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H&r Block 1040ez

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H&r Block 1040ez

H&r block 1040ez Publication 551 - Main Content Table of Contents Cost BasisStocks and Bonds Real Property Business Assets Allocating the Basis Adjusted BasisIncreases to Basis Decreases to Basis Adjustments to Basis Example Basis Other Than CostProperty Received for Services Taxable Exchanges Nontaxable Exchanges Property Transferred From a Spouse Property Received as a Gift Inherited Property Property Changed to Business or Rental Use How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). H&r block 1040ez Cost Basis The basis of property you buy is usually its cost. H&r block 1040ez The cost is the amount you pay in cash, debt obligations, other property, or services. H&r block 1040ez Your cost also includes amounts you pay for the following items. H&r block 1040ez Sales tax, Freight, Installation and testing, Excise taxes, Legal and accounting fees (when they must be capitalized), Revenue stamps, Recording fees, and Real estate taxes (if assumed for the seller). H&r block 1040ez  You may also have to capitalize (add to basis) certain other costs related to buying or producing property. H&r block 1040ez Loans with low or no interest. H&r block 1040ez   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. H&r block 1040ez You generally have unstated interest if your interest rate is less than the applicable federal rate. H&r block 1040ez For more information, see Unstated Interest and Original Issue Discount in Publication 537. H&r block 1040ez Purchase of a business. H&r block 1040ez   When you purchase a trade or business, you generally purchase all assets used in the business operations, such as land, buildings, and machinery. H&r block 1040ez Allocate the price among the various assets, including any section 197 intangibles. H&r block 1040ez See Allocating the Basis, later. H&r block 1040ez Stocks and Bonds The basis of stocks or bonds you buy is generally the purchase price plus any costs of purchase, such as commissions and recording or transfer fees. H&r block 1040ez If you get stocks or bonds other than by purchase, your basis is usually determined by the fair market value (FMV) or the previous owner's adjusted basis of the stock. H&r block 1040ez You must adjust the basis of stocks for certain events that occur after purchase. H&r block 1040ez See Stocks and Bonds in chapter 4 of Publication 550 for more information on the basis of stock. H&r block 1040ez Identifying stock or bonds sold. H&r block 1040ez   If you can adequately identify the shares of stock or the bonds you sold, their basis is the cost or other basis of the particular shares of stock or bonds. H&r block 1040ez If you buy and sell securities at various times in varying quantities and you cannot adequately identify the shares you sell, the basis of the securities you sell is the basis of the securities you acquired first. H&r block 1040ez For more information about identifying securities you sell, see Stocks and Bonds under Basis of Investment Property in chapter 4 of Publication 550. H&r block 1040ez Mutual fund shares. H&r block 1040ez   If you sell mutual fund shares acquired at different times and prices, you can choose to use an average basis. H&r block 1040ez For more information, see Publication 550. H&r block 1040ez Real Property Real property, also called real estate, is land and generally anything built on or attached to it. H&r block 1040ez If you buy real property, certain fees and other expenses become part of your cost basis in the property. H&r block 1040ez Real estate taxes. H&r block 1040ez   If you pay 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. H&r block 1040ez You cannot deduct them as taxes. H&r block 1040ez   If you reimburse the seller for taxes the seller paid for you, you can usually deduct that amount as an expense in the year of purchase. H&r block 1040ez Do not include that amount in the basis of the property. H&r block 1040ez If you did not reimburse the seller, you must reduce your basis by the amount of those taxes. H&r block 1040ez Settlement costs. H&r block 1040ez   Your basis includes the settlement fees and closing costs for buying property. H&r block 1040ez You cannot include in your basis the fees and costs for getting a loan on property. H&r block 1040ez A fee for buying property is a cost that must be paid even if you bought the property for cash. H&r block 1040ez   The following items are some of the settlement fees or closing costs you can include in the basis of your property. H&r block 1040ez Abstract fees (abstract of title fees); Charges for installing utility services; Legal fees (including title search and preparation of the sales contract and deed); Recording fees; Surveys; Transfer taxes; Owner's title insurance; and Any amounts