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Bankruptcy Back Taxes

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Bankruptcy back taxes 2. Bankruptcy back taxes   Estado Civil para Efectos de la Declaración Table of Contents Qué Hay de Nuevo Introduction Useful Items - You may want to see: Estado CivilPersonas divorciadas. Bankruptcy back taxes Divorcio y nuevo matrimonio. Bankruptcy back taxes Matrimonios anulados. Bankruptcy back taxes Cabeza de familia o viudo que reúne los requisitos con hijo dependiente. Bankruptcy back taxes Personas consideradas casadas. Bankruptcy back taxes Matrimonio del mismo sexo. Bankruptcy back taxes Cónyuge fallecido durante el año. Bankruptcy back taxes Personas casadas que viven separadas. Bankruptcy back taxes Soltero Casados que Presentan una Declaración ConjuntaPresentación de una Declaración Conjunta Casados que Presentan la Declaración por SeparadoReglas Especiales Cabeza de FamiliaPersonas Consideradas no Casadas Personas que Mantienen una Vivienda Persona Calificada Viudo que Reúne los Requisitos con Hijo Dependiente Qué Hay de Nuevo Estado civil para efectos de la declaración de parejas del mismo sexo. Bankruptcy back taxes  Si tiene un cónyuge que es del mismo sexo de usted y con quien se casó en un estado (o país extranjero) que reconoce legalmente el matrimonio entre personas del mismo sexo, usted y su cónyuge, por lo general, tendrán que utilizar el estado civil para efectos de la declaración de “casado que presenta una declaración conjunta” o “casado que presenta una declaración por separado” en su declaración de impuestos que corresponde al año 2013, aun si usted y su cónyuge viven ahora en un estado (o país extranjero) que no reconoce legalmente el matrimonio entre personas del mismo sexo. Bankruptcy back taxes Vea Matrimonio del mismo sexo bajo Estado Civil, más adelante. Bankruptcy back taxes Introduction Este capítulo le ayuda a determinar qué estado civil debe usar para efectos de la declaración. Bankruptcy back taxes Hay cinco estados civiles para efectos de la declaración: Soltero. Bankruptcy back taxes Casado que presenta una declaración conjunta. Bankruptcy back taxes Casado que presenta una declaración por separado. Bankruptcy back taxes Cabeza de familia. Bankruptcy back taxes Viudo que reúne los requisitos con hijo dependiente. Bankruptcy back taxes Si reúne los requisitos para más de un estado civil, elija el que le permita pagar menos impuestos. Bankruptcy back taxes Tiene que determinar su estado civil para efectos de la declaración antes de determinar si tiene que presentar una declaración de impuestos (capítulo 1), su deducción estándar (capítulo 20) y su impuesto correcto (capítulo 30). Bankruptcy back taxes También utilizará el estado civil para determinar si reúne los requisitos o no para reclamar ciertas deducciones y créditos. Bankruptcy back taxes Useful Items - You may want to see: Publicación 501 Exemptions, Standard Deduction, and Filing Information (Exenciones, deducción estándar e información para la presentación de la declaración), en inglés 519 U. Bankruptcy back taxes S. Bankruptcy back taxes Tax Guide for Aliens (Guía sobre los impuestos federales estadounidenses para extranjeros), en inglés 555 Community Property (Bienes gananciales), en inglés Estado Civil Por lo general, su estado civil para efectos de la declaración depende de si a usted se le considera casado o no casado. Bankruptcy back taxes Personas no casadas. Bankruptcy back taxes   Se le considera no casado durante todo el año si, en el último día de su año tributario, usted no está casado o está legalmente separado de su cónyuge por decreto de divorcio o de manutención por separación. Bankruptcy back taxes La ley estatal es la que rige al determinar si está casado o legalmente separado por decreto de divorcio o de manutención por separación. Bankruptcy back taxes Personas divorciadas. Bankruptcy back taxes   Si está divorciado por decreto final de divorcio para el último día del año, a usted se le considera no casado por todo el año. Bankruptcy back taxes Divorcio y nuevo matrimonio. Bankruptcy back taxes   Si se divorcian con el fin exclusivo de presentar declaraciones de impuestos como no casados y en el momento de efectuarse el divorcio usted y su cónyuge tienen la intención de volverse a casar, y así lo hicieron en el año tributario siguiente, usted y su cónyuge están obligados a presentar la declaración como casados en los dos años. Bankruptcy back taxes Matrimonios anulados. Bankruptcy back taxes    Si obtiene de un tribunal un decreto de anulación de matrimonio que establezca que nunca existió matrimonio válido alguno, se le considera no casado aun si ha presentado declaraciones conjuntas en años anteriores. Bankruptcy back taxes Tiene que presentar una declaración enmendada (Formulario 1040X, Amended U. Bankruptcy back taxes S. Bankruptcy back taxes Individual Income Tax Return (Declaración enmendada del impuesto federal sobre el ingreso)), en inglés, declarando su estado civil de soltero o cabeza de familia para todos los años tributarios afectados por la anulación de matrimonio que no estén excluídos por la ley de prescripción para presentar una declaración de impuestos. Bankruptcy back taxes Por lo general, para un crédito o reembolso, tiene que presentar el Formulario 1040X dentro de 3 años (incluyendo extensiones) después de la fecha en que presentó su declaración original, o dentro de 2 años después de la fecha en que pagó el impuesto, lo que sea más tarde. Bankruptcy back taxes Si presentó la declaración original con anticipación (por ejemplo, el 1 de marzo), se considera que su declaración se presentó en la fecha de vencimiento (por lo general el 15 de abril). Bankruptcy back taxes Sin embargo, si tiene una extensión para presentar la declaración (por ejemplo, el 15 de octubre), pero la presentó con anticipación y la recibimos el 1 de julio, se considera que su declaración se presentó el 1 de julio. Bankruptcy back taxes Cabeza de familia o viudo que reúne los requisitos con hijo dependiente. Bankruptcy back taxes   Si a usted se le considera no casado, podría presentar la declaración como cabeza de familia o como viudo que reúne los requisitos con hijo dependiente. Bankruptcy back taxes Vea Cabeza de Familia y Viudo que Reúne los Requisitos con Hijo Dependiente para saber si reúne los requisitos. Bankruptcy back taxes Personas casadas. Bankruptcy back taxes   Si se le considera casado, usted y su cónyuge pueden presentar una declaración conjunta o declaraciones por separado. Bankruptcy back taxes Personas consideradas casadas. Bankruptcy back taxes   A usted se le considera casado si, en el último día de su año tributario, usted y su cónyuge cumplen cualquiera de las siguientes condiciones: Están casados y viven juntos como cónyuges. Bankruptcy back taxes Viven juntos por matrimonio de hecho reconocido en el estado en que viven o en el estado en que el matrimonio de hecho comenzó. Bankruptcy back taxes Están casados y viven separados, pero no están legalmente separados por decreto de divorcio o de manutención por separación. Bankruptcy back taxes Están separados por un decreto provisional (o sea, que no es final) de divorcio. Bankruptcy back taxes Para propósitos de una declaración conjunta, a usted no se le considera divorciado. Bankruptcy back taxes Matrimonio del mismo sexo. Bankruptcy back taxes   Para propósitos tributarios federales, se consideran como casadas a las personas del mismo sexo que se casaron legalmente en un estado (o país extranjero) cuyas leyes autorizan el matrimonio entre dos personas del mismo sexo, aun si el estado en el que viven actualmente dichas personas no reconoce el matrimonio entre