File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

1040ez Tax Tables

Where Can I File State Taxes For FreeFree TaxesFederal Tax Forms 2011 EzState Tax For FreeWww Myfreetaxes ComHow To File Back Taxes OnlineFile State TaxesMilitary Turbo TaxFederal Amended Tax ReturnForm 1040ez InstructionsFree Tax Returns1040ez Tax ReturnWhere Do I Mail My 1040xEz 1040 Form 20141040a 2011 Tax Form2012 Tax Forms1040x Form 2011 TurbotaxCan I Efile A 2012 Tax ReturnTaxes Supplemental Security Income SsiComplete 1040x FormHow Can I File My 2012 Taxes For FreeIrs 1040xFree 1040xState Tax Return Free FilingIrs Tax FormsTurbo Tax1040 Ez For 2011How Do I File Taxes For 2011E File 2012 ReturnsTurbo Tax AmendmentFree Tax Filing1040 Nr Tax FormHow To Fill Out 1040xAmend Tax Return InstructionsEz Form2012 Federal Tax Forms 1040a1040nr FreeCorporation Tax Software2010 Taxes Online2011 Taxes Free Online

1040ez Tax Tables

1040ez tax tables 15. 1040ez tax tables   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. 1040ez tax tables More information. 1040ez tax tables Special SituationsException for sales to related persons. 1040ez tax tables Recapturing (Paying Back) a Federal Mortgage Subsidy Reminder Home sold with undeducted points. 1040ez tax tables  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. 1040ez tax tables See Mortgage ending early under Points in chapter 23. 1040ez tax tables Introduction This chapter explains the tax rules that apply when you sell your main home. 1040ez tax tables In most cases, your main home is the one in which you live most of the time. 1040ez tax tables 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). 1040ez tax tables See Excluding the Gain , later. 1040ez tax tables Generally, if you can exclude all the gain, you do not need to report the sale on your tax return. 1040ez tax tables If you have gain that cannot be excluded, it is taxable. 1040ez tax tables Report it on Form 8949, Sales and Other Dispositions of Capital Assets, and Schedule D (Form 1040). 1040ez tax tables You may also have to complete Form 4797, Sales of Business Property. 1040ez tax tables See Reporting the Sale , later. 1040ez tax tables If you have a loss on the sale, you generally cannot deduct it on your return. 1040ez tax tables However, you may need to report it. 1040ez tax tables See Reporting the Sale , later. 1040ez tax tables The following are main topics in this chapter. 1040ez tax tables Figuring gain or loss. 1040ez tax tables Basis. 1040ez tax tables Excluding the gain. 1040ez tax tables Ownership and use tests. 1040ez tax tables Reporting the sale. 1040ez tax tables Other topics include the following. 1040ez tax tables Business use or rental of home. 1040ez tax tables Recapturing a federal mortgage subsidy. 1040ez tax tables 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. 1040ez tax tables ” 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. 1040ez tax tables 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. 1040ez tax tables Land. 1040ez tax tables   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. 1040ez tax tables 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. 1040ez tax tables See Vacant land under Main Home in Publication 523 for more information. 1040ez tax tables Example. 1040ez tax tables You buy a piece of land and move your main home to it. 1040ez tax tables Then you sell the land on which your main home was located. 1040ez tax tables This sale is not considered a sale of your main home, and you cannot exclude any gain on the sale of the land. 1040ez tax tables More than one home. 1040ez tax tables   If you have more than one home, you can exclude gain only from the sale of your main home. 1040ez tax tables You must include in income gain from the sale of any other home. 1040ez tax tables 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. 1040ez tax tables Example 1. 1040ez tax tables You own two homes, one in New York and one in Florida. 1040ez tax tables 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. 1040ez tax tables In the absence of facts and circumstances indicating otherwise, the New York home is your main home. 1040ez tax tables You would be eligible to exclude the gain from the sale of the New York home but not of the Florida home in 2013. 1040ez tax tables Example 2. 1040ez tax tables You own a house, but you live in another house that you rent. 1040ez tax tables The rented house is your main home. 1040ez tax tables Example 3. 1040ez tax tables You own two homes, one in Virginia and one in New Hampshire. 1040ez tax tables In 2009 and 2010, you lived in the Virginia home. 1040ez tax tables In 2011 and 2012, you lived in the New Hampshire home. 1040ez tax tables In 2013, you lived again in the Virginia home. 1040ez tax tables Your main home in 2009, 2010, and 2013 is the Virginia home. 1040ez tax tables Your main home in 2011 and 2012 is the New Hampshire home. 1040ez tax tables You would be eligible to exclude gain from the sale of either home (but not both) in 2013. 1040ez tax tables Property used partly as your main home. 1040ez tax tables   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. 1040ez tax tables For details, see Business Use or Rental of Home , later. 1040ez tax tables 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. 1040ez tax tables Subtract the adjusted basis from the amount realized to get your gain or loss. 1040ez tax tables     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. 1040ez tax tables 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. 1040ez tax tables Payment by employer. 1040ez tax tables   You may have to sell your home because of a job transfer. 1040ez tax tables 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. 1040ez tax tables 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. 1040ez tax tables Option to buy. 1040ez tax tables   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. 1040ez tax tables If the option is not exercised, you must report the amount as ordinary income in the year the option expires. 1040ez tax tables Report this amount on Form 1040, line 21. 1040ez tax tables Form 1099-S. 1040ez tax tables   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. 1040ez tax tables   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. 1040ez tax tables Instead, box 4 will be checked to indicate your receipt or expected receipt of these items. 1040ez tax tables Amount Realized The amount realized is the selling price minus selling expenses. 1040ez tax tables Selling expenses. 1040ez tax tables   Selling expenses include: Commissions, Advertising fees, Legal fees, and Loan charges paid by the seller, such as loan placement fees or “points. 1040ez tax tables ” Adjusted Basis While you owned your home, you may have made adjustments (increases or decreases) to the basis. 1040ez tax tables This adjusted basis must be determined before you can figure gain or loss on the sale of your home. 1040ez tax tables For information on how to figure your home's adjusted basis, see Determining Basis , later. 1040ez tax tables Amount of Gain or Loss To figure the amount of gain or loss, compare the amount realized to the adjusted basis. 1040ez tax tables Gain on sale. 1040ez tax tables   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. 