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

State Tax Filing Free

Hnr Block TaxesForm 1040nr SoftwareMy Free Taxes.comFree 1040ezFree 2011 Tax FormsForm 4868Filing State Income Taxes OnlineH And R Block Online TaxesInternal Revenue Service Form 1040ezMilitary Tax QuestionsE File TaxesAmended Tax Form 2011File Free 2012 Tax ReturnHow To File Tax Extension2010 Tax Filing SoftwareIrs Gov 2010 Tax Forms1040ez FormsAmend Tax Return 2011H&r Block File TaxesAmended Tax Return Form2013 Amended 1040Irs Gov 1040ezForm 1040Turbotax 2012 State Taxes1040 Ez Form 2011Free State Return OnlyAmending Income Tax Returns For IndividualsFile 2010 Tax Return Online FreeWww Irs GovFree Tax Filing For Federal And StateHow To File State Taxes For Free Online2011 1040ez InstructionsFiling 2012 Tax Return Online2012 Amended Federal Tax Return FormFree Tax PreparationAmendment TaxesVita Tax Program 2012 Locations1040ez 2011How To File 2010 Tax ReturnsAmend Tax Return Already Filed

State Tax Filing Free

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

Better Business Bureaus (BBBs) are nonprofit organizations that encourage honest advertising and selling practices and are supported primarily by local businesses. They offer a variety of consumer services, including consumer education materials; business reports, particularly unanswered or unsettled complaints or other problems; mediation and arbitration services; and information about charities and other organizations that are seeking public donations. They also provide ratings (A, B, C, D, or F) of local companies to express the BBB's confidence that the company operates in a trustworthy manner and demonstrates a willingness to resolve customer concerns.

Abilene, TX

Website: Better Business Bureau

Email: info@abilene.bbb.org

Address: Better Business Bureau
3300 S. 14th St., Suite 307
Abilene, TX 79605-5052

Phone Number: 325-691-1533

Amarillo, TX

Website: Better Business Bureau

Email: info@txpanhandle.bbb.org

Address: Better Business Bureau
720 S. Tyler St., Suite B112
Amarillo, TX 79101

Phone Number: 806-379-6222

Austin, TX

Website: Better Business Bureau

Email: info@austin.bbb.org

Address: Better Business Bureau
1005 La Posada Dr.
Austin, TX 78752

Phone Number: 512-445-2911

Beaumont, TX

Website: Better Business Bureau

Address: Better Business Bureau
550 Fannin St., Suite 100
Beaumont, TX 77701

Phone Number: 409-835-5348

College Station, TX

Website: Better Business Bureau

Email: info@bbbbryan.org

Address: Better Business Bureau
418 Tarrow St.
College Station, TX 77840-1822

Phone Number: 979-260-2222

Toll-free: 1-800-392-3798

Corpus Christi, TX

Website: Better Business Bureau

Email: info@corpuschristi.bbb.org

Address: Better Business Bureau
719 S. Shoreline, Suite 304
Corpus Christi, TX 78401