personas del mismo sexo. Bankruptcy back taxes El término “cónyuge” incluye a un individuo que está casado con una persona de su mismo sexo si la pareja está legalmente casada conforme a la ley estatal (o extranjera). Bankruptcy back taxes Sin embargo, las personas que están en una sociedad doméstica (“ domestic partnership ”), unión civil u otra relación semejante que no es considerada un matrimonio conforme a las leyes estatales (o extranjeras) no están consideradas como casadas para propósitos tributarios federales. Bankruptcy back taxes Para más detalles, consulte la Publicación 501, en inglés. Bankruptcy back taxes Cónyuge fallecido durante el año. Bankruptcy back taxes   Si su cónyuge falleció durante el año, a usted se le considera casado todo el año para efectos del estado civil en la declaración. Bankruptcy back taxes   Si no se ha vuelto a casar antes de terminar el año tributario, puede presentar una declaración conjunta en nombre suyo y de su cónyuge fallecido. Bankruptcy back taxes También podría tener derecho, durante los 2 años siguientes, a los beneficios especiales que se explican más adelante en la sección titulada Viudo que Reúne los Requisitos con Hijo Dependiente . Bankruptcy back taxes   Si se ha vuelto a casar antes de terminar el año tributario, puede presentar una declaración conjunta con su nuevo cónyuge. Bankruptcy back taxes El estado civil para efectos de la declaración de su cónyuge fallecido será el de casado que presenta una declaración por separado para dicho año. Bankruptcy back taxes Personas casadas que viven separadas. Bankruptcy back taxes   Si usted vive separado de su cónyuge y satisface ciertos requisitos quizás pueda presentar la declaración como cabeza de familia aunque no esté divorciado o legalmente separado. Bankruptcy back taxes Si reúne los requisitos para presentar la declaración como cabeza de familia en vez de casado que presenta la declaración por separado, la cantidad correspondiente a su deducción estándar será mayor. Bankruptcy back taxes Además, el impuesto correspondiente podría ser menor y es posible que pueda reclamar el crédito por ingreso del trabajo. Bankruptcy back taxes Vea más adelante Cabeza de Familia . Bankruptcy back taxes Soltero Su estado civil para efectos de la declaración es soltero si se considera que no está casado y no reúne los requisitos para otro estado civil. Bankruptcy back taxes Para determinar su estado civil vea el apartado anterior titulado Estado Civil . Bankruptcy back taxes Viudo. Bankruptcy back taxes   Podría declarar el estado civil de soltero si antes del 1 de enero del año 2013 enviudó y no se volvió a casar antes de finalizar el año 2013. Bankruptcy back taxes No obstante, quizás pueda utilizar otro estado civil que le permita pagar menos impuestos. Bankruptcy back taxes Vea Cabeza de Familia y Viudo que Reúne los Requisitos con Hijo Dependiente , más adelante, para determinar si reúne los requisitos. Bankruptcy back taxes Cómo presentar la declaración. Bankruptcy back taxes   Puede presentar el Formulario 1040. Bankruptcy back taxes Si tiene ingresos sujetos a impuestos menores de $100,000, quizá podría presentar el Formulario 1040A. Bankruptcy back taxes Además, si usted no tiene dependientes y tiene menos de 65 años de edad, no es ciego y cumple otros requisitos, puede presentar el Formulario 1040EZ. Bankruptcy back taxes Si presenta el Formulario 1040A o el Formulario 1040, indique su estado civil de soltero marcando el recuadro de la línea 1. Bankruptcy back taxes Utilice la columna de Soltero en la Tabla de Impuestos o la Sección A de la Hoja de Trabajo para el Cálculo del Impuesto, para calcular su impuesto. Bankruptcy back taxes Casados que Presentan una Declaración Conjunta Puede elegir el estado civil de casado que presenta una declaración conjunta si se le considera casado y usted y su cónyuge deciden presentar una declaración conjunta. Bankruptcy back taxes En dicha declaración, usted y su cónyuge incluyen la suma de sus ingresos y deducen la suma de sus gastos permisibles. Bankruptcy back taxes Puede presentar una declaración conjunta aunque uno de ustedes no tuviera ingresos ni deducciones. Bankruptcy back taxes Si usted y su cónyuge deciden presentar una declaración conjunta, es posible que sus impuestos sean menores que la suma de los impuestos de los otros estados civiles. Bankruptcy back taxes Además, su deducción estándar (si no detallan sus deducciones) podría ser mayor y podrían reunir los requisitos para recibir beneficios tributarios no aplicables a otros estados civiles para efectos de la declaración. Bankruptcy back taxes Si usted y su cónyuge tienen ingresos, quizás les convendría calcular el impuesto en una declaración conjunta y en declaraciones separadas (usando el estado civil de casado que presenta la declaración por separado). Bankruptcy back taxes Pueden escoger el método que les permita pagar la menor cantidad de impuesto en total. Bankruptcy back taxes Cómo presentar la declaración. Bankruptcy back taxes   Si está casado y presenta la declaración conjunta, puede utilizar el Formulario 1040. Bankruptcy back taxes Si usted y su cónyuge tienen ingresos sujetos a impuestos menores de $100,000, quizá podría presentar el Formulario 1040A. Bankruptcy back taxes Además, si usted o su cónyuge no tienen dependientes, ambos tienen menos de 65 años de edad, no están ciegos y cumplen otros requisitos, pueden presentar el Formulario 1040EZ. Bankruptcy back taxes Si presenta el Formulario 1040 o el Formulario 1040A, indique este estado civil marcando el recuadro de la línea 2. Bankruptcy back taxes Para calcular sus impuestos, utilice la columna correspondiente a Casado que presenta una declaración conjunta, la cual aparece en la Tabla de Impuestos o la Sección B de la Hoja de Trabajo para el Cálculo del Impuesto. Bankruptcy back taxes Cónyuge fallecido. Bankruptcy back taxes   Si su cónyuge falleció durante el año, a usted se le considera casado todo el año y puede elegir el estado civil de casado que presenta una declaración conjunta. Bankruptcy back taxes Vea la sección anterior titulada Cónyuge fallecido durante el año , bajo Estado Civil, para más información. Bankruptcy back taxes   Si su cónyuge falleció en 2014 antes de presentar la declaración de 2013, para efectos de la declaración de 2013 puede elegir casado que presenta la declaración conjunta. Bankruptcy back taxes Personas divorciadas. Bankruptcy back taxes   Si para el último día del año usted está divorciado conforme a un decreto definitivo de divorcio, se le considerará no casado durante todo el año y no podrá utilizar la clasificación de casado que presenta declaración conjunta como estado civil para efectos de la declaración de impuestos. Bankruptcy back taxes Presentación de una Declaración Conjunta Usted y su cónyuge tienen que incluir todos sus ingresos, exenciones y deducciones en la declaración conjunta. Bankruptcy back taxes Período contable. Bankruptcy back taxes   Usted y su cónyuge tienen que utilizar el mismo período contable, pero pueden usar diferentes métodos contables. Bankruptcy back taxes Vea Períodos Contables y Métodos Contables , en el capítulo 1. Bankruptcy back taxes Responsabilidad conjunta. Bankruptcy back taxes   Usted y su cónyuge pueden ser responsables, individual y conjuntamente, del impuesto y todos los intereses o multas por pagar en su declaración conjunta. Bankruptcy back taxes Esto significa que si un cónyuge no paga el impuesto adeudado, el otro puede ser responsable de pagarlo. Bankruptcy back taxes O, si un cónyuge no informa el impuesto correcto, ambos cónyuges puede que sean responsables por todo impuesto adicional determinado por el IRS. Bankruptcy back taxes Un