Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

My 1040ez

Myfreetaxes Com AchrH&r Block Efile FreeWww Irs GovTax Credits For UnemployedH&r Block Coupons 2012 PrintableTurbo Tax 1040ezFree Online State Tax PreparationOnlinetaxes Hrblock ComHow To File A 1040x With TurbotaxLong Amended Tax Return1040 Easy Form1040 EasyFile 2010 Taxes Online LateFilling 1040x W Form 8863Us Irs E File FreeFree 1040ez Tax ReturnFile Taxes OnlineIrs Form 1040x InstructionsOnline Taxes H&rblock1040x AmendedFree File State And Federal TaxesIrs E File 2012File Late TaxesHow To File Amended Tax Return 2012Free Turbo Tax For Low IncomeHow To Amend My Taxes OnlineTax Adjustment FormUs Tax Forms 2012Tax Cut 2011 SoftwareAmend Tax Return For FreeWhere To File 1040x For 2012Irs Gov Tax FormsFiling Free State Taxes OnlinePrint 1040ez Federal Tax FormFree Tax EstimatorIrs Forms 2011 Form 10402011 Federal Tax FormFull Time Student Filing TaxesIrs 2012 Tax Forms 1040ezStateincometax

My 1040ez

My 1040ez 3. My 1040ez   Abandonments Table of Contents 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. My 1040ez Whether an abandonment has occurred is determined in light of all the facts and circumstances. My 1040ez You must both show an intention to abandon the property and affirmatively act to abandon the property. My 1040ez A voluntary conveyance of the property in lieu of foreclosure is not an abandonment and is treated as the exchange of property to satisfy a debt. My 1040ez For more information, see Sales and Exchanges in Publication 544. My 1040ez The tax consequences of abandonment of property that secures a debt depend on whether you were personally liable for the debt (recourse debt) or were not personally liable for the debt (nonrecourse debt). My 1040ez See Publication 544 if you abandoned property that did not secure debt. My 1040ez This publication only discusses the tax consequences of abandoning property that secured a debt. My 1040ez Abandonment of property securing recourse debt. My 1040ez    In most cases, if you abandon property that secures debt for which you are personally liable (recourse debt), you do not have gain or loss until the later foreclosure is completed. My 1040ez For details on figuring gain or loss on the foreclosure, see chapter 2. My 1040ez Example 1—abandonment of personal-use property securing recourse debt. My 1040ez In 2009, Anne purchased a home for $200,000. My 1040ez She borrowed the entire purchase price, for which she was personally liable, and gave the bank a mortgage on the home. My 1040ez In 2013, Anne lost her job and was unable to continue making her mortgage loan payments. My 1040ez Because her mortgage loan balance was $185,000 and the FMV of her home was only $150,000, Anne decided to abandon her home by permanently moving out on August 1, 2013. My 1040ez Because Anne was personally liable for the debt and the bank did not complete a foreclosure of the property in 2013, Anne has neither gain nor loss in tax year 2013 from abandoning the home. My 1040ez If the bank sells the house at a foreclosure sale in 2014, Anne will have to figure her gain or nondeductible loss for tax year 2014 as discussed earlier in chapter 2. My 1040ez Example 2—abandonment of business or investment property securing recourse debt. My 1040ez In 2009, Sue purchased business property for $200,000. My 1040ez She borrowed the entire purchase price, for which she was personally liable, and gave the lender a security interest in the property. My 1040ez In 2013, Sue was unable to continue making her loan payments. My 1040ez Because her loan balance was $185,000 and the FMV of the property was only $150,000, Sue abandoned the property on August 1, 2013. My 1040ez Because Sue was personally liable for the debt and the lender did not complete a foreclosure of the property in 2013, Sue has neither gain nor loss in tax year 2013 from abandoning the property. My 1040ez If the lender sells the property at a foreclosure sale in 2014, Sue will have to figure her gain or deductible loss for tax year 2014 as discussed earlier in chapter 2. My 1040ez Abandonment of property securing nonrecourse debt. My 1040ez    If you abandon property that secures debt for which you are not personally liable (nonrecourse debt), the abandonment is treated as a sale or exchange. My 1040ez   The amount you realize on the abandonment of property that secured nonrecourse debt is the amount of the nonrecourse debt. My 1040ez If the amount you realize is more than your adjusted basis, then you have a gain. My 1040ez If your adjusted basis is more than the amount you realize, then you have a loss. My 1040ez For more information on how to figure gain and loss, see Gain or Loss from