the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions. H&r block 1040ez   Settlement costs do not include amounts placed in escrow for the future payment of items such as taxes and insurance. H&r block 1040ez   The following items are some settlement fees and closing costs you cannot include in the basis of the property. H&r block 1040ez Casualty insurance premiums. H&r block 1040ez Rent for occupancy of the property before closing. H&r block 1040ez Charges for utilities or other services related to occupancy of the property before closing. H&r block 1040ez Charges connected with getting a loan. H&r block 1040ez The following are examples of these charges. H&r block 1040ez Points (discount points, loan origination fees). H&r block 1040ez Mortgage insurance premiums. H&r block 1040ez Loan assumption fees. H&r block 1040ez Cost of a credit report. H&r block 1040ez Fees for an appraisal required by a lender. H&r block 1040ez Fees for refinancing a mortgage. H&r block 1040ez If these costs relate to business property, items (1) through (3) are deductible as business expenses. H&r block 1040ez Items (4) and (5) must be capitalized as costs of getting a loan and can be deducted over the period of the loan. H&r block 1040ez Points. H&r block 1040ez   If you pay points to obtain a loan (including a mortgage, second mortgage, line of credit, or a home equity loan), do not add the points to the basis of the related property. H&r block 1040ez Generally, you deduct the points over the term of the loan. H&r block 1040ez For more information on how to deduct points, see Points in chapter 4 of Publication 535. H&r block 1040ez Points on home mortgage. H&r block 1040ez   Special rules may apply to points you and the seller pay when you obtain a mortgage to purchase your main home. H&r block 1040ez If certain requirements are met, you can deduct the points in full for the year in which they are paid. H&r block 1040ez Reduce the basis of your home by any seller-paid points. H&r block 1040ez For more information, see Points in Publication 936, Home Mortgage Interest Deduction. H&r block 1040ez Assumption of mortgage. H&r block 1040ez   If you buy property and assume (or buy subject to) an existing mortgage on the property, your basis includes the amount you pay for the property plus the amount to be paid on the mortgage. H&r block 1040ez Example. H&r block 1040ez If you buy a building for $20,000 cash and assume a mortgage of $80,000 on it, your basis is $100,000. H&r block 1040ez Constructing assets. H&r block 1040ez   If you build property or have assets built for you, your expenses for this construction are part of your basis. H&r block 1040ez Some of these expenses include the following costs. H&r block 1040ez Land, Labor and materials, Architect's fees, Building permit charges, Payments to contractors, Payments for rental equipment, and Inspection fees. H&r block 1040ez In addition, if you own a business and use your employees, material, and equipment to build an asset, do not deduct the following expenses. H&r block 1040ez You must include them in the asset's basis. H&r block 1040ez Employee wages paid for the construction work, reduced by any employment credits allowed; Depreciation on equipment you own while it is used in the construction; Operating and maintenance costs for equipment used in the construction; and The cost of business supplies and materials used in the construction. H&r block 1040ez    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. H&r block 1040ez Business Assets If you purchase property to use in your business, your basis is usually its actual cost to you. H&r block 1040ez If you construct, create, or otherwise produce property, you must capitalize the costs as your basis. H&r block 1040ez In certain circumstances, you may be subject to the uniform capitalization rules, next. H&r block 1040ez Uniform Capitalization Rules The uniform capitalization rules specify the costs you add to basis in certain circumstances. H&r block 1040ez Activities subject to the rules. H&r block 1040ez   You must use the uniform capitalization rules if you do any of the following in your trade or business or activity carried on for profit. H&r block 1040ez Produce real or tangible personal property for use in the business or activity, Produce real or tangible personal property for sale to customers, or Acquire property for resale. H&r block 1040ez However, this rule does not apply to personal property if your average annual gross receipts for the 3 previous tax years are $10 million or less. H&r block 1040ez   You produce property if you construct, build, install, manufacture, develop, improve, create, raise, or grow the property. H&r block 1040ez Treat property produced for you under a contract as produced by you up to the amount you pay or costs you otherwise incur for the property. H&r block 1040ez Tangible personal property includes films, sound recordings, video