cónyuge puede ser responsable de todo el impuesto adeudado, aunque dichos ingresos provengan del trabajo del otro cónyuge. Bankruptcy back taxes   Puede que usted quiera presentar la declaración por separado si: usted cree que su cónyuge no está declarando todo el impuesto de él o ella, o usted no quiere ser responsable de todo el impuesto que su cónyuge adeude si a su cónyuge no se le retiene suficiente impuesto o no paga suficiente impuesto estimado. Bankruptcy back taxes Contribuyente divorciado. Bankruptcy back taxes   Usted podría ser individual y conjuntamente responsable de todo impuesto, además de todos los intereses y multas adeudados en una declaración conjunta presentada antes de su divorcio. Bankruptcy back taxes Esta responsabilidad puede ser aplicable aun en el caso en que su decreto de divorcio establezca que su ex cónyuge es responsable de toda cantidad adeudada correspondiente a declaraciones de impuestos conjuntas presentadas anteriormente. Bankruptcy back taxes Alivio tributario en el caso de obligación conjunta. Bankruptcy back taxes   En algunos casos, en una declaración conjunta, uno de los cónyuges puede ser exonerado de la responsabilidad conjunta de pagar impuestos, intereses y multas por cantidades correspondientes al otro cónyuge que fuesen declaradas incorrectamente en una declaración conjunta. Bankruptcy back taxes Usted puede solicitar el alivio de dicha obligación, por pequeña que sea la obligación. Bankruptcy back taxes   Hay tres tipos de alivio tributario: Alivio de la responsabilidad tributaria del cónyuge inocente. Bankruptcy back taxes Separación de la obligación (disponible solamente a las personas que presenten una declaración conjunta y que sean divorciadas, viudas, legalmente separadas o que no hayan vivido juntas durante los 12 meses inmediatamente anteriores a la fecha en que se presente esta solicitud de alivio). Bankruptcy back taxes Alivio equitativo. Bankruptcy back taxes    Tiene que presentar el Formulario 8857(SP), Solicitud para Alivio del Cónyuge Inocente, para solicitar cualquier alivio tributario de la responsabilidad conjunta. Bankruptcy back taxes En la Publicación 971, Innocent Spouse Relief (Alivio del cónyuge inocente), en inglés, puede encontrar información detallada sobre este tema, así como sobre quién reúne los requisitos para recibir dicho alivio. Bankruptcy back taxes Firma de la declaración conjunta. Bankruptcy back taxes   Cada cónyuge está obligado, por lo general, a firmar la declaración. Bankruptcy back taxes De lo contrario, no se considerará declaración conjunta. Bankruptcy back taxes Si el cónyuge falleció antes de firmar la declaración. Bankruptcy back taxes   Si su cónyuge falleció antes de firmar la declaración, el albacea o administrador tiene que firmar la declaración en nombre de dicho cónyuge. Bankruptcy back taxes Si ni usted ni otra persona ha sido todavía nombrado albacea o administrador, puede firmar la declaración en nombre de su cónyuge y escribir “ Filing as surviving spouse ” (Declarar como cónyuge sobreviviente) en el espacio donde firma la declaración. Bankruptcy back taxes Cónyuge ausente del hogar. Bankruptcy back taxes   Si su cónyuge se encuentra ausente del hogar, usted debe preparar la declaración, firmarla y enviarla a su cónyuge para que la firme de manera que pueda presentarla a tiempo. Bankruptcy back taxes Impedimento para firmar la declaración debido a enfermedad o lesión. Bankruptcy back taxes   Si su cónyuge no puede firmar por razón de enfermedad o lesión y le pide a usted que firme por él o ella, puede firmar el nombre de su cónyuge en el espacio correspondiente en la declaración seguido por las palabras “ By (su nombre), Husband (esposo) o Wife (esposa)”. Bankruptcy back taxes Asegúrese también de firmar en el espacio correspondiente a su firma. Bankruptcy back taxes Incluya un escrito fechado y firmado por usted junto con su declaración de impuestos. Bankruptcy back taxes Este escrito debe incluir el número del formulario que utiliza para presentar la declaración, el año tributario, la razón por la cual su cónyuge no puede firmar dicha declaración y debe especificar el consentimiento de su cónyuge para que firme por él o ella. Bankruptcy back taxes Si firma como tutor de su cónyuge. Bankruptcy back taxes   Si es tutor de su cónyuge, el cual se encuentra mentalmente incapacitado, usted puede firmar la declaración por esa persona como tutor. Bankruptcy back taxes Cónyuge en zona de combate. Bankruptcy back taxes   Puede firmar una declaración conjunta si su cónyuge no puede firmar la declaración porque está en una zona de combate (como el área del Golfo Pérsico, Serbia, Montenegro, Albania o Afganistán), aunque usted no tenga un poder legal u otro tipo de autorización escrita. Bankruptcy back taxes Adjunte a su declaración de impuestos un escrito firmado explicando que su cónyuge está prestando servicios en una zona de combate. Bankruptcy back taxes Para más información sobre los requisitos tributarios especiales para personas que estén prestando servicios en una zona de combate, o que hayan sido declaradas desaparecidas en una zona de combate, vea la Publicación 3, Armed Forces' Tax Guide (Guía de impuestos para las Fuerzas Armadas), en inglés. Bankruptcy back taxes Otras razones por las cuales su cónyuge no puede firmar. Bankruptcy back taxes    Si su cónyuge no puede firmar la declaración por cualquier otra razón, usted puede firmarla por él o ella únicamente si se le otorga un poder legal válido (un documento legal en el cual se le autoriza para actuar en nombre de su cónyuge). Bankruptcy back taxes Adjunte el poder legal (o una copia de éste) a su declaración de impuestos. Bankruptcy back taxes Para este propósito, puede utilizar el Formulario 2848(SP), Poder Legal y Declaración del Representante. Bankruptcy back taxes Extranjero no residente o extranjero con doble estado de residencia. Bankruptcy back taxes   Por lo general, un cónyuge no puede presentar una declaración conjunta si uno de los cónyuges es extranjero no residente en cualquier momento durante el año tributario. Bankruptcy back taxes Sin embargo, si un cónyuge era extranjero no residente o extranjero con doble estado de residencia y estaba casado con un ciudadano o residente de los Estados Unidos al finalizar el año, ambos cónyuges pueden optar por presentar una declaración conjunta. Bankruptcy back taxes Si deciden presentar dicha declaración, a ambos se les considerará residentes de los Estados Unidos durante todo el año tributario. Bankruptcy back taxes Vea el capítulo 1 de la Publicación 519, en inglés. Bankruptcy back taxes Casados que Presentan la Declaración por Separado Si está casado, usted y su cónyuge pueden optar por usar el estado civil de casados que presentan la declaración por separado. Bankruptcy back taxes Pueden beneficiarse de este método si quieren responsabilizarse únicamente de su propio impuesto o si dicho impuesto resultara ser menor que el impuesto declarado en una declaración conjunta. Bankruptcy back taxes Si usted y su cónyuge no están de acuerdo en presentar la declaración conjunta, tiene que presentar su declaración por separado a menos que reúna los requisitos para el estado civil de cabeza de familia que se explica más adelante. Bankruptcy back taxes Puede elegir el estado civil de cabeza de familia si se le considera soltero porque vive separado de su cónyuge y reúne ciertos requisitos (explicados más adelante bajo Cabeza de Familia ). Bankruptcy back taxes Esto es aplicable a usted aunque no esté divorciado o legalmente separado. Bankruptcy back taxes Si reúne los requisitos para presentar la declaración como cabeza de familia en vez de casado que presenta la declaración por separado, es