Phone Number: 361-852-4949

Dallas, TX

Website: Better Business Bureau

Email: info@dallas.bbb.org

Address: Better Business Bureau
1601 Elm St., Suite 3838
Dallas, TX 75201

Phone Number: 214-220-2000

El Paso, TX

Website: Better Business Bureau

Email: operations@bbbelpaso.org

Address: Better Business Bureau
550 E. Paisano
El Paso, TX 79901

Phone Number: 915-577-0191

Fort Worth, TX

Website: Better Business Bureau

Email: info@fwbbb.org

Address: Better Business Bureau
1300 Summit Ave., Suite 101
Fort Worth, TX 76102

Phone Number: 817-332-7585

Houston, TX

Website: Better Business Bureau

Email: info@bbbhou.org

Address: Better Business Bureau
1333 W. Loop South, Suite 1200
Houston, TX 77027

Phone Number: 713-868-9500

Longview, TX

Website: Better Business Bureau

Email: info@easttexas.bbb.org

Address: Better Business Bureau
102 Commander Dr., Suite 7
Longview, TX 75605

Phone Number: 903-758-3222

Lubbock, TX

Website: Better Business Bureau

Email: info@southplains.bbb.org

Address: Better Business Bureau
3333 66th St.
Lubbock, TX 79413

Phone Number: 806-763-0459

Midland, TX

Website: Better Business Bureau

Email: info@permianbasinbbb.org

Address: Better Business Bureau
306 W. Wall St., Suite 1350
Midland, TX 79701

Phone Number: 432-563-1880

San Angelo, TX

Website: Better Business Bureau

Address: Better Business Bureau
3134 Executive Dr., Suite A
San Angelo, TX 76904

Phone Number: 325-949-2989

San Antonio, TX

Website: Better Business Bureau

Email: info@sanantonio.bbb.org

Address: Better Business Bureau
425 Soledad St., Suite 500
San Antonio, TX 78205

Phone Number: 210-828-9441

Tyler, TX

Website: Better Business Bureau

Email: info@easttexas.bbb.org

Address: Better Business Bureau
3600 Old Bullard Rd.
Building 1, Suite 101
Tyler, TX 75701

