarcity of replacement property is not a sufficient reason for granting an extension. Irs gov file 2009 taxes If your replacement property is being built and you clearly show that the replacement or restoration cannot be made within the replacement peri
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The Irs Gov File 2009 Taxes

Irs gov file 2009 taxes 1. Irs gov file 2009 taxes   Filing Information Table of Contents What's New Reminders Introduction Do I Have To File a Return?Individuals—In General Dependents Certain Children Under Age 19 or Full-Time Students Self-Employed Persons Aliens Who Should File Which Form Should I Use?Form 1040EZ Form 1040A Form 1040 Does My Return Have To Be on Paper?IRS e-file When Do I Have To File?Private delivery services. Irs gov file 2009 taxes Extensions of Time To File How Do I Prepare My Return?When Do I Report My Income and Expenses? Social Security Number (SSN) Presidential Election Campaign Fund Computations Attachments Third Party Designee Signatures Paid Preparer Refunds Amount You Owe Gift To Reduce Debt Held by the Public Name and Address Where Do I File? What Happens After I File?What Records Should I Keep? Why Keep Records? Kinds of Records to Keep Basic Records How Long to Keep Records Refund Information Interest on Refunds Change of Address What If I Made a Mistake?Amended Returns and Claims for Refund Penalties Identity Theft What's New Filing status for same-sex married couple. Irs gov file 2009 taxes   If you have a same-sex spouse whom you legally married in a state (or foreign country) that recognizes same-sex marriage, you and your spouse generally must use the married filing jointly or married filing separately filing status on your 2013 return, even if you and your spouse now live in a state (or foreign country) that does not recognize same-sex marriage. Irs gov file 2009 taxes See Publication 501 for more information. Irs gov file 2009 taxes Additional Medicare Tax. Irs gov file 2009 taxes  Beginning in 2013, a 0. Irs gov file 2009 taxes 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income over a threshold amount based on your filing status. Irs gov file 2009 taxes For more information, see the Instructions for Form 1040, line 60, and Form 8959. Irs gov file 2009 taxes Net Investment Income Tax. Irs gov file 2009 taxes  Beginning in 2013, you may be subject to Net Investment Income Tax (NIIT). Irs gov file 2009 taxes NIIT is a 3. Irs gov file 2009 taxes 8% tax on the lesser of net investment income or the excess of your modified adjusted gross income over a threshold amount. Irs gov file 2009 taxes For more information, see the Instructions for Form 1040, line 60, and Form 8960. Irs gov file 2009 taxes Refundable credit for prior year minimum tax. Irs gov file 2009 taxes  The refundable portion of the credit for prior year minimum tax is no longer available. Irs gov file 2009 taxes Who must file. Irs gov file 2009 taxes  Generally, the amount of income you can receive before you must file a return has been increased. Irs gov file 2009 taxes See Table 1-1, Table 1-2, and Table 1-3 for the specific amounts. Irs gov file 2009 taxes Reminders File online. Irs gov file 2009 taxes  Rather than filing a return on paper, you may be able to file electronically using IRS e-file. Irs gov file 2009 taxes Create your own personal identification number (PIN) and file a completely paperless tax return. Irs gov file 2009 taxes For more information, see Does My Return Have To Be on Paper , later. Irs gov file 2009 taxes Change of address. Irs gov file 2009 taxes  If you change your address, you should notify the IRS. Irs gov file 2009 taxes You can use Form 8822 to notify the IRS of the change. Irs gov file 2009 taxes See Change of Address , later, under What Happens After I File. Irs gov file 2009 taxes Enter your social security number. Irs gov file 2009 taxes  You must enter your social security number (SSN) in the spaces provided on your tax return. Irs gov file 2009 taxes If you file a joint return, enter the SSNs in the same order as the names. Irs gov file 2009 taxes Direct deposit of refund. Irs gov file 2009 taxes  Instead of getting a paper check, you may be able to have your refund deposited directly into your account at a bank or other financial institution. Irs gov file 2009 taxes See Direct Deposit under Refunds, later. Irs gov file 2009 taxes If you choose direct deposit of your refund, you may be able to split the refund among two or three accounts. Irs gov file 2009 taxes Pay online or by phone. Irs gov file 2009 taxes  If you owe additional tax, you may be able to pay online or by phone. Irs gov file 2009 taxes See How To Pay , later. Irs gov file 2009 taxes Installment agreement. Irs gov file 2009 taxes  If you cannot pay the full amount due with your return, you may ask to make monthly installment payments. Irs gov file 2009 taxes See Installment Agreement , later, under Amount You Owe. Irs gov file 2009 taxes You may be able to apply online for a payment agreement if you owe federal tax, interest, and penalties. Irs gov file 2009 taxes Automatic 6-month extension. Irs gov file 2009 taxes  You can get an automatic 6-month extension to file your tax return if, no later than the date your return is due, you file Form 4868, Application for Automatic Extension of Time To File U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes Individual Income Tax Return. Irs gov file 2009 taxes See Automatic Extension , later. Irs gov file 2009 taxes Service in combat zone. Irs gov file 2009 taxes  You are allowed extra time to take care of your tax matters if you are a member of the Armed Forces who served in a combat zone, or if you served in the combat zone in support of the Armed Forces. Irs gov file 2009 taxes See Individuals Serving in Combat Zone , later, under When Do I Have To File. Irs gov file 2009 taxes Adoption taxpayer identification number. Irs gov file 2009 taxes  If a child has been placed in your home for purposes of legal adoption and you will not be able to get a social security number for the child in time to file your return, you may be able to get an adoption taxpayer identification number (ATIN). Irs gov file 2009 taxes For more information, see Social Security Number (SSN) , later. Irs gov file 2009 taxes Taxpayer identification number for aliens. Irs gov file 2009 taxes  If you or your dependent is a nonresident or resident alien who does not have and is not eligible to get a social security number, file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS. Irs gov file 2009 taxes For more information, see Social Security Number (SSN) , later. Irs gov file 2009 taxes Frivolous tax submissions. Irs gov file 2009 taxes  The IRS has published a list of positions that are identified as frivolous. Irs gov file 2009 taxes The penalty for filing a frivolous tax return is $5,000. Irs gov file 2009 taxes Also, the $5,000 penalty will apply to other specified frivolous submissions. Irs gov file 2009 taxes For more information, see Civil Penalties , later. Irs gov file 2009 taxes Introduction This chapter discusses the following topics. Irs gov file 2009 taxes Whether you have to file a return. Irs gov file 2009 taxes Which form to use. Irs gov file 2009 taxes How to file electronically. Irs gov file 2009 taxes When, how, and where to file your return. Irs gov file 2009 taxes What happens if you pay too little or too much tax. Irs gov file 2009 taxes What records you should keep and how long you should keep them. Irs gov file 2009 taxes How you can change a return you have already filed. Irs gov file 2009 taxes Do I Have To File a Return? You must file a federal income tax return if you are a citizen or resident of the United States or a resident of Puerto Rico and you meet the filing requirements for any of the following categories that apply to you. Irs gov file 2009 taxes Individuals in general. Irs gov file 2009 taxes (There are special rules for surviving spouses, executors, administrators, legal representatives, U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes citizens and residents living outside the United States, residents of Puerto Rico, and individuals with income from U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes possessions. Irs gov file 2009 taxes ) Dependents. Irs gov file 2009 taxes Certain children under age 19 or full-time students. Irs gov file 2009 taxes Self-employed persons. Irs gov file 2009 taxes Aliens. Irs gov file 2009 taxes The filing requirements for each category are explained in this chapter. Irs gov file 2009 taxes The filing requirements apply even if you do not owe tax. Irs gov file 2009 taxes Even if you do not have to file a return, it may be to your advantage to do so. Irs gov file 2009 taxes See Who Should File, later. Irs gov file 2009 taxes File only one federal income tax return for the year regardless of how many jobs you had, how many Forms W-2 you received, or how many states you lived in during the year. Irs gov file 2009 taxes Do not file more than one original return for the same year, even if you have not gotten your refund or have not heard from the IRS since you filed. Irs gov file 2009 taxes Individuals—In General If you are a U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes citizen or resident, whether you must file a return depends on three factors: Your gross income, Your filing status, and Your age. Irs gov file 2009 taxes To find out whether you must file, see Table 1-1, Table 1-2, and Table 1-3. Irs gov file 2009 taxes Even if no table shows that you must file, you may need to file to get money back. Irs gov file 2009 taxes (See Who Should File , later. Irs gov file 2009 taxes ) Gross income. Irs gov file 2009 taxes   This includes all income you receive in the form of money, goods, property, and services that is not exempt from tax. Irs gov file 2009 taxes It also includes income from sources outside the United States or from the sale of your main home (even if you can exclude all or part of it). Irs gov file 2009 taxes Include part of your social security benefits if: You were married, filing a separate return, and you lived with your spouse at any time during 2013; or Half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). Irs