posible que pague menos impuestos, que pueda reclamar el crédito por ingreso del trabajo y otros créditos adicionales; además, su deducción estándar será mayor. Bankruptcy back taxes El estado civil de cabeza de familia le permite escoger la deducción estándar aunque su cónyuge opte por detallar sus deducciones. Bankruptcy back taxes Para información adicional, vea Cabeza de Familia , más adelante. Bankruptcy back taxes Usted, por lo general, pagará una suma mayor de impuestos en declaraciones separadas de lo que pagarían en una declaración conjunta por las razones detalladas en la sección Reglas Especiales , que aparece más adelante. Bankruptcy back taxes Sin embargo, a menos que usted y su cónyuge tengan que presentar declaraciones por separado, deben calcular sus impuestos de las dos maneras (en una declaración conjunta y en declaraciones separadas). Bankruptcy back taxes De esta manera, pueden asegurarse de utilizar el método mediante el cual paguen la menor cantidad de impuestos entre los dos. Bankruptcy back taxes Al calcular el monto combinado de los impuestos de ambos cónyuges, usted querrá tener en cuenta los impuestos estatales al igual que los impuestos federales. Bankruptcy back taxes Cómo presentar la declaración. Bankruptcy back taxes   Si presenta una declaración por separado, normalmente declara únicamente su propio ingreso, exenciones, créditos y deducciones. Bankruptcy back taxes Puede declarar una exención por su cónyuge solamente si éste no recibe ingresos brutos, no presenta una declaración y no es dependiente de otro contribuyente. Bankruptcy back taxes Puede presentar el Formulario 1040. Bankruptcy back taxes Si tiene ingresos sujetos a impuestos menores de $100,000, quizá podría presentar el Formulario 1040A. Bankruptcy back taxes Elija este estado civil marcando el recuadro de la línea 3 de cualquiera de estos formularios. Bankruptcy back taxes Anote el nombre completo de su cónyuge y el número de Seguro Social (SSN, por sus siglas en inglés) o el número de identificación del contribuyente individual (ITIN, por sus siglas en inglés) de su cónyuge en los espacios provistos. Bankruptcy back taxes Si su cónyuge no tiene y no se le requiere tener un SSN o un ITIN, anote “ NRA ” (extranjero no residente, por sus siglas en inglés) en el espacio provisto para el SSN de su cónyuge. Bankruptcy back taxes Utilice la columna para Casado que presenta una declaración por separado en la Tabla de Impuestos o en la Sección C de la Hoja de Trabajo para el Cálculo del Impuesto para calcular su impuesto. Bankruptcy back taxes Reglas Especiales Si opta por usar el estado civil de casado que presenta la declaración por separado, corresponden las siguientes reglas especiales. Bankruptcy back taxes Debido a estas reglas especiales, por lo general usted pagará más impuestos en una declaración por separado de lo que pagaría si utilizara otro estado civil al cual tiene derecho. Bankruptcy back taxes   Su tasa de impuestos generalmente es mayor que la de una declaración conjunta. Bankruptcy back taxes La cantidad de la exención para calcular el impuesto mínimo alternativo es la mitad de la cantidad permitida en una declaración conjunta. Bankruptcy back taxes No puede tomar el crédito por gastos de cuidado de hijos y dependientes en la mayoría de los casos y la cantidad que puede excluir del ingreso en un programa de ayuda del empleador para el cuidado de dependientes es un máximo de $2,500 (en vez de $5,000). Bankruptcy back taxes Si está legalmente separado de su cónyuge, o viven separados, quizás pueda presentar la declaración por separado y todavía tomar el crédito. Bankruptcy back taxes Para más información sobre estos gastos, el crédito y la exclusión, vea el capítulo 32. Bankruptcy back taxes No puede tomar el crédito por ingreso del trabajo. Bankruptcy back taxes No puede tomar la exclusión o crédito por gastos de adopción en la mayoría de los casos. Bankruptcy back taxes No puede tomar los créditos tributarios por enseñanza superior (el crédito de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje), declarar la deducción por intereses sobre un préstamo de estudios o las deducciones por matrícula y cuotas escolares. Bankruptcy back taxes No puede excluir ningún ingreso de intereses procedentes de un bono de ahorros de los Estados Unidos calificado que haya utilizado para gastos de enseñanza superior. Bankruptcy back taxes Si vivió con su cónyuge en algún momento durante el año tributario: No puede reclamar el crédito para ancianos o para personas incapacitadas y Tendrá que incluir en sus ingresos un porcentaje más grande de los beneficios del Seguro Social o beneficios equivalentes de la jubilación ferroviaria que haya recibido (hasta el 85%). Bankruptcy back taxes Los siguientes créditos y deducciones se reducen en el caso de niveles de ingreso que sean la mitad de lo que serían en una declaración conjunta: El crédito tributario por hijos, El crédito por aportaciones a cuentas de ahorros para la jubilación, La deducción por exenciones personales y Las deducciones detalladas. Bankruptcy back taxes Su deducción por pérdida de capital se limita a $1,500 (en vez de $3,000 en una declaración conjunta). Bankruptcy back taxes Si su cónyuge detalla sus deducciones, usted no puede reclamar la deducción estándar. Bankruptcy back taxes Si usted puede reclamar la deducción estándar, la cantidad básica de su deducción estándar es la mitad de la cantidad permitida en una declaración conjunta. Bankruptcy back taxes Límites del ingreso bruto ajustado. Bankruptcy back taxes   Si su ingreso bruto ajustado (AGI, por sus siglas en inglés) en una declaración separada es menor de lo que hubiera podido ser en una declaración conjunta, usted podría deducir una cantidad mayor para ciertas deducciones limitadas por el ingreso bruto ajustado, tales como gastos médicos. Bankruptcy back taxes Arreglos de ahorros para la jubilación. Bankruptcy back taxes   Es posible que no pueda deducir la totalidad o parte de sus aportaciones a un arreglo de ahorros tradicional para la jubilación (IRA, por sus siglas en inglés) si usted o su cónyuge estuvo cubierto por un plan de jubilación de su trabajo durante el año. Bankruptcy back taxes Su deducción se reduce o se elimina si sus ingresos sobrepasan cierta cantidad. Bankruptcy back taxes Esta cantidad es mucho menor para personas casadas que presentan la declaración por separado y que vivieron juntas en algún momento del año. Bankruptcy back taxes Para más información, vea ¿Cuánto se Puede Deducir? , en el capítulo 17. Bankruptcy back taxes Pérdidas de actividades de alquiler. Bankruptcy back taxes   Si participó activamente en una actividad pasiva de alquiler de bienes raíces que haya generado una pérdida, normalmente puede deducir la pérdida de su ingreso no pasivo, hasta $25,000. Bankruptcy back taxes Esto se denomina “descuento especial”. Bankruptcy back taxes Sin embargo, las personas casadas que presentan declaraciones por separado que vivieron juntas en algún momento del año no pueden reclamar este descuento especial. Bankruptcy back taxes Las personas casadas que presentan declaraciones por separado que vivieron separadas en todo momento durante el año pueden obtener cada una por separado un descuento máximo especial de $12,500 por pérdidas de actividades pasivas de bienes raíces. Bankruptcy back taxes Vea Límites sobre las Pérdidas de Alquiler , en el capítulo 9. Bankruptcy back taxes Estados donde rige la ley de los bienes gananciales. Bankruptcy back taxes   Si vive en Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington o Wisconsin y presenta una declaración por separado, es posible que sus ingresos se consideren ingresos por separado o ingresos