Phone Number: 903-581-5704

Waco, TX

Website: Better Business Bureau

Email: info@centraltx.bbb.org

Address: Better Business Bureau
200 W. Hwy 6, Suite 225
Waco, TX 76712

Phone Number: 254-755-7772

Weslaco, TX

Website: Better Business Bureau

Email: bbbinfo@bbbhou.org

Address: Better Business Bureau
502 E. Expressway 83, Suite C
Weslaco, TX 78596

Phone Number: 956-968-3678

Wichita Falls, TX

Website: Better Business Bureau

Email: bbbnt@bbbnorcentx.org

Address: Better Business Bureau
2107 Kemp Blvd.
Wichita Falls, TX 76309

Phone Number: 940-691-1172

The State Tax Filing Free

State tax filing free Index A Abandonment, Abandonment Accounting method Accrual, Accrual Method Cash, Cash Method Change in, Changes in Methods of Accounting Crop, Crop method. State tax filing free Farm inventory, Farm Inventory Accounting periods, Introduction Accrual method of accounting, Accrual Method Additional Medicare Tax withholding, What's New for 2013, Additional Medicare Tax. State tax filing free Adjusted basis for installment sale, Adjusted basis for installment sale purposes. State tax filing free Adjusted basis of assets, Adjusted Basis Agricultural activity codes, Schedule F, Reminders Agricultural program payments, Agricultural Program Payments Agricultural structure, defined, Agricultural structure. State tax filing free Alternative Depreciation System (ADS), Required use of ADS. State tax filing free , ADS election. State tax filing free Amortization Going into business, Business Start-Up Costs Reforestation expenses, Reforestation Costs Section 197 intangibles, Section 197 Intangibles Assessments By conservation district, Assessment by Conservation District Depreciable property, Assessment for Depreciable Property Assistance (see Tax help) Automobiles, depreciation, Limits for passenger automobiles. State tax filing free B Bankruptcy, Bankruptcy. State tax filing free Barter income, Barter income. State tax filing free Basis Adjusted, Adjusted basis. State tax filing free Installment sale, Adjusted basis for installment sale purposes. State tax filing free Involuntary conversion, Basis for depreciation. State tax filing free Like-kind exchange, Basis for depreciation. State tax filing free Partner's basis, Property Distributed From a Partnership or Corporation Replacement property, Basis of replacement property. State tax filing free Shareholder's basis, Property Distributed From a Partnership or Corporation Basis of assets Adjusted basis, Adjusted Basis Allocating to several assets, Allocating the Basis Changed to business use, Property changed from personal to business or rental use. State tax filing free Constructing assets, Constructing assets. State tax filing free Cost, Cost Basis Decreases, Decreases to Basis Depreciation, What Is the Basis for Depreciation? Exchanges Like-kind, Like-Kind Exchanges Nontaxable, Nontaxable Exchanges Partially nontaxable, Partially Nontaxable Exchanges Taxable, Taxable Exchanges Gifts, Property Received as a Gift Increases, Increases to Basis Real property, Real Property Received for services, Property received for services. State tax filing free Uniform capitalization rules, Uniform Capitalization Rules Below-market loans, Below-market loans. State tax filing free Books and records, Importance of Records Breeding fees, Breeding Fees Business income limit, section 179 expense deduction, Business Income Limit Business use of home, Business Use of Your Home C Canceled debt, Cancellation of Debt Capital assets, Capital Assets Capital expenses, Capital Expenses Car expenses, Truck and Car Expenses Cash method of accounting, Cash Method Casualties and thefts Adjustments to basis, Adjustments to basis. State tax filing free Casualty, defined, Casualty. State tax filing free Disaster area losses, Disaster Area Losses Leased property, Leased property. State tax filing free Livestock, Livestock or produce bought for resale. State tax filing free , Raised draft, breeding, dairy, or sporting animals. State tax filing free Reimbursement, Insurance and other reimbursements. State tax filing free Reporting gains and losses, Reporting Gains and Losses Theft, defined, Theft. State tax filing free Change in accounting method, Changes in Methods of Accounting Chickens, purchased, Chickens, seeds, and young plants. State tax filing free Christmas trees, Christmas tree cultivation. State tax filing free , Christmas trees. State tax filing free Club dues, Club dues and membership fees. State tax filing free Comments on publication, Comments and suggestions. State tax filing free Commodity Futures, Hedging (Commodity Futures) Wages, Noncash wages. State tax filing free Commodity Credit Corporation (CCC) Loans, Commodity Credit Corporation (CCC) Loans Market gain, Market Gain Community property, Community property. State tax filing free , Community property. State tax filing free Computer, software, Computer software. State tax filing free Condemnation, Casualties, Thefts, and Condemnations, Condemnation Conservation Cost-sharing exclusion, Conservation Expenses District assessments, Assessment by Conservation District Expenses, Conservation Expenses Plans, Conservation plan. State tax