gov file 2009 taxes If either (1) or (2) applies, see the instructions for Form 1040 or 1040A, or Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure the social security benefits you must include in gross income. Irs gov file 2009 taxes   Common types of income are discussed in Part Two of this publication. Irs gov file 2009 taxes Community income. Irs gov file 2009 taxes   If you are married and your permanent home is in a community property state, half of any income described by state law as community income may be considered yours. Irs gov file 2009 taxes This affects your federal taxes, including whether you must file if you do not file a joint return with your spouse. Irs gov file 2009 taxes See Publication 555, Community Property, for more information. Irs gov file 2009 taxes Nevada, Washington, and California domestic partners. Irs gov file 2009 taxes   A registered domestic partner in Nevada, Washington, or California generally must report half the combined community income of the individual and his or her domestic partner. Irs gov file 2009 taxes See Publication 555. Irs gov file 2009 taxes Self-employed individuals. Irs gov file 2009 taxes   If you are self-employed, your gross income includes the amount on line 7 of Schedule C (Form 1040), Profit or Loss From Business; line 1 of Schedule C-EZ (Form 1040), Net Profit From Business; and line 9 of Schedule F (Form 1040), Profit or Loss From Farming. Irs gov file 2009 taxes See Self-Employed Persons , later, for more information about your filing requirements. Irs gov file 2009 taxes    If you do not report all of your self-employment income, your social security benefits may be lower when you retire. Irs gov file 2009 taxes Filing status. Irs gov file 2009 taxes   Your filing status depends on whether you are single or married and on your family situation. Irs gov file 2009 taxes Your filing status is determined on the last day of your tax year, which is December 31 for most taxpayers. Irs gov file 2009 taxes See chapter 2 for an explanation of each filing status. Irs gov file 2009 taxes Age. Irs gov file 2009 taxes   If you are 65 or older at the end of the year, you generally can have a higher amount of gross income than other taxpayers before you must file. Irs gov file 2009 taxes See Table 1-1. Irs gov file 2009 taxes You are considered 65 on the day before your 65th birthday. Irs gov file 2009 taxes For example, if your 65th birthday is on January 1, 2014, you are considered 65 for 2013. Irs gov file 2009 taxes Table 1-1. Irs gov file 2009 taxes 2013 Filing Requirements for Most Taxpayers IF your filing status is. Irs gov file 2009 taxes . Irs gov file 2009 taxes . Irs gov file 2009 taxes AND at the end of 2013 you  were. Irs gov file 2009 taxes . Irs gov file 2009 taxes . Irs gov file 2009 taxes * THEN file a return if  your gross income  was at least. Irs gov file 2009 taxes . Irs gov file 2009 taxes . Irs gov file 2009 taxes ** single under 65 $10,000     65 or older $11,500   married filing jointly*** under 65 (both spouses) $20,000     65 or older (one spouse) $21,200     65 or older (both spouses) $22,400   married filing separately any age $3,900   head of household under 65 $12,850     65 or older $14,350   qualifying widow(er) with dependent child under 65 $16,100   65 or older $17,300   * If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Irs gov file 2009 taxes ** Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Irs gov file 2009 taxes Do not include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time during 2013 or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). Irs gov file 2009 taxes If (a) or (b) applies, see the Instructions for Form 1040 or 1040A or Publication 915 to figure the taxable part of social security benefits you must include in gross income. Irs gov file 2009 taxes Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. Irs gov file 2009 taxes Gross income from a business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. Irs gov file 2009 taxes But, in figuring gross income, do not reduce your income by any losses, including any loss on Schedule C, line 7, or Schedule F, line 9. Irs gov file 2009 taxes *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900, you must file a return regardless of your age. Irs gov file 2009 taxes Surviving Spouses, Executors, Administrators, and Legal Representatives You must file a final return for a decedent (a person who died) if both of the following are true. Irs gov file 2009 taxes You are the surviving spouse, executor, administrator, or legal representative. Irs gov file 2009 taxes The decedent met the filing requirements at the date of death. Irs gov file 2009 taxes For more information on rules for filing a decedent's final return, see Publication 559, Survivors, Executors, and Administrators. Irs gov file 2009 taxes U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes Citizens and Resident Aliens Living Abroad To determine whether you must file a return, include in your gross income any income you received abroad, including any income you can exclude under the foreign earned income exclusion. Irs gov file 2009 taxes For information on special tax rules that may apply to you, see Publication 54, Tax Guide for U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes Citizens and Resident Aliens Abroad. Irs gov file 2009 taxes It is available online and at most U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes embassies and consulates. Irs gov file 2009 taxes See How To Get Tax Help in the back of this publication. Irs gov file 2009 taxes Residents of Puerto Rico If you are a U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes citizen and also a bona fide resident of Puerto Rico, you generally must file a U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes income tax return for any year in which you meet the income requirements. Irs gov file 2009 taxes This is in addition to any legal requirement you may have to file an income tax return with Puerto Rico. Irs gov file 2009 taxes If you are a bona fide resident of Puerto Rico for the entire year, your U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes gross income does not include income from sources within Puerto Rico. Irs gov file 2009 taxes It does, however, include any income you received for your services as an employee of the United States or a U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes agency. Irs gov file 2009 taxes If you receive income from Puerto Rican sources that is not subject to U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes tax, you must reduce your standard deduction. Irs gov file 2009 taxes As a result, the amount of income you must have before you are required to file a U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes income tax return is lower than the applicable amount in Table 1-1 or Table 1-2. Irs gov file 2009 taxes For more information, see Publication 570, Tax Guide for Individuals With Income From U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes Possessions. Irs gov file 2009 taxes Individuals With Income From U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes Possessions If you had income from Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, or the U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes Virgin Islands, special rules may apply when determining whether you must file a U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes federal income tax return. Irs gov file 2009 taxes In addition, you may have to file a return with the individual island government. Irs gov file 2009 taxes See Publication 570 for more information. Irs gov file 2009 taxes Dependents If you are a dependent (one who meets the dependency tests in chapter 3), see Table 1-2 to find out whether you must file a return. Irs gov file 2009 taxes You also must file if your situation is described in Table 1-3. Irs gov file 2009 taxes Responsibility of parent. Irs gov file 2009 taxes   Generally, a child is responsible for filing his or her own tax return and for paying any tax on the return. Irs gov file 2009 taxes If a dependent child must file an income tax return but cannot file due to age or any other reason, then a parent, guardian, or other legally responsible person must file it for the child. Irs gov file 2009 taxes If the child cannot sign the return, the parent or guardian must sign the child's name followed by the words “By (your signature), parent for minor child. Irs gov file 2009 taxes ” Child's earnings. Irs gov file 2009 taxes   Amounts a child earns by performing services are included in his or her gross income and not the gross income of the parent. Irs gov file 2009 taxes This is true even if under local law the child's parent has the right to the earnings and may actually have received them. Irs gov file 2009 taxes But if the child does not pay the tax due on this income, the parent is liable for the tax. Irs gov file 2009 taxes Certain Children Under Age 19 or Full-Time Students If a child's only income is interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends), the child was under age 19 at the end of 2013 or was a full-time student under age 24 at the end of 2013, and certain other conditions are met, a parent can elect to include the child's income on the parent's return. Irs gov file 2009 taxes If this election is made, the child does not have to file a return. Irs gov file 2009 taxes See Parent's Election To Report Child's Interest and Dividends in chapter 31. Irs gov file 2009 taxes Self-Employed Persons You are self-employed if you: Carry on a trade or business as a sole proprietor, Are an independent contractor, Are a member of a partnership, or Are in business for yourself in any other way. Irs gov file 2009 taxes Self-employment can include work in addition to your regular full-time business activities, such as certain part-time work you do at home or in addition to your regular job. Irs gov file 2009 taxes You must file a return if your gross income is at least as much as the filing requirement amount for your filing status and age (shown in Table 1-1). Irs gov file 2009 taxes Also, you must file Form 1040 and Schedule SE (Form 1040), Self-Employment Tax, if: Your net