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Cheap tax software 6. Cheap tax software   Basis of Assets Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Cost BasisReal Property Allocating the Basis Uniform Capitalization Rules Adjusted BasisIncreases to Basis Decreases to Basis Basis Other Than CostTaxable Exchanges Involuntary Conversions Nontaxable Exchanges Property Received as a Gift Property Transferred From a Spouse Inherited Property Property Distributed From a Partnership or Corporation Introduction Your basis is the amount of your investment in property for tax purposes. Cheap tax software Use basis to figure the gain or loss on the sale, exchange, or other disposition of property. Cheap tax software Also use basis to figure depreciation, amortization, depletion, and casualty losses. Cheap tax software If you use property for both business or investment purposes and for personal purposes, you must allocate the basis based on the use. Cheap tax software Only the basis allocated to the business or investment use of the property can be depreciated. Cheap tax software Your original basis in property is adjusted (increased or decreased) by certain events. Cheap tax software For example, if you make improvements to the property, increase your basis. Cheap tax software If you take deductions for depreciation, or casualty losses, or claim certain credits, reduce your basis. Cheap tax software Keep accurate records of all items that affect the basis of your assets. Cheap tax software For information on keeping records, see chapter 1. Cheap tax software Topics - This chapter discusses: Cost basis Adjusted basis Basis other than cost Useful Items - You may want to see: Publication 535 Business Expenses 544 Sales and Other Dispositions of Assets 551 Basis of Assets 946 How To Depreciate Property See chapter 16 for information about getting publications and forms. Cheap tax software Cost Basis The basis of property you buy is usually its cost. Cheap tax software Cost is the amount you pay in cash, debt obligations, other property, or services. Cheap tax software Your cost includes amounts you pay for sales tax, freight, installation, and testing. Cheap tax software The basis of real estate and business assets will include other items, discussed later. Cheap tax software Basis generally does not include interest payments. Cheap tax software However, see Carrying charges and Capitalized interest in chapter 4 of Publication 535. Cheap tax software You also may have to capitalize (add to basis) certain other costs related to buying or producing property. Cheap tax software Under the uniform capitalization rules, discussed later, you may have to capitalize direct costs and certain indirect costs of producing property. Cheap tax software Loans with low or no interest. Cheap tax software   If you buy property on a time-payment plan that charges little or no interest, the basis of your property is your stated purchase price minus the amount considered to be unstated interest. Cheap tax software You generally have unstated interest if your interest rate is less than the applicable federal rate. Cheap tax software See the discussion of unstated interest in Publication 537, Installment Sales. Cheap tax software Real Property Real property, also called real estate, is land and generally anything built on, growing on, or attached to land. Cheap tax software If you buy real property, certain fees and other expenses you pay are part of your cost basis in the property. Cheap tax software Some of these expenses are discussed next. Cheap tax software Lump sum purchase. Cheap tax software   If you buy improvements, such as buildings, and the land on which they stand for a lump sum, allocate your cost basis between the land and improvements. Cheap tax software Allocate the cost basis according to the respective fair market values (FMVs) of the land and improvements at the time of purchase. Cheap tax software Figure the basis of each asset by multiplying the lump sum by a fraction. Cheap tax software The numerator is the FMV of that asset and the denominator is the FMV of the whole property at the time of purchase. Cheap tax software Fair market value (FMV). Cheap tax software   FMV is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all necessary facts. Cheap tax software Sales of similar property on or about the same date may help in figuring the FMV of the property. Cheap tax software If you are not certain of the FMV of the land and improvements, you can allocate the basis according to their assessed values for real estate tax purposes. Cheap tax software Real estate taxes. Cheap tax software   If you pay the real estate taxes the seller owed on real property you bought, and the seller did not reimburse you, treat those taxes as part of your basis. Cheap tax software   If you reimburse the seller for taxes the seller paid for you, you generally can deduct that amount as a tax expense. Cheap tax software Whether or not you reimburse the seller, do not include that amount in the basis of your property. Cheap tax software Settlement costs. Cheap tax software   Your basis includes the settlement fees and closing costs for buying the property. Cheap tax software See Publication 551 for a detailed list of items you can and cannot include in basis. Cheap tax software   Do not include fees and costs for getting a loan on the property. Cheap tax software Also, do not include amounts placed in escrow for the future payment of items such as taxes and insurance. Cheap tax software Points. Cheap tax software   If you pay points to get a loan (including a mortgage, second mortgage, or line-of-credit), do not add the points to the basis of the related property. Cheap tax software You may be able to deduct the points currently or over the term of the loan. Cheap tax software For more information about deducting points, see Points in chapter 4 of Publication 535. Cheap tax software Assumption of a mortgage. Cheap tax software   If you buy property and assume (or buy the property subject to) an existing mortgage, your basis includes the amount you pay for the property plus the amount you owe on the mortgage. Cheap tax software Example. Cheap tax software If you buy a farm for $100,000 cash and assume a mortgage of $400,000, your basis is $500,000. Cheap tax software Constructing assets. Cheap tax software   If you build property or have assets built for you, your expenses for this construction are part of your basis. Cheap tax software Some of these expenses include the following costs: Land, Labor and materials, Architect's fees, Building permit charges, Payments to contractors, Payments for rental equipment, and Inspection fees. Cheap tax software   In addition, if you use your own employees, farm materials, and equipment to build an asset, do not deduct the following expenses. Cheap tax software You must capitalize them (include them in the asset's basis). Cheap tax software Employee wages paid for the construction work, reduced by any employment credits allowed. Cheap tax software Depreciation on equipment you own while it is used in the construction. Cheap tax software Operating and maintenance costs for equipment used in the construction. Cheap tax software The cost of business supplies and materials used in the construction. Cheap tax software    Do not include the value of your own labor, or any other labor you did not pay for, in the basis of any property you construct. Cheap tax software Allocating the Basis In some instances, the rules for determining basis apply to a group of assets acquired in the same transaction or to property that consists of separate items. Cheap tax software To determine the basis of these assets or separate items, there must be an allocation of basis. Cheap tax software Group of assets acquired. Cheap tax software   If you buy multiple assets for a lump sum, allocate the amount you pay among the assets. Cheap tax software Use this allocation to figure your basis for depreciation and gain or loss on a later disposition of any of these assets. Cheap tax software You and the seller may agree in the sales contract to a specific allocation of the purchase price among the assets. Cheap tax software If this allocation is based on the value of each asset and you and the seller have adverse tax interests, the allocation generally will be accepted. Cheap tax software Farming business acquired. Cheap tax software   If you buy a group of assets that makes up a farming business, there are special rules you must use to allocate the purchase price among the assets. Cheap tax software Generally, reduce the purchase price by any cash received. Cheap tax software Allocate the remaining purchase price to the other business assets received in proportion to (but not more than) their FMV and in a certain order. Cheap tax software See Trade or Business Acquired under Allocating the Basis in Publication 551 for more information. Cheap tax software Transplanted embryo. Cheap tax software   If you buy a cow that is pregnant with a transplanted embryo, allocate to the basis of the cow the part of the purchase price equal to the FMV of the cow without the implant. Cheap tax software Allocate the rest of the purchase price to the basis of the calf. Cheap tax software Neither the cost allocated to the cow nor the cost allocated to the calf is deductible as a current business expense. Cheap tax software Uniform Capitalization Rules Under the uniform capitalization rules, you must include certain direct and indirect costs in the basis of property you produce or in your inventory costs, rather than claim them as a current deduction. Cheap tax software You recover these costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. Cheap tax software Generally, you are subject to the uniform capitalization rules if you do any of the following: Produce real or tangible personal property, or Acquire property for resale. Cheap tax software However, this rule does not apply to personal property if your average annual gross receipts for the 3-tax-year period ending with the year preceding the current tax year are $10 million or less. Cheap tax software You produce property if you construct, build, install, manufacture, develop, improve, or create the property. Cheap tax software You are not subject to the uniform capitalization rules if the property is produced for personal use. Cheap tax software In a farming business, you produce property if you raise or grow any agricultural or horticultural commodity, including plants and animals. Cheap tax software Plants. Cheap tax software   A plant produced in a farming business includes the following items: A fruit, nut, or other crop-bearing tree; An ornamental tree; A vine; A bush; Sod; and The crop or yield of a plant that will have more than one crop or yield. Cheap tax software Animals. Cheap tax software   An animal produced in a farming business includes any stock, poultry or other bird, and fish or other sea life. Cheap tax software The direct and indirect costs of producing plants or animals include preparatory costs and preproductive period costs. Cheap tax software Preparatory costs include the acquisition costs of the seed, seedling, plant, or animal. Cheap tax software For plants, preproductive period costs include the costs of items such as irrigation, pruning, frost protection, spraying, and harvesting. Cheap tax software For animals, preproductive period costs include the costs of items such as feed, maintaining pasture or pen areas, breeding, veterinary services, and bedding. Cheap tax software Exceptions. Cheap tax software   In a farming business, the uniform capitalization rules do not apply to: Any animal, Any plant with a preproductive period of 2 years or less, or Any costs of replanting certain plants lost or damaged due to casualty. Cheap tax software   Exceptions (1) and (2) do not apply to a corporation, partnership, or tax shelter required to use an accrual method of accounting. Cheap tax software See Accrual Method Required under Accounting Methods in chapter 2. Cheap tax software   In addition, you can elect not to use the uniform capitalization rules for plants with a preproductive period of more than 2 