Sales or Exchanges in Publication 544. My 1040ez   Loss from abandonment of business or investment property is deductible as a loss. My 1040ez The character of the loss depends on the character of the property. My 1040ez The amount of deductible capital loss may be limited. My 1040ez For more information, see Treatment of Capital Losses in Publication 544. My 1040ez You cannot deduct any loss from abandonment of your home or other property held for personal use. My 1040ez Example 1—abandonment of personal-use property securing nonrecourse debt. My 1040ez In 2009, Timothy purchased a home for $200,000. My 1040ez He borrowed the entire purchase price, for which he was not personally liable, and gave the bank a mortgage on the home. My 1040ez In 2013, Timothy lost his job and was unable to continue making his mortgage loan payments. My 1040ez Because his mortgage loan balance was $185,000 and the FMV of his home was only $150,000, Timothy decided to abandon his home by permanently moving out on August 1, 2013. My 1040ez Because Timothy was not personally liable for the debt, the abandonment is treated as a sale or exchange of the home in tax year 2013. My 1040ez Timothy's amount realized is $185,000 and his adjusted basis in the home is $200,000. My 1040ez Timothy has a $15,000 nondeductible loss in tax year 2013. My 1040ez (Had Timothy’s adjusted basis been less than the amount realized, Timothy would have had a gain that he would have to include in gross income. My 1040ez ) The bank sells the house at a foreclosure sale in 2014. My 1040ez Timothy has neither gain nor loss from the foreclosure sale. My 1040ez Because he was not personally liable for the debt, he also has no cancellation of debt income. My 1040ez Example 2—abandonment of business or investment property securing nonrecourse debt. My 1040ez In 2009, Robert purchased business property for $200,000. My 1040ez He borrowed the entire purchase price, for which he was not personally liable, and gave the lender a security interest in the property. My 1040ez In 2013, Robert was unable to continue making his loan payments. My 1040ez Because his loan balance was $185,000 and the FMV of the property was only $150,000, Robert decided to abandon the property on August 1, 2013. My 1040ez Because Robert was not personally liable for the debt, the abandonment is treated as a sale or exchange of the property in tax year 2013. My 1040ez Robert's amount realized is $185,000 and his adjusted basis in the property is $180,000 (as a result of $20,000 of depreciation deductions on the property). My 1040ez Robert has a $5,000 gain in tax year 2013. My 1040ez (Had Robert’s adjusted basis been greater than the amount realized, he would have had a deductible loss. My 1040ez ) The lender sells the property at a foreclosure sale in 2014. My 1040ez Robert has neither gain nor loss from the foreclosure sale. My 1040ez Because he was not personally liable for the debt, he also has no cancellation of debt income. My 1040ez Canceled debt. My 1040ez    If the abandoned property secures a debt for which you are personally liable and the debt is canceled, you will realize ordinary income equal to the canceled debt. My 1040ez This income is separate from any amount realized from abandonment of the property. My 1040ez You must report this income on your return unless one of the exceptions or exclusions described in chapter 1 applies. My 1040ez See chapter 1 for more details. My 1040ez Forms 1099-A and 1099-C. My 1040ez    In most cases, if you abandon real property (such as a home), intangible property, or tangible personal property held (wholly or partly) for use in a trade or business or for investment, 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 gain or loss from the abandonment. My 1040ez Also, if your debt is canceled and the lender must file Form 1099-C, the lender can include the information about the abandonment on that form instead of on Form 1099-A. My 1040ez 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. My 1040ez For abandonments of property and debt cancellations occurring in 2013, these forms should be sent to you by January 31, 2014. My 1040ez Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Calendar of Events

Upcoming Events


IRS Exempt Organizations offers specialized education programs to help exempt organizations understand their tax responsibilities. The list below provides information about events on exempt organizations topics, and links to detailed information, including registration websites, for scheduled programs.

Webinars - EO tax law programs from your computer
 
Phone forums - Free phone forums featuring IRS employees discussing exempt organizations topics.    
 