1040ez tax tables Loss on sale. 1040ez tax tables   If the amount realized is less than the adjusted basis, the difference is a loss. 1040ez tax tables A loss on the sale of your main home cannot be deducted. 1040ez tax tables Jointly owned home. 1040ez tax tables   If you and your spouse sell your jointly owned home and file a joint return, you figure your gain or loss as one taxpayer. 1040ez tax tables Separate returns. 1040ez tax tables   If you file separate returns, each of you must figure your own gain or loss according to your ownership interest in the home. 1040ez tax tables Your ownership interest is generally determined by state law. 1040ez tax tables Joint owners not married. 1040ez tax tables   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. 1040ez tax tables Each of you applies the rules discussed in this chapter on an individual basis. 1040ez tax tables Dispositions Other Than Sales Some special rules apply to other dispositions of your main home. 1040ez tax tables Foreclosure or repossession. 1040ez tax tables   If your home was foreclosed on or repossessed, you have a disposition. 1040ez tax tables See Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments, to determine if you have ordinary income, gain, or loss. 1040ez tax tables Abandonment. 1040ez tax tables   If you abandon your home, see Publication 4681 to determine if you have ordinary income, gain, or loss. 1040ez tax tables Trading (exchanging) homes. 1040ez tax tables   If you trade your old home for another home, treat the trade as a sale and a purchase. 1040ez tax tables Example. 1040ez tax tables You owned and lived in a home with an adjusted basis of $41,000. 1040ez tax tables 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. 1040ez tax tables This is treated as a sale of your old home for $50,000 with a gain of $9,000 ($50,000 – $41,000). 1040ez tax tables 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). 1040ez tax tables Transfer to spouse. 1040ez tax tables   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. 1040ez tax tables This is true even if you receive cash or other consideration for the home. 1040ez tax tables As a result, the rules in this chapter do not apply. 1040ez tax tables More information. 1040ez tax tables   If you need more information, see Transfer to spouse in Publication 523 and Property Settlements in Publication 504, Divorced or Separated Individuals. 1040ez tax tables Involuntary conversion. 1040ez tax tables   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. 1040ez tax tables 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 . 1040ez tax tables Determining Basis You need to know your basis in your home to figure any gain or loss when you sell it. 1040ez tax tables Your basis in your home is determined by how you got the home. 1040ez tax tables Generally, your basis is its cost if you bought it or built it. 1040ez tax tables If you got it in some other way (inheritance, gift, etc. 1040ez tax tables ), your basis is generally either its fair market value when you received it or the adjusted basis of the previous owner. 1040ez tax tables While you owned your home, you may have made adjustments (increases or decreases) to your home's basis. 1040ez tax tables 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. 1040ez tax tables See Adjusted Basis , later. 1040ez tax tables You can find more information on basis and adjusted basis in chapter 13 of this publication and in Publication 523. 1040ez tax tables Cost As Basis The cost of property is the amount you paid for it in cash, debt obligations, other property, or services. 1040ez tax tables Purchase. 1040ez tax tables   If you bought your home, your basis is its cost to you. 1040ez tax tables This includes the purchase price and certain settlement or closing costs. 1040ez tax tables 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. 1040ez tax tables If you build, or contract to build, a new home, your purchase price can include costs of construction, as discussed in Publication 523. 1040ez tax tables Settlement fees or closing costs. 1040ez tax tables   When you bought your home, you may have paid settlement fees or closing costs in addition to the contract price of the property. 1040ez tax tables 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. 1040ez tax tables 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). 1040ez tax tables    Chapter 13 lists some of the settlement fees and closing costs that you can include in the basis of property, including your home. 1040ez tax tables It also lists some settlement costs that cannot be included in basis. 1040ez tax tables   Also see Publication 523 for additional items and a discussion of basis other than cost. 1040ez tax tables Adjusted Basis Adjusted basis is your cost or other basis increased or decreased by certain amounts. 1040ez tax tables To figure your adjusted basis, you can use Worksheet 1 in Publication 523. 1040ez tax tables 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. 1040ez tax tables Increases to basis. 1040ez tax tables   These include the following. 1040ez tax tables Additions and other improvements that have a useful life of more than 1 year. 1040ez tax tables Special assessments for local improvements. 1040ez tax tables Amounts you spent after a casualty to restore damaged property. 1040ez tax tables Improvements. 1040ez tax tables   These add to the value of your home, prolong its useful life, or adapt it to new uses. 1040ez tax tables You add the cost of additions and other improvements to the basis of your property. 1040ez tax tables   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. 1040ez tax tables An addition to your house, such as a new deck, a sunroom, or a new garage, is also an improvement. 1040ez tax tables Repairs. 1040ez tax tables   These maintain your home in good condition but do not add to its value or prolong its life. 1040ez tax tables You do not add their cost to the basis of your property. 1040ez tax tables   Examples of repairs include repainting your house inside or outside, fixing your gutters or floors, repairing leaks or plastering, and replacing broken window panes. 1040ez tax tables Decreases to basis. 1040ez tax tables   These include the following. 1040ez tax tables Discharge of qualified principal residence indebtedness that was excluded from income. 1040ez tax tables Some or all of the cancellation of debt income that was excluded due to your bankruptcy or insolvency. 1040ez tax tables For details, see Publication 4681. 1040ez tax tables Gain you postponed from the sale of a previous home before May 7, 1997. 1040ez tax tables Deductible casualty losses. 1040ez tax tables Insurance payments you received or expect to receive for casualty losses. 1040ez tax tables Payments you received for granting an easement or right-of-way. 1040ez tax tables Depreciation allowed or allowable if you used your home for business or rental purposes. 1040ez tax tables Energy-related credits allowed for expenditures made on the residence. 1040ez tax tables (Reduce the increase in basis otherwise allowable for expenditures on the residence by the amount of credit allowed for those expenditures. 