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

1040x Form 2011

2011 Tax Return FormFree State Taxs2010 1040ez Tax FormFree Tax Filing For UnemployedFree H And R Block Online1040ez HelpHow Do I Amend My 2011 Tax ReturnFree Tax FileTurbotax 2010 FreeTurbotax File 2010 Tax ReturnFirst Time Filing Taxes College Student2012 1040 Ez FormE-file State Taxes FreeTax Form 1040x Online1040 X FormFile 1040nr Ez OnlineIrs Extention FormsForm 1040ez 2013Free Ez FormTax Return Amendment2010 Tax Act Online LoginFreetaxusa 2012Free Taxes For Military1040x Forms OnlineIncome Tax Amendment FormFree Tax Software OnlineFederal Tax Ez Form 2011Free Tax Com2011 Tax FileCan I Efile A 2011 Tax Return2013 Tax Forms 1040ez2008 Amended Tax Return InstructionsTax Return FormHow To File An Amendment2008 Tax Form 1040Minimum Income To File TaxesCan I E File 1040xAmended Return Form 1040x2012 Income Tax Forms 1040ezNew Taxes

1040x Form 2011

1040x form 2011 Index Symbols 30% Tax, The 30% Tax , Residents of Canada or Mexico engaged in transportation-related employment. 1040x form 2011 , Students, teachers, and researchers. 1040x form 2011 A Accuracy-related penalties, Accuracy-related penalty. 1040x form 2011 Additional Medicare Tax, Additional Medicare Tax. 1040x form 2011 , Additional Medicare Tax. 1040x form 2011 Adoption credit Dual-status alien, Adoption credit. 1040x form 2011 Nonresident alien, Adoption credit. 1040x form 2011 Resident alien, Adoption credit. 1040x form 2011 Agricultural workers, Agricultural workers. 1040x form 2011 , Agricultural Workers Alien Nonresident, Nonresident Aliens, Nonresident Aliens, Nonresident Aliens Resident, Resident Aliens, Resident Aliens, Resident Aliens Alien status, employer notification of, Notification of Alien Status Alternative minimum tax, Alternative minimum tax. 1040x form 2011 Amended returns, Amended Returns and Claims for Refund American Samoa, residents of, Aliens From American Samoa or Puerto Rico, Special rules for aliens from certain U. 1040x form 2011 S. 1040x form 2011 possessions. 1040x form 2011 , Bona Fide Residents of American Samoa or Puerto Rico Annuities Income, Income from certain annuities. 1040x form 2011 Source rule, Pensions and Annuities Asset-use test, Asset-use test. 1040x form 2011 Assistance (see Tax help) Athletes, professional, Professional athletes. 1040x form 2011 Awards, Scholarships, Grants, Prizes, and Awards B Basis of property, Depreciable property. 1040x form 2011 Beneficiary of estate or trust, Beneficiary of an estate or trust. 1040x form 2011 Business expenses, ordinary and necessary, Ordinary and necessary business expenses. 1040x form 2011 Business operations, Business operations. 1040x form 2011 Business profits and losses and sales transactions, Business Profits and Losses and Sales Transactions Business, U. 1040x form 2011 S. 1040x form 2011 , Trade or Business in the United States Business-activities test, Business-activities test. 1040x form 2011 C Canada Commuters, Regular commuters from Canada or Mexico. 1040x form 2011 Exemptions, Exemptions Personal exemption, Resident Aliens Qualifying widow filing status, Qualifying widow(er). 1040x form 2011 Residents of, Residents of Mexico or Canada or U. 1040x form 2011 S. 1040x form 2011 nationals. 1040x form 2011 Social security benefits, Special Rule for Canadian and German Social Security Benefits Transportation-related employment, Residents of Canada or Mexico engaged in transportation-related employment. 1040x form 2011 Withholding tax, U. 1040x form 2011 S. 1040x form 2011 nationals or residents of Canada, Mexico, or South Korea. 1040x form 2011 Capital assets, sales or exchanges, Sales or Exchanges of Capital Assets Casualty and theft losses, Casualty and theft losses. 1040x form 2011 Central withholding agreements, Central withholding agreements. 1040x form 2011 Charitable contributions, Charitable contributions. 1040x form 2011 Child and dependent care credit Dual-status alien, Child and dependent care credit. 1040x form 2011 Nonresident alien, Child and dependent care credit. 1040x form 2011 Resident alien, Child and dependent care credit. 1040x form 2011 Child tax credit Resident alien, Child tax credit. 1040x form 2011 , Child tax credit. 1040x form 2011 , Child tax credit. 1040x form 2011 Claims for refund, Amended Returns and Claims for Refund Closer connection, Closer Connection to a Foreign Country Commodities, trading in, Trading in stocks, securities, and commodities. 1040x form 2011 Community income, Community Income Commuters from Canada or Mexico, Regular commuters from Canada or Mexico. 1040x form 2011 Compensation for labor or personal services Geographical basis, Geographical Basis Contingent interest, Contingent interest. 1040x form 2011 Credit for the elderly or the disabled Dual-status alien, 6) Tax credits. 1040x form 2011 Resident alien, Credit for the elderly or the disabled. 1040x form 2011 Credits against tax Child and dependent care credit, Child and dependent care credit. 1040x form 2011 , Child and dependent care credit. 1040x form 2011 Child tax credit, Child tax credit. 1040x form 2011 , Child tax credit. 1040x form 2011 , Child tax credit. 1040x form 2011 Credit for the elderly or the disabled, 6) Tax credits. 1040x form 2011 Dual-status alien, Credits Earned income credit, Earned income credit. 1040x form 2011 , 6) Tax credits. 1040x form 2011 Education credits, Education credits. 1040x form 2011 , Education credits. 1040x form 2011 , 6) Tax credits. 1040x form 2011 Excess social security tax withheld, Excess social security tax withheld. 1040x form 2011 Foreign tax credit, Foreign tax credit. 1040x form 2011 , Foreign tax credit. 1040x form 2011 Hope credit, Education credits. 1040x form 2011 , Education credits. 1040x form 2011 Lifetime learning credit, Education credits. 1040x form 2011 , Education credits. 1040x form 2011 Retirement savings contributions, Retirement savings contributions credit. 1040x form 2011 , Retirement savings contributions credit. 1040x form 2011 , Retirement savings contributions credit. 1040x form 2011 Tax paid on undistributed long-term capital gains, Tax paid on undistributed long-term capital gains. 1040x form 2011 Tax withheld at source, Tax withheld at the source. 1040x form 2011 Tax withheld on partnership income, Tax withheld on partnership income. 1040x form 2011 Withholding from wages, Withholding from wages. 1040x form 2011 Crew members Alien status, Crew members. 1040x form 2011 Compensation, Crew members. 1040x form 2011 Currency, transporting, Other Forms You May Have To File D Days of presence, Days of Presence in the United States De minimis presence, De minimis presence. 1040x form 2011 Deductions, Deductions, Itemized Deductions Departure permit, When to get a sailing or departure permit. 1040x form 2011 Depreciable property, Depreciable property. 1040x form 2011 Diplomats (see Foreign government employees) Direct economic relationship, Personal Service Income Disclosure statement, Disclosure statement. 1040x form 2011 Dividends, U. 1040x form 2011 S. 1040x form 2011 source income, Dividends Dual-status aliens, Dual-Status Aliens Dual-status tax year, Dual-Status Aliens, Dual-Status Tax Year Child care credit, Child and dependent care credit. 1040x form 2011 Computation of tax, How To Figure Tax Credit for the elderly or the disabled, 6) Tax credits. 1040x form 2011 Earned income credit, 6) Tax credits. 1040x form 2011 Education credit, 6) Tax credits. 1040x form 2011 Exemptions, 2) Exemptions. 1040x form 2011 Foreign tax credit, Foreign tax credit. 1040x form 2011 Forms to file, Forms To File Head of household. 1040x form 2011 , 3) Head of household. 1040x form 2011 Income subject to tax, Income Subject to Tax Joint return, 4) Joint return. 1040x form 2011 Residency ending date, Dual-Status Aliens Residency starting date, Dual-Status Aliens Restrictions, Restrictions for Dual-Status Taxpayers Standard deduction, 1) Standard deduction. 1040x form 2011 Tax rates, 5) Tax rates. 1040x form 2011 When and where to file, When and Where To File E Earned income credit Dual-status alien, 6) Tax credits. 1040x form 2011 Nonresident alien, Earned income credit. 1040x form 2011 Resident alien, Earned income credit. 1040x form 2011 Education credits Dual-status alien, 6) Tax credits. 1040x form 2011 Nonresident alien, Education credits. 1040x form 2011 Resident alien, Education credits. 1040x form 2011 Effectively connected income, Effectively Connected Income Foreign income, Foreign Income Investment income, Investment Income Pensions, Pensions. 1040x form 2011 Real property gain or loss, Real Property Gain or Loss Real property income choice, Income From Real Property Tax on, Tax on Effectively Connected Income Transportation income, Transportation Income Employees of foreign governments, Employees of foreign governments. 1040x form 2011 Employees of international organizations, Employees of international organizations. 1040x form 2011 Employees, household, Household employees. 1040x form 2011 Employees, withholding exemption under tax treaty, Employees and independent contractors. 1040x form 2011 Employer identification number, Employer identification number (EIN). 1040x form 2011 Estate, beneficiary, Beneficiary of an estate or trust. 1040x form 2011 Estimated tax, Paying Tax Through Withholding or Estimated Tax , Estimated Tax Form 1040-ES (NR) Excess social security tax, Excess social security tax withheld. 1040x form 2011 Exchange visitors, Exchange Visitors Income from foreign employer, Students and exchange visitors. 1040x form 2011 Social security and Medicare taxes, Students and Exchange Visitors Exclusions from gross income, Exclusions From Gross Income Annuities, Income from certain annuities. 1040x form 2011 Compensation from a foreign employer, Students and exchange visitors. 1040x form 2011 Gambling winnings, dog or horse racing, Gambling Winnings From Dog or Horse Racing Students and exchange visitors, Students and exchange visitors. 1040x form 2011 Treaty income, Income affected by treaties. 1040x form 2011 , Treaty Income Exempt individual, Exempt individual. 1040x form 2011 Exemption from withholding Employees, Employees and independent contractors. 1040x form 2011 Independent contractors, Employees and independent contractors. 1040x form 2011 Students, teachers, and researchers, Students, teachers, and researchers. 1040x form 2011 Exemptions Dual-status taxpayer, Exemptions Indian students and business apprentices, Students and business apprentices from India. 1040x form 2011 Nonresident alien, Exemptions Resident alien, Exemptions Residents of Mexico or Canada, Residents of Mexico or Canada or U. 1040x form 2011 S. 1040x form 2011 nationals. 1040x form 2011 Residents of South Korea, Residents of South Korea. 1040x form 2011 U. 1040x form 2011 S. 1040x form 2011 nationals, Residents of Mexico or Canada or U. 1040x form 2011 S. 1040x form 2011 nationals. 1040x form 2011 Expatriation tax, Expatriation Before June 4, 2004 F Fellowship grant Excludable, Scholarships and Fellowship Grants Source rule, Scholarships, Grants, Prizes, and Awards Withholding tax, Withholding on Scholarships and Fellowship Grants Filing requirements, Nonresident Aliens Filing returns, Figuring Your Tax Amended returns, Amended Returns and Claims for Refund Claims for refund, Amended Returns and Claims for Refund Commonwealth of the Northern Mariana Islands, Aliens from Guam or the Commonwealth of the Northern Mariana Islands. 1040x form 2011 Dual-status taxpayer, Forms To File Estimated tax, When to pay estimated tax. 1040x form 2011 Form 1040-C, Form 1040-C Form 1040NR, Figuring Your Tax, Nonresident Aliens Form 1040NR-EZ, Figuring Your Tax, Form 1040NR-EZ Form 2063, Form 2063 Guam, Aliens from Guam or the Commonwealth of the Northern Mariana Islands. 1040x form 2011 Nonresident alien, Figuring Your Tax U. 1040x form 2011 S. 1040x form 2011 Virgin Islands, Aliens from the U. 1040x form 2011 S. 1040x form 2011 Virgin Islands. 1040x form 2011 Who must file, Nonresident Aliens Filing status, Filing Status First-year choice, First-Year Choice Fixed or determinable income, Fixed or Determinable Income Foreign country, Foreign country. 