years. Cheap tax software If you make this election, special rules apply. Cheap tax software This election cannot be made by a corporation, partnership, or tax shelter required to use an accrual method of accounting. Cheap tax software This election also does not apply to any costs incurred for the planting, cultivation, maintenance, or development of any citrus or almond grove (or any part thereof) within the first 4 years the trees were planted. Cheap tax software    If you elect not to use the uniform capitalization rules, you must use the alternative depreciation system for all property used in any of your farming businesses and placed in service in any tax year during which the election is in effect. Cheap tax software See chapter 7, for additional information on depreciation. Cheap tax software Example. Cheap tax software You grow trees that have a preproductive period of more than 2 years. Cheap tax software The trees produce an annual crop. Cheap tax software You are an individual and the uniform capitalization rules apply to your farming business. Cheap tax software You must capitalize the direct costs and an allocable part of indirect costs incurred due to the production of the trees. Cheap tax software You are not required to capitalize the costs of producing the annual crop because its preproductive period is 2 years or less. Cheap tax software Preproductive period of more than 2 years. Cheap tax software   The preproductive period of plants grown in commercial quantities in the United States is based on their nationwide weighted average preproductive period. Cheap tax software Plants producing the crops or yields shown in Table 6-1 have a nationwide weighted average preproductive period of more than 2 years. Cheap tax software Other plants (not shown in Table 6-1) may also have a nationwide weighted average preproductive period of more than 2 years. Cheap tax software More information. Cheap tax software   For more information on the uniform capitalization rules that apply to property produced in a farming business, see Regulations section 1. Cheap tax software 263A-4. Cheap tax software Table 6-1. Cheap tax software Plants With a Preproductive Period of More Than 2 Years Plants producing the following crops or yields have a nationwide weighted average preproductive period of more than 2 years. Cheap tax software Almonds Apples Apricots Avocados Blueberries Cherries Chestnuts Coffee beans Currants Dates Figs Grapefruit Grapes Guavas Kiwifruit Kumquats Lemons Limes Macadamia nuts Mangoes Nectarines Olives Oranges Peaches Pears Pecans Persimmons Pistachio nuts Plums Pomegranates Prunes Tangelos Tangerines Tangors Walnuts Adjusted Basis Before figuring gain or loss on a sale, exchange, or other disposition of property or figuring allowable depreciation, depletion, or amortization, you must usually make certain adjustments to the cost basis or basis other than cost (discussed later) of the property. Cheap tax software The adjustments to the original basis are increases or decreases to the cost basis or other basis which result in the adjusted basis of the property. Cheap tax software Increases to Basis Increase the basis of any property by all items properly added to a capital account. Cheap tax software These include the cost of any improvements having a useful life of more than 1 year. Cheap tax software The following costs increase the basis of property. Cheap tax software The cost of extending utility service lines to property. Cheap tax software Legal fees, such as the cost of defending and perfecting title. Cheap tax software Legal fees for seeking a decrease in an assessment levied against property to pay for local improvements. Cheap tax software Assessments for items such as paving roads and building ditches that increase the value of the property assessed. Cheap tax software Do not deduct these expenses as taxes. Cheap tax software However, you can deduct as taxes amounts assessed for maintenance or repairs, or for meeting interest charges related to the improvements. Cheap tax software If you make additions or improvements to business property, depreciate the basis of each addition or improvement as separate depreciable property using the rules that would apply to the original property if you had placed it in service at the same time you placed the addition or improvement in service. Cheap tax software See chapter 7. Cheap tax software Deducting vs. Cheap tax software capitalizing costs. Cheap tax software   Do not add to your basis costs you can deduct as current expenses. Cheap tax software For example, amounts paid for incidental repairs or maintenance are deductible as business expenses and are not added to basis. Cheap tax software However, you can elect either to deduct or to capitalize certain other costs. Cheap tax software See chapter 7 in Publication 535. Cheap tax software Decreases to Basis The following are some items that reduce the basis of property. Cheap tax software Section 179 deduction. Cheap tax software Deductions previously allowed or allowable for amortization, depreciation, and depletion. Cheap tax software Alternative motor vehicle credit. Cheap tax software See Form 8910. Cheap tax software Alternative fuel vehicle refueling property credit. Cheap tax software See Form 8911. Cheap tax software Residential energy efficient property credits. Cheap tax software See Form 5695. Cheap tax software Investment credit (part or all) taken. Cheap tax software Casualty and theft losses and insurance reimbursements. Cheap tax software Payments you receive for granting an easement. Cheap tax software Exclusion from income of subsidies for energy conservation measures. Cheap tax software Certain canceled debt excluded from income. Cheap tax software Rebates from a manufacturer or seller. Cheap tax software Patronage dividends received from a cooperative association as a result of a purchase of property. Cheap tax software See Patronage Dividends in chapter 3. Cheap tax software Gas-guzzler tax. Cheap tax software See Form 6197. Cheap tax software Some of these items are discussed next. Cheap tax software For a more detailed list of items that decrease basis, see section 1016 of the Internal Revenue Code and Publication 551. Cheap tax software Depreciation and section 179 deduction. Cheap tax software   The adjustments you must make to the basis of the property if you take the section 179 deduction or depreciate the property are explained next. Cheap tax software For more information on these deductions, see chapter 7. Cheap tax software Section 179 deduction. Cheap tax software   If you take the section 179 expense deduction for all or part of the cost of qualifying business property, decrease the basis of the property by the deduction. Cheap tax software Depreciation. Cheap tax software   Decrease the basis of property by the depreciation you deducted or could have deducted on your tax returns under the method of depreciation you chose. Cheap tax software If you took less depreciation than you could have under the method chosen, decrease the basis by the amount you could have taken under that method. Cheap tax software If you did not take a depreciation deduction, reduce the basis by the full amount of the depreciation you could have taken. Cheap tax software   If you deducted more depreciation than you should have, decrease your basis by the amount you should have deducted plus the part of the excess depreciation you deducted that actually reduced your tax liability for any year. Cheap tax software   See chapter 7 for information on figuring the depreciation you should have claimed. Cheap tax software   In decreasing your basis for depreciation, take into account the amount deducted on your tax returns as depreciation and any depreciation you must capitalize under the uniform capitalization rules. Cheap tax software Casualty and theft losses. Cheap tax software   If you have a casualty or theft loss, decrease the basis of the property by any insurance or other reimbursement. Cheap tax software Also, decrease it by any deductible loss not covered by insurance. Cheap tax software See chapter 11 for information about figuring your casualty or theft loss. Cheap tax software   You must increase your basis in the property by the amount you spend on clean-up costs (such as debris removal) and repairs that restore the property to its pre-casualty condition. Cheap tax software To make this determination, compare the repaired property to the property before the casualty. Cheap tax software Easements. Cheap tax software   The amount you receive for granting an easement is usually considered to be proceeds from the sale of an interest in the real property. Cheap tax software It reduces the basis of the affected part of the property. Cheap tax software If the amount received is more than the basis of the part of the property affected by the easement, reduce your basis in that part to zero and treat the excess as a recognized gain. Cheap tax software See Easements and rights-of-way in chapter 3. Cheap tax software Exclusion from income of subsidies for energy conservation measures. Cheap tax software   You can exclude from gross income any subsidy you received from a public utility company for the purchase or installation of an energy conservation measure for a dwelling unit. Cheap tax software Reduce the basis of the property by the excluded amount. Cheap tax software Canceled debt excluded from income. Cheap tax software   If a debt you owe is canceled or forgiven, other than as a gift or bequest, you generally must include the canceled amount in your gross income for tax purposes. Cheap tax software A debt includes any indebtedness for which you are liable or which attaches to property you hold. Cheap tax software   You can exclude your canceled debt from income if the debt is any of the following. Cheap tax software Debt canceled in a bankruptcy case or when you are insolvent. Cheap tax software Qualified farm debt. Cheap tax software Qualified real property business debt (provided you are not a C corporation). Cheap tax software Qualified principal residence indebtedness. Cheap tax software Discharge of certain indebtedness of a qualified individual because of Midwestern disasters. Cheap tax software If you exclude canceled debt described in (1) or (2), you may have to reduce the basis of your depreciable and nondepreciable property. Cheap tax software If you exclude canceled debt described in (3), you must only reduce the basis of your depreciable property by the excluded amount. Cheap tax software   For more information about canceled debt in a bankruptcy case, see Publication 908, Bankruptcy Tax Guide. Cheap tax software For more information about insolvency and canceled debt that is qualified farm debt or qualified principal residence indebtedness, see chapter 3. Cheap tax software For more information about qualified real property business debt, see Publication 334, Tax Guide for Small Business. Cheap tax software For more information about canceled debt in Midwestern disaster areas, see Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas. Cheap tax software Basis Other Than Cost There are times when you cannot use cost as basis. Cheap tax software In these situations, the fair market value or the adjusted basis of property may be used. Cheap tax software Examples are discussed next. Cheap tax software Property changed from personal to business or rental use. Cheap tax software   When you hold property for personal use and then change it to business use or use it to produce rent, you must figure its basis for depreciation. Cheap tax software An example of changing property from personal to business use would be changing the use of your pickup truck that you originally purchased for your personal use to use in your farming business. Cheap tax software   The basis for depreciation is the lesser of: The FMV of the property on the date of the change, or Your adjusted basis on the date of the change. Cheap tax software   If you later sell or dispose of this property, the basis you use will depend on whether you are figuring a gain or loss. Cheap tax software The basis for figuring a gain is your adjusted basis in the property when