1040ez tax tables ) Adoption credit you claimed for improvements added to the basis of your home. 1040ez tax tables Nontaxable payments from an adoption assistance program of your employer you used for improvements you added to the basis of your home. 1040ez tax tables 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. 1040ez tax tables 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. 1040ez tax tables 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). 1040ez tax tables 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. 1040ez tax tables Discharges of qualified principal residence indebtedness. 1040ez tax tables   You may be able to exclude from gross income a discharge of qualified principal residence indebtedness. 1040ez tax tables This exclusion applies to discharges made after 2006 and before 2014. 1040ez tax tables 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. 1040ez tax tables   File Form 982 with your tax return. 1040ez tax tables See the form's instructions for detailed information. 1040ez tax tables Recordkeeping. 1040ez tax tables You should keep records to prove your home's adjusted basis. 1040ez tax tables 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. 1040ez tax tables 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. 1040ez tax tables Keep records proving the basis of both homes as long as they are needed for tax purposes. 1040ez tax tables 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. 1040ez tax tables Excluding the Gain You may qualify to exclude from your income all or part of any gain from the sale of your main home. 1040ez tax tables 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. 1040ez tax tables To qualify, you must meet the ownership and use tests described later. 1040ez tax tables 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. 1040ez tax tables You can use Worksheet 2 in Publication 523 to figure the amount of your exclusion and your taxable gain, if any. 1040ez tax tables If you have any taxable gain from the sale of your home, you may have to increase your withholding or make estimated tax payments. 1040ez tax tables See Publication 505, Tax Withholding and Estimated Tax. 1040ez tax tables 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. 1040ez tax tables You meet the ownership test. 1040ez tax tables You meet the use test. 1040ez tax tables During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. 1040ez tax tables For details on gain allocated to periods of nonqualified use, see Periods of nonqualified use , later. 1040ez tax tables 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 . 1040ez tax tables Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. 1040ez tax tables 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). 1040ez tax tables Exception. 1040ez tax tables   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. 1040ez tax tables However, the maximum amount you may be able to exclude will be reduced. 1040ez tax tables See Reduced Maximum Exclusion , later. 1040ez tax tables Example 1—home owned and occupied for at least 2 years. 1040ez tax tables Mya bought and moved into her main home in September 2011. 1040ez tax tables She sold the home at a gain in October 2013. 1040ez tax tables 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. 1040ez tax tables She meets the ownership and use tests. 1040ez tax tables Example 2—ownership test met but use test not met. 1040ez tax tables Ayden bought a home, lived in it for 6 months, moved out, and never occupied the home again. 1040ez tax tables He later sold the home for a gain. 1040ez tax tables He owned the home during the entire 5-year period ending on the date of sale. 1040ez tax tables He meets the ownership test but not the use test. 1040ez tax tables He cannot exclude any part of his gain on the sale unless he qualified for a reduced maximum exclusion (explained later). 1040ez tax tables 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. 1040ez tax tables 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. 1040ez tax tables Temporary absence. 1040ez tax tables   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. 1040ez tax tables The following examples assume that the reduced maximum exclusion (discussed later) does not apply to the sales. 1040ez tax tables Example 1. 1040ez tax tables David Johnson, who is single, bought and moved into his home on February 1, 2011. 1040ez tax tables Each year during 2011 and 2012, David left his home for a 2-month summer vacation. 1040ez tax tables David sold the house on March 1, 2013. 1040ez tax tables Although the total time David used his home is less than 2 years (21 months), he meets the requirement and may exclude gain. 1040ez tax tables 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. 1040ez tax tables Example 2. 1040ez tax tables Professor Paul Beard, who is single, bought and moved into a house on August 18, 2010. 1040ez tax tables He lived in it as his main home continuously until January 5, 2012, when he went abroad for a 1-year sabbatical leave. 1040ez tax tables On February 6, 2013, 1 month after returning from the leave, Paul sold the house at a gain. 1040ez tax tables Because his leave was not a short temporary absence, he cannot include the period of leave to meet the 2-year use test. 1040ez tax tables He cannot exclude any part of his gain, because he did not use the residence for the required 2 years. 1040ez tax tables Ownership and use tests met at different times. 1040ez tax tables   You can meet the ownership and use tests during different 2-year periods. 1040ez tax tables However, you must meet both tests during the 5-year period ending on the date of the sale. 1040ez tax tables Example. 1040ez tax tables Beginning in 2002, Helen Jones lived in a rented apartment. 1040ez tax tables The apartment building was later converted to condominiums, and she bought her same apartment on December 3, 2010. 1040ez tax tables In 2011, Helen became ill and on April 14 of that year she moved to her daughter's home. 1040ez tax tables On July 12, 2013, while still living in her daughter's home, she sold her condominium. 1040ez tax tables 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. 1040ez tax tables She owned her condominium from December 3, 2010, to July 12, 2013 (more than 2 years). 1040ez tax tables She lived in the property from July 13, 2008 (the beginning of the 5-year period), to April 14, 2011 (more than 2 years). 1040ez tax tables 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. 1040ez tax tables Cooperative apartment. 1040ez tax tables   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. 1040ez tax tables Exceptions to Ownership and Use Tests The following sections contain exceptions to the ownership and use tests for certain taxpayers. 1040ez tax tables Exception for individuals with a disability. 1040ez tax tables   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. 1040ez tax tables 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. 1040ez tax tables 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. 1040ez tax tables Previous home destroyed or condemned. 1040ez tax tables   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. 1040ez tax tables This rule applies if any part of the basis of the home you sold depended on the basis of the destroyed or condemned home. 1040ez tax tables 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. 