1040x form 2011 Foreign earned income exclusion, Foreign Earned Income and Housing Amount Foreign employer, Employees of foreign persons, organizations, or offices. 1040x form 2011 , Foreign employer. 1040x form 2011 Foreign government employees Alien status, Foreign government-related individuals. 1040x form 2011 Exempt from U. 1040x form 2011 S. 1040x form 2011 tax, Employees of Foreign Governments and International Organizations Tax treaty exemption, Employees of Foreign Governments Foreign income subject to U. 1040x form 2011 S. 1040x form 2011 tax, Foreign Income Foreign organizations, charitable contributions to, Charitable contributions. 1040x form 2011 Foreign tax credit Dual-status alien, Foreign tax credit. 1040x form 2011 Nonresident alien, Foreign tax credit. 1040x form 2011 Resident alien, Foreign tax credit. 1040x form 2011 Forms, Form 8843. 1040x form 2011 1040-C, Form 1040-C 1040-ES(NR), Estimated Tax Form 1040-ES (NR) 1040NR, Nonresident Aliens 1040NR-EZ, Form 1040NR-EZ 1040X, Amended Returns and Claims for Refund 1042-S, Tax Withheld on Real Property Sales 1116, Foreign tax credit. 1040x form 2011 , Foreign tax credit. 1040x form 2011 , Foreign tax credit. 1040x form 2011 2063, Form 2063 2106, Deductible travel expenses. 1040x form 2011 2210, Penalty for failure to pay estimated income tax. 1040x form 2011 3903, Moving expenses. 1040x form 2011 4563, Residents of American Samoa. 1040x form 2011 4790 (see FinCEN 105) 6251, Alternative minimum tax. 1040x form 2011 8233, Employees and independent contractors. 1040x form 2011 8275, Disclosure statement. 1040x form 2011 8288, Credit for tax withheld. 1040x form 2011 8288-A, Credit for tax withheld. 1040x form 2011 8288-B, Withholding certificates. 1040x form 2011 8801, Credit for prior year minimum tax. 1040x form 2011 8805, Tax Withheld on Partnership Income, Tax Withheld on Real Property Sales 8833, Effect of Tax Treaties, Resident Aliens 8840, Form 8840. 1040x form 2011 8843, Form 8843. 1040x form 2011 8854, Reporting requirements. 1040x form 2011 FinCEN 105, Other Forms You May Have To File W-4, Withholding on Wages, Alternate Withholding Procedure, Form W-4. 1040x form 2011 W-7, Individual taxpayer identification number (ITIN). 1040x form 2011 W-8BEN, Income Entitled to Tax Treaty Benefits W-8ECI, Withholding on Pensions W-9, Notification of Alien Status Forms to file Dual-status alien, Forms To File Nonresident aliens, Nonresident Aliens Resident alien, Resident Aliens Sailing permits, Forms To File Free tax services, Free help with your tax return. 1040x form 2011 G Gambling winnings, dog or horse racing, Gambling Winnings From Dog or Horse Racing German social security benefits, Special Rule for Canadian and German Social Security Benefits Green card test, Green Card Test H Head of household Nonresident alien, Head of household. 1040x form 2011 Resident alien, Head of household. 1040x form 2011 Help (see Tax help) Home, sale of, Gain From the Sale of Your Main Home Household employees, Household employees. 1040x form 2011 I Identification number, taxpayer Defined, Identification Number Penalty for failure to supply, Failure to supply taxpayer identification number. 1040x form 2011 Income Community, Community Income Effectively connected, Effectively Connected Income Exclusions, Exclusions From Gross Income Fixed or determinable, Fixed or Determinable Income Foreign, Foreign Income From real property, Income From Real Property Income affected by treaties, Income affected by treaties. 1040x form 2011 Interest, Interest Income Investment, Investment Income Personal services, Personal Service Income Reporting, Reporting Your Income Sale of home, Gain From the Sale of Your Main Home Tip, Withholding on Tip Income Income code 28, Gambling Winnings Income from U. 1040x form 2011 S. 1040x form 2011 sources, Source of Income Dividends, Dividends Interest, Interest Income Pensions and annuities, Pensions and Annuities Personal property, Personal Property Personal services, Personal Services Real property, Real Property Rents or royalties, Rents or Royalties Independent contractors Withholding exemption under tax treaty, Employees and independent contractors. 1040x form 2011 Withholding rules, Independent Contractors India, students and business apprentices from Exemptions, Students and business apprentices from India. 1040x form 2011 Exemptions for spouse and dependents, Students and business apprentices from India. 1040x form 2011 Standard deduction, Students and business apprentices from India. 1040x form 2011 Withholding allowances, Students and business apprentices from India. 1040x form 2011 Individual retirement arrangement (IRA), Individual retirement arrangement (IRA). 1040x form 2011 Individual taxpayer identification number (ITIN), Individual taxpayer identification number (ITIN). 1040x form 2011 Intangible property, Intangible property. 1040x form 2011 Interest Portfolio, Portfolio interest. 1040x form 2011 , Interest that does not qualify as portfolio interest. 1040x form 2011 Interest income Contingent, Contingent interest. 1040x form 2011 Excludable, Interest Income Source rule, Interest Income International organization employees Alien status, Foreign government-related individuals. 1040x form 2011 Exempt from U. 1040x form 2011 S. 1040x form 2011 tax, Employees of Foreign Governments and International Organizations International social security agreements, International Social Security Agreements Interrupted period of residence, Interrupted Period of Residence Inventory, Inventory property. 1040x form 2011 Investment income, Investment Income Itemized deductions, Itemized Deductions J Job expenses, Job expenses and other miscellaneous deductions. 1040x form 2011 K Korea, South Exemptions, Residents of South Korea. 1040x form 2011 , Exemptions Married filing separately, Married nonresident alien. 1040x form 2011 Qualifying widow filing status, Qualifying widow(er). 1040x form 2011 Withholding tax, U. 1040x form 2011 S. 1040x form 2011 nationals or residents of Canada, Mexico, or South Korea. 1040x form 2011 L Last year of residency, Last Year of Residency Long-term U. 1040x form 2011 S. 1040x form 2011 resident Defined, Long-term resident defined. 1040x form 2011 Expatriation tax, Long-term resident defined. 1040x form 2011 Losses Business, Business Profits and Losses and Sales Transactions Capital Assets, Sales or Exchanges of Capital Assets Casualty and theft, Casualty and theft losses. 1040x form 2011 Of nonresident aliens, Losses. 1040x form 2011 Real property, Real Property Gain or Loss M Married filing jointly Nonresident alien, Married nonresident alien. 1040x form 2011 Resident alien, Married filing jointly. 1040x form 2011 Medical condition, Medical condition. 1040x form 2011 Medicare tax, Social Security and Medicare Taxes Mexico Commuters, Regular commuters from Canada or Mexico. 1040x form 2011 Exemptions, Exemptions Personal exemption, Resident Aliens Qualifying widow filing status, Qualifying widow(er). 1040x form 2011 Residents of, Residents of Mexico or Canada or U. 1040x form 2011 S. 1040x form 2011 nationals. 1040x form 2011 Transportation-related employment, Residents of Canada or Mexico engaged in transportation-related employment. 1040x form 2011 Withholding tax, U. 1040x form 2011 S. 1040x form 2011 nationals or residents of Canada, Mexico, or South Korea. 1040x form 2011 Miscellaneous deductions, Job expenses and other miscellaneous deductions. 1040x form 2011 Monetary instruments, transporting, Other Forms You May Have To File Moving expenses, Moving expenses. 1040x form 2011 Multi-level marketing, Multi-level marketing. 1040x form 2011 , Multi-level marketing. 1040x form 2011 Municipal bonds, State and local government obligations. 1040x form 2011 N National of the United States, Qualifying widow(er). 1040x form 2011 , 5) Tax rates. 1040x form 2011 , Withholding on Wages Natural resources (see Real property) Non-registered obligations, Obligations not in registered form. 1040x form 2011 Nonresident alien, Nonresident Aliens Annuity income, Income from certain annuities. 1040x form 2011 Business expenses, Ordinary and necessary business expenses. 1040x form 2011 Casualty and theft losses, Casualty and theft losses. 1040x form 2011 Charitable contributions, Charitable contributions. 1040x form 2011 Child care credit, Child and dependent care credit. 1040x form 2011 Credit for excess social security tax withheld, Excess social security tax withheld. 1040x form 2011 Credit for income tax withheld, Withholding from wages. 1040x form 2011 Credit for prior year minimum tax, Credit for prior year minimum tax. 1040x form 2011 Defined, Nonresident Aliens Earned income credit, Earned income credit. 1040x form 2011 Education credits, Education credits. 1040x form 2011 Effectively connected income, tax on, Tax on Effectively Connected Income Filing Form 1040NR, Figuring Your Tax Filing Form 1040NR-EZ, Figuring Your Tax Foreign tax credit, Foreign tax credit. 1040x form 2011 Gambling winnings, dog or horse racing, Gambling Winnings From Dog or Horse Racing Head of household, Head of household. 1040x form 2011 How income is taxed, Nonresident Aliens Individual retirement arrangement (IRA), Individual retirement arrangement (IRA). 1040x form 2011 Interest income, Interest Income Job expenses, Job expenses and other miscellaneous deductions. 1040x form 2011 Losses, Losses. 1040x form 2011 Married filing jointly, Married nonresident alien. 1040x form 2011 Miscellaneous deductions, Job expenses and other miscellaneous deductions. 1040x form 2011 Moving expenses, Moving expenses. 1040x form 2011 Personal exemptions, Exemptions Qualifying widow(er), Qualifying widow(er). 1040x form 2011 Standard deduction, Standard deduction. 1040x form 2011 State and local income taxes, State and local income taxes. 1040x form 2011 Students, Nonresident Alien Students Tax paid on undistributed long-term capital gains, Tax paid on undistributed long-term capital gains. 1040x form 2011 Tax withheld at source, Tax withheld at the source. 1040x form 2011 Travel expenses, Travel expenses. 1040x form 2011 Withholding from partnership income, Tax withheld on partnership income. 1040x form 2011 Withholding tax, Paying Tax Through Withholding or Estimated Tax Nonresident spouse treated as a resident, Nonresident Spouse Treated as a Resident O Obligations Not in registered form, Obligations not in registered form. 1040x form 2011 Registered, Obligations in registered form. 1040x form 2011 Original issue discount, Original issue discount (OID). 1040x form 2011 P Partnership Income, tax withheld on, Tax Withheld on Partnership Income Partnerships, Partnerships. 1040x form 2011 Payment against U. 1040x form 2011 S. 1040x form 2011 tax, Payments Tax withheld at the source, Tax withheld at the source. 1040x form 2011 Withholding from wages, Tax Withheld Penalties, Penalties. 1040x form 2011 , Penalties Accuracy-related, Accuracy-related penalty. 1040x form 2011 Failure to file, Filing late. 1040x form 2011 Failure to pay, Paying tax late. 1040x form 2011 Failure to supply taxpayer identification number, Failure to supply taxpayer identification number. 1040x form 2011 Fraud, Fraud. 1040x form 2011 Frivolous tax submission, Frivolous tax submission. 1040x form 2011 Negligence, Negligence or disregard. 1040x form 2011 Substantial understatement of income tax, Substantial understatement of income tax. 1040x form 2011 Penalty for failure to pay estimated income tax, Penalty for failure to pay estimated income tax. 1040x form 2011 Penalty on early withdrawal of savings, Penalty on early withdrawal of savings. 1040x form 2011 Pensions, Pensions. 1040x form 2011 Source rule, Pensions and Annuities Withholding on, Withholding on Pensions Personal exemption Prorating, Personal exemption. 1040x form 2011 Withholding allowance, Allowance for Personal Exemption Personal property, Personal Property Personal services income Connected with U. 1040x form 2011 S. 1040x form 2011 business, Personal Service Income Paid by foreign employer, Services Performed for Foreign Employer Source rule, Personal Services Tax treaty exemption, Personal Services Withholding on wages, Withholding on Wages Portfolio interest, Portfolio interest. 