como bienes gananciales para efectos del impuesto sobre el ingreso. Bankruptcy back taxes Vea la Publicación 555, en inglés. Bankruptcy back taxes Declaración Conjunta Después de Presentar Declaraciones por Separado Puede cambiar su estado civil para efectos de la declaración después de presentar una declaración por separado a una declaración conjunta presentando una declaración enmendada, utilizando el Formulario 1040X. Bankruptcy back taxes Por lo general, puede cambiar a una declaración conjunta en cualquier momento dentro de un plazo de 3 años a partir de la fecha límite para presentar la declaración o declaraciones separadas. Bankruptcy back taxes Este plazo no incluye prórroga alguna. Bankruptcy back taxes Una declaración separada incluye una declaración que usted o su cónyuge haya presentado con uno de los tres estados civiles siguientes: casado que presenta la declaración por separado, soltero o cabeza de familia. Bankruptcy back taxes Declaración por Separado Después de Presentar una Declaración Conjunta Una vez que hayan presentado una declaración conjunta, no podrán optar por presentar declaraciones por separado para ese año después de la fecha límite para presentar dicha declaración conjunta. Bankruptcy back taxes Excepción. Bankruptcy back taxes   El representante personal de un fallecido puede cambiar la opción del cónyuge sobreviviente de presentar una declaración conjunta, presentando en su lugar una declaración por separado en nombre del fallecido. Bankruptcy back taxes El representante personal tiene hasta 1 año a partir de la fecha de vencimiento del plazo de entrega de la declaración (incluidas prórrogas) para hacer el cambio. Bankruptcy back taxes Vea la Publicación 559, Survivors, Executors, and Administrators (Sobrevivientes, albaceas y administradores), en inglés, para más información sobre la presentación de la declaración final para un fallecido. Bankruptcy back taxes Cabeza de Familia Puede presentar la declaración como cabeza de familia si cumple todos los requisitos siguientes: No está casado o “se le consideraba no casado” en el último día del año. Bankruptcy back taxes Vea Estado Civil , anteriormente y Personas Consideradas no Casadas , más adelante. Bankruptcy back taxes Pagó más de la mitad del costo de mantener una vivienda durante el año. Bankruptcy back taxes Una persona calificada vivió con usted en la vivienda durante más de la mitad del año (excepto por ausencias temporales, como para cursar estudios). Bankruptcy back taxes Sin embargo, si la “persona calificada” es su padre o madre dependiente, él o ella no tiene que vivir con usted. Bankruptcy back taxes Vea Regla especial para los padres , más adelante, en la sección titulada Persona Calificada. Bankruptcy back taxes Si reúne los requisitos para presentar la declaración como cabeza de familia, su tasa de impuesto será, por lo general, menor que las tasas para solteros o casados que presentan declaraciones por separado. Bankruptcy back taxes Usted recibirá, además, una deducción estándar mayor de la que recibiría si se basara en el estado civil de soltero o de casado que presenta una declaración por separado. Bankruptcy back taxes Hijos secuestrados. Bankruptcy back taxes   Usted podría reunir los requisitos para presentar la declaración como cabeza de familia, aun cuando su hijo haya sido secuestrado. Bankruptcy back taxes Para más información, vea la Publicación 501, en inglés. Bankruptcy back taxes Cómo presentar la declaración. Bankruptcy back taxes   Si presenta la declaración como cabeza de familia, puede utilizar el Formulario 1040. Bankruptcy back taxes Si tiene ingresos sujetos a impuestos menores de $100,000, quizá podría presentar el Formulario 1040A. Bankruptcy back taxes Indique su estado civil para efectos de la declaración marcando el recuadro de la línea 4 en cualquiera de estos formularios. Bankruptcy back taxes Utilice la columna Cabeza de familia en la Tabla de Impuestos o la Sección D de la Hoja de Trabajo para el Cálculo del Impuesto, para calcular su impuesto. Bankruptcy back taxes Personas Consideradas no Casadas Para tener derecho al estado civil de cabeza de familia, tiene que ser no casado o considerado no casado el último día del año. Bankruptcy back taxes Se le considera no casado el último día del año tributario si reúne todos los requisitos siguientes: Presenta una declaración separada, definida anteriormente en la sección titulada Declaración Conjunta Después de Presentar Declaraciones por Separado . Bankruptcy back taxes Pagó más de la mitad de los costos de mantenimiento de su vivienda durante el año tributario. Bankruptcy back taxes Su cónyuge no vivió con usted en la vivienda durante los últimos 6 meses del año tributario. Bankruptcy back taxes Se considera que su cónyuge ha vivido en la vivienda aun si él o ella se ausenta temporalmente debido a circunstancias especiales. Bankruptcy back taxes Vea más adelante Ausencias temporales , bajo Persona Calificada. Bankruptcy back taxes Su vivienda fue la residencia principal de su hijo, hijastro o hijo de crianza durante más de la mitad del año. Bankruptcy back taxes (Vea Vivienda de una persona calificada , bajo Persona Calificada, más adelante, para los requisitos aplicables al nacimiento, fallecimiento o ausencia temporal de un hijo durante el año). Bankruptcy back taxes Tiene que tener derecho a reclamar una exención por el hijo. Bankruptcy back taxes No obstante, usted cumple este requisito si no puede reclamar una exención por su hijo solamente porque el padre que no tiene la custodia puede declararlo basándose en los requisitos que se describen en Hijos de padres divorciados o separados (o padres que no viven juntos) bajo Hijo Calificado en el capítulo 3 o en Requisito de Manutención para Hijos de Padres Divorciados o Separados (o padres que no viven juntos) bajo Pariente Calificado en el capítulo 3. Bankruptcy back taxes Los requisitos generales para reclamar la exención por un dependiente se explican en el capítulo 3 bajo Exenciones por Dependientes . Bankruptcy back taxes Si se le considera casado por parte del año y vivió en un estado donde rige la ley de los bienes gananciales (indicado anteriormente bajo la sección titulada Casados que Presentan la Declaración por Separado), es posible que correspondan requisitos especiales para determinar su ingreso y sus gastos. Bankruptcy back taxes Vea la Publicación 555, en inglés, para más información. Bankruptcy back taxes Hoja de Trabajo 2-1. Bankruptcy back taxes Costo de Mantenimiento de la Vivienda   Cantidad que Usted Pagó Costo Total Impuestos sobre la propiedad $ $ Gastos por intereses hipotecarios     Alquiler     Gastos de servicios públicos     Mantenimiento y reparaciones     Seguro de la propiedad     Alimentos consumidos  en la vivienda     Otros gastos del hogar     Totales $ $ Menos la cantidad total que usted pagó   () Cantidad que otras personas pagaron   $ Si el total de lo que usted pagó es más de lo que otros pagaron, usted reúne el requisito de pagar más de la mitad del mantenimiento de la vivienda. Bankruptcy back taxes Cónyuge extranjero no residente. Bankruptcy back taxes   Se le considera no casado para propósitos del estado civil de cabeza de familia si su cónyuge fue extranjero no residente en alguna parte del año y usted no opta por incluir a su cónyuge no residente en la declaración como extranjero residente. Bankruptcy back taxes No obstante, su cónyuge no es una persona calificada para fines del estado civil de cabeza de familia. Bankruptcy back taxes Usted tiene que tener otra persona calificada y reunir los demás requisitos necesarios para poder presentar la declaración como cabeza de familia. Bankruptcy back taxes Elección de