tapes, books, or similar property. H&r block 1040ez    Under the uniform capitalization rules, you must capitalize all direct costs and an allocable part of most indirect costs you incur due to your production or resale activities. H&r block 1040ez To capitalize means to include certain expenses in the basis of property you produce or in your inventory costs rather than deduct them as a current expense. H&r block 1040ez You recover these costs through deductions for depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. H&r block 1040ez   Any cost you cannot use to figure your taxable income for any tax year is not subject to the uniform capitalization rules. H&r block 1040ez Example. H&r block 1040ez If you incur a business meal expense for which your deduction would be limited to 50% of the cost of the meal, that amount is subject to the uniform capitalization rules. H&r block 1040ez The nondeductible part of the cost is not subject to the uniform capitalization rules. H&r block 1040ez More information. H&r block 1040ez   For more information about these rules, see the regulations under section 263A of the Internal Revenue Code and Publication 538, Accounting Periods and Methods. H&r block 1040ez Exceptions. H&r block 1040ez   The following are not subject to the uniform capitalization rules. H&r block 1040ez Property you produce that you do not use in your trade, business, or activity conducted for profit; Qualified creative expenses you pay or incur as a free-lance (self-employed) writer, photographer, or artist that are otherwise deductible on your tax return; Property you produce under a long-term contract, except for certain home construction contracts; Research and experimental expenses deductible under section 174 of the Internal Revenue Code; and Costs for personal property acquired for resale if your (or your predecessor's) average annual gross receipts for the 3 previous tax years do not exceed $10 million. H&r block 1040ez For other exceptions to the uniform capitalization rules, see section 1. H&r block 1040ez 263A-1(b) of the regulations. H&r block 1040ez   For information on the special rules that apply to costs incurred in the business of farming, see chapter 6 of Publication 225, Farmer's Tax Guide. H&r block 1040ez Intangible Assets Intangible assets include goodwill, patents, copyrights, trademarks, trade names, and franchises. H&r block 1040ez The basis of an intangible asset is usually the cost to buy or create it. H&r block 1040ez If you acquire multiple assets, for example a going business for a lump sum, see Allocating the Basis below to figure the basis of the individual assets. H&r block 1040ez The basis of certain intangibles can be amortized. H&r block 1040ez See chapter 8 of Publication 535 for information on the amortization of these costs. H&r block 1040ez Patents. H&r block 1040ez   The basis of a patent you get for an invention is the cost of development, such as research and experimental expenditures, drawings, working models, and attorneys' and governmental fees. H&r block 1040ez If you deduct the research and experimental expenditures as current business expenses, you cannot include them in the basis of the patent. H&r block 1040ez The value of the inventor's time spent on an invention is not part of the basis. H&r block 1040ez Copyrights. H&r block 1040ez   If you are an author, the basis of a copyright will usually be the cost of getting the copyright plus copyright fees, attorneys' fees, clerical assistance, and the cost of plates that remain in your possession. H&r block 1040ez Do not include the value of your time as the author, or any other person's time you did not pay for. H&r block 1040ez Franchises, trademarks, and trade names. H&r block 1040ez   If you buy a franchise, trademark, or trade name, the basis is its cost, unless you can deduct your payments as a business expense. H&r block 1040ez Allocating the Basis If you buy multiple assets for a lump sum, allocate the amount you pay among the assets you receive. H&r block 1040ez You must make this allocation to figure your basis for depreciation and gain or loss on a later disposition of any of these assets. H&r block 1040ez See Trade or Business Acquired below. H&r block 1040ez Group of Assets Acquired If you buy multiple assets for a lump sum, you and the seller may agree to a specific allocation of the purchase price among the assets in the sales contract. H&r block 1040ez 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. H&r block 1040ez However, see Trade or Business Acquired, next. H&r block 1040ez Trade or Business Acquired If you acquire a trade or business, allocate the consideration paid to the various assets acquired. H&r block 1040ez Generally, reduce the consideration paid by any cash and general deposit accounts (including checking and savings accounts) received. H&r block 1040ez Allocate the remaining consideration to