1040x form 2011 , Interest that does not qualify as portfolio interest. 1040x form 2011 Prizes, Scholarships, Grants, Prizes, and Awards Professional athletes, Professional athletes. 1040x form 2011 Property Depreciable, Depreciable property. 1040x form 2011 Intangible, Intangible property. 1040x form 2011 Inventory, Inventory property. 1040x form 2011 Personal, Personal Property Real, Real Property, Real Property Gain or Loss Protective return, Protective return. 1040x form 2011 Publications (see Tax help) Puerto Rico, residents of, Aliens From American Samoa or Puerto Rico, Special rules for aliens from certain U. 1040x form 2011 S. 1040x form 2011 possessions. 1040x form 2011 , Bona Fide Residents of American Samoa or Puerto Rico, Residents of American Samoa and Puerto Rico. 1040x form 2011 Q Qualified investment entity Distributions paid by, Qualified investment entities. 1040x form 2011 R Railroad retirement benefits, Social Security Benefits, Social security and railroad retirement benefits. 1040x form 2011 Real estate (see Real property) Real property Definition, Real Property Income from, Income From Real Property Natural resources, Natural resources. 1040x form 2011 Sale or exchange of, Real Property Gain or Loss Source rule, Real Property Tax withheld on sale of, Tax Withheld on Real Property Sales U. 1040x form 2011 S. 1040x form 2011 real property interest, U. 1040x form 2011 S. 1040x form 2011 real property interest. 1040x form 2011 Real property income, Real property income. 1040x form 2011 Refunds, claims for, Amended Returns and Claims for Refund Registered obligations, Obligations in registered form. 1040x form 2011 Rents, Rents or Royalties Researchers, wage withholding exemption under tax treaty, Students, teachers, and researchers. 1040x form 2011 , Appendix B—Tax Treaty Exemption Procedure for Teachers and Researchers Residence, interrupted, Interrupted Period of Residence Residency First year, First Year of Residency Last year, Last Year of Residency Starting date, Residency starting date under substantial presence test. 1040x form 2011 Termination date, Last Year of Residency Tests, Resident Aliens Resident alien, Resident Aliens Child tax credit, Child tax credit. 1040x form 2011 , Child tax credit. 1040x form 2011 , Child tax credit. 1040x form 2011 Defined, Resident Aliens Education credits, Education credits. 1040x form 2011 Head of household, Head of household. 1040x form 2011 Married filing jointly, Married filing jointly. 1040x form 2011 Qualifying widow(er), Qualifying widow(er). 1040x form 2011 Resident alien status, choosing, Choosing Resident Alien Status Retirement savings contributions credit Dual-status alien, Retirement savings contributions credit. 1040x form 2011 Nonresident alien, Retirement savings contributions credit. 1040x form 2011 Resident alien, Retirement savings contributions credit. 1040x form 2011 Royalties, Rents or Royalties S Sailing permits, departing aliens Aliens not requiring, Aliens Not Required To Obtain Sailing or Departure Permits Bond furnished, insuring tax payment, Paying Taxes and Obtaining Refunds Form 1040-C, Form 1040-C Form 2063, Form 2063 Forms to file, Forms To File When to get, When to get a sailing or departure permit. 1040x form 2011 Where to get, Where to get a sailing or departure permit. 1040x form 2011 Salary (see Personal services income) Sale of home, income from, Gain From the Sale of Your Main Home Sales or exchanges, capital assets, Sales or Exchanges of Capital Assets Scholarship Excludable, Scholarships and Fellowship Grants Source rule, Scholarships, Grants, Prizes, and Awards Withholding tax, Withholding on Scholarships and Fellowship Grants Securities, trading in, Trading in stocks, securities, and commodities. 1040x form 2011 Self-employed retirement plans, Self-employed SEP, SIMPLE, and qualified retirement plans. 1040x form 2011 Self-employment tax, Self-Employment Tax Social security benefits Dual-status alien, Social security and railroad retirement benefits. 1040x form 2011 Nonresident alien, Social Security Benefits Social security number, Social security number (SSN). 1040x form 2011 Social security tax Credit for excess tax withheld, Social Security and Medicare Taxes Excess withheld, Excess social security tax withheld. 1040x form 2011 Foreign students and exchange visitors, Students and Exchange Visitors International agreements, International Social Security Agreements Self-employment tax, Self-Employment Tax Totalization agreements, International Social Security Agreements Withheld in error, Refund of Taxes Withheld in Error Source of compensation for labor or personal services Alternative basis, Alternative Basis Multi-year compensation, Multi-year compensation. 1040x form 2011 Time basis, Time Basis Source of income, Source of Income Standard deduction, Standard deduction. 1040x form 2011 State and local income taxes, State and local income taxes. 1040x form 2011 Stocks, trading in, Trading in stocks, securities, and commodities. 1040x form 2011 Student loan interest expense, Student loan interest expense. 1040x form 2011 Students Alien status, Students. 1040x form 2011 Engaged in U. 1040x form 2011 S. 1040x form 2011 business, Students and trainees. 1040x form 2011 Fellowship grant, Scholarships, Grants, Prizes, and Awards, Withholding on Scholarships and Fellowship Grants Income from foreign employer, Students and exchange visitors. 1040x form 2011 Scholarship, Scholarships, Grants, Prizes, and Awards, Withholding on Scholarships and Fellowship Grants Social security and Medicare taxes, Students and Exchange Visitors Tax treaty exemption, Students, Apprentices, and Trainees Wage withholding exemption under tax treaty, Students, teachers, and researchers. 1040x form 2011 , Appendix A—Tax Treaty Exemption Procedure for Students Students and business apprentices from India, Students and business apprentices from India. 1040x form 2011 , Students and business apprentices from India. 1040x form 2011 , Students and business apprentices from India. 1040x form 2011 , Students and business apprentices from India. 1040x form 2011 Substantial presence test, Substantial Presence Test T Tax credits and payments Nonresident aliens, Nonresident Aliens Resident aliens, Tax Credits and Payments Tax help, How To Get Tax Help Tax home, Tax home. 1040x form 2011 , Tax home. 1040x form 2011 Tax paid on undistributed long-term capital gains, Tax paid on undistributed long-term capital gains. 1040x form 2011 Tax treaties Benefits, Treaty Income, Some Typical Tax Treaty Benefits Capital gains, Capital Gains Effect of, Effect of Tax Treaties Employees of foreign governments, Employees of Foreign Governments Exclusions from income, Income affected by treaties. 1040x form 2011 Income affected by, Income affected by treaties. 1040x form 2011 Reporting benefits claimed, Reporting Treaty Benefits Claimed Teachers and professors, Teachers, Professors, and Researchers Trainees, students, and apprentices, Students, Apprentices, and Trainees Tax Treaties Income entitled to benefits, Income Entitled to Tax Treaty Benefits Tax year, Tax Year, Tax Year Tax, expatriation, Expatriation Before June 4, 2004 Tax, transportation, Transportation Tax Taxpayer identification number Defined, Identification Number Penalty for failure to supply, Failure to supply taxpayer identification number. 1040x form 2011 Teachers Alien status, Teachers and trainees. 1040x form 2011 Tax treaty exemption, Teachers, Professors, and Researchers Wage withholding exemption under tax treaty, Students, teachers, and researchers. 1040x form 2011 , Appendix B—Tax Treaty Exemption Procedure for Teachers and Researchers Tie-breaker rule, Effect of Tax Treaties Tip income, Withholding on Tip Income Totalization agreements, International Social Security Agreements Trade or business, U. 1040x form 2011 S. 1040x form 2011 , Trade or Business in the United States Beneficiary of estate or trust, Beneficiary of an estate or trust. 1040x form 2011 Business operations, Business operations. 1040x form 2011 Income from U. 1040x form 2011 S. 1040x form 2011 sources, Effectively Connected Income Partnerships, Partnerships. 1040x form 2011 Personal services, Personal Services Students and trainees, Students and trainees. 1040x form 2011 Trading in stocks, securities, and commodities, Trading in stocks, securities, and commodities. 1040x form 2011 Trading in stocks, securities, and commodities, Trading in stocks, securities, and commodities. 1040x form 2011 Trainees, Teachers and trainees. 1040x form 2011 , Students and trainees. 1040x form 2011 Transportation income Connected with U. 1040x form 2011 S. 1040x form 2011 business, Transportation Income Source rule, Transportation Income Transportation of currency or monetary instruments, Other Forms You May Have To File Transportation tax, Transportation Tax Transportation-related employment, residents of Canada or Mexico, Residents of Canada or Mexico engaged in transportation-related employment. 1040x form 2011 Travel expenses, Travel expenses. 1040x form 2011 Treaties, income affected by, Income affected by treaties. 1040x form 2011 Treaty benefits for resident aliens, Resident Aliens Treaty benefits, reporting benefits claimed, Reporting Treaty Benefits Claimed Trust, beneficiary, Beneficiary of an estate or trust. 1040x form 2011 TTY/TDD information, How To Get Tax Help U U. 1040x form 2011 S Virgin Islands, residents of Withholding on wages, Residents of the U. 1040x form 2011 S. 1040x form 2011 Virgin Islands. 1040x form 2011 U. 1040x form 2011 S. 1040x form 2011 national, Qualifying widow(er). 1040x form 2011 , 5) Tax rates. 1040x form 2011 , Withholding on Wages U. 1040x form 2011 S. 1040x form 2011 real property holding corporation, U. 1040x form 2011 S. 1040x form 2011 real property holding corporation. 1040x form 2011 U. 1040x form 2011 S. 1040x form 2011 real property interest, U. 1040x form 2011 S. 1040x form 2011 real property interest. 1040x form 2011 U. 1040x form 2011 S. 1040x form 2011 tax-exempt income, expenses allocable to, Expenses allocable to U. 1040x form 2011 S. 1040x form 2011 tax-exempt income. 1040x form 2011 U. 1040x form 2011 S. 1040x form 2011 Virgin Islands, residents of Where to file, Aliens from the U. 1040x form 2011 S. 1040x form 2011 Virgin Islands. 1040x form 2011 W Wages (see Personal services income) Wages exempt from withholding, Wages Exempt From Withholding Wages, withholding on, Withholding on Wages Waiver of filing deadline, Waiver of filing deadline. 1040x form 2011 When to file, When To File, When to file for deductions and credits. 1040x form 2011 Where to file, When To File Who must file, Nonresident Aliens Withholding, Paying Tax Through Withholding or Estimated Tax , Withholding From Other Income Withholding tax Allowance for personal exemption, Allowance for Personal Exemption Central withholding agreements, Central withholding agreements. 1040x form 2011 Notification of alien status, Notification of Alien Status On sale of real property, Withholding of tax. 1040x form 2011 Pensions, Withholding on Pensions Puerto Rico, residents of, Residents of American Samoa and Puerto Rico. 1040x form 2011 Real property sales, Tax Withheld on Real Property Sales Residents of Canada, Mexico, or South Korea, U. 1040x form 2011 S. 1040x form 2011 nationals or residents of Canada, Mexico, or South Korea. 1040x form 2011 Scholarships and grants, Withholding on Scholarships and Fellowship Grants Social security taxes, Social Security and Medicare Taxes Tax treaty benefits, Income Entitled to Tax Treaty Benefits Tip income, Withholding on Tip Income U. 1040x form 2011 S. 1040x form 2011 nationals, U. 1040x form 2011 S. 1040x form 2011 nationals or residents of Canada, Mexico, or South Korea. 1040x form 2011 U. 1040x form 2011 S. 1040x form 2011 Virgin Islands, residents of, Residents of the U. 1040x form 2011 S. 1040x form 2011 Virgin Islands. 1040x form 2011 Wages, Withholding on Wages Wages exempt from, Wages Exempt From Withholding Where to report on the return, Tax Withheld Withholding from compensation, Withholding From Compensation Prev  Up     Home   More Online Publications
Print - Click this link to Print this page