Workshops - Small and Medium-Sized Exempt Organizations - face-to-face programs on exempt organizations tax issues
 
Nationwide Tax Forums - the latest word from IRS leadership and other experts in the exempt organizations tax law field

Additional information

Page Last Reviewed or Updated: 04-Sep-2013

The My 1040ez

My 1040ez 5. My 1040ez   Student Loan Cancellations and Repayment Assistance Table of Contents Introduction Student Loan CancellationQualifying Loans Student Loan Repayment Assistance Introduction Generally, if you are responsible for making loan payments, and the loan is canceled (forgiven), you must include the amount that was forgiven in your gross income for tax purposes. My 1040ez However, if you fulfill certain requirements, two types of student loan assistance may be tax free. My 1040ez The types of assistance discussed in this chapter are: Student loan cancellation, and Student loan repayment assistance. My 1040ez Student Loan Cancellation If your student loan is canceled, you may not have to include any amount in income. My 1040ez This section describes the requirements for tax-free treatment of canceled student loans. My 1040ez Qualifying Loans To qualify for tax-free treatment, for the cancellation of your loan, your loan must have been made by a qualified lender to assist you in attending an eligible educational institution and contain a provision that all or part of the debt will be canceled if you work: For a certain period of time, In certain professions, and For any of a broad class of employers. My 1040ez The cancellation of your loan will not qualify for tax-free treatment if it is cancelled because of services you performed for the educational institution that made the loan or other organization that provided the funds. My 1040ez See Exception, later. My 1040ez Eligible educational institution. My 1040ez   This is an educational institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. My 1040ez Qualified lenders. My 1040ez   These include the following. My 1040ez The United States, or an instrumentality thereof. My 1040ez A state, territory, or possession of the United States, or the District of Columbia, or any political subdivision thereof. My 1040ez A public benefit corporation that is tax-exempt under section 501(c)(3); and that has assumed control of a state, county, or municipal hospital; and whose employees are considered public employees under state law. My 1040ez An eligible educational institution, if the loan is made: As part of an agreement with an entity described in (1), (2), (3) under which the funds to make the loan were provided to the educational institution, or Under a program of the educational institution that is designed to encourage its students to serve in occupations with unmet needs or in areas with unmet needs where the services provided by the students (or former students) are for or under the direction of a governmental unit or a tax-exempt section 501(c)(3) organization. My 1040ez   Occupations with unmet needs include medicine, nursing, teaching, and law. My 1040ez Section 501(c)(3) organization. My 1040ez   This is any corporation, community chest, fund, or foundation organized and operated exclusively for one or more of the following purposes. My 1040ez Charitable. My 1040ez Religious. My 1040ez Educational. My 1040ez Scientific. My 1040ez Literary. My 1040ez Testing for public safety. My 1040ez Fostering national or international amateur sports competition (but only if none of its activities involve providing athletic facilities or equipment). My 1040ez The prevention of cruelty to children or animals. My 1040ez Exception. My 1040ez   The cancellation of your loan does not qualify as tax-free student loan cancellation if your student loan was made by an educational institution and is canceled because of services you performed for the educational institution or other organization that provided the funds. My 1040ez Refinanced Loan If you refinanced a student loan with another loan from an eligible educational institution or a tax-exempt organization, that loan may also be considered as made by a qualified lender. My 1040ez The refinanced loan is considered made by a qualified lender if it is made under a program of the refinancing organization that is designed to encourage students to serve in occupations with unmet needs or in areas with unmet needs where the services required of the students are for or under the direction of a governmental unit or a tax-exempt section 501(c)(3) organization. My 1040ez Student Loan Repayment Assistance Student loan repayments made to you are tax free if you received them for any of the following: The National Health Service Corps (NHSC) Loan Repayment Program (NHSC Loan Repayment Program). My 1040ez A state education loan repayment program eligible for funds under the Public Health Service Act. My 1040ez Any other state loan repayment or loan forgiveness program that is intended to provide for the increased availability of health services in under served or health professional shortage areas (as determined by such state). My 1040ez You cannot deduct the interest you paid on a student loan to the extent payments were made through your participation in the above programs. My 1040ez Prev  Up  Next   Home   More Online Publications