filing free Conservation Reserve Program, Conservation Reserve Program (CRP) payments. State tax filing free Conservation Reserve Program (CRP), Conservation Reserve Program (CRP) Constructing assets, Constructing assets. State tax filing free Constructive receipt of income, Constructive receipt. State tax filing free Contamination, Soil or other environmental contamination. State tax filing free Contract price, Contract price. State tax filing free Converted wetland, Converted Wetland and Highly Erodible Cropland Cooperatives, income from, Income From Cooperatives Cost-sharing exclusion, Cost-Sharing Exclusion (Improvements) Counter-cyclical payments, Direct payments and counter-cyclical payments. State tax filing free , Payments Under the Farm Security and Rural Investment Act of 2002 and Under the Food, Conservation, and Energy Act of 2008 Credits Employment, Employment Credits Fuel tax, Fuel tax credit and refund. State tax filing free , How To Claim a Credit or Refund, Claiming a Credit Social security and Medicare, Earning credits in 2013. State tax filing free Social security coverage, How to become insured under social security. State tax filing free State unemployment tax, Tax rate and credit. State tax filing free Crew leaders, Crew Leaders Crop Destroyed, Standing crop destroyed by casualty. State tax filing free Insurance proceeds, Crop Insurance and Crop Disaster Payments Method of accounting, Crop method. State tax filing free Shares, Rents (Including Crop Shares) Unharvested, Cost of raising unharvested crops. State tax filing free , Section 1231 transactions. State tax filing free , Gain or loss. State tax filing free Cropland, highly erodible, Converted Wetland and Highly Erodible Cropland D Damage Casualties and thefts, Casualties and Thefts Crop insurance, Crop Insurance and Crop Disaster Payments Tree seedlings, Tree Seedlings Debt Bad, Nonbusiness bad debt. State tax filing free Canceled, Cancellation of Debt, Canceled debt excluded from income. State tax filing free , Cancellation of debt. State tax filing free , Canceled debt. State tax filing free Nonrecourse, Amount realized on a nonrecourse debt. State tax filing free Qualified farm, Qualified Farm Debt Qualified principal residence, Qualified Principal Residence Debt Recourse, Amount realized on a recourse debt. State tax filing free Depletion, Depletion Depreciation, Claiming the Special Depreciation Allowance ADS election, ADS election. State tax filing free Conservation assets, Depreciable conservation assets. State tax filing free Deduction, Overview of Depreciation Incorrect amount deducted, How Do You Correct Depreciation Deductions? Limit for automobiles, Limits for passenger automobiles. State tax filing free Listed property, Additional Rules for Listed Property Raised livestock, Livestock. State tax filing free Recapture, When Do You Recapture MACRS Depreciation?, Depreciation Recapture, Section 1250 Property When to file, Do You Have To File Form 4562? Depreciation allowable, Basis adjustment for depreciation allowed or allowable. State tax filing free Depreciation allowed, Basis adjustment for depreciation allowed or allowable. State tax filing free Direct payments, Direct payments and counter-cyclical payments. State tax filing free , Payments Under the Farm Security and Rural Investment Act of 2002 and Under the Food, Conservation, and Energy Act of 2008 Disaster area losses, Disaster Area Losses Disaster payments, Crop Insurance and Crop Disaster Payments Disaster relief grants, Federal disaster relief grants. State tax filing free Disaster relief payments, Qualified disaster relief payments. State tax filing free Dispositions, Sale or other disposal of land during 9-year period. State tax filing free , Gain on sale of farmland. State tax filing free , Introduction Domestic production activities deduction, Domestic Production Activities Deduction Dyed diesel fuel, Dyed Diesel Fuel and Dyed Kerosene Dyed kerosene, Dyed Diesel Fuel and Dyed Kerosene E e-file, Reminders Easement, Easements and rights-of-way. State tax filing free , Easements. State tax filing free Election ADS depreciation, Electing ADS. State tax filing free , ADS election. State tax filing free Amortization Business start-up costs, Business Start-Up Costs Reforestation costs, Reforestation Costs Crop method, Election to use crop method. State tax filing free Cutting of timber, Election to treat cutting as a sale or exchange. State tax filing free Deducting conservation expenses, When to Deduct or Capitalize Not excluding cost-sharing payments, Electing not to exclude payments. State tax filing free Out of installment method, Electing out of the installment method. State tax filing free Postponing casualty gain, Postponing Gain Postponing reporting crop insurance proceeds, Election to postpone reporting until the following year. State tax filing free Section 179 expense deduction, How Do You Elect the Deduction? Electronic filing, Reminders Embryo transplants, Transplanted embryo. State tax filing free Employer identification number, Reminders, Employer identification number (EIN). State tax filing free Endangered species recovery expenses, Endangered