New Two-Year Period to Adopt Restated Pre-approved DC Plans

The IRS expects to issue most opinion and advisory letters for the latest round of pre-approved defined contribution plans on March 31, 2014. Employers using pre-approved defined contribution plan documents must adopt plan documents restated for the 2010 Cumulative List by April 30, 2016 (Announcement 2014-16).

Determination letters for pre-approved defined contribution plans

Starting May 1, 2014, and ending April 30, 2016, employers can submit applications for individual determination letters for pre-approved defined contribution plans.

An employer who adopts a master & prototype plan (standardized or non-standardized) may not apply for its own determination letter on Form 5307, Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans (instructions) – instead, the employer should rely on the letter issued to the plan sponsor.

However, an adopting employer who made limited modifications to its volume submitter plan may apply for a determination letter on Form 5307. If the modifications are extensive, causing the plan to be treated as an individually designed plan, the employer must instead file Form 5300, Application for Determination for Employee Benefit Plan.

See Revenue Procedure 2014-6, sections 8 and 9 for more information on determination letter applications for pre-approved plans.

Additional resources

 

Page Last Reviewed or Updated: 27-Mar-2014

The 1040x Form 2011

1040x form 2011 4. 1040x form 2011   Sales and Trades of Investment Property Table of Contents IntroductionNominees. 1040x form 2011 Topics - This chapter discusses: Useful Items - You may want to see: What Is a Sale or Trade?Dividend versus sale or trade. 1040x form 2011 Worthless Securities Constructive Sales of Appreciated Financial Positions Section 1256 Contracts Marked to Market Basis of Investment PropertyCost Basis Basis Other Than Cost Adjusted Basis Stocks and Bonds How To Figure Gain or LossFair market value. 1040x form 2011 Debt paid off. 1040x form 2011 Payment of cash. 1040x form 2011 Special Rules for Mutual Funds Nontaxable TradesLike-Kind Exchanges Corporate Stocks Exchange of Shares In One Mutual Fund For Shares In Another Mutual Fund Insurance Policies and Annuities U. 1040x form 2011 S. 1040x form 2011 Treasury Notes or Bonds Transfers Between Spouses Related Party TransactionsGain on Sale or Trade of Depreciable Property Capital Gains and LossesCapital or Ordinary Gain or Loss Holding Period Nonbusiness Bad Debts Short Sales Wash Sales Options Straddles Sales of Stock to ESOPs or Certain Cooperatives Rollover of Gain From Publicly Traded Securities Gains on Qualified Small Business Stock Exclusion of Gain From DC Zone Assets Reporting Capital Gains and LossesException 1. 1040x form 2011 Exception 2. 1040x form 2011 Section 1256 contracts and straddles. 1040x form 2011 Market discount bonds. 1040x form 2011 File Form 1099-B or Form 1099-S with the IRS. 1040x form 2011 Capital Losses Capital Gain Tax Rates Special Rules for Traders in SecuritiesHow To Report Introduction This chapter explains the tax treatment of sales and trades of investment property. 1040x form 2011 Investment property. 1040x form 2011   This is property that produces investment income. 1040x form 2011 Examples include stocks, bonds, and Treasury bills and notes. 1040x form 2011 Property used in a trade or business is not investment property. 1040x form 2011 Form 1099-B. 1040x form 2011   If you sold property such as stocks, bonds, mutual funds, or certain commodities through a broker during the year, you should receive, for each sale, a Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or substitute statement, from the broker. 1040x form 2011 You should receive the statement by February 15 of the next year. 1040x form 2011 It will show the gross proceeds from the sale. 1040x form 2011 The IRS will also get a copy of Form 1099-B from the broker. 1040x form 2011   Use Form 1099-B (or substitute statement received from your broker) to complete Form 8949. 1040x form 2011 If you sold a covered security in 2013, your broker will send you a Form 1099-B (or substitute statement) that shows your basis. 1040x form 2011 This will help you complete Form 8949. 1040x form 2011 Generally, a covered security is a security you acquired after 2010, with certain exceptions explained in the Instructions for Form 8949. 1040x form 2011    For more information on Form 8949 and Schedule D (Form 1040), see Reporting Capital Gains and Losses in this chapter. 1040x form 2011 Also see the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040). 1040x form 2011 Nominees. 1040x form 2011   If someone receives gross proceeds as a nominee for you, that person will give you a Form 1099-B, which will show gross proceeds received on your behalf. 1040x form 2011   If you receive a Form 1099-B that includes gross proceeds belonging to another person, see Nominees , later under Reporting Capital Gains and Losses for more information. 1040x form 2011 Other property transactions. 1040x form 2011   Certain transfers of property are discussed in other IRS publications. 1040x form 2011 These include: Sale of your main home, discussed in Publication 523, Selling Your Home; Installment sales, covered in Publication 537; Various types of transactions involving business property, discussed in Publication 544, Sales and Other Dispositions of Assets; Transfers of property at death, covered in Publication 559; and Disposition of an interest in a passive activity, discussed in Publication 925. 1040x form 2011 Topics - This chapter discusses: What Is a Sale or Trade? , Basis of Investment Property , Adjusted Basis , How To Figure Gain or Loss , Nontaxable trades , Transfers Between Spouses , Related Party Transactions , Capital Gains and Losses , Reporting Capital Gains and Losses , and Special Rules for Traders in Securities . 1040x form 2011 Useful Items - You may want to see: Publication 551 Basis of Assets Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 6781 Gains and Losses From Section 1256 Contracts and Straddles 8582 Passive Activity Loss Limitations 8824 Like-Kind Exchanges 8949 Sales and Other Dispositions of Capital Assets See chapter 5, How To Get Tax Help , for information about getting these publications and forms. 1040x form 2011 What Is a Sale or Trade? This section explains what is a sale or trade. 1040x form 2011 It also explains certain transactions and events that are treated as sales or trades. 1040x form 2011 A sale is generally a transfer of property for money or a mortgage, note, or other promise to pay money. 1040x form 2011 A trade is a transfer of property for other property or services, and may be taxed in the same way as a sale. 1040x form 2011 Sale and purchase. 1040x form 2011   Ordinarily, a transaction is not a trade when you voluntarily sell property for cash and immediately buy similar property to replace it. 1040x form 2011 The sale and purchase are two separate transactions. 1040x form 2011 But see Like-Kind Exchanges under Nontaxable Trades, later. 1040x form 2011 Redemption of stock. 1040x form 2011   A redemption of stock is treated as a sale or trade and is subject to the capital gain or loss provisions unless the redemption is a dividend or other distribution on stock. 1040x form 2011 Dividend versus sale or trade. 1040x form 2011   Whether a redemption is treated as a sale, trade, dividend, or other distribution depends on the circumstances in each case. 1040x form 2011 Both direct and indirect ownership of stock will be considered. 1040x form 2011 The redemption is treated as a sale or trade of stock if: The redemption is not essentially equivalent to a dividend — see Dividends and Other Distributions in chapter 1, There is a substantially disproportionate redemption of stock, There is a complete redemption of all the stock of the corporation owned by the shareholder, or The redemption is a distribution in partial liquidation of a corporation. 1040x form 2011 Redemption or retirement of bonds. 1040x form 2011   A redemption or retirement of bonds or notes at their maturity generally is treated as a sale or trade. 1040x form 2011 See Stocks, stock rights, and bonds and Discounted Debt Instruments under Capital or Ordinary Gain or Loss, later. 1040x form 2011   In addition, a significant modification of a bond is treated as a trade of the original bond for a new bond. 1040x form 2011 For details, see Regulations section 1. 1040x form 2011 1001-3. 1040x form 2011 Surrender of stock. 1040x form 2011   A surrender of stock by a dominant shareholder who retains ownership of more than half of the corporation's voting shares is treated as a contribution to capital rather than as an immediate loss deductible from taxable income. 1040x form 2011 The surrendering shareholder must reallocate his or her basis in the surrendered shares to the shares he or she retains. 1040x form 2011 Trade of investment property for an annuity. 1040x form 2011   The transfer of investment property to a corporation, trust, fund, foundation, or other organization, in exchange for a fixed annuity contract that will make guaranteed annual payments to you for life, is a taxable trade. 1040x form 2011 If the present value of the annuity is more than your basis in the property traded, you have a taxable gain in the year of the trade. 1040x form 2011 Figure the present value of the annuity according to factors used by commercial insurance companies issuing annuities. 1040x form 2011 Transfer by inheritance. 1040x form 2011   The transfer of property of a decedent to the executor or administrator of the estate, or to the heirs or beneficiaries, is not a sale or other disposition. 1040x form 2011 No taxable gain or deductible loss results from the transfer. 1040x form 2011 Termination of certain rights and obligations. 1040x form 2011   The cancellation, lapse, expiration, or other termination of a right or obligation (other than a securities futures contract) with respect to property that is a capital asset (or that would be a capital asset if you acquired it) is treated as a sale. 1040x form 2011 Any gain or loss is treated as a capital gain or loss. 1040x form 2011   This rule does not apply to the retirement of a debt instrument. 1040x form 2011 See Redemption or retirement of bonds , earlier. 1040x form 2011 Worthless Securities Stocks, stock rights, and bonds (other than those held for sale by a securities dealer) that became completely worthless during the tax year are treated as though they were sold on the last day of the tax year. 1040x form 2011 This affects whether your capital loss is long term or short term. 1040x form 2011 See Holding Period , later. 1040x form 2011 Worthless securities also include securities that you abandon after March 12, 2008. 1040x form 2011 To abandon a security, you must permanently surrender and relinquish all rights in the security and receive no consideration in exchange for it. 1040x form 2011 All the facts and circumstances determine whether the transaction is properly characterized as an abandonment or other type of transaction, such as an actual sale or exchange, contribution to capital, dividend, or gift. 1040x form 2011 If you are a cash basis taxpayer and make payments on a negotiable promissory note that you issued for stock that became worthless, you can deduct these payments as losses in the years you actually make the payments. 1040x form 2011 Do not deduct them in the year the stock became worthless. 1040x form 2011 How to report loss. 1040x form 2011   Report worthless securities in Form 8949, Part I or Part II, whichever applies. 1040x form 2011    Report your worthless securities transactions on Form 8949 with the correct box checked for these transactions. 1040x form 2011 See Form 8949 and the Instructions for Form 8949. 1040x form 2011 Filing a claim for refund. 1040x form 2011   If you do not claim a loss for a worthless security on your original return for the year it becomes worthless, you can file a claim for a credit or refund due to the loss. 1040x form 2011 You must use Form 1040X, Amended U. 1040x form 2011 S. 1040x form 2011 Individual Income Tax Return, to amend your return for the year the security became worthless. 1040x form 2011 You must file it within 7 years from the date your original return for that year had to be filed, or 2 years from the date you paid the tax, whichever is later. 1040x form 2011 (Claims not due to worthless securities or bad debts generally must be filed within 3 years from the date a return is filed, or 2 years from the date the tax is paid, whichever is later. 1040x form 2011 ) For more information about filing a claim, see Publication 556. 1040x form 2011 Constructive Sales of Appreciated Financial Positions You are treated as having made a constructive sale when you enter into certain transactions involving an appreciated financial position (defined later) in stock, a partnership interest, or certain debt instruments. 1040x form 2011 You must recognize gain as if the position were disposed of at its fair market value on the date of the constructive sale. 1040x form 2011 This gives you a new holding period for the position that begins on the date of the constructive sale. 1040x form 2011 Then, when you close the transaction, you reduce your gain (or increase your loss) by the gain recognized on the constructive sale. 1040x form 2011 Constructive sale. 1040x form 2011   You are treated as having made a constructive sale of an appreciated financial position if you: Enter into a short sale of the same or substantially identical property, Enter into an offsetting notional principal contract relating to the same or substantially identical property, Enter into a futures or forward contract to deliver the same or substantially identical property (including a forward contract that provides for cash settlement), or Acquire the same or substantially identical property (if the appreciated financial position is a short sale, an offsetting notional principal contract, or a futures or forward contract). 1040x form 2011   You are also treated as having made a constructive sale of an appreciated financial position if a person related to you enters into a transaction described above with a view toward avoiding the constructive sale treatment. 1040x form 2011 For this purpose, a related person is any related party described under Related Party Transactions , later in this chapter. 1040x form 2011 Exception for nonmarketable securities. 1040x form 2011   You are not treated as having made a constructive sale solely because you entered into a contract for sale of any stock, debt instrument, or partnership interest that is not a marketable security if it settles within 1 year of the date you enter into it. 1040x form 2011 Exception for certain closed transactions. 