the other business assets received in proportion to (but not more than) their fair market value in the following order. H&r block 1040ez Certificates of deposit, U. H&r block 1040ez S. H&r block 1040ez Government securities, foreign currency, and actively traded personal property, including stock and securities. H&r block 1040ez Accounts receivable, other debt instruments, and assets you mark to market at least annually for federal income tax purposes. H&r block 1040ez Property of a kind that would properly be included in inventory if on hand at the end of the tax year or property held primarily for sale to customers in the ordinary course of business. H&r block 1040ez All other assets except section 197 intangibles, goodwill, and going concern value. H&r block 1040ez Section 197 intangibles except goodwill and going concern value. H&r block 1040ez Goodwill and going concern value (whether or not they qualify as section 197 intangibles). H&r block 1040ez Agreement. H&r block 1040ez   The buyer and seller may enter into a written agreement as to the allocation of any consideration or the fair market value (FMV) of any of the assets. H&r block 1040ez This agreement is binding on both parties unless the IRS determines the amounts are not appropriate. H&r block 1040ez Reporting requirement. H&r block 1040ez   Both the buyer and seller involved in the sale of business assets must report to the IRS the allocation of the sales price among section 197 intangibles and the other business assets. H&r block 1040ez Use Form 8594 to provide this information. H&r block 1040ez The buyer and seller should each attach Form 8594 to their federal income tax return for the year in which the sale occurred. H&r block 1040ez More information. H&r block 1040ez   See Sale of a Business in chapter 2 of Publication 544 for more information. H&r block 1040ez Land and Buildings If you buy buildings and the land on which they stand for a lump sum, allocate the basis of the property among the land and the buildings so you can figure the depreciation allowable on the buildings. H&r block 1040ez Figure the basis of each asset by multiplying the lump sum by a fraction. H&r block 1040ez The numerator is the FMV of that asset and the denominator is the FMV of the whole property at the time of purchase. H&r block 1040ez If you are not certain of the FMV of the land and buildings, you can allocate the basis based on their assessed values for real estate tax purposes. H&r block 1040ez Demolition of building. H&r block 1040ez   Add demolition costs and other losses incurred for the demolition of any building to the basis of the land on which the demolished building was located. H&r block 1040ez Do not claim the costs as a current deduction. H&r block 1040ez Modification of building. H&r block 1040ez   A modification of a building will not be treated as a demolition if the following conditions are satisfied. H&r block 1040ez 75 percent or more of the existing external walls of the building are retained in place as internal or external walls, and 75 percent or more of the existing internal structural framework of the building is retained in place. H&r block 1040ez   If the building is a certified historic structure, the modification must also be part of a certified rehabilitation. H&r block 1040ez   If these conditions are met, add the costs of the modifications to the basis of the building. H&r block 1040ez Subdivided lots. H&r block 1040ez   If you buy a tract of land and subdivide it, you must determine the basis of each lot. H&r block 1040ez This is necessary because you must figure the gain or loss on the sale of each individual lot. H&r block 1040ez As a result, you do not recover your entire cost in the tract until you have sold all of the lots. H&r block 1040ez   To determine the basis of an individual lot, multiply the total cost of the tract by a fraction. H&r block 1040ez The numerator is the FMV of the lot and the denominator is the FMV of the entire tract. H&r block 1040ez Future improvement costs. H&r block 1040ez   If you are a developer and sell subdivided lots before the development work is completed, you can (with IRS consent) include in the basis of the properties sold an allocation of the estimated future cost for common improvements. H&r block 1040ez See Revenue Procedure 92–29 for more information, including an explanation of the procedures for getting consent from the IRS. H&r block 1040ez Use of erroneous cost basis. H&r block 1040ez   If you made a mistake in figuring the cost basis of subdivided lots sold in previous years, you cannot correct the mistake for years for which the statute of limitations (generally 3 tax years) has expired. H&r block 1040ez Figure the basis of any remaining lots by allocating the correct original cost basis of the entire tract among the original lots. H&r block 1040ez Example. H&r block 1040ez You bought a tract of land to