you sell the property. Cheap tax software Figure the basis for a loss starting with the smaller of your adjusted basis or the FMV of the property at the time of the change to business or rental use. Cheap tax software Then make adjustments (increases and decreases) for the period after the change in the property's use, as discussed earlier under Adjusted Basis . Cheap tax software Property received for services. Cheap tax software   If you receive property for services, include the property's FMV in income. Cheap tax software The amount you include in income becomes your basis. Cheap tax software If the services were performed for a price agreed on beforehand, it will be accepted as the FMV of the property if there is no evidence to the contrary. Cheap tax software Example. Cheap tax software George Smith is an accountant and also operates a farming business. Cheap tax software George agreed to do some accounting work for his neighbor in exchange for a dairy cow. Cheap tax software The accounting work and the cow are each worth $1,500. Cheap tax software George must include $1,500 in income for his accounting services. Cheap tax software George's basis in the cow is $1,500. Cheap tax software Taxable Exchanges A taxable exchange is one in which the gain is taxable, or the loss is deductible. Cheap tax software A taxable gain or deductible loss also is known as a recognized gain or loss. Cheap tax software A taxable exchange occurs when you receive cash or get property that is not similar or related in use to the property exchanged. Cheap tax software If you receive property in exchange for other property in a taxable exchange, the basis of the property you receive is usually its FMV at the time of the exchange. Cheap tax software Example. Cheap tax software You trade a tract of farmland with an adjusted basis of $2,000 for a tractor that has an FMV of $6,000. Cheap tax software You must report a taxable gain of $4,000 for the land. Cheap tax software The tractor has a basis of $6,000. Cheap tax software Involuntary Conversions If you receive property as a result of an involuntary conversion, such as a casualty, theft, or condemnation, figure the basis of the replacement property you receive using the basis of the converted property. Cheap tax software Similar or related property. Cheap tax software   If the replacement property is similar or related in service or use to the converted property, the replacement property's basis is the same as the old property's basis on the date of the conversion. Cheap tax software However, make the following adjustments. Cheap tax software Decrease the basis by the following amounts. Cheap tax software Any loss you recognize on the involuntary conversion. Cheap tax software Any money you receive that you do not spend on similar property. Cheap tax software Increase the basis by the following amounts. Cheap tax software Any gain you recognize on the involuntary conversion. Cheap tax software Any cost of acquiring the replacement property. Cheap tax software Money or property not similar or related. Cheap tax software   If you receive money or property not similar or related in service or use to the converted property and you buy replacement property similar or related in service or use to the converted property, the basis of the replacement property is its cost decreased by the gain not recognized on the involuntary conversion. Cheap tax software Allocating the basis. Cheap tax software   If you buy more than one piece of replacement property, allocate your basis among the properties based on their respective costs. Cheap tax software Basis for depreciation. Cheap tax software   Special rules apply in determining and depreciating the basis of MACRS property acquired in an involuntary conversion. Cheap tax software For information, see Figuring the Deduction for Property Acquired in a Nontaxable Exchange under Figuring Depreciation Under MACRS in chapter 7. Cheap tax software For more information about involuntary conversions, see chapter 11. Cheap tax software Nontaxable Exchanges A nontaxable exchange is an exchange in which you are not taxed on any gain and you cannot deduct any loss. Cheap tax software A nontaxable gain or loss also is known as an unrecognized gain or loss. Cheap tax software If you receive property in a nontaxable exchange, its basis is usually the same as the basis of the property you transferred. Cheap tax software Like-Kind Exchanges The exchange of property for the same kind of property is the most common type of nontaxable exchange. Cheap tax software For an exchange to qualify as a like-kind exchange, you must hold for business or investment purposes both the property you transfer and the property you receive. Cheap tax software There must also be an exchange of like-kind property. Cheap tax software For more information, see Like-Kind Exchanges in  chapter 8. Cheap tax software The basis of the property you receive generally is the same as the adjusted basis of the property you gave up. Cheap tax software Example 1. Cheap tax software You traded a truck you used in your farming business for a new smaller truck to use in farming. Cheap tax software The adjusted basis of the old truck was $10,000. Cheap tax software The FMV of the new truck is $30,000. Cheap tax software Because this is a nontaxable exchange, you do not recognize any gain, and your basis in the new truck is $10,000, the same as the adjusted basis of the truck you traded. Cheap tax software Example 2. Cheap tax software You trade a field cultivator (adjusted basis of $8,000) for a planter (FMV of $9,000). Cheap tax software You use both the field cultivator and the planter in your farming business. Cheap tax software The basis of the planter you receive is $8,000, the same as the field cultivator traded Exchange expenses. Cheap tax software   Exchange expenses generally are the closing costs that you pay. Cheap tax software They include such items as brokerage commissions, attorney fees, and deed preparation fees. Cheap tax software Add them to the basis of the like-kind property you receive. Cheap tax software Property plus cash. Cheap tax software   If you trade property in a like-kind exchange and also pay money, the basis of the property you receive is the adjusted basis of the property you gave up plus the money you paid. Cheap tax software Example. Cheap tax software You trade in a truck (adjusted basis of $3,000) for another truck (FMV of $7,500) and pay $4,000. Cheap tax software Your basis in the new truck is $7,000 (the $3,000 adjusted basis of the old truck plus the $4,000 cash). Cheap tax software Special rules for related persons. Cheap tax software   If a like-kind exchange takes place directly or indirectly between related persons and either party disposes of the property within 2 years after the exchange, the exchange no longer qualifies for like-kind exchange treatment. Cheap tax software Each person must report any gain or loss not recognized on the original exchange unless the loss is not deductible under the related party rules. Cheap tax software Each person reports it on the tax return filed for the year in which the later disposition occurred. Cheap tax software If this rule applies, the basis of the property received in the original exchange will be its FMV. Cheap tax software For more information, see chapter 8. Cheap tax software Exchange of business property. Cheap tax software   Exchanging the property of one business for the property of another business generally is a multiple property exchange. Cheap tax software For information on figuring basis, see Multiple Property Exchanges in chapter 1 of Publication 544. Cheap tax software Basis for depreciation. Cheap tax software   Special rules apply in determining and depreciating the basis of MACRS property acquired in a like-kind transaction. Cheap tax software For information, see Figuring the Deduction for Property Acquired in a Nontaxable Exchange under Figuring Depreciation Under MACRS in chapter 7. Cheap tax software Partially Nontaxable Exchanges A partially nontaxable exchange is an exchange in which you receive unlike property or money in addition to like-kind property. Cheap tax software The basis of the property you receive is the same as the adjusted basis of the property you gave up with the following adjustments. Cheap tax software Decrease the basis by the following amounts. Cheap tax software Any money you receive. Cheap tax software Any loss you recognize on the exchange. Cheap tax software Increase the basis by the following amounts. Cheap tax software Any additional costs you incur. Cheap tax software Any gain you recognize on the exchange. Cheap tax software If the other party to the exchange assumes your liabilities, treat the debt assumption as money you received in the exchange. Cheap tax software Example 1. Cheap tax software You trade farmland (basis of $100,000) for another tract of farmland (FMV of $110,000) and $30,000 cash. Cheap tax software You realize a gain of $40,000. Cheap tax software This is the FMV of the land received plus the cash minus the basis of the land you traded ($110,000 + $30,000 − $100,000). Cheap tax software Include your gain in income (recognize gain) only to the extent of the cash received. Cheap tax software Your basis in the land you received is figured as follows. Cheap tax software Basis of land traded $100,000 Minus: Cash received (adjustment 1(a)) − 30,000   $70,000 Plus: Gain recognized (adjustment 2(b)) + 30,000 Basis of land received $100,000 Example 2. Cheap tax software You trade a truck (adjusted basis of $22,750) for another truck (FMV of $20,000) and $10,000 cash. Cheap tax software You realize a gain of $7,250. Cheap tax software This is the FMV of the truck received plus the cash minus the adjusted basis of the truck you traded ($20,000 + $10,000 − $22,750). Cheap tax software You include all the gain in your income (recognize gain) because the gain is less than the cash you received. Cheap tax software Your basis in the truck you received is figured as follows. Cheap tax software Adjusted basis of truck traded $22,750 Minus: Cash received (adjustment 1(a)) −10,000   $12,750 Plus: Gain recognized (adjustment 2(b)) + 7,250 Basis of truck received $20,000 Allocation of basis. Cheap tax software   If you receive like-kind and unlike properties in the exchange, allocate the basis first to the unlike property, other than money, up to its FMV on the date of the exchange. Cheap tax software The rest is the basis of the like-kind property. Cheap tax software Example. Cheap tax software You traded a tractor with an adjusted basis of $15,000 for another tractor that had an FMV of $12,500. Cheap tax software You also received $1,000 cash and a truck that had an FMV of $3,000. Cheap tax software The truck is unlike property. Cheap tax software You realized a gain of $1,500. Cheap tax software This is the FMV of the tractor received plus the FMV of the truck received plus the cash minus the adjusted basis of the tractor you traded ($12,500 + $3,000 + $1,000 − $15,000). Cheap tax software You include in income (recognize) all $1,500 of the gain because it is less than the FMV of the unlike property plus the cash received. Cheap tax software Your basis in the properties you received is figured as follows. Cheap tax software Adjusted basis of old tractor $15,000 Minus: Cash received (adjustment 1(a)) − 1,000   $14,000 Plus: Gain recognized (adjustment 2(b)) + 1,500 Total basis of properties received $15,500 Allocate the total basis of $15,500 first to the unlike property—the truck ($3,000). Cheap tax software This is the truck's FMV. Cheap tax software The rest ($12,500) is the basis of the tractor. Cheap tax software Sale and Purchase If you sell property and buy similar property in two mutually dependent transactions, you may have to treat the sale and purchase as a single nontaxable exchange. Cheap tax software Example. Cheap tax software You used a tractor on your farm for 3 years. Cheap tax software Its adjusted basis is $22,000 and its FMV is $40,000. Cheap tax software You are interested in a new tractor, which sells for $60,000. Cheap tax software Ordinarily, you would trade your old tractor