earnings from self-employment (excluding church employee income) were $400 or more, or You had church employee income of $108. Irs gov file 2009 taxes 28 or more. Irs gov file 2009 taxes (See Table 1-3. Irs gov file 2009 taxes ) Use Schedule SE (Form 1040) to figure your self-employment tax. Irs gov file 2009 taxes Self-employment tax is comparable to the social security and Medicare tax withheld from an employee's wages. Irs gov file 2009 taxes For more information about this tax, see Publication 334, Tax Guide for Small Business. Irs gov file 2009 taxes Employees of foreign governments or international organizations. Irs gov file 2009 taxes   If you are a U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes citizen who works in the United States for an international organization, a foreign government, or a wholly owned instrumentality of a foreign government, and your employer is not required to withhold social security and Medicare taxes from your wages, you must include your earnings from services performed in the United States when figuring your net earnings from self-employment. Irs gov file 2009 taxes Ministers. Irs gov file 2009 taxes   You must include income from services you performed as a minister when figuring your net earnings from self-employment, unless you have an exemption from self-employment tax. Irs gov file 2009 taxes This also applies to Christian Science practitioners and members of a religious order who have not taken a vow of poverty. Irs gov file 2009 taxes For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Irs gov file 2009 taxes Table 1-2. Irs gov file 2009 taxes 2013 Filing Requirements for Dependents See chapter 3 to find out if someone can claim you as a dependent. Irs gov file 2009 taxes If your parents (or someone else) can claim you as a dependent, use this table to see if you must file a return. Irs gov file 2009 taxes (See Table 1-3 for other situations when you must file. Irs gov file 2009 taxes ) In this table, earned income includes salaries, wages, tips, and professional fees. Irs gov file 2009 taxes It also includes taxable scholarship and fellowship grants. Irs gov file 2009 taxes (See Scholarships and fellowships in chapter 12. Irs gov file 2009 taxes ) Unearned income includes investment-type income such as taxable interest, ordinary dividends, and capital gain distributions. Irs gov file 2009 taxes It also includes unemployment compensation, taxable social security benefits, pensions, annuities, cancellation of debt, and distributions of unearned income from a trust. Irs gov file 2009 taxes Gross income is the total of your earned and unearned income. Irs gov file 2009 taxes   Single dependents—Were you either age 65 or older or blind? □ No. Irs gov file 2009 taxes You must file a return if any of the following apply. Irs gov file 2009 taxes     • Your unearned income was more than $1,000. Irs gov file 2009 taxes     • Your earned income was more than $6,100. Irs gov file 2009 taxes     • Your gross income was more than the larger of:       • $1,000, or       • Your earned income (up to $5,750) plus $350. Irs gov file 2009 taxes □ Yes. Irs gov file 2009 taxes You must file a return if any of the following apply. Irs gov file 2009 taxes     • Your unearned income was more than $2,500 ($4,000 if 65 or older and blind). Irs gov file 2009 taxes     • Your earned income was more than $7,600 ($9,100 if 65 or older and blind). Irs gov file 2009 taxes     • Your gross income was more than the larger of:       • $2,500 ($4,000 if 65 or older and blind), or       • Your earned income (up to $5,750) plus $1,850 ($3,350 if 65 or older and blind). Irs gov file 2009 taxes Married dependents—Were you either age 65 or older or blind? □ No. Irs gov file 2009 taxes You must file a return if any of the following apply. Irs gov file 2009 taxes     • Your unearned income was more than $1,000. Irs gov file 2009 taxes     • Your earned income was more than $6,100. Irs gov file 2009 taxes     • Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Irs gov file 2009 taxes     • Your gross income was more than the larger of:       • $1,000, or       • Your earned income (up to $5,750) plus $350. Irs gov file 2009 taxes □ Yes. Irs gov file 2009 taxes You must file a return if any of the following apply. Irs gov file 2009 taxes     • Your unearned income was more than $2,200 ($3,400 if 65 or older and blind). Irs gov file 2009 taxes     • Your earned income was more than $7,300 ($8,500 if 65 or older and blind). Irs gov file 2009 taxes     • Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Irs gov file 2009 taxes     • Your gross income was more than the larger of:       • $2,200 ($3,400 if 65 or older and blind), or       • Your earned income (up to $5,750) plus $1,550 ($2,750 if 65 or older and blind). Irs gov file 2009 taxes Aliens Your status as an alien—resident, nonresident, or dual-status—determines whether and how you must file an income tax return. Irs gov file 2009 taxes The rules used to determine your alien status are discussed in Publication 519, U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes Tax Guide for Aliens. Irs gov file 2009 taxes Resident alien. Irs gov file 2009 taxes   If you are a resident alien for the entire year, you must file a tax return following the same rules that apply to U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes citizens. Irs gov file 2009 taxes Use the forms discussed in this publication. Irs gov file 2009 taxes Nonresident alien. Irs gov file 2009 taxes   If you are a nonresident alien, the rules and tax forms that apply to you are different from those that apply to U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes citizens and resident aliens. Irs gov file 2009 taxes See Publication 519 to find out if U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes income tax laws apply to you and which forms you should file. Irs gov file 2009 taxes Dual-status taxpayer. Irs gov file 2009 taxes   If you are a resident alien for part of the tax year and a nonresident alien for the rest of the year, you are a dual-status taxpayer. Irs gov file 2009 taxes Different rules apply for each part of the year. Irs gov file 2009 taxes For information on dual-status taxpayers, see Publication 519. Irs gov file 2009 taxes Table 1-3. Irs gov file 2009 taxes Other Situations When You Must File a 2013 Return You must file a return if any of the four conditions below apply for 2013. Irs gov file 2009 taxes 1. Irs gov file 2009 taxes   You owe any special taxes, including any of the following. Irs gov file 2009 taxes   a. Irs gov file 2009 taxes Alternative minimum tax. Irs gov file 2009 taxes   b. Irs gov file 2009 taxes Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. Irs gov file 2009 taxes But if you are filing a return only because you owe this tax, you can file Form 5329 by itself. Irs gov file 2009 taxes   c. Irs gov file 2009 taxes Household employment taxes. Irs gov file 2009 taxes But if you are filing a return only because you owe this tax, you can file Schedule H by itself. Irs gov file 2009 taxes   d. Irs gov file 2009 taxes Social security and Medicare tax on tips you did not report to your employer or on wages you received from an employer who did not withhold these taxes. Irs gov file 2009 taxes   e. Irs gov file 2009 taxes Recapture of first-time homebuyer credit. Irs gov file 2009 taxes   f. Irs gov file 2009 taxes Write-in taxes, including uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance and additional taxes on health savings accounts. Irs gov file 2009 taxes   g. Irs gov file 2009 taxes Recapture taxes. Irs gov file 2009 taxes 2. Irs gov file 2009 taxes   You (or your spouse, if filing jointly) received HSA, Archer MSA, or Medicare Advantage MSA distributions. Irs gov file 2009 taxes 3. Irs gov file 2009 taxes   You had net earnings from self-employment of at least $400. Irs gov file 2009 taxes 4. Irs gov file 2009 taxes   You had wages of $108. Irs gov file 2009 taxes 28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes. Irs gov file 2009 taxes Who Should File Even if you do not have to file, you should file a federal income tax return to get money back if any of the following conditions apply. Irs gov file 2009 taxes You had federal income tax withheld or made estimated tax payments. Irs gov file 2009 taxes You qualify for the earned income credit. Irs gov file 2009 taxes See chapter 36 for more information. Irs gov file 2009 taxes You qualify for the additional child tax credit. Irs gov file 2009 taxes See chapter 34 for more information. Irs gov file 2009 taxes You qualify for the health coverage tax credit. Irs gov file 2009 taxes See chapter 37 for more information. Irs gov file 2009 taxes You qualify for the American opportunity credit. Irs gov file 2009 taxes See chapter 35 for more information. Irs gov file 2009 taxes You qualify for the credit for federal tax on fuels. Irs gov file 2009 taxes See chapter 37 for more information. Irs gov file 2009 taxes Which Form Should I Use? You must use one of three forms to file your return: Form 1040EZ, Form 1040A, or Form 1040. Irs gov file 2009 taxes (But also see Does My Return Have To Be on Paper , later. Irs gov file 2009 taxes ) See the discussion under Form 1040 for when you must use that form. Irs gov file 2009 taxes Form 1040EZ Form 1040EZ is the simplest form to use. Irs gov file 2009 taxes You can use Form 1040EZ if all of the following apply. Irs gov file 2009 taxes    Your filing status is single or married filing jointly. Irs gov file 2009 taxes If you were a nonresident alien at any time in 2013, your filing status must be married filing jointly. Irs gov file 2009 taxes You (and your spouse if married filing a joint return) were under age 65 and not blind at the end of 2013. Irs gov file 2009 taxes If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Irs gov file 2009 taxes You do not claim any dependents. Irs gov file 2009 taxes Your taxable income is less than $100,000. Irs gov file 2009 taxes Your income is only from wages, salaries, tips, unemployment compensation, Alaska Permanent Fund dividends, taxable scholarship and fellowship grants, and taxable interest of $1,500 or less. Irs gov file 2009 taxes You do not