which you assigned a cost of $15,000. H&r block 1040ez You subdivided the land into 15 building lots of equal size and equitably divided your basis so that each lot had a basis of $1,000. H&r block 1040ez You treated the sale of each lot as a separate transaction and figured gain or loss separately on each sale. H&r block 1040ez Several years later you determine that your original basis in the tract was $22,500 and not $15,000. H&r block 1040ez You sold eight lots using $8,000 of basis in years for which the statute of limitations has expired. H&r block 1040ez You now can take $1,500 of basis into account for figuring gain or loss only on the sale of each of the remaining seven lots ($22,500 basis divided among all 15 lots). H&r block 1040ez You cannot refigure the basis of the eight lots sold in tax years barred by the statute of limitations. H&r block 1040ez 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 basis of the property. H&r block 1040ez The result of these adjustments to the basis is the adjusted basis. H&r block 1040ez Increases to Basis Increase the basis of any property by all items properly added to a capital account. H&r block 1040ez These include the cost of any improvements having a useful life of more than 1 year. H&r block 1040ez Rehabilitation expenses also increase basis. H&r block 1040ez However, you must subtract any rehabilitation credit allowed for these expenses before you add them to your basis. H&r block 1040ez If you have to recapture any of the credit, increase your basis by the recaptured amount. H&r block 1040ez If you make additions or improvements to business property, keep separate accounts for them. H&r block 1040ez Also, you must depreciate the basis of each according to the depreciation rules that would apply to the underlying property if you had placed it in service at the same time you placed the addition or improvement in service. H&r block 1040ez For more information, see Publication 946. H&r block 1040ez The following items increase the basis of property. H&r block 1040ez The cost of extending utility service lines to the property; Impact fees; Legal fees, such as the cost of defending and perfecting title; Legal fees for obtaining a decrease in an assessment levied against property to pay for local improvements; Zoning costs; and The capitalized value of a redeemable ground rent. H&r block 1040ez Assessments for Local Improvements Increase the basis of property by assessments for items such as paving roads and building ditches that increase the value of the property assessed. H&r block 1040ez Do not deduct them as taxes. H&r block 1040ez However, you can deduct as taxes charges for maintenance, repairs, or interest charges related to the improvements. H&r block 1040ez Example. H&r block 1040ez Your city changes the street in front of your store into an enclosed pedestrian mall and assesses you and other affected landowners for the cost of the conversion. H&r block 1040ez Add the assessment to your property's basis. H&r block 1040ez In this example, the assessment is a depreciable asset. H&r block 1040ez Deducting vs. H&r block 1040ez Capitalizing Costs Do not add to your basis costs you can deduct as current expenses. H&r block 1040ez For example, amounts paid for incidental repairs or maintenance that are deductible as business expenses cannot be added to basis. H&r block 1040ez However, you can choose either to deduct or to capitalize certain other costs. H&r block 1040ez If you capitalize these costs, include them in your basis. H&r block 1040ez If you deduct them, do not include them in your basis. H&r block 1040ez See Uniform Capitalization Rules earlier. H&r block 1040ez The costs you can choose to deduct or to capitalize include the following. H&r block 1040ez Carrying charges, such as interest and taxes, that you pay to own property, except carrying charges that must be capitalized under the uniform capitalization rules; Research and experimentation costs; Intangible drilling and development costs for oil, gas, and geothermal wells; Exploration costs for new mineral deposits; Mining development costs for a new mineral deposit; Costs of establishing, maintaining, or increasing the circulation of a newspaper or other periodical; and Costs of removing architectural and transportation barriers to people with disabilities and the elderly. H&r block 1040ez If you claim the disabled access credit, you must reduce the amount you deduct or capitalize by the amount of the credit. H&r block 1040ez For more information about deducting or capitalizing costs, see chapter 7 in Publication 535. H&r block 1040ez Table 1. H&r block 1040ez Examples of Increases and Decreases to Basis Increases to Basis Decreases to Basis Capital improvements:   Putting an addition on your home   Replacing an entire roof  Paving your driveway  Installing central air conditioning Rewiring your home Exclusion from income