for the new one and pay the dealer $20,000. Cheap tax software Your basis for depreciating the new tractor would then be $42,000 ($20,000 + $22,000, the adjusted basis of your old tractor). Cheap tax software However, you want a higher basis for depreciating the new tractor, so you agree to pay the dealer $60,000 for the new tractor if he will pay you $40,000 for your old tractor. Cheap tax software Because the two transactions are dependent on each other, you are treated as having exchanged your old tractor for the new one and paid $20,000 ($60,000 − $40,000). Cheap tax software Your basis for depreciating the new tractor is $42,000, the same as if you traded the old tractor. Cheap tax software Property Received as a Gift To figure the basis of property you receive as a gift, you must know its adjusted basis (defined earlier) to the donor just before it was given to you. Cheap tax software You also must know its FMV at the time it was given to you and any gift tax paid on it. Cheap tax software FMV equal to or greater than donor's adjusted basis. Cheap tax software   If the FMV of the property is equal to or greater than the donor's adjusted basis, your basis is the donor's adjusted basis when you received the gift. Cheap tax software Increase your basis by all or part of any gift tax paid, depending on the date of the gift. Cheap tax software   Also, for figuring gain or loss from a sale or other disposition of the property, or for figuring depreciation, depletion, or amortization deductions on business property, you must increase or decrease your basis (the donor's adjusted basis) by any required adjustments to basis while you held the property. Cheap tax software See Adjusted Basis , earlier. Cheap tax software   If you received a gift during the tax year, increase your basis in the gift (the donor's adjusted basis) by the part of the gift tax paid on it due to the net increase in value of the gift. Cheap tax software Figure the increase by multiplying the gift tax paid by the following fraction. Cheap tax software Net increase in value of the gift Amount of the gift   The net increase in value of the gift is the FMV of the gift minus the donor's adjusted basis. Cheap tax software The amount of the gift is its value for gift tax purposes after reduction by any annual exclusion and marital or charitable deduction that applies to the gift. Cheap tax software Example. Cheap tax software In 2013, you received a gift of property from your mother that had an FMV of $50,000. Cheap tax software Her adjusted basis was $20,000. Cheap tax software The amount of the gift for gift tax purposes was $36,000 ($50,000 minus the $14,000 annual exclusion). Cheap tax software She paid a gift tax of $7,320. Cheap tax software Your basis, $26,076, is figured as follows. Cheap tax software Fair market value $50,000 Minus: Adjusted basis −20,000 Net increase in value $30,000 Gift tax paid $7,320 Multiplied by ($30,000 ÷ $36,000) × . Cheap tax software 83 Gift tax due to net increase in value $6,076 Adjusted basis of property to your mother +20,000 Your basis in the property $26,076 Note. Cheap tax software If you received a gift before 1977, your basis in the gift (the donor's adjusted basis) includes any gift tax paid on it. Cheap tax software However, your basis cannot exceed the FMV of the gift when it was given to you. Cheap tax software FMV less than donor's adjusted basis. Cheap tax software   If the FMV of the property at the time of the gift is less than the donor's adjusted basis, your basis depends on whether you have a gain or a loss when you dispose of the property. Cheap tax software Your basis for figuring gain is the donor's adjusted basis plus or minus any required adjustments to basis while you held the property. Cheap tax software Your basis for figuring loss is its FMV when you received the gift plus or minus any required adjustments to basis while you held the property. Cheap tax software (See Adjusted Basis , earlier. Cheap tax software )   If you use the donor's adjusted basis for figuring a gain and get a loss, and then use the FMV for figuring a loss and get a gain, you have neither gain nor loss on the sale or other disposition of the property. Cheap tax software Example. Cheap tax software You received farmland as a gift from your parents when they retired from farming. Cheap tax software At the time of the gift, the land had an FMV of $80,000. Cheap tax software Your parents' adjusted basis was $100,000. Cheap tax software After you received the land, no events occurred that would increase or decrease your basis. Cheap tax software If you sell the land for $120,000, you will have a $20,000 gain because you must use the donor's adjusted basis at the time of the gift ($100,000) as your basis to figure a gain. Cheap tax software If you sell the land for $70,000, you will have a $10,000 loss because you must use the FMV at the time of the gift ($80,000) as your basis to figure a loss. Cheap tax software If the sales price is between $80,000 and $100,000, you have neither gain nor loss. Cheap tax software For instance, if the sales price was $90,000 and you tried to figure a gain using the donor's adjusted basis ($100,000), you would get a $10,000 loss. Cheap tax software If you then tried to figure a loss using the FMV ($80,000), you would get a $10,000 gain. Cheap tax software Business property. Cheap tax software   If you hold the gift as business property, your basis for figuring any depreciation, depletion, or amortization deductions is the same as the donor's adjusted basis plus or minus any required adjustments to basis while you hold the property. Cheap tax software Property Transferred From a Spouse The basis of property transferred to you or transferred in trust for your benefit by your spouse is the same as your spouse's adjusted basis. Cheap tax software The same rule applies to a transfer by your former spouse if the transfer is incident to divorce. Cheap tax software However, for property transferred in trust, adjust your basis for any gain recognized by your spouse or former spouse if the liabilities assumed plus the liabilities to which the property is subject are more than the adjusted basis of the property transferred. Cheap tax software The transferor must give you the records needed to determine the adjusted basis and holding period of the property as of the date of the transfer. Cheap tax software For more information, see Property Settlements in Publication 504, Divorced or Separated Individuals. Cheap tax software Inherited Property Your basis in property you inherited from a decedent, who died before January 1, 2010, or after December 31, 2010, is generally one of the following: The FMV of the property at the date of the decedent's death. Cheap tax software If a federal estate return is filed, you can use its appraised value. Cheap tax software The FMV on the alternate valuation date, if the personal representative for the estate elects to use alternate valuation. Cheap tax software For information on the alternate valuation, see the Instructions for Form 706. Cheap tax software The decedent's adjusted basis in land to the extent of the value that is excluded from the decedent's taxable estate as a qualified conservation easement. Cheap tax software If a federal estate tax return does not have to be filed, your basis in the inherited property is its appraised value at the date of death for state inheritance or transmission taxes. Cheap tax software Special-use valuation method. Cheap tax software   Under certain conditions, when a person dies, the executor or personal representative of that person's estate may elect to value qualified real property at other than its FMV. Cheap tax software If so, the executor or personal representative values the qualified real property based on its use as a farm or other closely held business. Cheap tax software If the executor or personal representative elects this method of valuation for estate tax purposes, this value is the basis of the property for the qualified heirs. Cheap tax software The qualified heirs should be able to get the necessary value from the executor or personal representative of the estate. Cheap tax software   If you are a qualified heir who received special-use valuation property, increase your basis by any gain recognized by the estate or trust because of post-death appreciation. Cheap tax software Post-death appreciation is the property's FMV on the date of distribution minus the property's FMV either on the date of the individual's death or on the alternate valuation date. Cheap tax software Figure all FMVs without regard to the special-use valuation. Cheap tax software   You may be liable for an additional estate tax if, within 10 years after the death of the decedent, you transfer the property or the property stops being used as a farm. Cheap tax software This tax does not apply if you dispose of the property in a like-kind exchange or in an involuntary conversion in which all of the proceeds are reinvested in qualified replacement property. Cheap tax software The tax also does not apply if you transfer the property to a member of your family and certain requirements are met. Cheap tax software   You can elect to increase your basis in special-use valuation property if it becomes subject to the additional estate tax. Cheap tax software To increase your basis, you must make an irrevocable election and pay interest on the additional estate tax figured from the date 9 months after the decedent's death until the date of payment of the additional estate tax. Cheap tax software If you meet these requirements, increase your basis in the property to its FMV on the date of the decedent's death or the alternate valuation date. Cheap tax software The increase in your basis is considered to have occurred immediately before the event that resulted in the additional estate tax. Cheap tax software   You make the election by filing, with Form 706-A, United States Additional Estate Tax Return, a statement that: Contains your (and the estate's) name, address, and taxpayer identification number; Identifies the election as an election under section 1016(c) of the Internal Revenue Code; Specifies the property for which you are making the election; and Provides any additional information required by the Form 706-A instructions. Cheap tax software   For more information, see Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-A, and the related instructions. Cheap tax software Property inherited from a decedent who died in 2010. Cheap tax software   If you inherited property from a decedent who died in 2010, different rules may apply. Cheap tax software See Publication 4895, Tax Treatment of Property Acquired From a Decendent Dying in 2010, for details. Cheap tax software Property Distributed From a Partnership or Corporation The following rules apply to determine a partner's basis and a shareholder's basis in property distributed respectively from a partnership to the partner with respect to the partner's interest in the partnership and from a corporation to the shareholder with respect to the shareholder's ownership of stock in the corporation. Cheap tax software Partner's basis. Cheap tax software   Unless there is a complete liquidation of a partner's interest, the basis of property (other than money) distributed by a partnership to the partner is its adjusted basis to the partnership immediately before the distribution. Cheap tax software However, the basis of the property to the partner cannot be more than the adjusted basis of his or her interest in the partnership reduced by any money received in the same transaction. Cheap tax software For more information, see Partner's Basis for Distributed Property in Publication 541, Partnerships. Cheap tax software Shareholder's basis. Cheap tax software   The basis of property distributed by a corporation to a shareholder is its fair market value. Cheap tax software For more information about corporate distributions, see Distributions to Shareholders in Publication 542, Corporations. Cheap tax software Prev  Up  Next   Home   More Online Publications
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Highlights from the IRS Report