claim any adjustments to income, such as a deduction for IRA contributions or student loan interest. Irs gov file 2009 taxes You do not claim any credits other than the earned income credit. Irs gov file 2009 taxes You do not owe any household employment taxes on wages you paid to a household employee. Irs gov file 2009 taxes If you earned tips, they are included in boxes 5 and 7 of your Form W-2. Irs gov file 2009 taxes You are not a debtor in a chapter 11 bankruptcy case filed after October 16, 2005. Irs gov file 2009 taxes   You must meet all of these requirements to use Form 1040EZ. Irs gov file 2009 taxes If you do not, you must use Form 1040A or Form 1040. Irs gov file 2009 taxes Figuring tax. Irs gov file 2009 taxes   On Form 1040EZ, you can use only the tax table to figure your income tax. Irs gov file 2009 taxes You cannot use Form 1040EZ to report any other tax. Irs gov file 2009 taxes Form 1040A If you do not qualify to use Form 1040EZ, you may be able to use Form 1040A. Irs gov file 2009 taxes You can use Form 1040A if all of the following apply. Irs gov file 2009 taxes    Your income is only from: Wages, salaries, and tips, Interest, Ordinary dividends (including Alaska Permanent Fund dividends), Capital gain distributions, IRA distributions, Pensions and annuities, Unemployment compensation, Taxable social security and railroad retirement benefits, and Taxable scholarship and fellowship grants. Irs gov file 2009 taxes If you receive a capital gain distribution that includes unrecaptured section 1250 gain, section 1202 gain, or collectibles (28%) gain, you cannot use Form 1040A. Irs gov file 2009 taxes You must use Form 1040. Irs gov file 2009 taxes Your taxable income is less than $100,000. Irs gov file 2009 taxes Your adjustments to income are for only the following items. Irs gov file 2009 taxes Educator expenses. Irs gov file 2009 taxes IRA deduction. Irs gov file 2009 taxes Student loan interest deduction. Irs gov file 2009 taxes Tuition and fees. Irs gov file 2009 taxes You do not itemize your deductions. Irs gov file 2009 taxes You claim only the following tax credits. Irs gov file 2009 taxes The credit for child and dependent care expenses. Irs gov file 2009 taxes (See chapter 32. Irs gov file 2009 taxes ) The credit for the elderly or the disabled. Irs gov file 2009 taxes (See chapter 33. Irs gov file 2009 taxes ) The education credits. Irs gov file 2009 taxes (See chapter 35. Irs gov file 2009 taxes ) The retirement savings contribution credit. Irs gov file 2009 taxes (See chapter 37. Irs gov file 2009 taxes ) The child tax credit. Irs gov file 2009 taxes (See chapter 34. Irs gov file 2009 taxes ) The earned income credit. Irs gov file 2009 taxes (See chapter 36. Irs gov file 2009 taxes ) The additional child tax credit. Irs gov file 2009 taxes (See chapter 34. Irs gov file 2009 taxes ) You did not have an alternative minimum tax adjustment on stock you acquired from the exercise of an incentive stock option. Irs gov file 2009 taxes (See Publication 525, Taxable and Nontaxable Income. Irs gov file 2009 taxes )   You can also use Form 1040A if you received employer-provided dependent care benefits or if you owe tax from the recapture of an education credit or the alternative minimum tax. Irs gov file 2009 taxes   You must meet all these requirements to use Form 1040A. Irs gov file 2009 taxes If you do not, you must use Form 1040. Irs gov file 2009 taxes Form 1040 If you cannot use Form 1040EZ or Form 1040A, you must use Form 1040. Irs gov file 2009 taxes You can use Form 1040 to report all types of income, deductions, and credits. Irs gov file 2009 taxes You may pay less tax by filing Form 1040 because you can take itemized deductions, some adjustments to income, and credits you cannot take on Form 1040A or Form 1040EZ. Irs gov file 2009 taxes You must use Form 1040 if any of the following apply. Irs gov file 2009 taxes    Your taxable income is $100,000 or more. Irs gov file 2009 taxes You itemize your deductions on Schedule A. Irs gov file 2009 taxes You had income that cannot be reported on Form 1040EZ or Form 1040A, including tax-exempt interest from private activity bonds issued after August 7, 1986. Irs gov file 2009 taxes You claim any adjustments to gross income other than the adjustments listed earlier under Form 1040A. Irs gov file 2009 taxes Your Form W-2, box 12, shows uncollected employee tax (social security and Medicare tax) on tips (see chapter 6) or group-term life insurance (see chapter 5). Irs gov file 2009 taxes You received $20 or more in tips in any 1 month and did not report all of them to your employer. Irs gov file 2009 taxes (See chapter 6. Irs gov file 2009 taxes ) You were a bona fide resident of Puerto Rico and exclude income from sources in Puerto Rico. Irs gov file 2009 taxes You claim any credits other than the credits listed earlier under Form 1040A. Irs gov file 2009 taxes You owe the excise tax on insider stock compensation from an expatriated corporation. Irs gov file 2009 taxes Your Form W-2 shows an amount in box 12 with a code Z. Irs gov file 2009 taxes You had a qualified health savings account funding distribution from your IRA. Irs gov file 2009 taxes You are an employee and your employer did not withhold social security and Medicare tax. Irs gov file 2009 taxes You have to file other forms with your return to report certain exclusions, taxes, or transactions, such as Form 8959 or Form 8960. Irs gov file 2009 taxes You are a debtor in a bankruptcy case filed after October 16, 2005. Irs gov file 2009 taxes You must repay the first-time homebuyer credit. Irs gov file 2009 taxes You have adjusted gross income of more than $150,000 and must reduce the dollar amount of your exemptions. Irs gov file 2009 taxes Does My Return Have To Be on Paper? You may be able to file a paperless return using IRS e-file (electronic filing). Irs gov file 2009 taxes If your 2013 adjusted gross income (AGI) is less than a certain amount, you are eligible for Free File. Irs gov file 2009 taxes See your tax return instructions for details. Irs gov file 2009 taxes If you do not qualify for Free File, then you should check out IRS. Irs gov file 2009 taxes gov for low-cost e-file options or Free File Fillable Forms. Irs gov file 2009 taxes IRS e-file Table 1-4 lists the benefits of IRS e-file. Irs gov file 2009 taxes IRS e-file uses automation to replace most of the manual steps needed to process paper returns. Irs gov file 2009 taxes As a result, the processing of e-file returns is faster and more accurate than the processing of paper returns. Irs gov file 2009 taxes However, as with a paper return, you are responsible for making sure your return contains accurate information and is filed on time. Irs gov file 2009 taxes Using e-file does not affect your chances of an IRS examination of your return. Irs gov file 2009 taxes Free File Fillable Forms. Irs gov file 2009 taxes   If you do not need the help of a tax preparer, then Free File Fillable Forms may be for you. Irs gov file 2009 taxes These forms: Do not have an income requirement so everyone is eligible, Are easy to use, Perform basic math calculations, Are available only at IRS. Irs gov file 2009 taxes gov, and Apply only to a federal tax return. Irs gov file 2009 taxes Electronic return signatures. Irs gov file 2009 taxes   To file your return electronically, you must sign the return electronically using a personal identification number (PIN). Irs gov file 2009 taxes If you are filing online, you must use a Self-Select PIN. Irs gov file 2009 taxes If you are filing electronically using a tax practitioner, you can use a Self-Select PIN or a Practitioner PIN. Irs gov file 2009 taxes Self-Select PIN. Irs gov file 2009 taxes   The Self-Select PIN method allows you to create your own PIN. Irs gov file 2009 taxes If you are married filing jointly, you and your spouse will each need to create a PIN and enter these PINs as your electronic signatures. Irs gov file 2009 taxes   A PIN is any combination of five digits you choose except five zeros. Irs gov file 2009 taxes If you use a PIN, there is nothing to sign and nothing to mail—not even your Forms W-2. Irs gov file 2009 taxes   To verify your identity, you will be prompted to enter your adjusted gross income (AGI) from your originally filed 2012 federal income tax return, if applicable. Irs gov file 2009 taxes Do not use your AGI from an amended return (Form 1040X) or a math error correction made by the IRS. Irs gov file 2009 taxes AGI is the amount shown on your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040EZ, line 4. Irs gov file 2009 taxes If you do not have your 2012 income tax return, you can quickly request a transcript by using our automated self-service tool. Irs gov file 2009 taxes Visit us at IRS. Irs gov file 2009 taxes gov and click on Order a Return or Account Transcript or call 1-800-908-9946 to get a free transcript of your return. Irs gov file 2009 taxes (If you filed electronically last year, you may use your prior year PIN to verify your identity instead of your prior year AGI. Irs gov file 2009 taxes The prior year PIN is the five digit PIN you used to electronically sign your 2012 return. Irs gov file 2009 taxes ) You will also be prompted to enter your date of birth. Irs gov file 2009 taxes Table 1-4. Irs gov file 2009 taxes Benefits of IRS e-file • Free File allows qualified taxpayers to prepare and e-file their own tax returns for free. Irs gov file 2009 taxes • Free File is available in English and Spanish. Irs gov file 2009 taxes • Free File is available online 24 hours a day, 7 days a week. Irs gov file 2009 taxes • Get your refund faster by e-filing using Direct Deposit. Irs gov file 2009 taxes • Sign electronically with a secure self-selected PIN and file a completely paperless return. Irs gov file 2009 taxes • Receive an acknowledgement that your return was received and accepted. Irs gov file 2009 taxes • If you owe, you can e-file and pay electronically either online or by phone, using your bank account or a credit or debit card. Irs gov file 2009 taxes You can also file a return early and pay the amount you owe by the due date of your return. Irs gov file 2009 taxes • Save time by preparing and e-filing federal and