of subsidies for energy conservation measures  Casualty or theft loss deductions and insurance reimbursements  Vehicle credits Assessments for local improvements: Water connections Sidewalks Roads Section 179 deduction  Casualty losses: Restoring damaged property Depreciation  Nontaxable corporate distributions Legal fees:  Cost of defending and perfecting a title   Zoning costs   Decreases to Basis The following are some items that reduce the basis of property. H&r block 1040ez Section 179 deduction; Nontaxable corporate distributions; Deductions previously allowed (or allowable) for amortization, depreciation, and depletion; Exclusion of subsidies for energy conservation measures; Vehicle credits; Residential energy credits; Postponed gain from sale of home; Investment credit (part or all) taken; Casualty and theft losses and insurance reimbursement; Certain canceled debt excluded from income; Rebates from a manufacturer or seller; Easements; Gas-guzzler tax; Adoption tax benefits; and Credit for employer-provided child care. H&r block 1040ez Some of these items are discussed next. H&r block 1040ez Casualties and Thefts If you have a casualty or theft loss, decrease the basis in your property by any insurance or other reimbursement and by any deductible loss not covered by insurance. H&r block 1040ez You must increase your basis in the property by the amount you spend on repairs that substantially prolong the life of the property, increase its value, or adapt it to a different use. H&r block 1040ez To make this determination, compare the repaired property to the property before the casualty. H&r block 1040ez For more information on casualty and theft losses, see Publication 547, Casualties, Disasters, and Thefts. H&r block 1040ez Easements The amount you receive for granting an easement is generally considered to be a sale of an interest in real property. H&r block 1040ez It reduces the basis of the affected part of the property. H&r block 1040ez 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. H&r block 1040ez Vehicle Credits Unless you elect not to claim the qualified plug-in electric vehicle credit, the alternative motor vehicle credit, or the qualified plug-in electric drive motor vehicle credit, you may have to reduce the basis of each qualified vehicle by certain amounts reported. H&r block 1040ez For more information, see Form 8834, Qualified Plug-in Electric and Electric Vehicle Credit; Form 8910, Alternative Motor Vehicle Credit; Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit;and the related instructions. H&r block 1040ez Gas-Guzzler Tax Decrease the basis in your car by the gas-guzzler (fuel economy) tax if you begin using the car within 1 year of the date of its first sale for ultimate use. H&r block 1040ez This rule also applies to someone who later buys the car and begins using it not more than 1 year after the original sale for ultimate use. H&r block 1040ez If the car is imported, the one-year period begins on the date of entry or withdrawal of the car from the warehouse if that date is later than the date of the first sale for ultimate use. H&r block 1040ez Section 179 Deduction If you take the section 179 deduction for all or part of the cost of qualifying business property, decrease the basis of the property by the deduction. H&r block 1040ez For more information about the section 179 deduction, see Publication 946. H&r block 1040ez Exclusion of Subsidies for Energy Conservation Measures You can exclude from gross income any subsidy you received from a public utility company for the purchase or installation of any energy conservation measure for a dwelling unit. H&r block 1040ez Reduce the basis of the property for which you received the subsidy by the excluded amount. H&r block 1040ez For more information on this subsidy, see Publication 525. H&r block 1040ez Depreciation 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. H&r block 1040ez 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. H&r block 1040ez If you did not take a depreciation deduction, reduce the basis by the full amount of the depreciation you could have taken. H&r block 1040ez Unless a timely election is made not to deduct the special depreciation allowance for property placed in service after September 10, 2001, decrease the property's basis by the special depreciation allowance you deducted or could have deducted. H&r block 1040ez If you deducted more depreciation than you should have, decrease your basis by the amount equal to the depreciation you should have deducted plus the part of the excess depreciation you deducted that actually reduced your tax liability for the year. H&r block 1040ez In decreasing your basis for depreciation, take into account the amount deducted on your tax returns as depreciation and any depreciation capitalized under the uniform capitalization rules. H&r block 1040ez For information on figuring