1040ez tax tables Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps. 1040ez tax tables   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. 1040ez tax tables 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. 1040ez tax tables 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. 1040ez tax tables   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. 1040ez tax tables 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. 1040ez tax tables 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. 1040ez tax tables (But see Special rules for joint returns , next. 1040ez tax tables ) Special rules for joint returns. 1040ez tax tables   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. 1040ez tax tables You are married and file a joint return for the year. 1040ez tax tables Either you or your spouse meets the ownership test. 1040ez tax tables Both you and your spouse meet the use test. 1040ez tax tables 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. 1040ez tax tables 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. 1040ez tax tables For this purpose, each spouse is treated as owning the property during the period that either spouse owned the property. 1040ez tax tables Example 1—one spouse sells a home. 1040ez tax tables Emily sells her home in June 2013 for a gain of $300,000. 1040ez tax tables She marries Jamie later in the year. 1040ez tax tables She meets the ownership and use tests, but Jamie does not. 1040ez tax tables Emily can exclude up to $250,000 of gain on a separate or joint return for 2013. 1040ez tax tables The $500,000 maximum exclusion for certain joint returns does not apply because Jamie does not meet the use test. 1040ez tax tables Example 2—each spouse sells a home. 1040ez tax tables 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. 1040ez tax tables He meets the ownership and use tests on his home, but Emily does not. 1040ez tax tables Emily can exclude $250,000 of gain and Jamie can exclude $200,000 of gain on the respective sales of their individual homes. 1040ez tax tables However, Emily cannot use Jamie's unused exclusion to exclude more than $250,000 of gain. 1040ez tax tables Therefore, Emily and Jamie must recognize $50,000 of gain on the sale of Emily's home. 1040ez tax tables 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. 1040ez tax tables Sale of main home by surviving spouse. 1040ez tax tables   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. 1040ez tax tables   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. 1040ez tax tables The sale or exchange took place after 2008. 1040ez tax tables The sale or exchange took place no more than 2 years after the date of death of your spouse. 1040ez tax tables You have not remarried. 1040ez tax tables You and your spouse met the use test at the time of your spouse's death. 1040ez tax tables You or your spouse met the ownership test at the time of your spouse's death. 1040ez tax tables Neither you nor your spouse excluded gain from the sale of another home during the last 2 years. 1040ez tax tables Example. 1040ez tax tables   Harry owned and used a house as his main home since 2009. 1040ez tax tables Harry and Wilma married on July 1, 2013, and from that date they use Harry's house as their main home. 1040ez tax tables Harry died on August 15, 2013, and Wilma inherited the property. 1040ez tax tables Wilma sold the property on September 3, 2013, at which time she had not remarried. 1040ez tax tables 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. 1040ez tax tables Home transferred from spouse. 1040ez tax tables   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. 1040ez tax tables Use of home after divorce. 1040ez tax tables   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. 1040ez tax tables 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. 1040ez tax tables 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. 1040ez tax tables In both cases, to qualify for a reduced exclusion, the sale of your main home must be due to one of the following reasons. 1040ez tax tables A change in place of employment. 1040ez tax tables Health. 1040ez tax tables Unforeseen circumstances. 1040ez tax tables Unforeseen circumstances. 1040ez tax tables   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. 1040ez tax tables   See Publication 523 for more information and to use Worksheet 3 to figure your reduced maximum exclusion. 1040ez tax tables 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. 1040ez tax tables But you must meet the ownership and use tests. 1040ez tax tables Periods of nonqualified use. 1040ez tax tables   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. 1040ez tax tables 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. 1040ez tax tables Exceptions. 1040ez tax tables   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. 1040ez tax tables 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. 1040ez tax tables 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. 1040ez tax tables Gain from the sale or exchange of property allocable to nonqualified use will not qualify for the exclusion. 1040ez tax tables Calculation. 1040ez tax tables   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. 1040ez tax tables Example 1. 1040ez tax tables On May 23, 2007, Amy, who is unmarried for all years in this example, bought a house. 1040ez tax tables 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. 1040ez tax tables The house was rented from June 1, 2009, to March 31, 2011. 1040ez tax tables Amy claimed depreciation deductions in 2009 through 2011 totaling $10,000. 1040ez tax tables 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. 1040ez tax tables 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. 1040ez tax tables 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. 1040ez tax tables Amy divides 668 by 2,080 and obtains a decimal (rounded to at least three decimal places) of 0. 1040ez tax tables 321. 1040ez tax tables 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. 1040ez tax tables 321. 1040ez tax tables Because the gain attributable to periods of nonqualified use is $60,990, Amy can exclude $129,010 of her gain. 1040ez tax tables Example 2. 1040ez tax tables William owned and used a house as his main home from 2007 through 2010. 1040ez tax tables On January 1, 2011, he moved to another state. 1040ez tax tables He rented his house from that date until April 30, 2013, when he sold it. 1040ez tax tables 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. 1040ez tax tables He must report the sale on Form 4797 because it was rental property at the time of sale. 1040ez tax tables 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. 1040ez tax tables Because he met the ownership and use tests, he can exclude gain up to $250,000. 1040ez tax tables 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. 1040ez tax tables Depreciation after May 6, 1997. 1040ez tax tables   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. 1040ez tax tables 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. 1040ez tax tables See Publication 544 for more information. 