FS-2013-7, June 2013 

The report released by Principal Deputy Commissioner Danny Werfel reflects a number of important findings, aggressive actions and next steps to help the IRS make improvements. Highlights of the three major areas covered in “Charting a Path Forward at the IRS: Initial Assessment and Plan of Action” include:

Accountability. This covers the steps being taken to ensure accountability for the mismanagement described in last month’s Treasury Inspector General for Tax Administration (TIGTA) report:

  • The report found significant management and judgment failures occurred, as outlined in the TIGTA report. These contributed to the inappropriate treatment of taxpayers applying for tax- exempt status. 

  • The IRS is identifying the individuals within the IRS who are responsible for the mismanagement identified in the TIGTA report, evaluating their role and determining the appropriate consequences for each individual.

  • We have installed new leadership at all five levels of the senior executive managerial chain that had responsibility over the activities identified in the TIGTA report.

  • The IRS is digging deeper into the facts to determine if there are instances of wrongdoing or inappropriate conduct beyond the mismanagement identified in the original TIGTA report.  By extending our review beyond the scope of the original audit, we are ensuring a more comprehensive understanding of the facts and circumstances that led to these events.

  • In addition, the IRS has empaneled an Accountability Review Board to provide recommendations within 60 days (and later as needed) on any additional personnel actions that should be taken.

Fixing the Problems with the Review of Applications for Tax-Exempt Status. This part covers several process improvements underway to ensure that taxpayers are treated appropriately and effectively in the review of applications for tax-exempt status:   

  • Suspended the use of any “be-on-the-lookout,” or BOLO, lists in the application process for tax-exempt status.

  • Started development of new guidance materials to allow IRS staff to operate without BOLO lists and under the reformed, more efficient process.

  • Initiated an end-to-end overhaul of the business processes by which applications for tax-exempt status are fulfilled.

  • Added technical and programmatic experts from across the IRS to assist the Exempt Organizations staff with the review of applications for tax- exempt status.

  • Created a new voluntary process to help certain taxpayers who have been in our priority application backlog for more than 120 days to gain fast-track approval to operate as a 501(c)(4) tax-exempt entity. This self-certification process allows them a streamlined path to tax-exempt status if they agree they will operate within limits and thresholds of political and social welfare activities. These groups have the option of obtaining an approval if they self-certify that less than 40 percent of their expenditures and volunteer time will go toward political campaign intervention activities and that at least 60 percent of their expenditures and volunteer time will go toward social welfare activities. 

  • Created a new “Advocacy Application Review Committee” to provide expertise from other parts of the IRS to review screening and determination decisions inside the Exempt Organizations area.

  • Started the process to create a new check-and-balance mechanism, where IRS criteria and screening procedures will be reviewed on a systemic basis and report any material risks of inappropriate criteria immediately to the IRS Commissioner, the IRS Oversight Board, and the relevant tax committees of Congress.

  • Worked with the Department of the Treasury regarding the need for greater clarity for certain terms relevant for 501(c)(4) tax-exempt organizations, with a commitment for inclusion in the next Treasury Priority Guidance Plan.

  • Continued to make substantial progress on all TIGTA recommendations from their May report on Exempt Organizations.

Review of IRS Operations and Risks. The report identifies a series of actions to ensure taxpayers that selection criteria across the IRS are appropriate and that taxpayers are aware of how they can seek assistance if they have concerns about the IRS. The report further outlines steps underway to ensure that critical program or operational risks within the IRS are identified early, raised to the right decision-makers and shared timely with key stakeholders:

  • Although there is no current evidence that selection criteria in other IRS business unit is inappropriate, the nature of the problems identified in the tax-exempt application process warrants a review of certain process controls within the IRS.  The IRS will initiate a comprehensive, agency-wide review of compliance selection criteria.  Results will be shared with the Department of the Treasury, the IRS Oversight Board, and the Chairpersons of the House Ways and Means Committee and the Senate Finance Committee.

  • The IRS has been very successful in mission execution across its very broad portfolio for many years, collecting 92 percent of government receipts of about $2.5 trillion in FY 2012.  At the same time, the Service is challenged by many of the same concerns affecting other large organizations, both public and private sector, including budgetary concerns, human capital concerns, and overall programmatic execution concerns. The report outlines initial areas where challenges exist and actions are needed to position the IRS to successfully fulfill its mission.