depreciation, see Publication 946. H&r block 1040ez If you are claiming depreciation on a business vehicle, see Publication 463. H&r block 1040ez If the car is not used more than 50% for business during the tax year, you may have to recapture excess depreciation. H&r block 1040ez Include the excess depreciation in your gross income and add it to your basis in the property. H&r block 1040ez For information on the computation of excess depreciation, see chapter 4 in Publication 463. H&r block 1040ez Canceled Debt Excluded From Income 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. H&r block 1040ez A debt includes any indebtedness for which you are liable or which attaches to property you hold. H&r block 1040ez You can exclude canceled debt from income in the following situations. H&r block 1040ez Debt canceled in a bankruptcy case or when you are insolvent, Qualified farm debt, and Qualified real property business debt (provided you are not a C corporation). H&r block 1040ez If you exclude from income canceled debt under situation (1) or (2), you may have to reduce the basis of your depreciable and nondepreciable property. H&r block 1040ez However, in situation (3), you must reduce the basis of your depreciable property by the excluded amount. H&r block 1040ez For more information about canceled debt in a bankruptcy case or during insolvency, see Publication 908, Bankruptcy Tax Guide. H&r block 1040ez For more information about canceled debt that is qualified farm debt, see chapter 3 in Publication 225. H&r block 1040ez For more information about qualified real property business debt, see chapter 5 in Publication 334, Tax Guide for Small Business. H&r block 1040ez Postponed Gain From Sale of Home If you postponed gain from the sale of your main home before May 7, 1997, you must reduce the basis of your new home by the postponed gain. H&r block 1040ez For more information on the rules for the sale of a home, see Publication 523. H&r block 1040ez Adoption Tax Benefits If you claim an adoption credit for the cost of improvements you added to the basis of your home, decrease the basis of your home by the credit allowed. H&r block 1040ez This also applies to amounts you received under an employer's adoption assistance program and excluded from income. H&r block 1040ez For more information Form 8839, Qualified Adoption Expenses. H&r block 1040ez Employer-Provided Child Care If you are an employer, you can claim the employer-provided child care credit on amounts you paid or incurred to acquire, construct, rehabilitate, or expand property used as part of your qualified child care facility. H&r block 1040ez You must reduce your basis in that property by the credit claimed. H&r block 1040ez For more information, see Form 8882, Credit for Employer-Provided Child Care Facilities and Services. H&r block 1040ez Adjustments to Basis Example In January 2005, you paid $80,000 for real property to be used as a factory. H&r block 1040ez You also paid commissions of $2,000 and title search and legal fees of $600. H&r block 1040ez You allocated the total cost of $82,600 between the land and the building—$10,325 for the land and $72,275 for the building. H&r block 1040ez Immediately you spent $20,000 in remodeling the building before you placed it in service. H&r block 1040ez You were allowed depreciation of $14,526 for the years 2005 through 2009. H&r block 1040ez In 2008 you had a $5,000 casualty loss from a that was not covered by insurance on the building. H&r block 1040ez You claimed a deduction for this loss. H&r block 1040ez You spent $5,500 to repair the damages and extend the useful life of the building. H&r block 1040ez The adjusted basis of the building on January 1, 2010, is figured as follows: Original cost of building including fees and commissions $72,275 Adjustments to basis:     Add:         Improvements 20,000   Repair of damages 5,500       $97,775 Subtract:       Depreciation $14,526     Deducted casualty loss 5,000 19,526 Adjusted basis on January 1, 2010 $78,249 The basis of the land, $10,325, remains unchanged. H&r block 1040ez It is not affected by any of the above adjustments. H&r block 1040ez Basis Other Than Cost There are many times when you cannot use cost as basis. H&r block 1040ez In these cases, the fair market value or the adjusted basis of property may be used. H&r block 1040ez Adjusted basis is discussed earlier. H&r block 1040ez Fair market value (FMV). H&r block 1040ez   FMV is the price at which property would change hands between a buyer and a seller, neither having to buy or sell, and both having reasonable knowledge of all necessary facts. H&r block 1040ez Sales of similar property on or about the same date may be helpful in figuring the property's FMV. H&r block 1040ez Property Received for Services If you receive property for services, include the property's FMV in income. H&r block 1040ez The amount you include