species recovery expenses. State tax filing free Environmental contamination, Soil or other environmental contamination. State tax filing free Estimated tax Farm gross income, Gross Income From Farming Gross income, Gross Income Penalties, Estimated Tax Penalty for 2013 Exchanges Basis Like-kind, Like-Kind Exchanges Nontaxable, Nontaxable Exchanges Partially nontaxable, Partially Nontaxable Exchanges Taxable, Taxable Exchanges Like-kind, Like-Kind Exchanges Nontaxable, Like-Kind Exchanges Excise taxes Credit, Claiming a Credit Diesel fuel, Dyed Diesel Fuel and Dyed Kerosene Farming purposes, Fuels Used in Farming Home use of fuels, Fuels Used for Household Purposes or Other Than as a Fuel for Propulsion Engines Off-highway uses, Fuels Used in Off-Highway Business Use Refund, Claiming a Refund F Fair market value defined, Fair market value (FMV). State tax filing free , Fair market value (FMV). State tax filing free Family member Business expenses, Special rule for related persons. State tax filing free Installment sale, Sale to a related person. State tax filing free Like-kind exchange, Like-kind exchanges between related persons. State tax filing free Loss on sale or exchange of property, Losses from sales or exchanges between related persons. State tax filing free Personal-use property, Personal-use property. State tax filing free Social security coverage, Family Employees Farm Business expenses, Farm Business Expenses Business, defined, Business of Farming Defined, Farm defined. State tax filing free , Farm. State tax filing free Income averaging, Income Averaging for Farmers Rental, Farm rental. State tax filing free Sale of, Sale of a Farm Farmer, Farmer. State tax filing free Federal unemployment tax (FUTA), Federal Unemployment (FUTA) Tax Fertilizer, Fertilizer and Lime, Fertilizer and Lime Foreclosure, Foreclosure or Repossession Forestation costs, Forestation and reforestation costs. State tax filing free Form 1099-A, Form 1099-A. State tax filing free , Forms 1099-A and 1099-C. State tax filing free 1099-C, Cancellation of Debt, Form 1099-C. State tax filing free , Forms 1099-A and 1099-C. State tax filing free 1099-G, Market Gain, Payment to More Than One Person 1099-MISC, Reminders, Nonemployee compensation. State tax filing free 1099-PATR, Form 1099-PATR. State tax filing free 1128, Introduction 2210-F, Estimated Tax Penalty for 2013 3115, Changes in Methods of Accounting 4136, Claiming a Credit 4562, Do You Have To File Form 4562? 4797, Form 4797. State tax filing free , Recapture. State tax filing free , Reporting the exchange. State tax filing free 4835, Rents (Including Crop Shares) 5213, Using the presumption later. State tax filing free 6252, Form 6252. State tax filing free 8822, Reminders 8824, Reporting the exchange. State tax filing free 8849, Claiming a Refund 8886, Reminders 940, Form 940. State tax filing free 943, Form 943. State tax filing free 982, Form 982 I-9, Form I-9. State tax filing free SS-4, Reminders, Employer identification number (EIN). State tax filing free SS-5, Obtaining a social security number. State tax filing free T (Timber), Form T (Timber). State tax filing free W-2, Form W-2. State tax filing free W-4, Reminders, New hire reporting. State tax filing free , Form W-4. State tax filing free W-4V, Commodity Credit Corporation (CCC) Loans, Crop Insurance and Crop Disaster Payments W-7, Obtaining an individual taxpayer identification number. State tax filing free Free tax services, How To Get Tax Help, Free help with your tax return. State tax filing free Fuel tax credit or refund, Fuel tax credit and refund. State tax filing free , How To Claim a Credit or Refund G Gains and losses Basis of assets, Cost Basis Capital assets, defined, Capital Assets Casualty, How To Figure a Loss, Figuring a Gain Installment sales, Installment Sales Livestock, Livestock Long- or short-term, Long and Short Term Ordinary or capital, Ordinary or Capital Gain or Loss Sale of farm, Sale of a Farm Section 1231, Section 1231 Gains and Losses Theft, How To Figure a Loss, Figuring a Gain Timber, Timber General asset accounts, How Do You Use General Asset Accounts? Gifts, Crop shares you give to others (gift). State tax filing free , Cost related to gifts. State tax filing free , Property Received as a Gift, Gift. State tax filing free Going into business, Business Start-Up Costs Grants, disaster relief, Federal disaster relief grants. State tax filing free Gross profit percentage, Gross profit percentage. State tax filing free Gross profit, defined, Gross profit. State tax filing free Guarantee, Debt not payable on demand. State tax filing free H Health insurance deduction, Self-employed health insurance deduction. State tax filing free Hedging, Hedging (Commodity Futures) Help (see Tax help) Highway use tax, Highway use tax. State tax filing free Holding period, Holding period. State tax filing free Horticultural structure, Horticultural structure. State tax filing free I Illegal irrigation subsidy, Illegal federal irrigation subsidy. State tax filing free Important dates, Important Dates for 2014 Improvements, Cost-Sharing Exclusion (Improvements) Income Accounting for, Accounting Methods