incluir al cónyuge en la declaración como residente. Bankruptcy back taxes   Se le considera casado si ha optado por incluir a su cónyuge en la declaración como extranjero residente. Bankruptcy back taxes Vea la Publicación 519, U. Bankruptcy back taxes S. Bankruptcy back taxes Tax Guide for Aliens (Guía sobre los impuestos estadounidenses para extranjeros), en inglés. Bankruptcy back taxes Personas que Mantienen una Vivienda Para tener derecho al estado civil de cabeza de familia para la declaración, tiene que pagar más de la mitad de los gastos de mantener la vivienda durante el año. Bankruptcy back taxes Para determinar si usted pagó más de la mitad del costo de mantener una vivienda, puede usar la Hoja de Trabajo 2-1, anteriormente. Bankruptcy back taxes Costos que se incluyen. Bankruptcy back taxes   Incluya en los costos de mantenimiento de la vivienda, gastos como alquiler, intereses hipotecarios, impuestos sobre bienes raíces, seguro de la vivienda, reparaciones, servicios públicos y alimentos consumidos en la vivienda. Bankruptcy back taxes   Si usó pagos recibidos bajo el programa Temporary Assistance for Needy Families (Asistencia Temporal para Familias Necesitadas (TANF, por sus siglas en inglés)) u otros programas de asistencia pública para pagar parte del costo de mantener su vivienda, no los puede incluir como dinero pagado. Bankruptcy back taxes No obstante, debe incluirlos en la totalidad del costo de mantener su vivienda para calcular si pagó más de la mitad del costo. Bankruptcy back taxes Costos que no se incluyen. Bankruptcy back taxes   No incluya los costos de ropa, educación, tratamiento médico, vacaciones, seguro de vida o transporte. Bankruptcy back taxes Tampoco incluya el valor del alquiler de una vivienda de la cual usted es dueño ni el valor de los servicios prestados por usted o por un miembro de su hogar. Bankruptcy back taxes Persona Calificada Vea la Tabla 2-1 más adelante, para determinar quién es una persona calificada. Bankruptcy back taxes Toda persona no descrita en la Tabla 2-1 no es una persona calificada. Bankruptcy back taxes Ejemplo 1: hijo. Bankruptcy back taxes Su hijo, no casado, vivió con usted durante todo el año y tenía 18 años de edad al final del año. Bankruptcy back taxes Él no aportó más de la mitad de su propia manutención, ni cumple los requisitos para ser hijo calificado de otro contribuyente. Bankruptcy back taxes Por lo tanto, es el hijo calificado de usted (vea Hijo Calificado en el capítulo 3), ya que es soltero, es una persona calificada en la que usted puede basarse para presentar la declaración de impuestos como cabeza de familia. Bankruptcy back taxes Ejemplo 2: hijo no considerado persona calificada. Bankruptcy back taxes Los datos son iguales a los del Ejemplo 1, excepto que su hijo tenía 25 años de edad al finalizar el año y su ingreso bruto fue $5,000. Bankruptcy back taxes Debido a que su hijo no satisface el Requisito de Edad (explicado en el capítulo 3 bajo Hijo Calificado), su hijo no es considerado hijo calificado. Bankruptcy back taxes Debido a que él no satisface el Requisito del Ingreso Bruto (explicado bajo Pariente Calificado en el capítulo 3), él no es el pariente calificado de usted. Bankruptcy back taxes Por lo tanto, él no es una persona calificada en la que usted pueda basarse para presentar la declaración de impuestos como cabeza de familia. Bankruptcy back taxes Ejemplo 3: novia. Bankruptcy back taxes Su novia vivió con usted durante todo el año. Bankruptcy back taxes Aunque ella podría ser el pariente calificado de usted si reúne el requisito del ingreso bruto y el requisito de manutención (explicados en el capítulo 3), ella no es una persona calificada en la que usted pueda basarse para presentar la declaración de impuestos como cabeza de familia debido a que ella no está emparentada con usted en una de las maneras mencionadas bajo Parientes que no tienen que vivir con usted , en el capítulo 3. Bankruptcy back taxes Vea la Tabla 2-1 . Bankruptcy back taxes Ejemplo 4: el hijo de su novia. Bankruptcy back taxes Los datos son iguales a los del Ejemplo 3 , excepto que el hijo de su novia, el cual tiene 10 años de edad, también vivió con usted durante todo el año. Bankruptcy back taxes No es el hijo calificado de usted y, ya que es el hijo calificado de su novia, tampoco es el pariente calificado de usted (vea el Requisito de no ser Hijo Calificado en el capítulo 3). Bankruptcy back taxes Por lo tanto, no es una persona calificada en la que usted pueda basarse para presentar la declaración de impuestos como cabeza de familia. Bankruptcy back taxes Vivienda de una persona calificada. Bankruptcy back taxes   Por lo general, la persona calificada tiene que vivir con usted durante más de la mitad del año. Bankruptcy back taxes Regla especial para los padres. Bankruptcy back taxes   Si la persona calificada es su padre o su madre, podría tener derecho al estado civil de cabeza de familia al presentar la declaración, aunque su padre o su madre no viva con usted. Bankruptcy back taxes Sin embargo, tiene que poder reclamar una exención por su padre o su madre. Bankruptcy back taxes También tiene que pagar más de la mitad de los gastos de mantener una vivienda que fue la vivienda principal de su madre o su padre durante todo el año. Bankruptcy back taxes   Usted mantiene la vivienda principal para su padre o su madre si paga más de la mitad de los gastos de mantenimiento de su padre o su madre en un asilo o residencia para ancianos. Bankruptcy back taxes Fallecimiento o nacimiento. Bankruptcy back taxes   Es posible que pueda presentar la declaración como cabeza de familia aun cuando la persona que le da derecho a este estado civil nazca o muera durante el año. Bankruptcy back taxes Si esa persona es su hijo calificado, el hijo tiene que haber vivido con usted por más de la mitad de la parte del año en que él o ella estaba vivo. Bankruptcy back taxes Si la persona es cualquier otra persona que no sea su hijo calificado, consulte la Publicación 501. Bankruptcy back taxes Ausencias temporales. Bankruptcy back taxes   Se considera que usted y la persona calificada residen en la misma vivienda aun en el caso de una ausencia temporal suya, de la otra persona o de ambas, debido a circunstancias especiales, como enfermedad, educación, negocios, vacaciones o servicio militar. Bankruptcy back taxes Tiene que ser razonable suponer que la persona ausente volverá a la vivienda después de la ausencia temporal. Bankruptcy back taxes Usted tiene que continuar manteniendo la vivienda durante la ausencia. Bankruptcy back taxes Viudo que Reúne los Requisitos con Hijo Dependiente Si su cónyuge falleció en el año 2013, usted puede utilizar el estado civil de casado que presenta una declaración conjunta para el año 2013 si satisface los demás requisitos para utilizar dicho estado civil para efectos de la declaración. Bankruptcy back taxes El año de fallecimiento es el último año para el cual puede presentar una declaración conjunta con su cónyuge fallecido. Bankruptcy back taxes Vea la sección anterior, Casados que Presentan una Declaración Conjunta . Bankruptcy back taxes Es posible que pueda presentar su declaración utilizando el estado civil de viudo que reúne los requisitos con hijo dependiente durante los 2 años siguientes al año del fallecimiento de su cónyuge. Bankruptcy back taxes Por ejemplo, si su cónyuge falleció en el año 2012 y usted no se ha vuelto a casar, quizás pueda utilizar este estado civil para efectos de la declaración para los años 2013 y 2014. Bankruptcy back taxes Este estado civil le da el derecho de usar las tasas impositivas para la declaración conjunta y la deducción estándar máxima (si no detalla las