  • The report calls for establishing an Enterprise Risk Management Program to provide a common framework for capturing, reporting and addressing risk areas across the IRS.  This will improve timeliness in bringing information to the attention of the Commissioner and other IRS leaders as well as stakeholders to help prevent future instances of inappropriate treatment or mismanagement.

  • Initiate additional internal and external education and outreach about the role of the National Taxpayer Advocate, an independent voice inside the IRS, in assisting taxpayers in resolving problems with the IRS. 

  • Establish routine reporting on IRS operational risks with Congress and the IRS Oversight Board.

 

Page Last Reviewed or Updated: 19-Dec-2013

The Cheap Tax Software

Cheap tax software 6. Cheap tax software   Ingresos de Propinas Table of Contents Introduction Useful Items - You may want to see: Cómo Mantener un Registro Diario de PropinasRegistro electrónico de propinas. Cheap tax software Cómo Declarar las Propinas a su EmpleadorInforme electrónico de propinas. Cheap tax software Declaración final. Cheap tax software Cómo se Declaran las Propinas en la Declaración de Impuestos Asignación de Propinas Introduction Este capítulo es para empleados que reciben propinas. Cheap tax software Todas las propinas que usted reciba son ingresos y están sujetas al impuesto federal sobre los ingresos. Cheap tax software Tiene que incluir en el ingreso bruto todas las propinas que reciba directamente, propinas recibidas por medio de cargos a tarjetas de crédito o débito que le son entregadas por su empleador y su participación de todas las propinas recibidas de un fondo común u otro acuerdo de distribución de propinas. Cheap tax software El valor de las propinas que no son pagadas en efectivo, tales como boletos, pases u otros artículos de valor también son ingresos y están sujetos al impuesto. Cheap tax software La declaración correcta de los ingresos de propinas no es difícil. Cheap tax software Usted tiene que completar tres pasos: Mantener un registro diario de propinas. Cheap tax software Declarar sus propinas a su empleador. Cheap tax software Declarar todas sus propinas en su declaración de impuestos. Cheap tax software  Este capítulo le explicará estos tres pasos y le ayudará a determinar cómo completar su declaración de impuestos si no ha realizado los dos primeros pasos. Cheap tax software Este capítulo también le mostrará cómo tratar las propinas asignadas. Cheap tax software Para información sobre acuerdos y programas especiales relacionados con las propinas, vea la Publicación 531, en inglés. Cheap tax software Useful Items - You may want to see: Publicación 531 Reporting Tip Income (Cómo declarar los ingresos de propinas), en inglés 1244-PR Registro Diario de Propinas Recibidas por el(la) Empleado(a) e Informe al Patrono, en español 1244 Employee's Daily Record of Tips and Report to Employer (Registro Diario de Propinas Recibidas por el(la) Empleado(a) e Informe al Empleador), en inglés Formularios (e Instrucciones) 4137 Social Security and Medicare Tax on Unreported Tip Income (Impuestos del Seguro Social y Medicare sobre el ingreso de propinas no declaradas), en inglés 4070-PR Informe al Patrono de Propinas Recibidas por el(la) Empleado(a), disponible en español 4070 Employee's Report of Tips to Employer (Informe al Empleador de Propinas Recibidas por el(la) Empleado(a)), en inglés Cómo Mantener un Registro Diario de Propinas ¿Por qué mantener un registro diario de propinas?   Usted tiene que mantener un registro diario de propinas para que pueda: Declarar sus propinas correctamente a su empleador, Declarar sus propinas correctamente en su declaración de impuestos y Comprobar sus ingresos de propinas si se cuestiona su declaración. Cheap tax software Cómo mantener un registro diario de propinas. Cheap tax software   Hay dos maneras de mantener un registro diario de propinas. Cheap tax software Puede optar por: Anotar la información sobre sus propinas en un diario de propinas o Mantener copias de documentos que comprueben sus propinas, tales como cuentas de restaurantes y recibos de cargos hechos a tarjetas de crédito o de débito. Cheap tax software Usted debe mantener su registro diario de propinas junto con su documentación tributaria u otra documentación personal. Cheap tax software Tiene que guardar su documentación por el tiempo en que sea importante para la aplicación de la ley tributaria federal. Cheap tax software Para información sobre cuánto tiempo debe guardar esta documentación, vea el tema titulado Cuánto Tiempo Debe Mantener Los Documentos , en el capítulo 1. Cheap tax software    Si mantiene un registro de propinas, puede utilizar el Formulario 4070A-PR, Registro Diario de Propinas del(la) Empleado(a) (o el Formulario 4070-A, en inglés). Cheap tax software Para obtener el Formulario 4070A-PR (o el Formulario 4070-A), pídale al IRS o a su empleador la Publicación 1244-PR (o la Publicación 1244, en inglés). Cheap tax software Asimismo, la Publicación 1244-PR está disponible en el sitio web www. Cheap tax software irs. Cheap tax software gov/pub/irs-pdf/p1244pr. Cheap tax software pdf. Cheap tax software La Publicación 1244-PR (o la Publicación 1244, en inglés) contiene suficientes copias del Formulario 4070A-PR (o del Formulario 4070-A, en inglés) para un año. Cheap tax software Cada día, anote la información solicitada en el formulario. Cheap tax software   Además de la información solicitada en el Formulario 4070A-PR, también es necesario que mantenga un registro u otra documentación de la fecha y el valor de toda propina que reciba que no sea en efectivo, tales como boletos, pases u otros artículos de valor. Cheap tax software Aunque no declara estas propinas a su empleador, tiene que declararlas en su declaración de impuestos. Cheap tax software   Si no utiliza el Formulario 4070A-PR (o el Formulario 4070-A, en inglés), comience su registro escribiendo su nombre, el nombre de su empleador y el nombre del negocio o establecimiento donde trabaja si es distinto al nombre de su empleador. Cheap tax software Luego, cada día que trabaje, anote la fecha y la siguiente información: Propinas en efectivo que obtiene directamente de los clientes o de otros empleados. Cheap tax software Propinas de los clientes que pagan con tarjeta de crédito y de débito que su empleador le paga. Cheap tax software El valor de toda propina que haya recibido que no sea pagada en efectivo, tales como boletos, pases y otros artículos de valor. Cheap tax software La cantidad de propinas que usted le pagó a otros empleados a través de un fondo común u otro acuerdo de distribución de propinas y los nombres de los empleados a los cuales les pagó las propinas. Cheap tax software Registro electrónico de propinas. Cheap tax software   Usted puede utilizar un sistema electrónico provisto por su empleador para mantener un registro de propinas diarias. Cheap tax software En tal caso, tiene que recibir y guardar una copia en papel de este registro. Cheap tax software Cargos por servicios. Cheap tax software   No anote en su registro de propinas la cantidad de ningún cargo por servicios que su empleador añada a la cuenta de un cliente y que luego le pague a usted y que el empleador trate como salario de usted. Cheap tax software Los cargos de este tipo son parte de su salario, no son propinas. Cheap tax software Vea los ejemplos que se presentan a continuación. Cheap tax software Ejemplo 1. Cheap tax software El restaurante Buena Comida añade un cargo del 18% a la cuenta de grupos de 6 o más clientes. Cheap tax software Juanita forma parte de un grupo de 8 personas. Cheap tax software Además del costo de la comida y bebidas que se sirvieron a todos en el grupo de Juanita, la cuenta incluye un monto igual al 18% del costo de las mismas, el cual aparece en la línea para anotar propinas. Cheap tax software Dicho monto se incluye en el total de la cuenta. Cheap tax software Debido a que Juanita no tenía un derecho ilimitado de determinar el monto en la línea para anotar propinas, el cargo del 18% se considera un cargo por servicios. Cheap tax software No anote el cargo del 18% en su registro de propinas. Cheap tax software Los cargos por servicios que se le paguen son considerados salarios y no propinas. Cheap tax software Ejemplo 2. Cheap tax software El restaurante Buena Comida también incluye ejemplos de cálculos para las cantidades de propinas en la parte inferior de la cuenta para la comida y las bebidas servidas a los clientes. Cheap tax software En la parte inferior de la cuenta de David, debajo de la línea para la firma, se incluye una línea en blanco para anotar propinas, además de ejemplos de propinas calculadas en base al 15%, 18% y 20% de los costos de la comida y bebidas que le sirvieron. Cheap tax software Debido a que David tenía libertad para anotar cualquier cantidad en la línea para anotar propinas, o dejarla en blanco, cualquier cantidad que David anote se considera propina. Cheap tax software Cerciórese de incluir esta cantidad en su registro de propinas. Cheap tax software Cómo Declarar las Propinas a su Empleador ¿Por qué tiene que declarar sus propinas a su empleador?   