1040ez tax tables Property used partly for business or rental. 1040ez tax tables   If you used property partly as a home and partly for business or to produce rental income, see Publication 523. 1040ez tax tables 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. 1040ez tax tables If any of these conditions apply, report the entire gain or loss. 1040ez tax tables For details on how to report the gain or loss, see the Instructions for Schedule D (Form 1040) and the Instructions for Form 8949. 1040ez tax tables 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). 1040ez tax tables See Business Use or Rental of Home in Publication 523 and the Instructions for Form 4797. 1040ez tax tables Installment sale. 1040ez tax tables    Some sales are made under arrangements that provide for part or all of the selling price to be paid in a later year. 1040ez tax tables These sales are called “installment sales. 1040ez tax tables ” 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. 1040ez tax tables You may be able to report the part of the gain you cannot exclude on the installment basis. 1040ez tax tables    Use Form 6252, Installment Sale Income, to report the sale. 1040ez tax tables Enter your exclusion on line 15 of Form 6252. 1040ez tax tables Seller-financed mortgage. 1040ez tax tables   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. 1040ez tax tables You must separately report as interest income the interest you receive as part of each payment. 1040ez tax tables 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). 1040ez tax tables The buyer must give you his or her SSN, and you must give the buyer your SSN. 1040ez tax tables Failure to meet these requirements may result in a $50 penalty for each failure. 1040ez tax tables If either you or the buyer does not have and is not eligible to get an SSN, see Social Security Number in chapter 1. 1040ez tax tables More information. 1040ez tax tables   For more information on installment sales, see Publication 537, Installment Sales. 1040ez tax tables Special Situations The situations that follow may affect your exclusion. 1040ez tax tables Sale of home acquired in a like-kind exchange. 1040ez tax tables   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. 1040ez tax tables Gain from a like-kind exchange is not taxable at the time of the exchange. 1040ez tax tables This means that gain will not be taxed until you sell or otherwise dispose of the property you receive. 1040ez tax tables 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. 1040ez tax tables For more information about like-kind exchanges, see Publication 544, Sales and Other Dispositions of Assets. 1040ez tax tables Home relinquished in a like-kind exchange. 1040ez tax tables   If you use your main home partly for business or rental purposes and then exchange the home for another property, see Publication 523. 1040ez tax tables Expatriates. 1040ez tax tables   You cannot claim the exclusion if the expatriation tax applies to you. 1040ez tax tables The expatriation tax applies to certain U. 1040ez tax tables S. 1040ez tax tables citizens who have renounced their citizenship (and to certain long-term residents who have ended their residency). 1040ez tax tables For more information about the expatriation tax, see Expatriation Tax in chapter 4 of Publication 519, U. 1040ez tax tables S. 1040ez tax tables Tax Guide for Aliens. 1040ez tax tables Home destroyed or condemned. 1040ez tax tables   If your home was destroyed or condemned, any gain (for example, because of insurance proceeds you received) qualifies for the exclusion. 1040ez tax tables   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. 1040ez tax tables Sale of remainder interest. 1040ez tax tables   Subject to the other rules in this chapter, you can choose to exclude gain from the sale of a remainder interest in your home. 1040ez tax tables 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. 1040ez tax tables Exception for sales to related persons. 1040ez tax tables   You cannot exclude gain from the sale of a remainder interest in your home to a related person. 1040ez tax tables Related persons include your brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. 1040ez tax tables ), and lineal descendants (children, grandchildren, etc. 1040ez tax tables ). 1040ez tax tables Related persons also include certain corporations, partnerships, trusts, and exempt organizations. 1040ez tax tables 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. 1040ez tax tables You recapture the benefit by increasing your federal income tax for the year of the sale. 1040ez tax tables 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. 1040ez tax tables Loans subject to recapture rules. 1040ez tax tables   The recapture applies to loans that: Came from the proceeds of qualified mortgage bonds, or Were based on mortgage credit certificates. 1040ez tax tables The recapture also applies to assumptions of these loans. 1040ez tax tables When recapture applies. 1040ez tax tables   Recapture of the federal mortgage subsidy applies only if you meet both of the following conditions. 1040ez tax tables You sell or otherwise dispose of your home at a gain within the first 9 years after the date you close your mortgage loan. 1040ez tax tables 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). 1040ez tax tables When recapture does not apply. 1040ez tax tables   Recapture does not apply in any of the following situations. 1040ez tax tables 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. 1040ez tax tables 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. 1040ez tax tables For more information, see Publication 4492, Information for Taxpayers Affected by Hurricanes Katrina, Rita, and Wilma. 1040ez tax tables Also see Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas. 1040ez tax tables The home is disposed of as a result of your death. 1040ez tax tables You dispose of the home more than 9 years after the date you closed your mortgage loan. 1040ez tax tables You transfer the home to your spouse, or to your former spouse incident to a divorce, where no gain is included in your income. 1040ez tax tables You dispose of the home at a loss. 1040ez tax tables 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. 1040ez tax tables 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. 1040ez tax tables For more information, see Replacement Period in Publication 547. 1040ez tax tables You refinance your mortgage loan (unless you later meet the conditions listed previously under When recapture applies ). 1040ez tax tables Notice of amounts. 1040ez tax tables   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. 1040ez tax tables How to figure and report the recapture. 1040ez tax tables    The recapture tax is figured on Form 8828. 1040ez tax tables 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. 1040ez tax tables Attach Form 8828 to your Form 1040. 1040ez tax tables For more information, see Form 8828 and its instructions. 1040ez tax tables Prev  Up  Next   Home   More Online Publications
Español

Federal Maritime Commission

The Federal Maritime Commission is responsible for regulating the U.S. international ocean transportation system for the benefit of U.S. exporters, importers, and the U.S. consumer.