deducciones). Bankruptcy back taxes Sin embargo, dicho estado civil no le da el derecho de presentar una declaración conjunta. Bankruptcy back taxes Cómo presentar la declaración. Bankruptcy back taxes   Si usted presenta la declaración como viudo que reúne los requisitos con hijo dependiente, puede usar el Formulario 1040. Bankruptcy back taxes Además, si tiene ingresos sujetos a impuestos menores de $100,000 y cumple con ciertas condiciones, quizá podría presentar el Formulario 1040A. Bankruptcy back taxes Marque el recuadro en la línea 5 de cualquiera de los dos formularios. Bankruptcy back taxes Para calcular su impuesto, utilice la columna correspondiente a Casado que presenta una declaración conjunta, la cual aparece en la Tabla de Impuestos o la Sección B de la Hoja de Trabajo para el Cálculo del Impuesto. Bankruptcy back taxes Tabla 2-1. Bankruptcy back taxes ¿Quién le Da Derecho a Presentar la Declaración como Cabeza de Familia?1 Precaución: En este capítulo encontrará los demás requisitos que tiene que reunir para reclamar el estado civil de cabeza de familia para efectos de la declaración. Bankruptcy back taxes SI la persona es su . Bankruptcy back taxes . Bankruptcy back taxes . Bankruptcy back taxes   Y . Bankruptcy back taxes . Bankruptcy back taxes . Bankruptcy back taxes   ENTONCES esa persona . Bankruptcy back taxes . Bankruptcy back taxes . Bankruptcy back taxes hijo calificado (como un hijo, hija o nieto que vivió con usted durante más de la mitad del año y reúne ciertos otros requisitos)2   él o ella es soltero   es una persona calificada, independientemente de si usted puede o no reclamar una exención por dicha persona. Bankruptcy back taxes   él o ella está casado y usted puede reclamar una exención por él o ella   es una persona calificada. Bankruptcy back taxes   él o ella está casado y usted no puede reclamar una exención por él o ella   no es una persona calificada. Bankruptcy back taxes 3 pariente calificado4 que sea su padre o madre   usted puede reclamar una exención por él o ella5   es una persona calificada. Bankruptcy back taxes 6   usted no puede reclamar una exención por él o ella   no es una persona calificada. Bankruptcy back taxes pariente calificado4 que no sea su padre o madre (como un abuelo, hermano o hermana que reúne ciertos requisitos)   él o ella vivió con usted durante más de la mitad del año y él o ella es uno de los parientes mencionados en Parientes que no tienen que vivir con usted en el capítulo 3 y usted puede reclamar una exención por él o ella5   es una persona calificada. Bankruptcy back taxes   él o ella no vivió con usted durante más de la mitad del año   no es una persona calificada. Bankruptcy back taxes   él o ella no es uno de los parientes mencionados en Parientes que no tienen que vivir con usted en el capítulo 3 y es su pariente calificado sólo por vivir con usted todo el año como miembro de su unidad familiar   no es una persona calificada. Bankruptcy back taxes   usted no puede reclamar una exención por él o ella   no es una persona calificada. Bankruptcy back taxes 1Una persona no puede darle a más de un contribuyente el derecho de usar el estado civil de cabeza de familia para la declaración en el año. Bankruptcy back taxes 2El término hijo calificado se define en el capítulo 3. Bankruptcy back taxes Nota: Si usted es padre o madre sin custodia, el término “hijo calificado” para el estado civil de cabeza de familia no incluye a un hijo que sea su hijo calificado para propósitos de una exención tributaria debido solamente a las reglas descritas bajo Hijos de padres divorciados o separados (o padres que no viven juntos) bajo Hijo Calificado en el capítulo 3. Bankruptcy back taxes Si usted es el padre o la madre que tiene custodia y le corresponden estas reglas, el hijo generalmente es su hijo calificado para el estado civil de cabeza de familia aunque el hijo no sea un hijo calificado por el cual usted pueda reclamar una exención. Bankruptcy back taxes 3Esta persona es una persona calificada si la única razón por la cual usted no puede tener derecho a la exención es que usted puede ser reclamado como dependiente en la declaración de otra persona. Bankruptcy back taxes 4El término “ pariente calificado ” se define en el capítulo 3. Bankruptcy back taxes 5Si usted puede reclamar una exención por una persona sólo porque existe un acuerdo de manutención múltiple, dicha persona no es una persona calificada. Bankruptcy back taxes Vea la sección titulada Acuerdo de Manutención Múltiple , en el capítulo 3. Bankruptcy back taxes 6Vea Regla especial para los padres . Bankruptcy back taxes   Requisitos. Bankruptcy back taxes   Tiene derecho a presentar la declaración del año 2013 como viudo que reúne los requisitos con hijo dependiente si cumple todas las condiciones siguientes: Tenía derecho a presentar una declaración conjunta con su cónyuge para el año en que éste falleció. Bankruptcy back taxes No importa si usted de hecho llegó a presentar una declaración conjunta. Bankruptcy back taxes Su cónyuge falleció en el año 2011 o en el año 2012 y usted no se volvió a casar antes de terminar el año 2013. Bankruptcy back taxes Tiene un hijo o hijastro por el cual usted puede reclamar una exención. Bankruptcy back taxes Esto no incluye a un hijo de crianza. Bankruptcy back taxes Este hijo vivió en su vivienda durante todo el año, a excepción de ausencias temporales. Bankruptcy back taxes Vea Ausencias temporales , anteriormente, bajo Cabeza de Familia. Bankruptcy back taxes También hay excepciones, las cuales se describen más adelante, que corresponden a un hijo que nació o falleció durante el año y a un hijo secuestrado. Bankruptcy back taxes Pagó más de la mitad del costo de mantener una vivienda durante el año. Bankruptcy back taxes Vea Personas que Mantienen una Vivienda , anteriormente, bajo Cabeza de Familia. Bankruptcy back taxes Ejemplo. Bankruptcy back taxes La esposa de Juan falleció en el año 2011. Bankruptcy back taxes Él no se ha vuelto a casar. Bankruptcy back taxes Durante los años 2012 y 2013, continuó manteniendo una vivienda para él y su hijo (que vive con él y por el cual puede reclamar una exención). Bankruptcy back taxes En el año 2011, tenía derecho a presentar una declaración conjunta para él y su esposa fallecida. Bankruptcy back taxes En los años tributarios 2012 y 2013 tiene derecho a presentar una declaración como viudo que reúne los requisitos con hijo dependiente. Bankruptcy back taxes Después de 2013, puede presentar la declaración usando el estado civil de cabeza de familia si reúne los requisitos para dicho estado civil. Bankruptcy back taxes Fallecimiento o nacimiento. Bankruptcy back taxes    Puede satisfacer las condiciones para presentar una declaración como viudo que reúne los requisitos con hijo dependiente si el hijo que le da derecho a este estado civil nace o fallece durante el año. Bankruptcy back taxes Tiene que haber provisto más de la mitad del costo de mantener una vivienda que fuera la residencia principal del hijo durante toda la parte del año durante el cual el hijo estuvo vivo. Bankruptcy back taxes Hijos secuestrados. Bankruptcy back taxes   Aunque su hijo haya sido secuestrado, dicho hijo podría darle derecho al estado civil de viudo calificado con hijo dependiente que reúne los requisitos. Bankruptcy back taxes Para más información, vea la Publicación 501, en inglés. Bankruptcy back taxes Como se menciona anteriormente, este estado civil se puede utilizar solamente durante los 2 años siguientes al año del fallecimiento de su cónyuge. Bankruptcy back taxes Prev  Up  Next   Home   More Online Publications
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Responsible Parties and Nominees