Tiene que declarar sus propinas a su empleador para que: Éste pueda retenerle impuesto federal sobre el ingreso, impuestos del Seguro Social, impuestos de Medicare, Impuesto Adicional del Medicare o impuestos de la jubilación ferroviaria, Éste pueda declarar la cantidad correcta de sus ganancias a la Administración del Seguro Social o a la Junta de la Jubilación Ferroviaria (lo cual afecta sus beneficios cuando se jubile o si queda incapacitado, o los beneficios de su familia cuando usted fallezca) y Usted pueda evitar la Multa por no declarar las propinas a su empleador (tema explicado más adelante). Cheap tax software Propinas que tiene que declarar a su empleador. Cheap tax software   Declárele a su empleador solamente las propinas que reciba en efectivo, en cheques, tarjetas de débito y de crédito. Cheap tax software   Si el total de las propinas que reciba de un trabajo en un mes determinado es menos de $20, no declare las propinas de ese mes a ese empleador. Cheap tax software   Si recibe propinas conforme a un acuerdo para compartir propinas equitativamente, declare sólo las propinas que reciba y retenga. Cheap tax software No declare a su empleador ninguna parte de las propinas que reciba para luego entregárselas a otros empleados. Cheap tax software Sin embargo, tiene que declarar las propinas que reciba de otros empleados. Cheap tax software    No declare a su empleador el valor de las propinas que no reciba en efectivo, tales como boletos o pases. Cheap tax software No se pagan impuestos del Seguro Social, Medicare, Impuesto Adicional del Medicare o impuestos de la jubilación ferroviaria sobre estas propinas. Cheap tax software Cómo se declaran las propinas. Cheap tax software    Si su empleador no le proporciona otro medio para declarar las propinas, puede usar el Formulario 4070-PR, en español (o el Formulario 4070, en inglés). Cheap tax software Escriba la información requerida en el formulario, incluya su firma y la fecha y entrégueselo a su empleador. Cheap tax software Si desea obtener copias del formulario para un año completo, comuníquese con el IRS o pídale a su empleador la Publicación 1244-PR (o la Publicación 1244, en inglés). Cheap tax software   Si no usa el Formulario 4070-PR (o el Formulario 4070, en inglés), entréguele a su empleador un informe con la información siguiente: Su nombre, dirección y número de Seguro Social. Cheap tax software El nombre de su empleador, la dirección y el nombre del establecimiento (si es diferente al nombre del empleador). Cheap tax software El mes (o las fechas de cualquier período más corto) en el cual usted recibió propinas. Cheap tax software El total de propinas que se tienen que declarar para ese período. Cheap tax software Usted tiene que firmar y fechar el informe. Cheap tax software Cerciórese de guardar una copia junto con sus documentos tributarios u otros documentos personales. Cheap tax software   Su empleador puede requerirle que declare sus propinas más de una vez al mes. Cheap tax software Sin embargo, el informe no puede abarcar un período mayor de un mes natural. Cheap tax software Informe electrónico de propinas. Cheap tax software   Su empleador puede exigir que facilite su informe de propinas por medios electrónicos. Cheap tax software Cuándo debe declarar las propinas. Cheap tax software   Entregue a su empleador el informe correspondiente a cada mes, a más tardar el día 10 del mes siguiente. Cheap tax software Si el día 10 cae en sábado, domingo o día feriado legal, entonces entréguele el informe a su empleador el próximo día siempre que no sea sábado, domingo o día feriado legal. Cheap tax software Ejemplo. Cheap tax software Tiene que declararle a su empleador la cantidad de propinas que recibió en septiembre del año 2014 a más tardar el día 10 de octubre de 2014. Cheap tax software Declaración final. Cheap tax software   Si deja de trabajar durante el mes, puede declarar las propinas recibidas cuando termine su empleo. Cheap tax software Multa por no declarar las propinas. Cheap tax software   Si no le declara a su empleador las propinas que recibió, tal como se requiere, puede estar sujeto a que se le imponga una multa equivalente al 50% de los impuestos del Seguro Social, Medicare, Impuesto Adicional del Medicare o impuesto de la jubilación ferroviaria que adeude sobre las propinas que no declaró. Cheap tax software (Para información sobre estos impuestos, vea Cómo declarar los impuestos del Seguro Social, Medicare, Impuesto Adicional del Medicare o impuesto de la jubilación ferroviaria sobre las propinas no declaradas a su empleador , bajo Cómo se Declaran las Propinas en la Declaración de Impuestos, más adelante). Cheap tax software La cantidad de la multa que se impone es adicional a los impuestos que adeude. Cheap tax software   Puede evitar que esta multa le sea impuesta si puede demostrar que existe causa razonable por la cual no le declaró las propinas a su empleador. Cheap tax software Para hacerlo, adjunte un documento escrito a su declaración de impuestos explicando la razón por la cual no declaró la cantidad de propinas que recibió. Cheap tax software Entrega de dinero al empleador para el pago de los impuestos. Cheap tax software   Es posible que lo que gana normalmente no sea suficiente para que su empleador le retenga todos los impuestos que adeude sobre su salario normal más las propinas que recibe. Cheap tax software Si esto ocurre, puede entregarle dinero a su empleador hasta el cierre del año natural para pagar el resto de los impuestos. Cheap tax software   Si no le entrega dinero suficiente a su empleador, el mismo aplicará su salario normal y todo dinero que usted le entregue para los impuestos, en el orden siguiente: Todos los impuestos sobre su salario normal. Cheap tax software Los impuestos del Seguro Social, Medicare, Impuesto Adicional del Medicare o impuestos de la jubilación ferroviaria sobre las propinas que declaró. Cheap tax software Los impuestos federales, estatales y locales sobre los ingresos sobre las propinas que declaró. Cheap tax software    Su empleador puede descontar de su próximo salario todo impuesto que quede pendiente. Cheap tax software Si al final del año aún no se le han retenido suficientes impuestos, usted puede estar sujeto a una multa por pago insuficiente de impuestos estimados. Cheap tax software Vea la Publicación 505, Tax Withholding and Estimated Tax (Retención de impuestos e impuesto estimado), en inglés, para más información. Cheap tax software    Impuestos no recaudados. Cheap tax software Usted tiene que informar en su declaración de impuestos todo impuesto del Seguro Social y Medicare o impuestos de la jubilación ferroviaria que no se recaudaron al final del año 2013. Cheap tax software Estos impuestos no recaudados aparecerán en su Formulario W-2 del año 2013. Cheap tax software Vea el tema titulado Cómo se declaran los impuestos no recaudados del Seguro Social, Medicare o impuesto de la jubilación ferroviaria sobre propinas declaradas a su empleador , bajo Cómo se Declaran las Propinas en la Declaración de Impuestos, a continuación. Cheap tax software Cómo se Declaran las Propinas en la Declaración de Impuestos Cómo se declaran las propinas. Cheap tax software    Declare las propinas que recibió junto con su salario en la línea 7 del Formulario 1040, la línea 7 del Formulario 1040A o en la línea 1 del Formulario 1040EZ. Cheap tax software Qué propinas se tienen que declarar. Cheap tax software   Usted tiene que informar en su declaración de impuestos todas las propinas que recibió en 2013. Cheap tax software Incluya las que recibió en efectivo y las que no fueron en efectivo. Cheap tax software Toda propina que usted haya declarado en 2013 a su empleador está incluida en los salarios que aparecen en el recuadro 1 de su Formulario W-2. Cheap tax software Sume a la cantidad del recuadro 1 solamente las propinas que usted no le declaró a su empleador. Cheap tax software    Si recibió $20 o más en propinas en efectivo o cargadas a tarjetas de crédito o débito en un mes y no las declaró a su empleador, vea más adelante el tema titulado Cómo declarar los impuestos del Seguro Social, Medicare, Impuesto Adicional del Medicare o impuesto de la jubilación ferroviaria sobre las propinas no declaradas a su empleador . Cheap tax software    Si usted no llevó un registro diario de las propinas que recibió, tal como se requiere, y aparece una cantidad en el recuadro 8 del Formulario W-2, vea más adelante