Contact the Agency or Department

Website: Federal Maritime Commission

E-mail: (General Information)

Address: 800 North Capitol Street, NW
Washington, DC 20573

Phone Number: 202-523-5725

The 1040ez Tax Tables

1040ez tax tables Internal Revenue Bulletin:  2011-12  March 21, 2011  Rev. 1040ez tax tables Proc. 1040ez tax tables 2011-21 Table of Contents SECTION 1. 1040ez tax tables PURPOSE SECTION 2. 1040ez tax tables BACKGROUND SECTION 3. 1040ez tax tables SCOPE SECTION 4. 1040ez tax tables APPLICATION SECTION 5. 1040ez tax tables EFFECTIVE DATE SECTION 6. 1040ez tax tables EFFECT ON OTHER DOCUMENTS SECTION 7. 1040ez tax tables DRAFTING INFORMATION SECTION 1. 1040ez tax tables PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2011, including separate tables of limitations on depreciation deductions for trucks and vans; (2) the amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2011, including a separate table of inclusion amounts for lessees of trucks and vans; and (3) revised tables of depreciation limitations and lessee inclusion amounts for passenger automobiles that were first placed in service or first leased by the taxpayer, respectively, during 2010 and to which the 50 percent additional first year depreciation deduction under § 168(k)(1)(A) of the Internal Revenue Code or the 100 percent additional first year depreciation deduction under § 168(k)(5) applies. 1040ez tax tables The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7). 1040ez tax tables SECTION 2. 1040ez tax tables BACKGROUND . 1040ez tax tables 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. 1040ez tax tables For passenger automobiles placed in service after 1988, § 280F(d)(7) requires the Internal Revenue Service to increase the amounts allowable as depreciation deductions by a price inflation adjustment amount. 1040ez tax tables The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. 1040ez tax tables This change reflects the higher rate of price inflation for trucks and vans since 1988. 1040ez tax tables . 1040ez tax tables 02 Section 2022(a) of the Small Business Jobs Act of 2010, Pub. 1040ez tax tables L. 1040ez tax tables No. 1040ez tax tables 111-240, 124 Stat. 1040ez tax tables 2504 (September 27, 2010), extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property (as defined in § 168(k)(2)) acquired by the taxpayer after December 31, 2007, and before January 1, 2011, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2011. 1040ez tax tables Section 401(a) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Pub. 1040ez tax tables L. 1040ez tax tables No. 1040ez tax tables 111-312, 124 Stat. 1040ez tax tables 3296 (Dec. 1040ez tax tables 17, 2010) (the “Act”) further extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property acquired by the taxpayer after December 31, 2007, and before January 1, 2013, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2013. 1040ez tax tables Section 401(b) of the Act further amended § 168(k) by adding § 168(k)(5). 1040ez tax tables It allows a 100 percent additional first year depreciation deduction for qualified property acquired by a taxpayer after September 8, 2010, and before January 1, 2012, if the taxpayer places the property in service generally before January 1, 2012. 1040ez tax tables Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A)(i) by $8,000 for passenger automobiles to which the additional first year depreciation deduction under § 168(k) (hereinafter, referred to as “§ 168(k) additional first year depreciation deduction”) applies. 1040ez tax tables . 1040ez tax tables 03 Section 168(k)(2)(D)(i) provides that the § 168(k) additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). 1040ez tax tables Section 168(k)(2)(D)(iii) permits a taxpayer to elect out of the § 168(k) additional first year depreciation deduction for any class of property. 1040ez tax tables Section 168(k)(4), as amended by the Act, permits a corporation to elect to increase the alternative minimum tax (“AMT”) credit limitation under § 53(c), instead of claiming the § 168(k) additional first year depreciation deduction for all eligible qualified property placed in service after December 31, 2010, that is round 2 extension property (as defined in § 168(k)(4)(I)(iv). 1040ez tax tables Accordingly, this revenue procedure provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction applies. 1040ez tax tables This revenue procedure also provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction does not apply, either because taxpayer (1) purchased the passenger automobile used; (2) did not use the passenger automobile during 2011 more than 50 percent for business purposes; (3) elected out of the § 168(k) additional first year depreciation deduction pursuant to § 168(k)(2)(D)(iii); or (4) elected to increase the § 53 AMT credit limitation in lieu of claiming § 168(k) additional first year depreciation. 1040ez tax tables . 1040ez tax tables 04 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. 1040ez tax tables The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. 1040ez tax tables Under § 1. 1040ez tax tables 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an amount determined by applying a formula to the amount obtained from a table. 1040ez tax tables One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. 1040ez tax tables Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. 1040ez tax tables SECTION 3. 1040ez tax tables SCOPE . 1040ez tax tables 01 The limitations on depreciation deductions in section 4. 1040ez tax tables 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2011, and continue to apply for each taxable year that the passenger automobile remains in service. 1040ez tax tables . 1040ez tax tables 02 The tables in section 4. 1040ez tax tables 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2011. 1040ez tax tables Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. 1040ez tax tables See Rev. 1040ez tax tables Proc. 1040ez tax tables 2006-18, 2006-1 C. 1040ez tax tables B. 1040ez tax tables 645, for passenger automobiles first leased during calendar year 2006; Rev. 1040ez tax tables Proc. 1040ez tax tables 2007-30, 2007-1 C. 1040ez tax tables B. 1040ez tax tables 1104, for passenger automobiles first leased during calendar year 2007; Rev. 1040ez tax tables Proc. 1040ez tax tables 2008-22, 2008-1 C. 1040ez tax tables B. 1040ez tax tables 658, for passenger automobiles first leased during calendar year 2008; Rev. 1040ez tax tables Proc. 1040ez tax tables 2009-24, 2009-1 C. 1040ez tax tables B. 1040ez tax tables 885, for passenger automobiles first leased during calendar year 2009; and Rev. 1040ez tax tables Proc. 1040ez tax tables 2010-18, 2010-1 C. 1040ez tax tables B. 1040ez tax tables 427, as amplified and modified by section 4. 