Accrual method of accounting, Income Canceled debt excluded, Cancellation of Debt From farming, Farm Income, Gross income from farming. State tax filing free , Gross Income From Farming Gross, Gross Income Not-for-profit farming, Not-for-Profit Farming Pasture, Pasture income and rental. State tax filing free Schedule F, Farm Income Withholding of tax, Federal Income Tax Withholding Income averaging (see Farm: Income averaging) Incorrect amount of depreciation deducted, How Do You Correct Depreciation Deductions? Individual taxpayer identification number (ITIN), Obtaining an individual taxpayer identification number. State tax filing free Inherited property, Inherited Property Insolvency, Insolvency. State tax filing free Installment sales, Form 6252. State tax filing free Electing out, Electing out of the installment method. State tax filing free Farm, sale of, Installment Sale of a Farm Figuring income, Figuring Installment Sale Income Reporting income, Form 6252. State tax filing free Unstated interest, Unstated interest. State tax filing free Insurance, Insurance, Self-employed health insurance deduction. State tax filing free Intangible property, Section 197 Intangibles Interest Expense, Interest Income, Interest income. State tax filing free Unstated, Unstated interest. State tax filing free Inventory Items included, Farm Inventory Methods of valuation, Inventory valuation methods. State tax filing free Involuntary conversions, Involuntary Conversions, Property acquired in a like-kind exchange or involuntary conversion. State tax filing free , Introduction Irrigation Illegal subsidy, Illegal federal irrigation subsidy. State tax filing free Project, Irrigation Project L Labor hired, Labor Hired Landlord participation, Landlord Participation in Farming Lease or purchase, Lease or Purchase Life tenant (see Term interests) Like-kind exchanges, Like-Kind Exchanges, Like-Kind Exchanges Lime, Fertilizer and Lime Limits At-risk, At-Risk Limits Business use of home, Deduction limit. State tax filing free Capital losses, Treatment of Capital Losses Conservation expenses, Assessment for Depreciable Property, 25% Limit on Deduction Depreciation Business-use, What Is the Business-Use Requirement? Excluded farm debt, Exclusion limit. State tax filing free Farm losses, Losses From Operating a Farm Loss of personal-use property, Deduction Limits on Losses of Personal-Use Property Not-for-profit farming, Not-for-Profit Farming Passive activity, Passive Activity Limits Percentage depletion, Taxable income limit. State tax filing free Prepaid farm supplies, Deduction limit. State tax filing free Reforestation costs, Reforestation Costs Section 179 expense deduction Automobile, Limits for passenger automobiles. State tax filing free Business income, Business Income Limit Dollar, Dollar Limits Time to keep records, How Long To Keep Records Listed property Defined, What Is Listed Property? Passenger automobile, Passenger automobiles. State tax filing free Rules, Additional Rules for Listed Property Livestock, Section 1231 transactions. State tax filing free Casualty and theft losses, Livestock or produce bought for resale. State tax filing free Crop shares, Crop shares you use to feed livestock. State tax filing free Depreciation, Livestock. State tax filing free Diseased, Diseased livestock. State tax filing free Feed assistance, Feed Assistance and Payments Immature, Immature livestock. State tax filing free Losses, Loss of livestock. State tax filing free , Livestock Purchased, Purchased livestock. State tax filing free Raised, Raised livestock. State tax filing free Sale of, Sales of Farm Products, Livestock Unit-livestock-price, inventory valuation, Unit-livestock-price method. State tax filing free Used in a farm business, Livestock used in farm business. State tax filing free Weather-related sales, Sales Caused by Weather-Related Conditions, Weather-related sales of livestock. State tax filing free Loans, Commodity Credit Corporation (CCC) Loans, Loan expenses. State tax filing free Losses At-risk limits, At-Risk Limits Casualty, Casualties, Thefts, and Condemnations Disaster areas, Disaster Area Losses Farming, Farming Losses Growing crops, Loss of growing plants, produce, and crops. State tax filing free Hobby farming, Not-for-Profit Farming Livestock, Livestock, Diseased livestock. State tax filing free Nondeductible, Other Nondeductible Items Theft, Casualties, Thefts, and Condemnations Lost income payments, Lost income payments. State tax filing free Lost property, Mislaid or lost property. State tax filing free M MACRS property Involuntary conversion, Property acquired in a like-kind exchange or involuntary conversion. State tax filing free Like-kind exchange, Property acquired in a like-kind exchange or involuntary conversion. State tax filing free Nontaxable transfer, Property acquired in a nontaxable transfer. State tax filing free Market gain, reporting, Market Gain Marketing quota penalties, Marketing Quota Penalties Material participation, Landlord Participation in Farming Meals, Meals. State tax filing free Membership fees, Club dues and membership fees. State tax filing free Methods of