state returns together. Irs gov file 2009 taxes • IRS computers quickly and automatically check for errors or other missing information. Irs gov file 2009 taxes • Help the environment, use less paper, and save taxpayer money—it costs less to process an e-filed return than a paper return. Irs gov file 2009 taxes You cannot use the Self-Select PIN method if you are a first-time filer under age 16 at the end of 2013. Irs gov file 2009 taxes If you cannot locate your prior year AGI or prior year PIN, use the Electronic Filing PIN Request. Irs gov file 2009 taxes This can be found at IRS. Irs gov file 2009 taxes gov. Irs gov file 2009 taxes Click on Request an Electronic Filing PIN. Irs gov file 2009 taxes Or you can call 1-866-704-7388. Irs gov file 2009 taxes Practitioner PIN. Irs gov file 2009 taxes   The Practitioner PIN method allows you to authorize your tax practitioner to enter or generate your PIN. Irs gov file 2009 taxes The practitioner can provide you with details. Irs gov file 2009 taxes Form 8453. Irs gov file 2009 taxes   You must send in a paper Form 8453 if you have to attach certain forms or other documents that cannot be electronically filed. Irs gov file 2009 taxes For details, see Form 8453. Irs gov file 2009 taxes For more details, visit www. Irs gov file 2009 taxes irs. Irs gov file 2009 taxes gov/efile and click on “ Individuals. Irs gov file 2009 taxes ” Identity Protection PIN. Irs gov file 2009 taxes   If the IRS gave you an identity protection personal identification number (PIN) because you were a victim of identity theft, enter it in the spaces provided on your tax form. Irs gov file 2009 taxes If the IRS has not given you this type of number, leave these spaces blank. Irs gov file 2009 taxes For more information, see the Instructions for Form 1040A or Form 1040. Irs gov file 2009 taxes Power of attorney. Irs gov file 2009 taxes   If an agent is signing your return for you, a power of attorney (POA) must be filed. Irs gov file 2009 taxes Attach the POA to Form 8453 and file it using that form's instructions. Irs gov file 2009 taxes See Signatures , later, for more information on POAs. Irs gov file 2009 taxes State returns. Irs gov file 2009 taxes   In most states, you can file an electronic state return simultaneously with your federal return. Irs gov file 2009 taxes For more information, check with your local IRS office, state tax agency, tax professional, or the IRS website at  www. Irs gov file 2009 taxes irs. Irs gov file 2009 taxes gov/efile. Irs gov file 2009 taxes Refunds. Irs gov file 2009 taxes   You can have a refund check mailed to you, or you can have your refund deposited directly to your checking or savings account or split among two or three accounts. Irs gov file 2009 taxes With e-file, your refund will be issued faster than if you filed on paper. Irs gov file 2009 taxes   As with a paper return, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or certain other federal nontax debts, such as student loans. Irs gov file 2009 taxes See Offset against debts under Refunds, later. Irs gov file 2009 taxes Refund inquiries. Irs gov file 2009 taxes   Information about your return will generally be available within 24 hours after the IRS receives your e-filed return. Irs gov file 2009 taxes See Refund Information , later. Irs gov file 2009 taxes Amount you owe. Irs gov file 2009 taxes   To avoid late-payment penalties and interest, pay your taxes in full by April 15, 2014. Irs gov file 2009 taxes See How To Pay , later, for information on how to pay the amount you owe. Irs gov file 2009 taxes Using Your Personal Computer You can file your tax return in a fast, easy, and convenient way using your personal computer. Irs gov file 2009 taxes A computer with Internet access and tax preparation software are all you need. Irs gov file 2009 taxes Best of all, you can e-file from the comfort of your home 24 hours a day, 7 days a week. Irs gov file 2009 taxes IRS approved tax preparation software is available for online use on the Internet, for download from the Internet, and in retail stores. Irs gov file 2009 taxes For information, visit www. Irs gov file 2009 taxes irs. Irs gov file 2009 taxes gov/efile. Irs gov file 2009 taxes Through Employers and Financial Institutions Some businesses offer free e-file to their employees, members, or customers. Irs gov file 2009 taxes Others offer it for a fee. Irs gov file 2009 taxes Ask your employer or financial institution if they offer IRS e-file as an employee, member, or customer benefit. Irs gov file 2009 taxes Free Help With Your Return Free help in preparing your return is available nationwide from IRS-trained volunteers. Irs gov file 2009 taxes The Volunteer Income Tax Assistance (VITA) program is designed to help low to moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 or older with their tax returns. Irs gov file 2009 taxes Many VITA sites offer free electronic filing and all volunteers will let you know about the credits and deductions you may be entitled to claim. Irs gov file 2009 taxes To find a site near you, call 1-800-906-9887. Irs gov file 2009 taxes Or to find the nearest AARP TaxAide site, visit AARP's website at www. Irs gov file 2009 taxes aarp. Irs gov file 2009 taxes org/taxaide or call 1-888-227-7669. Irs gov file 2009 taxes For more information on these programs, go to IRS. Irs gov file 2009 taxes gov and enter keyword “VITA” in the search box. Irs gov file 2009 taxes Using a Tax Professional Many tax professionals electronically file tax returns for their clients. Irs gov file 2009 taxes You may personally enter your PIN or complete Form 8879, IRS e-file Signature Authorization, to authorize the tax professional to enter your PIN on your return. Irs gov file 2009 taxes Note. Irs gov file 2009 taxes Tax professionals may charge a fee for IRS e-file. Irs gov file 2009 taxes Fees can vary depending on the professional and the specific services rendered. Irs gov file 2009 taxes When Do I Have To File? April 15, 2014, is the due date for filing your 2013 income tax return if you use the calendar year. Irs gov file 2009 taxes For a quick view of due dates for filing a return with or without an extension of time to file (discussed later), see Table 1-5. Irs gov file 2009 taxes Table 1-5. Irs gov file 2009 taxes When To File Your 2013 Return For U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes citizens and residents who file returns on a calendar year. Irs gov file 2009 taxes   For Most Taxpayers For Certain Taxpayers Outside the U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes No extension requested April 15, 2014 June 16, 2014 Automatic extension October 15, 2014 October 15, 2014 If you use a fiscal year (a year ending on the last day of any month except December, or a 52-53-week year), your income tax return is due by the 15th day of the 4th month after the close of your fiscal year. Irs gov file 2009 taxes When the due date for doing any act for tax purposes—filing a return, paying taxes, etc. Irs gov file 2009 taxes —falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. Irs gov file 2009 taxes Filing paper returns on time. Irs gov file 2009 taxes   Your paper return is filed on time if it is mailed in an envelope that is properly addressed, has enough postage, and is postmarked by the due date. Irs gov file 2009 taxes If you send your return by registered mail, the date of the registration is the postmark date. Irs gov file 2009 taxes The registration is evidence that the return was delivered. Irs gov file 2009 taxes If you send a return by certified mail and have your receipt postmarked by a postal employee, the date on the receipt is the postmark date. Irs gov file 2009 taxes The postmarked certified mail receipt is evidence that the return was delivered. Irs gov file 2009 taxes Private delivery services. Irs gov file 2009 taxes   If you use a private delivery service designated by the IRS to send your return, the postmark date generally is the date the private delivery service records in its database or marks on the mailing label. Irs gov file 2009 taxes The private delivery service can tell you how to get written proof of this date. Irs gov file 2009 taxes   For the IRS mailing address to use if you are using a private delivery service, go to IRS. Irs gov file 2009 taxes gov and enter “private delivery service” in the search box. Irs gov file 2009 taxes   The following are designated private delivery services. Irs gov file 2009 taxes DHL Express (DHL): Same Day Service. Irs gov file 2009 taxes Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. Irs gov file 2009 taxes United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Irs gov file 2009 taxes M. Irs gov file 2009 taxes , UPS Worldwide Express Plus, and UPS Worldwide Express. Irs gov file 2009 taxes Filing electronic returns on time. Irs gov file 2009 taxes   If you use IRS e-file, your return is considered filed on time if the authorized electronic return transmitter postmarks the transmission by the due date. Irs gov file 2009 taxes An authorized electronic return transmitter is a participant in the IRS e-file program that transmits electronic tax return information directly to the IRS. Irs gov file 2009 taxes   The electronic postmark is a record of when the authorized electronic return transmitter received the transmission of your electronically filed return on its host system. Irs gov file 2009 taxes The date and time in your time zone controls whether your electronically filed return is timely. Irs gov file 2009 taxes Filing late. Irs gov file 2009 taxes   If you do not file your return by the due date, you may have to pay a failure-to-file penalty and interest. Irs gov file 2009 taxes For more information, see Penalties , later. Irs gov file 2009 taxes Also see Interest under Amount You Owe. Irs gov file 2009 taxes   If you were due a refund but you did not file a return, you generally must file within 3 years from the date the return was due (including extensions) to get that refund. Irs gov file 2009 taxes Nonresident alien. Irs gov file 2009 taxes    If you are a nonresident alien and earn wages subject to U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes income tax withholding, your 2013 U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes income tax return (Form 1040NR or Form 1040NR-EZ) is due by: April 15, 2014, if you use a calendar year, or The 15th day of the 4th month after the end of your fiscal year if you use a fiscal year. Irs gov file 2009 taxes   If you do not earn wages subject to U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes income tax withholding, your return is due by: June 16, 2014, if you use a calendar year, or The 15th day of the 6th month after the end of your fiscal year, if you use a fiscal year. Irs gov file 2009 taxes See Publication 519 for more filing information. Irs gov file 2009 taxes Filing for a decedent. Irs gov file 2009 taxes   If you must file a final income tax return for a taxpayer who died during the year (a decedent), the return is due by the 15th day of the 4th month after the end of the decedent's normal tax year. Irs gov file 2009 taxes See Publication 559. Irs gov file 2009 taxes Extensions of Time To File You may be able to get an extension of time to file your return. Irs gov file 2009 taxes There are three types of situations where you may qualify for an extension: Automatic extensions, You are outside the United States, or You are serving in a combat zone. Irs gov file 2009 taxes Automatic Extension If you cannot file your 2013 return by the due date, you may be able to get an automatic 6-month extension of time to file. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes If your return is due on April 15, 2014, you will have until October 15, 2014, to file. Irs gov file 2009 taxes If you do not pay the tax due by the regular due date (generally, April 15), you will owe interest. Irs gov file 2009 taxes You may also be charged penalties, discussed later. Irs gov file 2009 taxes How to get the automatic extension. Irs gov file 2009 taxes   You can get the automatic extension by: Using IRS e-file (electronic filing), or Filing a paper form. Irs gov file 2009 taxes E-file options. Irs gov file 2009 taxes   There are two ways you can use e-file to get an extension of time to file. Irs gov file 2009 taxes Complete Form 4868, Application for Automatic Extension of Time To File U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes Individual Income Tax Return, to use as a worksheet. Irs gov file 2009 taxes If you think you may owe tax when you file your return, use Part II of the form to estimate your balance due. Irs gov file 2009 taxes If you e-file Form 4868 to the IRS, do not also send a paper Form 4868. Irs gov file 2009 taxes E-file using your personal computer or a tax professional. Irs gov file 2009 taxes    You can use a tax software package with your personal computer or a tax professional to file Form 4868 electronically. Irs gov file 2009 taxes You will need to provide certain information from your tax return for 2012. Irs gov file 2009 taxes If you wish to make a payment by direct transfer from your bank account, see Pay online , under How To Pay, later in this chapter. Irs gov file 2009 taxes E-file and pay by credit or debit card or by direct transfer from your bank account. Irs gov file 2009 taxes   You can get an extension by paying part or all of your estimate of tax due by using a credit or debit card or by direct transfer from your bank account. Irs gov file 2009 taxes You can do this by phone or over the Internet. Irs gov file 2009 taxes You do not file Form 4868. Irs gov file 2009 taxes See Pay online , under How To Pay, later in this chapter. Irs gov file 2009 taxes Filing a paper Form 4868. Irs gov file 2009 taxes   You can get an extension of time to file by filing a paper Form 4868. Irs gov file 2009 taxes Mail it to the address shown in the form instructions. Irs gov file 2009 taxes   If you want to make a payment with the form, make your check or money order payable to “United States Treasury. Irs gov file 2009 taxes ” Write your SSN, daytime phone number, and “2013 Form 4868” on your check or money order. Irs gov file 2009 taxes When to file. Irs gov file 2009 taxes   You must request the automatic extension by the due date for your return. Irs gov file 2009 taxes You can file your return any time before the 6-month extension period ends. Irs gov file 2009 taxes When you file your return. Irs gov file 2009 taxes   Enter any payment you made related to the extension of time to file on Form 1040, line 68. Irs gov file 2009 taxes If you file Form 1040EZ or Form 1040A, include that payment in your total payments on Form 1040EZ, line 9, or Form 1040A, line 41. Irs gov file 2009 taxes Also enter “Form 4868” and the amount paid in the space to the left of line 9 or line 41. Irs gov file 2009 taxes Individuals Outside the United States You are allowed an automatic 2-month extension, without filing Form 4868, (until June 16, 2014, if you use the calendar year) to file your 2013 return and pay any federal income tax due if: You are a U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes citizen or resident, and On the due date of your return: You are living outside the United States and Puerto Rico, and your main place of business or post of duty is outside the United States and Puerto Rico, or You are in military or naval service on duty outside the United States and  Puerto Rico. Irs gov file 2009 taxes However, if you pay the tax due after the regular due date (generally, April 15), interest will be charged from that date until the date the tax is paid. Irs gov file 2009 taxes If you served in a combat zone or qualified hazardous duty area, you may be eligible for a longer extension of time to file. Irs gov file 2009 taxes See Individuals Serving in Combat Zone , later, for special rules that apply to you. Irs gov file 2009 taxes Married taxpayers. Irs gov file 2009 taxes   If you file a joint return, only one spouse has to qualify for this automatic extension. Irs gov file 2009 taxes If you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies. Irs gov file 2009 taxes How to get the extension. Irs gov file 2009 taxes   To use this automatic extension, you must attach a statement to your return explaining what situation qualified you for the extension. Irs gov file 2009 taxes (See the situations listed under (2), earlier. Irs gov file 2009 taxes ) Extensions beyond 2 months. Irs gov file 2009 taxes   If you cannot file your return within the automatic 2-month extension period, you may be able to get an additional 4-month extension, for a total of 6 months. Irs gov file 2009 taxes File Form 4868 and check the box on line 8. Irs gov file 2009 taxes No further extension. Irs gov file 2009 taxes   An extension of more than 6 months will generally not be granted. Irs gov file 2009 taxes However, if you are outside the United States and meet certain tests, you may be granted a longer extension. Irs gov file 2009 taxes For more information, see When To File and Pay in Publication 54. Irs gov file 2009 taxes Individuals Serving in Combat Zone The deadline for filing your tax return, paying any tax you may owe, and filing a claim for refund is automatically extended if you serve in a combat zone. Irs gov file 2009 taxes This applies to members of the Armed Forces, as well as merchant marines serving aboard vessels under the operational control of the Department of Defense, Red Cross personnel, accredited correspondents, and civilians under the direction of the Armed Forces in support of the Armed Forces. Irs gov file 2009 taxes Combat zone. Irs gov file 2009 taxes   For purposes of the automatic extension, the term “combat zone” includes the following areas. Irs gov file 2009 taxes The Arabian peninsula area, effective January 17, 1991. Irs gov file 2009 taxes The Kosovo area, effective March 24, 1999. Irs gov file 2009 taxes Afghanistan area, effective September 19, 2001. Irs gov file 2009 taxes   See Publication 3, Armed Forces' Tax Guide, for more detailed information on the locations comprising each combat zone. Irs gov file 2009 taxes The publication also has information about other tax benefits available to military personnel serving in a combat zone. Irs gov file 2009 taxes Extension period. Irs gov file 2009 taxes   The deadline for filing your return, paying any tax due, and filing a claim for refund is extended for at least 180 days after the later of: The last day you are in a combat zone or the last day the area qualifies as a combat zone, or The last day of any continuous qualified hospitalization for injury from service in the combat zone. Irs gov file 2009 taxes   In addition to the 180 days, your deadline is also extended by the number of days you had left to take action with the IRS when you entered the combat zone. Irs gov file 2009 taxes For example, you have 3½ months (January 1 – April 15) to file your tax return. Irs gov file 2009 taxes Any days left in this period when you entered the combat zone (or the entire 3½ months if you entered it before the beginning of the year) are added to the 180 days. Irs gov file 2009 taxes See Extension of Deadlines in Publication 3 for more information. Irs gov file 2009 taxes   The rules on the extension for filing your return also apply when you are deployed outside the United States (away from your permanent duty station) while participating in a designated contingency operation. Irs gov file 2009 taxes How Do I Prepare My Return? This section explains how to get ready to fill in your tax return and when to report your income and expenses. Irs gov file 2009 taxes It also explains how to complete certain sections of the form. Irs gov file 2009 taxes You may find Table 1-6 helpful when you prepare your paper return. Irs gov file 2009 taxes Table 1-6. Irs gov file 2009 taxes Six Steps for Preparing Your Paper Return 1 — Get your records together for income and expenses. Irs gov file 2009 taxes 2 — Get the forms, schedules, and publications you need. Irs gov file 2009 taxes 3 — Fill in your return. Irs gov file 2009 taxes 4 — Check your return to make sure it is correct. Irs gov file 2009 taxes 5 — Sign and date your return. Irs gov file 2009 taxes 6 — Attach all required forms and schedules. Irs gov file 2009 taxes Electronic returns. Irs gov file 2009 taxes   For information you may find useful in preparing a paperless return, see Does My Return