1040ez tax tables 03 of this revenue procedure, for passenger automobiles first leased during calendar year 2010. 1040ez tax tables SECTION 4. 1040ez tax tables APPLICATION . 1040ez tax tables 01 Limitations on Depreciation Deductions for Certain Automobiles. 1040ez tax tables (1) Amount of the inflation adjustment. 1040ez tax tables (a) Passenger automobiles (other than trucks or vans). 1040ez tax tables Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. 1040ez tax tables Section 280F(d)(7)(B)(ii) defines the term “CPI automobile component” as the automobile component of the Consumer Price Index for all Urban Consumers published by the Department of Labor. 1040ez tax tables The new car component of the CPI was 115. 1040ez tax tables 2 for October 1987 and 137. 1040ez tax tables 880 for October 2010. 1040ez tax tables The October 2010 index exceeded the October 1987 index by 22. 1040ez tax tables 680. 1040ez tax tables Therefore, the automobile price inflation adjustment for 2011 for passenger automobiles (other than trucks and vans) is 19. 1040ez tax tables 69 percent (22. 1040ez tax tables 680/115. 1040ez tax tables 2 x 100%). 1040ez tax tables The dollar limitations in § 280F(a) are multiplied by a factor of 0. 1040ez tax tables 1969, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2011. 1040ez tax tables This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2011. 1040ez tax tables (b) Trucks and vans. 1040ez tax tables To determine the dollar limitations for trucks and vans first placed in service during calendar year 2011, the Service uses the new truck component of the CPI instead of the new car component. 1040ez tax tables The new truck component of the CPI was 112. 1040ez tax tables 4 for October 1987 and 142. 1040ez tax tables 556 for October 2010. 1040ez tax tables The October 2010 index exceeded the October 1987 index by 30. 1040ez tax tables 156. 1040ez tax tables Therefore, the automobile price inflation adjustment for 2011 for trucks and vans is 26. 1040ez tax tables 83 percent (30. 1040ez tax tables 156/112. 1040ez tax tables 4 x 100%). 1040ez tax tables The dollar limitations in § 280F(a) are multiplied by a factor of 0. 1040ez tax tables 2683, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. 1040ez tax tables This adjustment applies to all trucks and vans that are first placed in service in calendar year 2011. 1040ez tax tables (2) Amount of the limitation. 1040ez tax tables Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2011. 1040ez tax tables Use Table 1 for a passenger automobile (other than a truck or van), and Table 2 for a truck or van, placed in service in calendar year 2011 for which the § 168(k) additional first year depreciation deduction applies. 1040ez tax tables Use Table 3 for a passenger automobile (other than a truck or van), and Table 4 for a truck or van, placed in service in calendar year 2011 for which the § 168(k) additional first year depreciation deduction does not apply. 1040ez tax tables The Service intends to issue additional guidance addressing the interaction between the 100 percent additional first year depreciation deduction and § 280F(a) for the taxable years subsequent to the first taxable year. 1040ez tax tables REV. 1040ez tax tables PROC. 1040ez tax tables 2011-21 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 REV. 1040ez tax tables PROC. 1040ez tax tables 2011-21 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,260 2nd Tax Year $5,200 3rd Tax Year $3,150 Each Succeeding Year $1,875 REV. 1040ez tax tables PROC. 1040ez tax tables 2011-21 TABLE 3 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 REV. 1040ez tax tables PROC. 1040ez tax tables 2011-21 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,260 2nd Tax Year $5,200 3rd Tax Year $3,150 Each Succeeding Year $1,875 . 1040ez tax tables 02 Inclusions in Income of Lessees of Passenger Automobiles. 1040ez tax tables A taxpayer must follow the procedures in § 1. 1040ez tax tables 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2011. 1040ez tax tables In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure, while lessees of trucks and vans should use Table 6 of this revenue procedure. 1040ez tax tables REV. 1040ez tax tables PROC. 1040ez tax tables 2011-21 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2011 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & later $18,500 $19,000 3 8 11 13 16 19,000 19,500 4 9 13 15 18 19,500 20,000 4 10 15 17 20 20,000 20,500 5 11 16 19 23 20,500 21,000 5 12 18 21 25 21,000 21,500 6 13 19 24 26 21,500 22,000 6 14 21 26 29 22,000 23,000 7 16 23 29 32 23,000 24,000 8 18 27 32 37 24,000 25,000 9 20 30 36 42 25,000 26,000 10 23 33 40 46 26,000 27,000 11 25 36 44 51 27,000 28,000 12 27 40 48 55 28,000 29,000 13 29 43 52 60 29,000 30,000 14 31 47 55 65 30,000 31,000 15 34 49 60 69 31,000 32,000 16 36 53 63 73 32,000 33,000 17 38 56 68 77 33,000 34,000 18 40 60 71 82 34,000 35,000 19 42 63 75 87 35,000 36,000 20 45 66 79 91 36,000 37,000 21 47 69 83 96 37,000 38,000 22 49 73 87 100 38,000 39,000 23 51 76 91 105 39,000 40,000 24 53 80 94 110 40,000 41,000 25 56 82 99 114 41,000 42,000 26 58 86 102 119 42,000 43,000 27 60 89 107 123 43,000 44,000 28 62 93 110 128 44,000 45,000 29 64 96 114 133 45,000 46,000 30 67 98 119 137 46,000 47,000 31 69 102 122 141 47,000 48,000 32 71 105 127 145 48,000 49,000 33 73 109 130 150 49,000 50,000 34 76 111 134 155 50,000 51,000 35 78 115 138 159 51,000 52,000 36 80 118 142 164 52,000 53,000 37 82 122 146 168 53,000 54,000 38 84 125 150 173 54,000 55,000 39 87 128 153 178 55,000 56,000 40 89 131 158 182 56,000 57,000 41 91 135 161 187 57,000 58,000 42 93 138 166 191 58,000 59,000 43 95 142 169 196 59,000 60,000 44 98 144 174 200 60,000 62,000 46 101 149 179 207 62,000 64,000 48 105 156 187 216 64,000 66,000 50 109 163 195 225 66,000 68,000 52 114 169 203 234 68,000 70,000 54 118 176 211 243 70,000 72,000 56 123 182 218 253 72,000 74,000 58 127 189 226 262 74,000 76,000 60 132 195 234 270 76,000 78,000 62 136 202 242 279 78,000 80,000 64 140 209 250 288 80,000 85,000 67 148 220 264 304 85,000 90,000 72 159 237 283 327 90,000 95,000 77 170 253 303 