accounting, Accounting Methods Modified ACRS (MACRS) ADS election, ADS election. State tax filing free Conventions, Which Convention Applies? Depreciation methods, Which Depreciation Method Applies? Exchange, Property acquired in a like-kind exchange or involuntary conversion. State tax filing free Figuring the deduction, How Is the Depreciation Deduction Figured? Involuntary conversion, Property acquired in a like-kind exchange or involuntary conversion. State tax filing free Nontaxable transfer, Property acquired in a nontaxable transfer. State tax filing free Percentage tables, Rules for using the tables. State tax filing free Property classes, Which Property Class Applies Under GDS? Recovery periods, Which Recovery Period Applies? N New hire reporting, New hire reporting. State tax filing free Noncapital asset, Noncapital Assets Nontaxable exchanges, Like-Kind Exchanges Nontaxable transfer of MACRS property, Property acquired in a nontaxable transfer. State tax filing free Not-for-profit farming, Not-for-Profit Farming O Organizational costs, Business start-up and organizational costs. State tax filing free P Partners, limited, Limited partner. State tax filing free Partners, retired, Retired partner. State tax filing free Partners, Spouse, Business Owned and Operated by Spouses. State tax filing free Partnership, Partnership income or loss. State tax filing free Passenger automobile, Passenger automobiles. State tax filing free Pasture income, Pasture income and rental. State tax filing free Patronage dividends, Patronage Dividends Payments considered received, Payments Received or Considered Received Payments received, Payments Received or Considered Received Penalties Estimated tax, Estimated Tax Penalty for 2013 Returns, Estimated Tax Penalty for 2013 Trust fund recovery, Trust fund recovery penalty. State tax filing free Per-unit retain certificates, Per-Unit Retain Certificates Personal expenses, Personal, Living, and Family Expenses Placed in service, Placed in Service, What Is the Placed-in-Service Date? Postponing casualty gain, Postponing Gain Prepaid expense Advance premiums, Advance premiums. State tax filing free Extends useful life, Prepayment. State tax filing free Farm supplies, Prepaid Farm Supplies Livestock feed, Prepaid Livestock Feed Prizes, Prizes. State tax filing free Produce, Sales of Farm Products Property Changed to business use, Property changed from personal to business or rental use. State tax filing free Received for services, Property received for services. State tax filing free Repairs and improvements, How Do You Treat Repairs and Improvements? Section 1231, Section 1231 transactions. State tax filing free Section 1245, Section 1245 Property Section 1250, Section 1250 Property Section 1252, Section 1252 property. State tax filing free Section 1255, Section 1255 property. State tax filing free Tangible personal, Tangible personal property. State tax filing free Publications (see Tax help) Q Qualified disaster relief payments, Qualified disaster relief payments. State tax filing free Qualified farm debt, Qualified Farm Debt Qualified joint venture, Qualified joint venture. State tax filing free Qualified principal residence debt, Qualified Principal Residence Debt R Recapture Amortization, Depreciation and amortization. State tax filing free Basis reductions, Recapture of basis reductions. State tax filing free Certain depreciation, Recapture of certain depreciation. State tax filing free Cost-sharing payments, Recapture. State tax filing free Depreciation, When Do You Recapture MACRS Depreciation?, Depreciation Recapture, Depreciation recapture. State tax filing free Section 1245 property, Section 1245 Property Section 1250 property, Section 1250 Property Section 179 expense deduction, When Must You Recapture the Deduction? Section 179 GO Zone property, Recapture for qualified section 179 GO Zone property. State tax filing free Special depreciation allowance, When Must You Recapture an Allowance Recordkeeping, Importance of Records, Meals. State tax filing free Records on depreciable property, Depreciation Recapture Reforestation costs, Forestation and reforestation costs. State tax filing free , Reforestation Costs Refund Deduction taken, Refund or reimbursement. State tax filing free Fuel tax, Fuel tax credit and refund. State tax filing free , Including the Credit or Refund in Income Reimbursements Casualties and thefts, Casualty and theft losses. State tax filing free , Casualties and Thefts, Insurance and other reimbursements. State tax filing free Deduction taken, Refund or reimbursement. State tax filing free Expenses, Reimbursed expenses. State tax filing free Feed assistance, Feed Assistance and Payments Real estate taxes, Real estate taxes. State tax filing free Reforestation expenses, Qualifying costs. State tax filing free To employees, Reimbursements to employees. State tax filing free Related persons, Special rule for related persons. State tax filing free , Losses from sales or exchanges between related persons. State tax filing free , Special rules for related persons. State tax filing free , Like-kind exchanges between related persons. State tax filing free , Sale