Responsible Parties

All EIN applications (mail, fax, electronic) must disclose the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the true principal officer, general partner, grantor, owner or trustor. This individual or entity, which the IRS will call the “responsible party,” controls, manages, or directs the applicant entity and the disposition of its funds and assets. If there is more than one responsible party, the entity may list whichever party the entity wants the IRS to recognize as the responsible party. 

According to the Instructions for the current revision of the application, the “responsible party” is defined as follows:

For entities with shares or interests traded on a public exchange, or which are registered with the Securities and Exchange Commission, “responsible party” is (a) the principal officer, if the business is a corporation, (b) a general partner, if a partnership, (c) the owner of an entity that is disregarded as separate from its owner (disregarded entities owned by a corporation enter the corporation’s name and EIN), or (d) a grantor, owner, or trustor if a trust.

For all other entities, “responsible party” is  the person who has a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the individual, directly or indirectly, to control, manage or direct the entity and the disposition of its funds and assets. The ability to fund the entity or the entitlement to the property of the entity alone, however, without any corresponding authority to control, manage, or direct the entity (such as in the case of a minor child beneficiary), does not cause the individual to be a responsible party.

Nominees

A “nominee” is someone who is given limited authority to act on behalf of an entity, usually for a limited period of time, and usually during the formation of the entity.  The “principal officer, general partner,” etc., as defined by the IRS, is the true “responsible party” for the entity, instead of a nominee. The “responsible party” is the individual or entity that controls, manages, or directs the entity and the disposition of the entity’s funds and assets, unlike a nominee, who is given little or no authority over the entity’s assets. 

The Internal Revenue Service has become aware that nominee individuals are being listed as principal officers, general partners, grantors, owners, and trustors in the Employer Identification Number (EIN) application process. A nominee is not one of these people. Rather, nominees are temporarily authorized to act on behalf of entities during the formation process. The use of nominees in the EIN application process prevents the IRS from gathering appropriate information on entity ownership, and has been found to facilitate tax non-compliance by entities and their owners.

The IRS does not authorize the use of nominees to obtain EINs. All EIN applications (mail, fax, electronic) must disclose the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the true principal officer, general partner, grantor, owner or trustor. This individual or entity, which the IRS will call the “responsible party,” controls, manages, or directs the applicant entity and the disposition of its funds and assets.

To properly submit a Form SS-4, the form and authorization should include the name, Taxpayer Identification Number and signature of the responsible party. Third party designees filing online applications are reminded of their obligation to retain a complete signed copy of the paper Form SS-4 and signed authorization statement for each entity application filed with the IRS. Nominees do not have the authority to authorize third party designees to file Forms SS-4, and should not be listed on the Form SS-4.

If a nominee is used in the state formation process and the true responsible party has not yet been identified, the entity must identify that individual before applying for an EIN.

The IRS will continue to pursue enforcement actions to prevent the misuse of EIN applications.

If you used a nominee for the EIN Application process, visit Correcting Business Information Where a Nominee Was Used to learn how to correct your information.

Page Last Reviewed or Updated: 03-Jan-2014

The Bankruptcy Back Taxes

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