la sección titulada Asignación de Propinas . Cheap tax software   Si usted llevó un registro diario y declaró a su empleador todas las propinas que recibió, tal como se requiere conforme a las reglas explicadas anteriormente, añada a la cantidad que aparece en el recuadro 1 de su Formulario W-2 las siguientes propinas: Las propinas que recibió tanto en efectivo como cargadas a tarjetas de crédito o débito que fueron menos de $20 en un mes cualquiera. Cheap tax software El valor de las propinas que no recibió en efectivo, tales como boletos, pases u otros artículos de valor. Cheap tax software Ejemplo. Cheap tax software Mariano Almendares comenzó a trabajar en el Restaurante Océano Azul (su único empleador en el año 2013) el día 30 de junio y recibió $10,000 en salarios durante el año. Cheap tax software Mariano llevó un registro diario de las propinas que recibió durante el año, el cual muestra que en junio recibió $18 en propinas y en el resto del año recibió $7,000 en propinas. Cheap tax software Al Sr. Cheap tax software Almendares no se le requirió declararle a su empleador las propinas que recibió en junio, pero sí le declaró todas las propinas que recibió durante el resto del año, tal como se requiere. Cheap tax software El Formulario W-2 que el Sr. Cheap tax software Almendares recibió del Restaurante Océano Azul muestra $17,000 ($10,000 de salario más $7,000 de propinas declaradas) en el recuadro 1. Cheap tax software El Sr. Cheap tax software Almendares añade a esa cantidad los $18 de propinas que no le declaró al empleador y declara $17,018 como salario en su declaración de impuestos. Cheap tax software Cómo declarar los impuestos del Seguro Social, Medicare, Impuesto Adicional del Medicare o impuesto de la jubilación ferroviaria sobre las propinas no declaradas a su empleador. Cheap tax software    Si en un mes recibió $20 o más en propinas en efectivo o cargadas a tarjetas de crédito o débito en algún empleo y no declaró todas esas propinas a su empleador, tiene que declarar como impuesto adicional los impuestos del Seguro Social, Medicare e Impuesto Adicional del Medicare sobre las propinas que no declaró a su empleador. Cheap tax software Para declarar estos impuestos, tiene que presentar una declaración aunque de otro modo no tuviera que presentarla. Cheap tax software Para hacerlo, tiene que usar el Formulario 1040. Cheap tax software (No puede presentar el Formulario 1040EZ ni el Formulario 1040A). Cheap tax software    Use el Formulario 4137, Social Security and Medicare Tax on Unreported Tip Income (Impuestos del Seguro Social y de Medicare sobre el ingreso de propinas no declaradas), en inglés, para calcular los impuestos al Seguro Social y al Medicare. Cheap tax software Anote el impuesto en su declaración como se indica y adjunte el Formulario 4137 debidamente completado a la misma. Cheap tax software Use el Formulario 8959, en inglés, para calcular el Impuesto Adicional del Medicare. Cheap tax software    Si usted está sujeto a la Railroad Retirement Tax Act (Ley Tributaria para la Jubilación Ferroviaria), no puede utilizar el Formulario 4137 para pagar el impuesto para la jubilación ferroviaria sobre propinas no declaradas. Cheap tax software Para obtener crédito para la jubilación ferroviaria, tiene que declarar sus propinas a su empleador. Cheap tax software Cómo se declaran los impuestos no recaudados del Seguro Social, Medicare o impuesto de la jubilación ferroviaria sobre propinas declaradas a su empleador. Cheap tax software   Usted podría tener impuestos sin recaudar si su salario normal no es suficiente para que su empleador retenga todos los impuestos adeudados y si no le dio a su empleador dinero suficiente para pagar el resto de los impuestos. Cheap tax software Para más información, vea Entrega de dinero al empleador para el pago de los impuestos , bajo Cómo Declarar las Propinas a su Empleador, anteriormente. Cheap tax software   Si su empleador no pudo recaudar todos los impuestos al Seguro Social y al Medicare o impuesto de la jubilación ferroviaria que usted adeuda sobre propinas declaradas para 2013, los impuestos por recaudar se mostrarán en el recuadro 12 del Formulario W-2 (códigos A y B). Cheap tax software Tiene que declarar estas cantidades como impuesto adicional en su declaración. Cheap tax software A diferencia de la parte no recaudada del impuesto regular al Medicare (1. Cheap tax software 45%), el Impuesto Adicional del Medicare no recaudado no se declara en el recuadro 12 del Formulario W-2 con el código B. Cheap tax software    Para declarar estos impuestos no recaudados, tiene que presentar una declaración aunque no tuviera que presentarla de otro modo. Cheap tax software Tiene que declarar estos impuestos en la línea 60 del Formulario 1040. Cheap tax software Vea las instrucciones para la línea 60 del Formulario 1040, disponibles en inglés. Cheap tax software (No puede presentar el Formulario 1040EZ ni el Formulario 1040A). Cheap tax software Asignación de Propinas Si su empleador le asignó propinas, las mismas aparecen por separado en el recuadro 8 de su Formulario W-2. Cheap tax software Estas propinas no están incluidas en el recuadro 1 con sus salarios y propinas declaradas. Cheap tax software Si el recuadro 8 está en blanco, lo que se explica en esta sección no es aplicable en su caso. Cheap tax software ¿Qué son propinas asignadas?   Éstas son propinas que su empleador le asignó, además de las que usted le declaró para el año. Cheap tax software Su empleador habrá hecho esto únicamente si: Usted trabajó en un establecimiento (restaurante, bar o negocio similar) que tiene que asignar las propinas a los empleados y La cantidad de propinas que declaró a su empleador fue menos de su parte del 8% de las ventas de comidas y bebidas del establecimiento donde usted trabajó. Cheap tax software De las propinas asignadas, no se retienen impuestos sobre los ingresos, Seguro Social, Medicare, Impuesto Adicional del Medicare ni impuestos de la jubilación ferroviaria. Cheap tax software ¿Cómo se calcula su asignación de propinas?   Las propinas que se le asignan a usted son su parte de una cantidad calculada restando las propinas declaradas de todos los empleados del 8% (u otra tasa más baja aprobada) de las ventas de comida y bebida (que no sean ventas de comida para llevar por los clientes o ventas con un cargo por servicio del 10% o más). Cheap tax software Su parte de esa cantidad fue calculada utilizando un método provisto por un acuerdo laboral entre empleador y empleado o por un método provisto por los reglamentos del IRS basado en las ventas hechas o las horas trabajadas por los empleados. Cheap tax software Para más información sobre el método de asignación exacto utilizado, consulte a su empleador. Cheap tax software ¿Tiene que incluir en la declaración sus propinas asignadas?   Tiene que incluir en la declaración de impuestos todas las propinas que recibió en 2013, incluyendo las propinas pagadas en efectivo como las no pagadas en efectivo. Cheap tax software Todas las propinas que usted haya declarado en 2013 a su empleador están incluidas en los salarios que aparecen en el recuadro 1 de su Formulario W-2. Cheap tax software Sume a la cantidad del recuadro 1 solamente las propinas que usted no le declaró a su empleador. Cheap tax software Esto tiene que incluir toda propina asignada mostrada en el recuadro 8 de su(s) Formulario(s) W-2, a menos que tenga registros confiables que muestren que recibió menos propinas en el año que las cifras asignadas. Cheap tax software   Vea los temas titulados Qué propinas se tienen que declarar , bajo Cómo se Declaran las Propinas en la Declaración de Impuestos y Cómo Mantener un Registro Diario de Propinas , anteriormente. Cheap tax software Cómo declarar las propinas asignadas. Cheap tax software   Declare la cantidad en el recuadro 1 y las propinas asignadas en el recuadro 8 de su(s) Formulario(s) W-2 como salario en la línea 7 del Formulario 1040, en la línea 8 del Formulario 1040NR o en la línea 3 del Formulario 1040NR-EZ. Cheap tax software (No puede presentar el Formulario 1040A ni el Formulario 1040EZ cuando se tienen propinas asignadas). Cheap tax software    Debido a que los impuestos del Seguro Social, Medicare o Impuesto Adicional del Medicare no fueron retenidos de las propinas asignadas, tiene que declararlos como impuestos adicionales en su declaración. Cheap tax software Complete el Formulario 4137 e incluya las propinas asignadas en la línea 1 del formulario. Cheap tax software Vea Cómo declarar los impuestos del Seguro Social, Medicare, Impuesto Adicional del Medicare o impuesto de la jubilación ferroviaria sobre las propinas no declaradas a su empleador , bajo Cómo se Declaran las Propinas en la Declaración de Impuestos. Cheap tax software Prev  Up  Next   Home   More Online Publications