Have To Be on Paper , earlier. Irs gov file 2009 taxes Substitute tax forms. Irs gov file 2009 taxes   You cannot use your own version of a tax form unless it meets the requirements explained in Publication 1167, General Rules and Specifications for Substitute Forms and Schedules. Irs gov file 2009 taxes Form W-2. Irs gov file 2009 taxes   If you were an employee, you should receive Form W-2 from your employer. Irs gov file 2009 taxes You will need the information from this form to prepare your return. Irs gov file 2009 taxes See Form W-2 under Credit for Withholding and Estimated Tax in chapter 4. Irs gov file 2009 taxes   Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. Irs gov file 2009 taxes If it is mailed, you should allow adequate time to receive it before contacting your employer. Irs gov file 2009 taxes If you still do not get the form by February 15, the IRS can help you by requesting the form from your employer. Irs gov file 2009 taxes When you request IRS help, be prepared to provide the following information. Irs gov file 2009 taxes Your name, address (including ZIP code), and phone number. Irs gov file 2009 taxes Your SSN. Irs gov file 2009 taxes Your dates of employment. Irs gov file 2009 taxes Your employer's name, address (including ZIP code), and phone number. Irs gov file 2009 taxes Form 1099. Irs gov file 2009 taxes   If you received certain types of income, you may receive a Form 1099. Irs gov file 2009 taxes For example, if you received taxable interest of $10 or more, the payer is required to provide or send Form 1099 to you no later than January 31, 2014 (or by February 18, 2014, if furnished by a broker). Irs gov file 2009 taxes If it is mailed, you should allow adequate time to receive it before contacting the payer. Irs gov file 2009 taxes If you still do not get the form by February 18 (or by March 5, 2014, if furnished by a broker), call the IRS for help. Irs gov file 2009 taxes When Do I Report My Income and Expenses? You must figure your taxable income on the basis of a tax year. Irs gov file 2009 taxes A “tax year” is an annual accounting period used for keeping records and reporting income and expenses. Irs gov file 2009 taxes You must account for your income and expenses in a way that clearly shows your taxable income. Irs gov file 2009 taxes The way you do this is called an accounting method. Irs gov file 2009 taxes This section explains which accounting periods and methods you can use. Irs gov file 2009 taxes Accounting Periods Most individual tax returns cover a calendar year—the 12 months from January 1 through December 31. Irs gov file 2009 taxes If you do not use a calendar year, your accounting period is a fiscal year. Irs gov file 2009 taxes A regular fiscal year is a 12-month period that ends on the last day of any month except December. Irs gov file 2009 taxes A 52-53-week fiscal year varies from 52 to 53 weeks and always ends on the same day of the week. Irs gov file 2009 taxes You choose your accounting period (tax year) when you file your first income tax return. Irs gov file 2009 taxes It cannot be longer than 12 months. Irs gov file 2009 taxes More information. Irs gov file 2009 taxes   For more information on accounting periods, including how to change your accounting period, see Publication 538, Accounting Periods and Methods. Irs gov file 2009 taxes Accounting Methods Your accounting method is the way you account for your income and expenses. Irs gov file 2009 taxes Most taxpayers use either the cash method or an accrual method. Irs gov file 2009 taxes You choose a method when you file your first income tax return. Irs gov file 2009 taxes If you want to change your accounting method after that, you generally must get IRS approval. Irs gov file 2009 taxes Cash method. Irs gov file 2009 taxes   If you use this method, report all items of income in the year in which you actually or constructively receive them. Irs gov file 2009 taxes Generally, you deduct all expenses in the year you actually pay them. Irs gov file 2009 taxes This is the method most individual taxpayers use. Irs gov file 2009 taxes Constructive receipt. Irs gov file 2009 taxes   Generally, you constructively receive income when it is credited to your account or set apart in any way that makes it available to you. Irs gov file 2009 taxes You do not need to have physical possession of it. Irs gov file 2009 taxes For example, interest credited to your bank account on December 31, 2013, is taxable income to you in 2013 if you could have withdrawn it in 2013 (even if the amount is not entered in your records or withdrawn until 2014). Irs gov file 2009 taxes Garnisheed wages. Irs gov file 2009 taxes   If your employer uses your wages to pay your debts, or if your wages are attached or garnisheed, the full amount is constructively received by you. Irs gov file 2009 taxes You must include these wages in income for the year you would have received them. Irs gov file 2009 taxes Debts paid for you. Irs gov file 2009 taxes   If another person cancels or pays your debts (but not as a gift or loan), you have constructively received the amount and generally must include it in your gross income for the year. Irs gov file 2009 taxes See Canceled Debts in chapter 12 for more information. Irs gov file 2009 taxes Payment to third party. Irs gov file 2009 taxes   If a third party is paid income from property you own, you have constructively received the income. Irs gov file 2009 taxes It is the same as if you had actually received the income and paid it to the third party. Irs gov file 2009 taxes Payment to an agent. Irs gov file 2009 taxes   Income an agent receives for you is income you constructively received in the year the agent receives it. Irs gov file 2009 taxes If you indicate in a contract that your income is to be paid to another person, you must include the amount in your gross income when the other person receives it. Irs gov file 2009 taxes Check received or available. Irs gov file 2009 taxes   A valid check that was made available to you before the end of the tax year is constructively received by you in that year. Irs gov file 2009 taxes A check that was “made available to you” includes a check you have already received, but not cashed or deposited. Irs gov file 2009 taxes It also includes, for example, your last paycheck of the year that your employer made available for you to pick up at the office before the end of the year. Irs gov file 2009 taxes It is constructively received by you in that year whether or not you pick it up before the end of the year or wait to receive it by mail after the end of the year. Irs gov file 2009 taxes No constructive receipt. Irs gov file 2009 taxes   There may be facts to show that you did not constructively receive income. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes Alice Johnson, a teacher, agreed to her school board's condition that, in her absence, she would receive only the difference between her regular salary and the salary of a substitute teacher hired by the school board. Irs gov file 2009 taxes Therefore, Alice did not constructively receive the amount by which her salary was reduced to pay the substitute teacher. Irs gov file 2009 taxes Accrual method. Irs gov file 2009 taxes   If you use an accrual method, you generally report income when you earn it, rather than when you receive it. Irs gov file 2009 taxes You generally deduct your expenses when you incur them, rather than when you pay them. Irs gov file 2009 taxes Income paid in advance. Irs gov file 2009 taxes   An advance payment of income is generally included in gross income in the year you receive it. Irs gov file 2009 taxes Your method of accounting does not matter as long as the income is available to you. Irs gov file 2009 taxes An advance payment may include rent or interest you receive in advance and pay for services you will perform later. Irs gov file 2009 taxes   A limited deferral until the next tax year may be allowed for certain advance payments. Irs gov file 2009 taxes See Publication 538 for specific information. Irs gov file 2009 taxes Additional information. Irs gov file 2009 taxes   For more information on accounting methods, including how to change your accounting method, see Publication 538. Irs gov file 2009 taxes Social Security Number (SSN) You must enter your SSN on your return. Irs gov file 2009 taxes If you are married, enter the SSNs for both you and your spouse, whether you file jointly or separately. Irs gov file 2009 taxes If you are filing a joint return, include the SSNs in the same order as the names. Irs gov file 2009 taxes Use this same order in submitting other forms and documents to the IRS. Irs gov file 2009 taxes Check that both the name and SSN on your Form 1040, W-2, and 1099 agree with your social security card. Irs gov file 2009 taxes If they do not, certain deductions and credits on your Form 1040 may be reduced or disallowed and you may not receive credit for your social security earnings. Irs gov file 2009 taxes If your Form W-2 shows an incorrect SSN or name, notify your employer or the form-issuing agent as soon as possible to make sure your earnings are credited to your social security record. Irs gov file 2009 taxes If the name or SSN on your social security card is incorrect, call the SSA at 1-800-772-1213. Irs gov file 2009 taxes Name change. Irs gov file 2009 taxes   If you changed your name because of marriage, divorce, etc. Irs gov file 2009 taxes , be sure to report the change to your local Social Security Administration (SSA) office before filing your return. Irs gov file 2009 taxes This prevents delays in processing your return and issuing refunds. Irs gov file 2009 taxes It also safeguards your future social security benefits. Irs gov file 2009 taxes Dependent's SSN. Irs gov file 2009 taxes   You must provide the SSN of each dependent you claim, regardless of the dependent's age. Irs gov file 2009 taxes This requirement applies to all dependents (not just your children) claimed on your tax return. Irs gov file 2009 taxes Exception. Irs gov file 2009 taxes    If your child was born and died in 2013 and did not have an SSN, enter “DIED” in column (2) of line 6c (Form 1040 or 1040A) and include a copy of the