1040x form 2011   Do not treat a transaction as a constructive sale if all of the following are true. 1040x form 2011 You closed the transaction on or before the 30th day after the end of your tax year. 1040x form 2011 You held the appreciated financial position throughout the 60-day period beginning on the date you closed the transaction. 1040x form 2011 Your risk of loss was not reduced at any time during that 60-day period by holding certain other positions. 1040x form 2011   If a closed transaction is reestablished in a substantially similar position during the 60-day period beginning on the date the first transaction was closed, this exception still applies if the reestablished position is closed before the 30th day after the end of your tax year in which the first transaction was closed and, after that closing, (2) and (3) above are true. 1040x form 2011   This exception also applies to successive short sales of an entire appreciated financial position. 1040x form 2011 For more information, see Revenue Ruling 2003-1 in Internal Revenue Bulletin 2003-3. 1040x form 2011 This bulletin is available at www. 1040x form 2011 irs. 1040x form 2011 gov/pub/irs-irbs/irb03-03. 1040x form 2011 pdf. 1040x form 2011 Appreciated financial position. 1040x form 2011   This is any interest in stock, a partnership interest, or a debt instrument (including a futures or forward contract, a short sale, or an option) if disposing of the interest would result in a gain. 1040x form 2011 Exceptions. 1040x form 2011   An appreciated financial position does not include the following. 1040x form 2011 Any position from which all of the appreciation is accounted for under marked-to-market rules, including section 1256 contracts (described later under Section 1256 Contracts Marked to Market ). 1040x form 2011 Any position in a debt instrument if: The position unconditionally entitles the holder to receive a specified principal amount, The interest payments (or other similar amounts) with respect to the position are payable at a fixed rate or a variable rate described in Regulations section 1. 1040x form 2011 860G-1(a)(3), and The position is not convertible, either directly or indirectly, into stock of the issuer (or any related person). 1040x form 2011 Any hedge with respect to a position described in (2). 1040x form 2011 Certain trust instruments treated as stock. 1040x form 2011   For the constructive sale rules, an interest in an actively traded trust is treated as stock unless substantially all of the value of the property held by the trust is debt that qualifies for the exception to the definition of an appreciated financial position (explained in (2) above). 1040x form 2011 Sale of appreciated financial position. 1040x form 2011   A transaction treated as a constructive sale of an appreciated financial position is not treated as a constructive sale of any other appreciated financial position, as long as you continue to hold the original position. 1040x form 2011 However, if you hold another appreciated financial position and dispose of the original position before closing the transaction that resulted in the constructive sale, you are treated as if, at the same time, you constructively sold the other appreciated financial position. 1040x form 2011 Section 1256 Contracts Marked to Market If you hold a section 1256 contract at the end of the tax year, you generally must treat it as sold at its fair market value on the last business day of the tax year. 1040x form 2011 Section 1256 Contract A section 1256 contract is any: Regulated futures contract, Foreign currency contract, Nonequity option, Dealer equity option, or Dealer securities futures contract. 1040x form 2011 Exceptions. 1040x form 2011   A section 1256 contract does not include: Interest rate swaps, Currency swaps, Basis swaps, Interest rate caps, Interest rate floors, Commodity swaps, Equity swaps, Equity index swaps, Credit default swaps, or Similar agreements. 1040x form 2011 For more details, including definitions of these terms, see section 1256. 1040x form 2011 Regulated futures contract. 1040x form 2011   This is a contract that: Provides that amounts which must be deposited to, or can be withdrawn from, your margin account depend on daily market conditions (a system of marking to market), and Is traded on, or subject to the rules of, a qualified board of exchange. 1040x form 2011 A qualified board of exchange is a domestic board of trade designated as a contract market by the Commodity Futures Trading Commission, any board of trade or exchange approved by the Secretary of the Treasury, or a national securities exchange registered with the Securities and Exchange Commission. 1040x form 2011 Foreign currency contract. 1040x form 2011   This is a contract that: Requires delivery of a foreign currency that has positions traded through regulated futures contracts (or settlement of which depends on the value of that type of foreign currency), Is traded in the interbank market, and Is entered into at arm's length at a price determined by reference to the price in the interbank market. 1040x form 2011   Bank forward contracts with maturity dates longer than the maturities ordinarily available for regulated futures contracts are considered to meet the definition of a foreign currency contract if the above three conditions are satisfied. 1040x form 2011   Special rules apply to certain foreign currency transactions. 1040x form 2011 These transactions may result in ordinary gain or loss treatment. 1040x form 2011 For details, see Internal Revenue Code section 988 and Regulations sections 1. 1040x form 2011 988-1(a)(7) and 1. 1040x form 2011 988-3. 1040x form 2011 Nonequity option. 1040x form 2011   This is any listed option (defined later) that is not an equity option. 1040x form 2011 Nonequity options include debt options, commodity futures options, currency options, and broad-based stock index options. 1040x form 2011 A broad-based stock index is based on the value of a group of diversified stocks or securities (such as the Standard and Poor's 500 index). 1040x form 2011 Warrants based on a stock index that are economically, substantially identical in all material respects to options based on a stock index are treated as options based on a stock index. 1040x form 2011 Cash-settled options. 1040x form 2011   Cash-settled options based on a stock index and either traded on or subject to the rules of a qualified board of exchange are nonequity options if the Securities and Exchange Commission (SEC) determines that the stock index is broad based. 1040x form 2011   This rule does not apply to options established before the SEC determines that the stock index is broad based. 1040x form 2011 Listed option. 1040x form 2011   This is any option traded on, or subject to the rules of, a qualified board or exchange (as discussed earlier under Regulated futures contract). 1040x form 2011 A listed option, however, does not include an option that is a right to acquire stock from the issuer. 1040x form 2011 Dealer equity option. 1040x form 2011   This is any listed option that, for an options dealer: Is an equity option, Is bought or granted by that dealer in the normal course of the dealer's business activity of dealing in options, and Is listed on the qualified board of exchange where that dealer is registered. 1040x form 2011   An “options dealer” is any person registered with an appropriate national securities exchange as a market maker or specialist in listed options. 1040x form 2011 Equity option. 1040x form 2011   This is any option: To buy or sell stock, or That is valued directly or indirectly by reference to any stock or narrow-based security index. 1040x form 2011  Equity options include options on a group of stocks only if the group is a narrow-based stock index. 1040x form 2011 Dealer securities futures contract. 1040x form 2011   For any dealer in securities futures contracts or options on those contracts, this is a securities futures contract (or option on such a contract) that: Is entered into by the dealer (or, in the case of an option, is purchased or granted by the dealer) in the normal course of the dealer's activity of dealing in this type of contract (or option), and Is traded on a qualified board or exchange (as defined under Regulated futures contract , earlier). 1040x form 2011 A securities futures contract that is not a dealer securities futures contract is treated as described later under Securities Futures Contracts . 1040x form 2011 Marked-to-Market Rules A section 1256 contract that you hold at the end of the tax year will generally be treated as sold at its fair market value on the last business day of the tax year, and you must recognize any gain or loss that results. 1040x form 2011 That gain or loss is taken into account in figuring your gain or loss when you later dispose of the contract, as shown in the example under 60/40 rule, below. 1040x form 2011 Hedging exception. 1040x form 2011   The marked-to-market rules do not apply to hedging transactions. 1040x form 2011 See Hedging Transactions , later. 1040x form 2011 60/40 rule. 1040x form 2011   Under the marked-to-market system, 60% of your capital gain or loss will be treated as a long-term capital gain or loss, and 40% will be treated as a short-term capital gain or loss. 1040x form 2011 This is true regardless of how long you actually held the property. 1040x form 2011 Example. 1040x form 2011 On June 22, 2012, you bought a regulated futures contract for $50,000. 1040x form 2011 On December 31, 2012 (the last business day of your tax year), the fair market value of the contract was $57,000. 1040x form 2011 You recognized a $7,000 gain on your 2012 tax return, treated as 60% long-term and 40% short-term capital gain. 1040x form 2011 On February 1, 2013, you sold the contract for $56,000. 1040x form 2011 Because you recognized a $7,000 gain on your 2012 return, you recognize a $1,000 loss ($57,000 − $56,000) on your 2013 tax return, treated as 60% long-term and 40% short-term capital loss. 1040x form 2011 Limited partners or entrepreneurs. 1040x form 2011   The 60/40 rule does not apply to dealer equity options or dealer securities futures contracts that result in capital gain or loss allocable to limited partners or limited entrepreneurs (defined later under Hedging Transactions ). 1040x form 2011 Instead, these gains or losses are treated as short term. 1040x form 2011 Terminations and transfers. 1040x form 2011   The marked-to-market rules also apply if your obligation or rights under section 1256 contracts are terminated or transferred during the tax year. 1040x form 2011 In this case, use the fair market value of each section 1256 contract at the time of termination or transfer to determine the gain or loss. 1040x form 2011 Terminations or transfers may result from any offsetting, delivery, exercise, assignment, or lapse of your obligation or rights under section 1256 contracts. 1040x form 2011 Loss carryback election. 1040x form 2011   An individual having a net section 1256 contracts loss (defined later), generally can elect to carry this loss back 3 years instead of carrying it over to the next year. 1040x form 2011 See How To Report , later, for information about reporting this election on your return. 1040x form 2011   The loss carried back to any year under this election cannot be more than the net section 1256 contracts gain in that year. 1040x form 2011 In addition, the amount of loss carried back to an earlier tax year cannot increase or produce a net operating loss for that year. 1040x form 2011   The loss is carried to the earliest carryback year first, and any unabsorbed loss amount can then be carried to each of the next 2 tax years. 1040x form 2011 In each carryback year, treat 60% of the carryback amount as a long-term capital loss and 40% as a short-term capital loss from section 1256 contracts. 1040x form 2011   If only a portion of the net section 1256 contracts loss is absorbed by carrying the loss back, the unabsorbed portion can be carried forward, under the capital loss carryover rules, to the year following the loss. 1040x form 2011 (See Capital Losses under Reporting Capital Gains and Losses, later. 1040x form 2011 ) Figure your capital loss carryover as if, for the loss year, you had an additional short-term capital gain of 40% of the amount of net section 1256 contracts loss absorbed in the carryback years and an additional long-term capital gain of 60% of the absorbed loss. 1040x form 2011 In the carryover year, treat any capital loss carryover from losses on section 1256 contracts as if it were a loss from section 1256 contracts for that year. 1040x form 2011 Net section 1256 contracts loss. 1040x form 2011   This loss is the lesser of: The net capital loss for your tax year determined by taking into account only the gains and losses from section 1256 contracts, or The capital loss carryover to the next tax year determined without this election. 1040x form 2011 Net section 1256 contracts gain. 1040x form 2011   This gain is the lesser of: The capital gain net income for the carryback year determined by taking into account only gains and losses from section 1256 contracts, or The capital gain net income for that year. 1040x form 2011  Figure your net section 1256 contracts gain for any carryback year without regard to the net section 1256 contracts loss for the loss year or any later tax year. 1040x form 2011 Traders in section 1256 contracts. 1040x form 2011   Gain or loss from the trading of section 1256 contracts is capital gain or loss subject to the marked-to-market rules. 1040x form 2011 However, this does not apply to contracts held for purposes of hedging property if any loss from the property would be an ordinary loss. 1040x form 2011 Treatment of underlying property. 1040x form 2011   The determination of whether an individual's gain or loss from any property is ordinary or capital gain or loss is made without regard to the fact that the individual is actively engaged in dealing in or trading section 1256 contracts related to that property. 1040x form 2011 How To Report If you disposed of regulated futures or foreign currency contracts in 2013 (or had unrealized profit or loss on these contracts that were open at the end of 2012 or 2013), you should receive Form 1099-B, or substitute statement, from your broker. 1040x form 2011 Form 6781. 1040x form 2011   Use Part I of Form 6781 to report your gains and losses from all section 1256 contracts that are open at the end of the year or that were closed out during the year. 1040x form 2011 This includes the amount shown in box 10 of Form 1099-B. 1040x form 2011 Then enter the net amount of these gains and losses on Schedule D (Form 1040), line 4 or line 11, as appropriate. 1040x form 2011 Include a copy of Form 6781 with your income tax return. 1040x form 2011   If the Form 1099-B you receive includes a straddle or hedging transaction, defined later, it may be necessary to show certain adjustments on Form 6781. 