350 95,000 100,000 82 181 269 323 372 100,000 110,000 90 198 293 352 406 110,000 120,000 100 220 326 391 452 120,000 130,000 110 242 359 430 497 130,000 140,000 120 264 392 469 543 140,000 150,000 130 286 424 509 588 150,000 160,000 140 308 457 548 633 160,000 170,000 150 330 490 587 679 170,000 180,000 160 352 523 626 724 180,000 190,000 170 374 555 666 769 190,000 200,000 180 396 588 705 815 200,000 210,000 190 418 621 744 860 210,000 220,000 200 440 654 784 904 220,000 230,000 210 462 687 823 950 230,000 240,000 220 484 719 863 995 240,000 And up 230 506 752 902 1,040 REV. 1040ez tax tables PROC. 1040ez tax tables 2011-21 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2011 Fair Market Value of Truck or Van Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & later $19,000 $19,500 3 7 9 12 13 19,500 20,000 3 8 11 14 15 20,000 20,500 4 9 13 15 18 20,500 21,000 4 10 15 17 20 21,000 21,500 5 11 16 20 22 21,500 22,000 5 12 18 22 24 22,000 23,000 6 14 20 24 29 23,000 24,000 7 16 24 28 32 24,000 25,000 8 18 27 32 37 25,000 26,000 9 20 31 36 41 26,000 27,000 10 23 33 40 46 27,000 28,000 11 25 37 43 51 28,000 29,000 12 27 40 48 55 29,000 30,000 13 29 43 52 60 30,000 31,000 14 31 47 56 64 31,000 32,000 15 34 49 60 69 32,000 33,000 16 36 53 63 74 33,000 34,000 17 38 56 68 78 34,000 35,000 18 40 60 71 83 35,000 36,000 19 43 62 76 87 36,000 37,000 20 45 66 79 92 37,000 38,000 21 47 69 83 97 38,000 39,000 22 49 73 87 101 39,000 40,000 23 51 76 91 105 40,000 41,000 24 54 79 95 109 41,000 42,000 25 56 82 99 114 42,000 43,000 26 58 86 103 118 43,000 44,000 27 60 89 107 123 44,000 45,000 28 62 93 110 128 45,000 46,000 29 65 95 115 132 46,000 47,000 30 67 99 118 137 47,000 48,000 31 69 102 123 141 48,000 49,000 32 71 106 126 146 49,000 50,000 33 73 109 130 151 50,000 51,000 34 76 112 134 155 51,000 52,000 35 78 115 138 160 52,000 53,000 36 80 118 143 164 53,000 54,000 37 82 122 146 169 54,000 55,000 38 84 125 150 173 55,000 56,000 39 87 128 154 177 56,000 57,000 40 89 131 158 182 57,000 58,000 41 91 135 162 186 58,000 59,000 42 93 138 166 191 59,000 60,000 43 95 142 169 196 60,000 62,000 45 99 146 175 203 62,000 64,000 47 103 153 183 212 64,000 66,000 49 107 160 191 221 66,000 68,000 51 112 166 199 229 68,000 70,000 53 116 173 206 239 70,000 72,000 55 121 179 214 248 72,000 74,000 57 125 186 222 257 74,000 76,000 59 129 192 231 266 76,000 78,000 61 134 198 239 275 78,000 80,000 63 138 205 246 285 80,000 85,000 66 146 217 260 300 85,000 90,000 71 157 233 280 322 90,000 95,000 76 168 250 299 345 95,000 100,000 81 179 266 319 368 100,000 110,000 89 196 290 348 402 110,000 120,000 99 218 323 387 447 120,000 130,000 109 240 355 427 493 130,000 140,000 119 262 388 466 538 140,000 150,000 129 284 421 505 583 150,000 160,000 139 306 454 544 629 160,000 170,000 149 328 487 583 674 170,000 180,000 159 350 519 623 719 180,000 190,000 169 372 552 662 765 190,000 200,000 179 394 585 701 810 200,000 210,000 189 416 618 740 856 210,000 220,000 199 438 651 779 901 220,000 230,000 209 460 683 819 946 230,000 240,000 219 482 716 858 992 240,000 And up 229 504 749 897 1,037 . 1040ez tax tables 03 Revised Amounts for Passenger Automobiles Placed in Service During 2010. 1040ez tax tables (1) Calculation of the Revised Amount. 1040ez tax tables The revised depreciation limits provided in this section 4. 1040ez tax tables 03 were calculated by increasing the existing limitations on the first year allowance in Rev. 1040ez tax tables Proc. 1040ez tax tables 2010-18 by $8,000 as provided in § 168(k)(2)(F)(i). 1040ez tax tables (2) Amount of the Revised Limitation. 1040ez tax tables For passenger automobiles (that are not trucks or vans) placed in service by the taxpayer in calendar year 2010 for which the § 168(k) additional first year depreciation deduction applies, Table 7 of this revenue procedure contains the revised dollar amount of the depreciation limitations for each taxable year. 1040ez tax tables For trucks or vans placed in service by the taxpayer in calendar year 2010 for which the § 168(k) additional first year depreciation deduction applies, Table 8 of this revenue procedure contains the revised dollar amount of the depreciation limitations for each taxable year. 1040ez tax tables If the § 168(k) additional first year depreciation deduction does not apply to a passenger automobile placed in service by the taxpayer in calendar year 2010, the depreciation limitations for each taxable year in Tables 1 and 2 of Rev. 1040ez tax tables Proc. 1040ez tax tables 2010-18 apply. 1040ez tax tables REV. 1040ez tax tables PROC. 1040ez tax tables 2011-21 TABLE 7 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2010 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 REV. 1040ez tax tables PROC. 1040ez tax tables 2011-21 TABLE 8 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2010 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 (3) Modification to lease inclusion amounts for 2010. 1040ez tax tables The lease inclusion amounts in Tables 3 and 4 of Rev. 1040ez tax tables Proc. 1040ez tax tables 2010-18 are modified by striking the first four lines of the inclusion amounts in each table. 1040ez tax tables Consequently, Table 3 of Rev. 1040ez tax tables Proc. 1040ez tax tables 2010-18 applies to passenger automobiles (other than trucks and vans) that are first leased by the taxpayer in calendar year 2010 with a fair market value over $18,500, and Table 4 of Rev. 1040ez tax tables Proc. 1040ez tax tables 2010-18 applies to trucks and vans that are first leased by the taxpayer in calendar year 2010 with a fair market value over $19,000. 1040ez tax tables SECTION 5. 1040ez tax tables EFFECTIVE DATE This revenue procedure, with the exception of section 4. 1040ez tax tables 03, applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2011. 1040ez tax tables Section 4. 1040ez tax tables 03 of this revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2010. 1040ez tax tables SECTION 6. 1040ez tax tables EFFECT ON OTHER DOCUMENTS Rev. 1040ez tax tables Proc. 1040ez tax tables 2010-18 is amplified and modified. 1040ez tax tables SECTION 7. 1040ez tax tables DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. 1040ez tax tables Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). 1040ez tax tables For further information regarding this revenue procedure, contact Mr. 1040ez tax tables Harvey at (202) 622-4930 (not a toll-free call). 1040ez tax tables Prev  Up  Next   Home   More Internal Revenue Bulletins