to a related person. State tax filing free , Buying replacement property from a related person. State tax filing free , Related persons. State tax filing free Rental income, Rents (Including Crop Shares) Rented property, improvements, Improvements to rented property. State tax filing free Repairs, Repairs and Maintenance Repairs and improvements, How Do You Treat Repairs and Improvements? Repayment of income, Repayment of income. State tax filing free Replacement Period, Replacement Period Property, Replacement Property Reportable transactions. State tax filing free , Reminders Repossessions, Foreclosure or Repossession Right-of-way income, Easements and rights-of-way. State tax filing free S Sale of home, Sale of your home. State tax filing free Section 179 expense deduction, Section 179 Expense Deduction How to elect, How Do You Elect the Deduction? Listed property, Additional Rules for Listed Property Qualifying property, What Property Qualifies? Recapture, When Must You Recapture the Deduction? Self-employed health insurance, Self-employed health insurance deduction. State tax filing free Self-employed health insurance deduction, Self-employed health insurance deduction. State tax filing free Self-employment tax Community property, Community property. State tax filing free Deduction, Deduction for employer-equivalent portion of self-employment tax. State tax filing free How to pay, How To Pay Self-Employment Tax Landlord participation, Landlord Participation in Farming Material participation, Material participation for landlords. State tax filing free Maximum net earnings, What's New for 2013 Methods for figuring net earnings, Methods for Figuring Net Earnings Optional method, Farm Optional Method Regular method, Regular Method Rental income, Landlord Participation in Farming Reporting, Reporting Self-Employment Tax Self-employment tax rate, Self-employment tax rate. State tax filing free Share farming, Share farmer. State tax filing free Tax rates, What's New for 2013 Who must pay, Who Must Pay Self-Employment Tax? Selling expenses, Selling expenses. State tax filing free Selling price Defined, Selling price. State tax filing free Reduced, Selling price reduced. State tax filing free Settlement costs (fees), Settlement costs. State tax filing free Social security and Medicare Credits of coverage, Earning credits in 2013. State tax filing free Withholding of tax, Social Security and Medicare Taxes Social security number, Obtaining a social security number. State tax filing free Software, computer, Computer software. State tax filing free Soil Conservation, Conservation Expenses Contamination, Soil or other environmental contamination. State tax filing free Special depreciation allowance How to elect not to claim, How Can You Elect Not To Claim the Allowance? Recapture, When Must You Recapture an Allowance Standard mileage rate, Standard mileage rate. State tax filing free Start-up costs for businesses, Business start-up and organizational costs. State tax filing free Suggestions for publication, Comments and suggestions. State tax filing free T Tangible personal property, Tangible personal property. State tax filing free Tax help, How To Get Tax Help Tax preparation fees, Tax preparation fees. State tax filing free Tax shelter At-risk limits, At-Risk Limits Defined, Tax shelter. State tax filing free Tax-free exchanges, Like-Kind Exchanges Taxes Excise, Excise Taxes Federal use, Highway use tax. State tax filing free General, Taxes Self-employment, Self-Employment Tax State and federal, State and federal income taxes. State tax filing free State and local general sales, State and local general sales taxes. State tax filing free Withholding, Federal income tax withholding. State tax filing free , Social Security and Medicare Taxes, Federal Income Tax Withholding Telephone expense, Telephone expense. State tax filing free Tenant house expenses, Tenant House Expenses Term interests, Certain term interests in property. State tax filing free Theft losses, Casualties, Thefts, and Condemnations Timber, Timber. State tax filing free , Timber Depletion, Timber Tobacco quota buyout payments, Tobacco Quota Buyout Program Payments Tobacco settlement payments, National Tobacco Growers' Settlement Trust Fund Payments Trade-in, Sale and Purchase Travel expenses, Travel Expenses Truck expenses, Truck and Car Expenses Trust fund recovery penalty, Trust fund recovery penalty. State tax filing free TTY/TDD information, How To Get Tax Help U Uniform capitalization rules Basis of assets, Uniform Capitalization Rules Inventory, Uniform capitalization rules. State tax filing free Unstated interest, Unstated interest. State tax filing free W Wages and salaries, Wages and salaries. State tax filing free Water conservation, Conservation Expenses Water well, Water well. State tax filing free , Water wells. State tax filing free Weather-related sales, livestock, Sales Caused by Weather-Related Conditions, Weather-related sales of livestock. State tax filing free Withholding Income tax, Federal Income Tax Withholding Social security and Medicare tax, Social Security and Medicare Taxes Prev  Up     Home   More Online Publications