1040x form 2011 Follow the Form 6781 instructions for completing Part I. 1040x form 2011 Loss carryback election. 1040x form 2011   To carry back your loss under the election procedures described earlier, file Form 1040X or Form 1045, Application for Tentative Refund, for the year to which you are carrying the loss with an amended Form 6781 and an amended Schedule D (Form 1040) attached. 1040x form 2011 Follow the instructions for completing Form 6781 for the loss year to make this election. 1040x form 2011 Hedging Transactions The marked-to-market rules, described earlier, do not apply to hedging transactions. 1040x form 2011 A transaction is a hedging transaction if both of the following conditions are met. 1040x form 2011 You entered into the transaction in the normal course of your trade or business primarily to manage the risk of: Price changes or currency fluctuations on ordinary property you hold (or will hold), or Interest rate or price changes, or currency fluctuations, on your current or future borrowings or ordinary obligations. 1040x form 2011 You clearly identified the transaction as being a hedging transaction before the close of the day on which you entered into it. 1040x form 2011 This hedging transaction exception does not apply to transactions entered into by or for any syndicate. 1040x form 2011 A syndicate is a partnership, S corporation, or other entity (other than a regular corporation) that allocates more than 35% of its losses to limited partners or limited entrepreneurs. 1040x form 2011 A limited entrepreneur is a person who has an interest in an enterprise (but not as a limited partner) and who does not actively participate in its management. 1040x form 2011 However, an interest is not considered held by a limited partner or entrepreneur if the interest holder actively participates (or did so for at least 5 full years) in the management of the entity, or is the spouse, child (including a legally adopted child), grandchild, or parent of an individual who actively participates in the management of the entity. 1040x form 2011 Hedging loss limit. 1040x form 2011   If you are a limited partner or entrepreneur in a syndicate, the amount of a hedging loss you can claim is limited. 1040x form 2011 A “hedging loss” is the amount by which the allowable deductions in a tax year that resulted from a hedging transaction (determined without regard to the limit) are more than the income received or accrued during the tax year from this transaction. 1040x form 2011   Any hedging loss allocated to you for the tax year is limited to your taxable income for that year from the trade or business in which the hedging transaction occurred. 1040x form 2011 Ignore any hedging transaction items in determining this taxable income. 1040x form 2011 If you have a hedging loss that is disallowed because of this limit, you can carry it over to the next tax year as a deduction resulting from a hedging transaction. 1040x form 2011   If the hedging transaction relates to property other than stock or securities, the limit on hedging losses applies if the limited partner or entrepreneur is an individual. 1040x form 2011   The limit on hedging losses does not apply to any hedging loss to the extent that it is more than all your unrecognized gains from hedging transactions at the end of the tax year that are from the trade or business in which the hedging transaction occurred. 1040x form 2011 The term “unrecognized gain” has the same meaning as defined under Loss Deferral Rules in Straddles, later. 1040x form 2011 Sale of property used in a hedge. 1040x form 2011   Once you identify personal property as being part of a hedging transaction, you must treat gain from its sale or exchange as ordinary income, not capital gain. 1040x form 2011 Self-Employment Income Gains and losses derived in the ordinary course of a commodity or option dealer's trading in section 1256 contracts and property related to these contracts are included in net earnings from self-employment. 1040x form 2011 See the Instructions for Schedule SE (Form 1040). 1040x form 2011 In addition, the rules relating to contributions to self-employment retirement plans apply. 1040x form 2011 For information on retirement plan contributions, see Publication 560 and Publication 590. 1040x form 2011 Basis of Investment Property Basis is a way of measuring your investment in property for tax purposes. 1040x form 2011 You must know the basis of your property to determine whether you have a gain or loss on its sale or other disposition. 1040x form 2011 Investment property you buy normally has an original basis equal to its cost. 1040x form 2011 If you get property in some way other than buying it, such as by gift or inheritance, its fair market value may be important in figuring the basis. 1040x form 2011 Cost Basis The basis of property you buy is usually its cost. 1040x form 2011 The cost is the amount you pay in cash, debt obligations, or other property or services. 1040x form 2011 Unstated interest. 1040x form 2011   If you buy property on a time-payment plan that charges little or no interest, the basis of your property is your stated purchase price, minus the amount considered to be unstated interest. 1040x form 2011 You generally have unstated interest if your interest rate is less than the applicable federal rate. 1040x form 2011 For more information, see Unstated Interest and Original Issue Discount (OID) in Publication 537. 1040x form 2011 Basis Other Than Cost There are times when you must use a basis other than cost. 1040x form 2011 In these cases, you may need to know the property's fair market value or the adjusted basis of the previous owner. 1040x form 2011 Fair market value. 1040x form 2011   This is the price at which the property would change hands between a buyer and a seller, neither being forced to buy or sell and both having reasonable knowledge of all the relevant facts. 1040x form 2011 Sales of similar property, around the same date, may be helpful in figuring fair market value. 1040x form 2011 Property Received for Services If you receive investment property for services, you must include the property's fair market value in income. 1040x form 2011 The amount you include in income then becomes your basis in the property. 1040x form 2011 If the services were performed for a price that was agreed to beforehand, this price will be accepted as the fair market value of the property if there is no evidence to the contrary. 1040x form 2011 Restricted property. 1040x form 2011   If you receive, as payment for services, property that is subject to certain restrictions, your basis in the property generally is its fair market value when it becomes substantially vested. 1040x form 2011 Property becomes substantially vested when it is transferable or is no longer subject to substantial risk of forfeiture, whichever happens first. 1040x form 2011 See Restricted Property in Publication 525 for more information. 1040x form 2011 Bargain purchases. 1040x form 2011   If you buy investment property at less than fair market value, as payment for services, you must include the difference in income. 1040x form 2011 Your basis in the property is the price you pay plus the amount you include in income. 1040x form 2011 Property Received in Taxable Trades If you received investment property in trade for other property, the basis of the new property is its fair market value at the time of the trade unless you received the property in a nontaxable trade. 1040x form 2011 Example. 1040x form 2011 You trade A Company stock for B Company stock having a fair market value of $1,200. 1040x form 2011 If the adjusted basis of the A Company stock is less than $1,200, you have a taxable gain on the trade. 1040x form 2011 If the adjusted basis of the A Company stock is more than $1,200, you have a deductible loss on the trade. 1040x form 2011 The basis of your B Company stock is $1,200. 1040x form 2011 If you later sell the B Company stock for $1,300, you will have a gain of $100. 1040x form 2011 Property Received in Nontaxable Trades If you have a nontaxable trade, you do not recognize gain or loss until you dispose of the property you received in the trade. 1040x form 2011 See Nontaxable Trades , later. 1040x form 2011 The basis of property you received in a nontaxable or partly nontaxable trade is generally the same as the adjusted basis of the property you gave up. 1040x form 2011 Increase this amount by any cash you paid, additional costs you had, and any gain recognized. 1040x form 2011 Reduce this amount by any cash or unlike property you received, any loss recognized, and any liability of yours that was assumed or treated as assumed. 1040x form 2011 Property Received From Your Spouse If property is transferred to you from your spouse (or former spouse, if the transfer is incident to your divorce), your basis is the same as your spouse's or former spouse's adjusted basis just before the transfer. 1040x form 2011 See Transfers Between Spouses , later. 1040x form 2011 Recordkeeping. 1040x form 2011 The transferor must give you the records necessary to determine the adjusted basis and holding period of the property as of the date of the transfer. 1040x form 2011 Property Received as a Gift To figure your basis in property that you received as a gift, you must know its adjusted basis to the donor just before it was given to you, its fair market value at the time it was given to you, the amount of any gift tax paid on it, and the date it was given to you. 1040x form 2011 Fair market value less than donor's adjusted basis. 1040x form 2011   If the fair market value of the property at the time of the gift was less than the donor's adjusted basis just before the gift, your basis for gain on its sale or other disposition is the same as the donor's adjusted basis plus or minus any required adjustments to basis during the period you hold the property. 1040x form 2011 Your basis for loss is its fair market value at the time of the gift plus or minus any required adjustments to basis during the period you hold the property. 1040x form 2011 No gain or loss. 1040x form 2011   If you use the basis for figuring a gain and the result is a loss, and then use the basis for figuring a loss and the result is a gain, you will have neither a gain nor a loss. 1040x form 2011 Example. 1040x form 2011 You receive a gift of investment property having an adjusted basis of $10,000 at the time of the gift. 1040x form 2011 The fair market value at the time of the gift is $9,000. 1040x form 2011 You later sell the property for $9,500. 1040x form 2011 You have neither gain nor loss. 1040x form 2011 Your basis for figuring gain is $10,000, and $9,500 minus $10,000 results in a $500 loss. 1040x form 2011 Your basis for figuring loss is $9,000, and $9,500 minus $9,000 results in a $500 gain. 1040x form 2011 Fair market value equal to or more than donor's adjusted basis. 1040x form 2011   If the fair market value of the property at the time of the gift was equal to or more than the donor's adjusted basis just before the gift, your basis for gain or loss on its sale or other disposition is the donor's adjusted basis plus or minus any required adjustments to basis during the period you hold the property. 1040x form 2011 Also, you may be allowed to add to the donor's adjusted basis all or part of any gift tax paid, depending on the date of the gift. 1040x form 2011 Gift received before 1977. 1040x form 2011   If you received property as a gift before 1977, your basis in the property is the donor's adjusted basis increased by the total gift tax paid on the gift. 1040x form 2011 However, your basis cannot be more than the fair market value of the gift at the time it was given to you. 1040x form 2011 Example 1. 1040x form 2011 You were given XYZ Company stock in 1976. 1040x form 2011 At the time of the gift, the stock had a fair market value of $21,000. 1040x form 2011 The donor's adjusted basis was $20,000. 1040x form 2011 The donor paid a gift tax of $500 on the gift. 1040x form 2011 Your basis for gain or loss is $20,500, the donor's adjusted basis plus the amount of gift tax paid. 1040x form 2011 Example 2. 1040x form 2011 The facts are the same as in Example 1 except that the gift tax paid was $1,500. 1040x form 2011 Your basis is $21,000, the donor's adjusted basis plus the gift tax paid, but limited to the fair market value of the stock at the time of the gift. 1040x form 2011 Gift received after 1976. 1040x form 2011   If you received property as a gift after 1976, your basis is the donor's adjusted basis increased by the part of the gift tax paid that was for the net increase in value of the gift. 1040x form 2011 You figure this part by multiplying the gift tax paid on the gift by a fraction. 1040x form 2011 The numerator (top part) is the net increase in value of the gift and the denominator (bottom part) is the amount of the gift. 1040x form 2011   The net increase in value of the gift is the fair market value of the gift minus the donor's adjusted basis. 1040x form 2011 The amount of the gift is its value for gift tax purposes after reduction by any annual exclusion and marital or charitable deduction that applies to the gift. 1040x form 2011 Example. 1040x form 2011 In 2013, you received a gift of property from your mother. 1040x form 2011 At the time of the gift, the property had a fair market value of $101,000 and an adjusted basis to her of $40,000. 1040x form 2011 The amount of the gift for gift tax purposes was $87,000 ($101,000 minus the $14,000 annual exclusion), and your mother paid a gift tax of $21,000. 1040x form 2011 You figure your basis in the following way: Fair market value $101,000 Minus: Adjusted basis 40,000 Net increase in value of gift $61,000 Gift tax paid $21,000 Multiplied by . 1040x form 2011 701 ($61,000 ÷ $87,000) . 1040x form 2011 701 Gift tax due to net increase in value $14,721 Plus: Adjusted basis of property to  your mother 40,000 Your basis in the property $54,721 Part sale, part gift. 1040x form 2011   If you get property in a transfer that is partly a sale and partly a gift, your basis is the larger of the amount you paid for the property or the transferor's adjusted basis in the property at the time of the transfer. 1040x form 2011 Add to that amount the amount of any gift tax paid on the gift, as described in the preceding discussion. 1040x form 2011 For figuring loss, your basis is limited to the property's fair market value at the time of the transfer. 1040x form 2011 Gift tax information. 1040x form 2011   For information on gift tax, see Publication 950, Introduction to Estate and Gift Taxes. 1040x form 2011 For information on figuring the amount of gift tax to add to your basis, see Property Received as a Gift in Publication 551. 1040x form 2011 Property Received as Inheritance Before or after 2010. 