child's birth certificate, death certificate, or hospital records. Irs gov file 2009 taxes The document must show that the child was born alive. Irs gov file 2009 taxes No SSN. Irs gov file 2009 taxes   File Form SS-5, Application for a Social Security Card, with your local SSA office to get an SSN for yourself or your dependent. Irs gov file 2009 taxes It usually takes about 2 weeks to get an SSN. Irs gov file 2009 taxes If you or your dependent is not eligible for an SSN, see Individual taxpayer identification number (ITIN) , later. Irs gov file 2009 taxes   If you are a U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes citizen or resident alien, you must show proof of age, identity, and citizenship or alien status with your Form SS-5. Irs gov file 2009 taxes If you are 12 or older and have never been assigned an SSN, you must appear in person with this proof at an SSA office. Irs gov file 2009 taxes   Form SS-5 is available at any SSA office, on the Internet at www. Irs gov file 2009 taxes socialsecurity. Irs gov file 2009 taxes gov, or by calling 1-800-772-1213. Irs gov file 2009 taxes If you have any questions about which documents you can use as proof of age, identity, or citizenship, contact your SSA office. Irs gov file 2009 taxes   If your dependent does not have an SSN by the time your return is due, you may want to ask for an extension of time to file, as explained earlier under When Do I Have To File . Irs gov file 2009 taxes   If you do not provide a required SSN or if you provide an incorrect SSN, your tax may be increased and any refund may be reduced. Irs gov file 2009 taxes Adoption taxpayer identification number (ATIN). Irs gov file 2009 taxes   If you are in the process of adopting a child who is a U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes citizen or resident and cannot get an SSN for the child until the adoption is final, you can apply for an ATIN to use instead of an SSN. Irs gov file 2009 taxes    File Form W-7A, Application for Taxpayer Identification Number for Pending U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes Adoptions, with the IRS to get an ATIN if all of the following are true. Irs gov file 2009 taxes You have a child living with you who was placed in your home for legal adoption. Irs gov file 2009 taxes You cannot get the child's existing SSN even though you have made a reasonable attempt to get it from the birth parents, the placement agency, and other persons. Irs gov file 2009 taxes You cannot get an SSN for the child from the SSA because, for example, the adoption is not final. Irs gov file 2009 taxes You are eligible to claim the child as a dependent on your tax return. Irs gov file 2009 taxes After the adoption is final, you must apply for an SSN for the child. Irs gov file 2009 taxes You cannot continue using the ATIN. Irs gov file 2009 taxes   See Form W-7A for more information. Irs gov file 2009 taxes Nonresident alien spouse. Irs gov file 2009 taxes   If your spouse is a nonresident alien, your spouse must have either an SSN or an ITIN if: You file a joint return, You file a separate return and claim an exemption for your spouse, or Your spouse is filing a separate return. Irs gov file 2009 taxes If your spouse is not eligible for an SSN, see the following discussion on ITINs. Irs gov file 2009 taxes Individual taxpayer identification number (ITIN). Irs gov file 2009 taxes   The IRS will issue you an ITIN if you are a nonresident or resident alien and you do not have and are not eligible to get an SSN. Irs gov file 2009 taxes This also applies to an alien spouse or dependent. Irs gov file 2009 taxes To apply for an ITIN, file Form W-7 with the IRS. Irs gov file 2009 taxes It usually takes about 6 to 10 weeks to get an ITIN. Irs gov file 2009 taxes Enter the ITIN on your tax return wherever an SSN is requested. Irs gov file 2009 taxes    If you are applying for an ITIN for yourself, your spouse, or a dependent in order to file your tax return, attach your completed tax return to your Form W-7. Irs gov file 2009 taxes See the Form W-7 instructions for how and where to file. Irs gov file 2009 taxes You cannot e-file a return using an ITIN in the calendar year the ITIN is issued; however, you can e-file returns in the following years. Irs gov file 2009 taxes ITIN for tax use only. Irs gov file 2009 taxes   An ITIN is for tax use only. Irs gov file 2009 taxes It does not entitle you or your dependent to social security benefits or change the employment or immigration status of either of you under U. Irs gov file 2009 taxes S. Irs gov file 2009 taxes law. Irs gov file 2009 taxes Penalty for not providing social security number. Irs gov file 2009 taxes   If you do not include your SSN or the SSN of your spouse or dependent as required, you may have to pay a penalty. Irs gov file 2009 taxes See the discussion on Penalties , later, for more information. Irs gov file 2009 taxes SSN on correspondence. Irs gov file 2009 taxes   If you write to the IRS about your tax account, be sure to include your SSN (and the name and SSN of your spouse, if you filed a joint return) in your correspondence. Irs gov file 2009 taxes Because your SSN is used to identify your account, this helps the IRS respond to your correspondence promptly. Irs gov file 2009 taxes Presidential Election Campaign Fund This fund helps pay for Presidential election campaigns. Irs gov file 2009 taxes If you want $3 to go to this fund, check the box. Irs gov file 2009 taxes If you are filing a joint return, your spouse can also have $3 go to the fund. Irs gov file 2009 taxes If you check a box, your tax or refund will not change. Irs gov file 2009 taxes Computations The following information may be useful in making the return easier to complete. Irs gov file 2009 taxes Rounding off dollars. Irs gov file 2009 taxes   You can round off cents to whole dollars on your return and schedules. Irs gov file 2009 taxes If you do round to whole dollars, you must round all amounts. Irs gov file 2009 taxes To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. Irs gov file 2009 taxes For example, $1. Irs gov file 2009 taxes 39 becomes $1 and $2. Irs gov file 2009 taxes 50 becomes $3. Irs gov file 2009 taxes   If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes You receive two Forms W-2: one showing wages of $5,000. Irs gov file 2009 taxes 55 and one showing wages of $18,500. Irs gov file 2009 taxes 73. Irs gov file 2009 taxes On Form 1040, line 7, you would enter $23,501 ($5,000. Irs gov file 2009 taxes 55 + $18,500. Irs gov file 2009 taxes 73 = $23,501. Irs gov file 2009 taxes 28), not $23,502 ($5,001 + $18,501). Irs gov file 2009 taxes Equal amounts. Irs gov file 2009 taxes   If you are asked to enter the smaller or larger of two equal amounts, enter that amount. Irs gov file 2009 taxes Example. Irs gov file 2009 taxes Line 1 is $500. Irs gov file 2009 taxes Line 3 is $500. Irs gov file 2009 taxes Line 5 asks you to enter the smaller of line 1 or 3. Irs gov file 2009 taxes Enter $500 on line 5. Irs gov file 2009 taxes Negative amounts. Irs gov file 2009 taxes   If you file a paper return and you need to enter a negative amount, put the amount in parentheses rather than using a minus sign. Irs gov file 2009 taxes To combine positive and negative amounts, add all the positive amounts together and then subtract the negative amounts. Irs gov file 2009 taxes Attachments Depending on the form you file and the items reported on your return, you may have to complete additional schedules and forms and attach them to your paper return. Irs gov file 2009 taxes You may be able to file a paperless return using IRS e-file. Irs gov file 2009 taxes There's nothing to attach or mail, not even your Forms W-2. Irs gov file 2009 taxes See Does My Return Have To Be on Paper, earlier. Irs gov file 2009 taxes Form W-2. Irs gov file 2009 taxes   Form W-2 is a statement from your employer of wages and other compensation paid to you and taxes withheld from your pay. Irs gov file 2009 taxes You should have a Form W-2 from each employer. Irs gov file 2009 taxes If you file a paper return, be sure to attach a copy of Form W-2 in the place indicated on the front page of your return. Irs gov file 2009 taxes Attach it to the front page of your paper return, not to any attachments. Irs gov file 2009 taxes For more information, see Form W-2 in chapter 4. Irs gov file 2009 taxes   If you received a Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Irs gov file 2009 taxes , showing federal income tax withheld, and you file a paper return, attach a copy of that form in the place indicated on the front page of your return. Irs gov file 2009 taxes Form 1040EZ. Irs gov file 2009 taxes   There are no additional schedules to file with Form 1040EZ. Irs gov file 2009 taxes Form 1040A. Irs gov file 2009 taxes   If you file a paper return, attach any forms and schedules behind Form 1040A in order of the “Attachment Sequence Number” shown in the upper right corner of the form or schedule. Irs gov file 2009 taxes Then arrange all other statements or attachments in the same order as the forms and schedules they relate to and attach them last. Irs gov file 2009 taxes Do not attach items unless required to do so. Irs gov file 2009 taxes Form 1040. Irs gov file 2009 taxes   If you file a paper return, attach any forms and schedules behind Form 1040 in order of the “Attachment Sequence Number” shown in the upper right corner of the form or schedule. Irs gov file 2009 taxes Then arrange all other statements or attachments in the same order as the forms and schedules they relate to and attach them last. Irs gov file 2009 taxes Do not attach items unless required to do so. Irs gov file 2009 taxes Third Party Designee You can authorize the IRS to discuss your return with your preparer, a friend, family member, or any other person you choose. Irs gov file 2009 taxes If you check the “Yes” box in the Third party designee area of your 2013 tax return and provide the information required, you are authorizing: The IRS to call the designee to answer any questions that arise during the processing of your return, and The designee to: Give information that is missing from your return to the IRS, Call the IRS for information about th