1040x form 2011   If you inherited property from a decedent who died before or after 2010, or who died in 2010 and the executor of the decedent's estate elected not to file Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent, your basis in that property generally is its fair market value (its appraised value on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return) on: The date of the decedent's death, or The later alternate valuation date if the estate qualifies for, and elects to use, alternate valuation. 1040x form 2011 If no Form 706 was filed, use the appraised value on the date of death for state inheritance or transmission taxes. 1040x form 2011 For stocks and bonds, if no Form 706 was filed and there are no state inheritance or transmission taxes, see the Form 706 instructions for figuring the fair market value of the stocks and bonds on the date of the decedent's death. 1040x form 2011 Appreciated property you gave the decedent. 1040x form 2011   Your basis in certain appreciated property that you inherited is the decedent's adjusted basis in the property immediately before death rather than its fair market value. 1040x form 2011 This applies to appreciated property that you or your spouse gave the decedent as a gift during the 1-year period ending on the date of death. 1040x form 2011 Appreciated property is any property whose fair market value on the day you gave it to the decedent was more than its adjusted basis. 1040x form 2011 More information. 1040x form 2011   See Publication 551 for more information on the basis of inherited property, including community property, property held by a surviving tenant in a joint tenancy or tenancy by the entirety, a qualified joint interest, and a farm or closely held business. 1040x form 2011 Inherited in 2010 and executor elected to file Form 8939. 1040x form 2011   If you inherited property from a decedent who died in 2010 and the executor made the election to file Form 8939, see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, to figure your basis. 1040x form 2011 Adjusted Basis Before you can figure any gain or loss on a sale, exchange, or other disposition of property or figure allowable depreciation, depletion, or amortization, you usually must make certain adjustments (increases and decreases) to the basis of the property. 1040x form 2011 The result of these adjustments to the basis is the adjusted basis. 1040x form 2011 Adjustments to the basis of stocks and bonds are explained in the following discussion. 1040x form 2011 For information about other adjustments to basis, see Publication 551. 1040x form 2011 Stocks and Bonds The basis of stocks or bonds you own generally is the purchase price plus the costs of purchase, such as commissions and recording or transfer fees. 1040x form 2011 If you acquired stock or bonds other than by purchase, your basis is usually determined by fair market value or the previous owner's adjusted basis as discussed earlier under Basis Other Than Cost . 1040x form 2011 The basis of stock must be adjusted for certain events that occur after purchase. 1040x form 2011 For example, if you receive more stock from nontaxable stock dividends or stock splits, you must reduce the basis of your original stock. 1040x form 2011 You must also reduce your basis when you receive nondividend distributions (discussed in chapter 1). 1040x form 2011 These distributions, up to the amount of your basis, are a nontaxable return of capital. 1040x form 2011 The IRS partners with companies that offer Form 8949 and Schedule D (Form 1040) software that can import trades from many brokerage firms and accounting software to help you keep track of your adjusted basis in securities. 1040x form 2011 To find out more, go to www. 1040x form 2011 irs. 1040x form 2011 gov/Filing/Filing-Options. 1040x form 2011 Identifying stock or bonds sold. 1040x form 2011   If you can adequately identify the shares of stock or the bonds you sold, their basis is the cost or other basis of the particular shares of stock or bonds. 1040x form 2011 Adequate identification. 1040x form 2011   You will make an adequate identification if you show that certificates representing shares of stock from a lot that you bought on a certain date or for a certain price were delivered to your broker or other agent. 1040x form 2011 Broker holds stock. 1040x form 2011   If you have left the stock certificates with your broker or other agent, you will make an adequate identification if you: Tell your broker or other agent the particular stock to be sold or transferred at the time of the sale or transfer, and Receive a written confirmation of this from your broker or other agent within a reasonable time. 1040x form 2011  Stock identified this way is the stock sold or transferred even if stock certificates from a different lot are delivered to the broker or other agent. 1040x form 2011 Single stock certificate. 1040x form 2011   If you bought stock in different lots at different times and you hold a single stock certificate for this stock, you will make an adequate identification if you: Tell your broker or other agent the particular stock to be sold or transferred when you deliver the certificate to your broker or other agent, and Receive a written confirmation of this from your broker or other agent within a reasonable time. 1040x form 2011   If you sell part of the stock represented by a single certificate directly to the buyer instead of through a broker, you will make an adequate identification if you keep a written record of the particular stock that you intend to sell. 1040x form 2011 Bonds. 1040x form 2011   These methods of identification also apply to bonds sold or transferred. 1040x form 2011 Identification not possible. 1040x form 2011   If you buy and sell securities at various times in varying quantities and you cannot adequately identify the shares you sell, the basis of the securities you sell is the basis of the securities you acquired first. 1040x form 2011 Except for certain mutual fund shares, discussed later, you cannot use the average price per share to figure gain or loss on the sale of the shares. 1040x form 2011 Example. 1040x form 2011 You bought 100 shares of stock of XYZ Corporation in 1998 for $10 a share. 1040x form 2011 In January 1999 you bought another 200 shares for $11 a share. 1040x form 2011 In July 1999 you gave your son 50 shares. 1040x form 2011 In December 2001 you bought 100 shares for $9 a share. 1040x form 2011 In April 2013 you sold 130 shares. 1040x form 2011 You cannot identify the shares you disposed of, so you must use the stock you acquired first to figure the basis. 1040x form 2011 The shares of stock you gave your son had a basis of $500 (50 × $10). 1040x form 2011 You figure the basis of the 130 shares of stock you sold in 2013 as follows: 50 shares (50 × $10) balance of stock bought in 1998 $ 500 80 shares (80 × $11) stock bought in January 1999 880 Total basis of stock sold in 2013 $1,380 Shares in a mutual fund or REIT. 1040x form 2011    The basis of shares in a mutual fund (or other regulated investment company) or a real estate investment trust (REIT) is generally figured in the same way as the basis of other stock and usually includes any commissions or load charges paid for the purchase. 1040x form 2011 Example. 1040x form 2011 You bought 100 shares of Fund A for $10 a share. 1040x form 2011 You paid a $50 commission to the broker for the purchase. 1040x form 2011 Your cost basis for each share is $10. 1040x form 2011 50 ($1,050 ÷ 100). 1040x form 2011 Commissions and load charges. 1040x form 2011   The fees and charges you pay to acquire or redeem shares of a mutual fund are not deductible. 1040x form 2011 You can usually add acquisition fees and charges to your cost of the shares and thereby increase your basis. 1040x form 2011 A fee paid to redeem the shares is usually a reduction in the redemption price (sales price). 1040x form 2011   You cannot add your entire acquisition fee or load charge to the cost of the mutual fund shares acquired if all of the following conditions apply. 1040x form 2011 You get a reinvestment right because of the purchase of the shares or the payment of the fee or charge. 1040x form 2011 You dispose of the shares within 90 days of the purchase date. 1040x form 2011 You acquire new shares in the same mutual fund or another mutual fund, for which the fee or charge is reduced or waived because of the reinvestment right you got when you acquired the original shares. 1040x form 2011   The amount of the original fee or charge in excess of the reduction in (3) is added to the cost of the original shares. 1040x form 2011 The rest of the original fee or charge is added to the cost basis of the new shares (unless all three conditions above also apply to the purchase of the new shares). 1040x form 2011 Choosing average basis for mutual fund shares. 1040x form 2011   You can choose to use the average basis of mutual fund shares if you acquired the identical shares at various times and prices, or you acquired the shares after 2010 in connection with a dividend reinvestment plan, and left them on deposit in an account kept by a custodian or agent. 1040x form 2011 The methods you can use to figure average basis are explained later. 1040x form 2011 Undistributed capital gains. 1040x form 2011   If you had to include in your income any undistributed capital gains of the mutual fund or REIT, increase your basis in the stock by the difference between the amount you included and the amount of tax paid for you by the fund or REIT. 1040x form 2011 See Undistributed capital gains of mutual funds and REITs under Capital Gain Distributions in chapter 1. 1040x form 2011 Reinvestment right. 1040x form 2011   This is the right to acquire mutual fund shares in the same or another mutual fund without paying a fee or load charge, or by paying a reduced fee or load charge. 1040x form 2011      The original cost basis of mutual fund shares you acquire by reinvesting your distributions is the amount of the distributions used to purchase each full or fractional share. 1040x form 2011 This rule applies even if the distribution is an exempt-interest dividend that you do not report as income. 1040x form 2011 Table 4-1. 1040x form 2011 This is a worksheet you can use to keep track of the adjusted basis of your mutual fund shares. 1040x form 2011 Enter the cost per share when you acquire new shares and any adjustments to their basis when the adjustment occurs. 1040x form 2011 This worksheet will help you figure the adjusted basis when you sell or redeem shares. 1040x form 2011 Table 4-1. 1040x form 2011 Mutual Fund Record Mutual Fund Acquired1 Adjustment to Basis Per Share Adjusted2 Basis Per Share Sold or redeemed Date Number of Shares Cost Per Share Date Number of Shares                                                                                                                                                                                                                                                                         1 Include share received from reinvestment of distributions. 1040x form 2011 2 Cost plus or minus adjustments. 1040x form 2011 Automatic investment service. 1040x form 2011   If you participate in an automatic investment service, your basis for each share of stock, including fractional shares, bought by the bank or other agent is the purchase price plus a share of the broker's commission. 1040x form 2011 Dividend reinvestment plans. 1040x form 2011   If you participate in a dividend reinvestment plan and receive stock from the corporation at a discount, your basis is the full fair market value of the stock on the dividend payment date. 1040x form 2011 You must include the amount of the discount in your income. 1040x form 2011 Public utilities. 1040x form 2011   If, before 1986, you excluded from income the value of stock you had received under a qualified public utility reinvestment plan, your basis in that stock is zero. 1040x form 2011 Stock dividends. 1040x form 2011   Stock dividends are distributions made by a corporation of its own stock. 1040x form 2011 Generally, stock dividends are not taxable to you. 1040x form 2011 However, see Distributions of Stock and Stock Rights under Dividends and Other Distributions in chapter 1 for some exceptions. 1040x form 2011 If the stock dividends are not taxable, you must divide your basis for the old stock between the old and new stock. 1040x form 2011 New and old stock identical. 1040x form 2011   If the new stock you received as a nontaxable dividend is identical to the old stock on which the dividend was declared, divide the adjusted basis of the old stock by the number of shares of old and new stock. 1040x form 2011 The result is your basis for each share of stock. 1040x form 2011 Example 1. 1040x form 2011 You owned one share of common stock that you bought for $45. 1040x form 2011 The corporation distributed two new shares of common stock for each share held. 1040x form 2011 You then had three shares of common stock. 1040x form 2011 Your basis in each share is $15 ($45 ÷ 3). 1040x form 2011 Example 2. 1040x form 2011 You owned two shares of common stock. 1040x form 2011 You bought one for $30 and the other for $45. 1040x form 2011 The corporation distributed two new shares of common stock for each share held. 1040x form 2011 You had six shares after the distribution—three with a basis of $10 each ($30 ÷ 3) and three with a basis of $15 each ($45 ÷ 3). 1040x form 2011 New and old stock not identical. 1040x form 2011   If the new stock you received as a nontaxable dividend is not identical to the old stock on which it was declared, the basis of the new stock is calculated differently. 1040x form 2011 Divide the adjusted basis of the old stock between the old and the new stock in the ratio of the fair market value of each lot of stock to the total fair market value of both lots on the date of distribution of the new stock. 1040x form 2011 Example. 1040x form 2011 You bought a share of common stock for $100. 1040x form 2011 Later, the corporation distributed a share of preferred stock for each share of common stock held. 1040x form 2011 At the date of distribution, your common stock had a fair market value of $150 and the preferred stock had a fair market value of $50. 1040x form 2011 You figure the basis of the old and new stock by dividing your $100 basis between them. 1040x form 2011 The basis of your common stock is $75 (($150 ÷ $200) × $100), and the basis of the new preferred stock is $25 (($50 ÷ $200) × $100). 1040x form 2011 Stock bought at various times. 1040x form 2011   Figure the basis of stock dividends received on stock you bought at various times and at different prices by allocating to each lot of stock the share of the stock dividends due to it. 1040x form 2011 Taxable stock dividends. 1040x form 2011   If your stock dividend is taxable when you receive it, the basis of your new stock is its fair market value on the date of distribution. 1040x form 2011 The basis of your old stock does not change. 1040x form 2011 Stock splits. 1040x form 2011   Figure the basis of stock splits in the same way as stock dividends if identical stock is distributed on the stock held. 1040x form 2011 Stock rights. 1040x form 2011   A stock right is a right to acquire a corporation's stock. 1040x form 2011 It may be exercised, it may be sold if it has a market value, or it may expire. 1040x form 2011 Stock rights are rarely taxable when you receive them. 1040x form 2011 See Distributions of Stock and Stock Rights under Dividends and Other Distributions in chapter 1. 1040x form 2011 Taxable stock rights. 1040x form 2011   If you receive stock rights that are taxable, the basis of the rights is their fair market value at the time of distribution. 1040x form 2011 The basis of the old stock does not change. 1040x form 2011 Nontaxable stock rights. 1040x form 2011   If you receive nontaxable stock rights and allow them to expire, they have no basis. 1040x form 2011   If you exercise or sell the nontaxable stock rights and if, at the time of distribution, the stock rights had a fair market value of 15% or more of the fair market value of the old stock, you must divide the adjusted basis of the old stock between the old stock and the stock rights. 1040x form 2011 Use a ratio of the fair market value of each to the total fair market value of both at the time of distribution. 1040x form 2011   If the fair market value of the stock rights was less than 15%, their basis is zero. 1040x form 2011 However, you can choose to divide the basis of the old stock between the old stock and the stock rights. 1040x form 2011 To make the choice, attach a statement to your return for the year in which you received the rights, stating that you choose to divide the basis of the stock. 1040x form 2011 Basis of new stock. 1040x form 2011   If you exercise the stock rights, the basis of the new stock is its cost plus the basis of the stock rights exercised. 1040x form 2011 Example. 1040x form 2011 You own 100 shares of ABC Company stock, which cost you $22 per share. 1040x form 2011 The ABC Company gave you 10 nontaxable stock rights that would allow you to buy 10 more shares at $26 per share. 1040x form 2011 At the time the stock rights were distributed, the stock had a market value of $30, not including the stock rights. 1040x form 2011 Each stock right had a market value of $3. 1040x form 2011 The market value of the stock rights was less than 15% of the market value of the stock, but you chose to divide the basis of your stock between the stock and the rights. 1040x form 2011 You figure the basis of the rights and the basis of the old stock as follows: 100 shares × $22 = $2,200, basis of old stock   100 shares × $30 = $3,000, market value of old stock   10 rights × $3 = $30, market value of rights   ($3,000 ÷ $3,030) × $2,200 = $2,178. 1040x form 2011 22, new basis of old stock   ($30 ÷ $3,030) × $2,200 = $21. 1040x form 2011 78, basis of rights   If you sell the rights, the basis for figuring gain or loss is $2. 1040x form 2011 18 ($21. 1040x form 2011 78 ÷ 10) per right. 1040x form 2011 If you exercise the rights, the basis of the stock you acquire is the price you pay ($26) plus the basis of the right exercised ($2. 1040x form 2011 18), or $28. 1040x form 2011 18 per share. 1040x form 2011 The remaining basis of the old stock is $21. 1040x form 2011 78 per share. 1040x form 2011 Investment property received in liquidation. 1040x form 2011   In general, if you receive investment property as a distribution in partial or complete liquidation of a corporation and if you recognize gain or loss when you acquire the property, your basis in the property is its fair market value at the time of the distribution. 1040x form 2011 S corporation stock. 1040x form 2011   You must increase your basis in stock of an S corporation by your pro rata share of the following items. 1040x form 2011 All income items of the S corporation, including tax-exempt income, that are separately stated and passed through to you as a shareholder. 1040x form 2011 The nonseparately stated income of the S corporation. 1040x form 2011 The amount of the deduction for depletion (other than oil and gas depletion) that is more than the basis of the property being depleted. 1040x form 2011   You must decrease your basis in stock of an S corporation by your pro rata share of the following items. 1040x form 2011 Distributions by the S corporation that were not included in your income. 1040x form 2011 All loss and deduction items of the S corporation that are separately stated and passed through to you. 1040x form 2011 Any nonseparately stated loss of the S corporation. 1040x form 2011 Any expense of the S corporation that is not deductible in figuring its taxable income and not properly chargeable to a capital account. 1040x form 2011 The amount of your deduction for depletion of oil and gas wells to the extent the deduction is not more than your share of the adjusted basis of the wells. 1040x form 2011 However, your basis in the stock cannot be reduced below zero. 1040x form 2011 Specialized small business investment company stock or partnership interest. 1040x form 2011   If you bought this stock or interest as replacement property for publicly traded securities you sold at a gain, you must reduce the basis of the stock or interest by the amount of any postponed gain on that sale. 1040x form 2011 See Rollover of Gain From Publicly Traded Securities , later. 1040x form 2011 Qualified small business stock. 1040x form 2011   If you bought this stock as replacement property for other qualified small business stock you sold at a gain, you must reduce the basis of this replacement stock by the amount of any postponed gain on the earlier sale. 1040x form 2011 See Gains on Qualified Small Business Stock , later. 1040x form 2011 Short sales. 1040x form 2011   If you cannot deduct payments you make to a lender in lieu of dividends on stock used in a short sale, the amount you pay to the lender is a capital expense, and you must add it to the basis of the stock used to close the short sale. 1040x form 2011   See Payments in lieu of dividends , later, for information about deducting payments in lieu of dividends. 1040x form 2011 Premiums on bonds. 1040x form 2011   If you buy a bond at a premium, the premium is treated as part of your basis in the bond. 1040x form 2011 If you choose to amortize the premium paid on a taxable bond, you must reduce the basis of the bond by the amortized part of the premium each year over the life of the bond. 1040x form 2011   Although you cannot deduct the premium on a tax-exempt bond, you must amortize it to determine your adjusted basis in the bond. 1040x form 2011 You must reduce the basis of the bond by the premium you amortized for the period you held the bond. 1040x form 2011   See Bond Premium Amortization in chapter 3 for more information. 1040x form 2011 Market discount on bonds. 1040x form 2011   If you include market discount on a bond in income currently, increase the basis of your bond by the amount of market discount you include in your income. 1040x form 2011 See Market Discount Bonds in chapter 1 for more information. 1040x form 2011 Bonds purchased at par value. 1040x form 2011   A bond purchased at par value (face amount) has no premium or discount. 1040x form 2011 When you sell or otherwise dispose of the bond, you figure the gain or loss by comparing the bond proceeds to the purchase price of the bond. 1040x form 2011 Example. 1040x form 2011 You purchased a bond several years ago for its par value of $10,000. 1040x form 2011 You sold the bond this year for $10,100. 1040x form 2011 You have a gain of $100. 1040x form 2011 However, if you had sold the bond for $9,900, you would have a loss of $100. 1040x form 2011 Acquisition discount on short-term obligations. 1040x form 2011   If you include acquisition discount on a short-term obligation in your income currently, increase the basis of the obligation by the amount of acquisition discount you include in your income. 1040x form 2011 See Discount on Short-Term Obligations in chapter 1 for more information. 1040x form 2011 Original issue discount (OID) on debt instruments. 1040x form 2011   Increase the basis of a debt instrument by the OID you include in your income. 1040x form 2011 See Original Issue Discount (OID) in chapter 1. 1040x form 2011 Discounted tax-exempt obligations. 1040x form 2011   OID on tax-exempt obligations is generally not taxable. 1040x form 2011 However, when you dispose of a tax-exempt obligation issued after September 3, 1982, that you acquired after March 1, 1984, you must accrue OID on the obligation to determine its adjusted basis. 1040x form 2011 The accrued OID is added to the basis of the obligation to determine your gain or loss. 1040x form 2011   For information on determining OID on a long-term obligation, see Debt Instruments Issued After July 1, 1982, and Before 1985 or Debt Instruments Issued After 1984, whichever applies, in Publication 1212 under Figuring OID on Long-Term Debt Instruments. 1040x form 2011   If the tax-exempt obligation has a maturity of 1 year or less, accrue OID under the rules for acquisition discount on short-term obligations. 1040x form 2011 See Discount on Short-Term Obligations in chapter 1. 1040x form 2011 Stripped tax-exempt obligation. 1040x form 2011   If you acquired a stripped tax-exempt bond or coupon after October 22, 1986, you must accrue OID on it to determine its adjusted basis when you dispose of it. 1040x form 2011 For stripped tax-exempt bonds or coupons acquired after June 10, 1987, part of this OID may be taxable. 1040x form 2011 You accrue the OID on these obligations in the manner described in chapter 1 under Stripped Bonds and Coupons . 1040x form 2011   Increase your basis in the stripped tax-exempt bond or coupon by the taxable and nontaxable accrued OID. 1040x form 2011 Also increase your basis by the interest that accrued (but was not paid and was not previously reflected in your basis) before the date you sold the bond or coupon. 1040x form 2011 In addition, for bonds acquired after June 10, 1987, add to your basis any accrued market discount not previously reflected in basis. 1040x form 2011 How To Figure Gain or Loss You figure gain or loss on a sale or trade of property by comparing the amount you realize with the adjusted basis of the property. 1040x form 2011 Gain. 1040x form 2011   If the amount you realize from a sale or trade is more than the adjusted basis of the property you transfer, the difference is a gain. 1040x form 2011 Loss. 1040x form 2011   If the adjusted basis of the property you transfer is more than the amount you realize, the difference is a loss. 1040x form 2011 Amount realized. 1040x form 2011   The amount you realize from a sale or trade of property is everything you receive for the property minus your expenses of sale (such as redemption fees, sales commissions, sales charges, or exit fees). 1040x form 2011 Amount realized includes the money you receive plus the fair market value of any property or services you receive. 1040x form 2011   If you finance the buyer's purchase of your property and the debt instrument does not provide for adequate stated interest, the unstated interest that you must report as ordinary income will reduce the amount realized from the sale. 1040x form 2011 For more information, see Publication 537. 1040x form 2011   If a buyer of property issues a debt instrument to the seller of the property, the amount realized is determined by reference to the issue price of the debt instrument, which may or may not be the fair market value of the debt instrument. 1040x form 2011 See Regulations section 1. 1040x form 2011 1001-1(g). 1040x form 2011 However, if the debt instrument was previously issued by a third party (one not part of the sale transaction), the fair market value of the debt instrument is used to determine the amount realized. 1040x form 2011 Fair market value. 1040x form 2011   Fair market value is the price at which property would change hands between a buyer and a seller, neither being forced to buy or sell and both having reasonable knowledge of all the relevant facts. 1040x form 2011 Example. 1040x form 2011 You trade A Company stock with an adjusted basis of $7,000 for B Company stock with a fair market value of $10,000, which is your amount realized. 1040x form 2011 Your gain is $3,000 ($10,000 – $7,000). 1040x form 2011 If you also receive a note for $6,000 that has an issue price of $6,000, your gain is $9,000 ($10,000 + $6,000 – $7,000). 1040x form 2011 Debt paid off. 1040x form 2011   A debt against the property, or against you, that is paid off as a part of the transaction or that is assumed by the buyer must be included in the amount realized. 1040x form 2011 This is true even if neither you nor the buyer is personally liable for the debt. 1040x form 2011 For example, if you sell or trade property that is subject to a nonrecourse loan, the amount you realize generally includes the full amount of the note assumed by the buyer even if the amount of the note is more than the fair market value of the property. 1040x form 2011 Example. 1040x form 2011 You sell stock that you had pledged as security for a bank loan of $8,000. 1040x form 2011 Your basis in the stock is $6,000. 1040x form 2011 The buyer pays off your bank loan and pays you $20,000 in cash. 1040x form 2011 The amount realized is $28,000 ($20,000 + $8,000). 1040x form 2011 Your gain is $22,000 ($28,000 – $6,000). 1040x form 2011 Payment of cash. 1040x form 2011   If you trade property and cash for other property, the amount you realize is the fair market value of the property you receive. 1040x form 2011 Determine your gain or loss by subtracting the cash you pay and the adjusted basis of the property you trade in from the amount you realize. 1040x form 2011 If the result is a positive number, it is a gain. 1040x form 2011 If the result is a negative number, it is a loss. 1040x form 2011 No gain or loss. 1040x form 2011   You may have to use a basis for figuring gain that is different from the basis used for figuring loss. 1040x form 2011 In this case, you may have neither a gain nor a loss. 1040x form 2011 See No gain or loss in the discussion on the basis of property you received as a gift under Basis Other Than Cost, earlier. 1040x form 2011 Special Rules for Mutual Funds To figure your gain or loss when you dispose of mutual fund shares, you need to determine which shares were sold and the basis of those shares. 1040x form 2011 If your shares in a mutual fund were acquired all on the same day and for the same price, figuring their basis is not difficu