in income becomes your basis. H&r block 1040ez 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. H&r block 1040ez Bargain Purchases A bargain purchase is a purchase of an item for less than its FMV. H&r block 1040ez If, as compensation for services, you purchase goods or other property at less than FMV, include the difference between the purchase price and the property's FMV in your income. H&r block 1040ez Your basis in the property is its FMV (your purchase price plus the amount you include in income). H&r block 1040ez If the difference between your purchase price and the FMV represents a qualified employee discount, do not include the difference in income. H&r block 1040ez However, your basis in the property is still its FMV. H&r block 1040ez See Employee Discounts in Publication 15-B. H&r block 1040ez Restricted Property If you receive property for your services and the property is subject to certain restrictions, your basis in the property is its FMV when it becomes substantially vested unless you make the election discussed later. H&r block 1040ez Property becomes substantially vested when your rights in the property or the rights of any person to whom you transfer the property are not subject to a substantial risk of forfeiture. H&r block 1040ez There is substantial risk of forfeiture when the rights to full enjoyment of the property depend on the future performance of substantial services by any person. H&r block 1040ez When the property becomes substantially vested, include the FMV, less any amount you paid for the property, in income. H&r block 1040ez Example. H&r block 1040ez Your employer gives you stock for services performed under the condition that you will have to return the stock unless you complete 5 years of service. H&r block 1040ez The stock is under a substantial risk of forfeiture and is not substantially vested when you receive it. H&r block 1040ez You do not report any income until you have completed the 5 years of service that satisfy the condition. H&r block 1040ez Fair market value. H&r block 1040ez   Figure the FMV of property you received without considering any restriction except one that by its terms will never end. H&r block 1040ez Example. H&r block 1040ez You received stock from your employer for services you performed. H&r block 1040ez If you want to sell the stock while you are still employed, you must sell the stock to your employer at book value. H&r block 1040ez At your retirement or death, you or your estate must offer to sell the stock to your employer at its book value. H&r block 1040ez This is a restriction that by its terms will never end and you must consider it when you figure the FMV. H&r block 1040ez Election. H&r block 1040ez   You can choose to include in your gross income the FMV of the property at the time of transfer, less any amount you paid for it. H&r block 1040ez If you make this choice, the substantially vested rules do not apply. H&r block 1040ez Your basis is the amount you paid plus the amount you included in income. H&r block 1040ez   See the discussion of Restricted Property in Publication 525 for more information. H&r block 1040ez Taxable Exchanges A taxable exchange is one in which the gain is taxable or the loss is deductible. H&r block 1040ez A taxable gain or deductible loss is also known as a recognized gain or loss. H&r block 1040ez If you receive property in exchange for other property in a taxable exchange, the basis of property you receive is usually its FMV at the time of the exchange. H&r block 1040ez A taxable exchange occurs when you receive cash or property not similar or related in use to the property exchanged. H&r block 1040ez Example. H&r block 1040ez You trade a tract of farm land with an adjusted basis of $3,000 for a tractor that has an FMV of $6,000. H&r block 1040ez You must report a taxable gain of $3,000 for the land. H&r block 1040ez The tractor has a basis of $6,000. H&r block 1040ez Involuntary Conversions If you receive property as a result of an involuntary conversion, such as a casualty, theft, or condemnation, you can figure the basis of the replacement property you receive using the basis of the converted property. H&r block 1040ez Similar or related property. H&r block 1040ez   If you receive replacement property similar or related in service or use to the converted property, the replacement property's basis is the old property's basis on the date of the conversion. H&r block 1040ez However, make the following adjustments. H&r block 1040ez Decrease the basis by the following. H&r block 1040ez Any loss you recognize on the conversion, and Any money you receive that you do not spend on similar property. H&r block 1040ez Increase the basis by the following. H&r block 1040ez Any gain you recognize on the conversion, and Any cost of acquiring the replacement property. H&r block 1040ez Money or property not similar or related. H&r block 1040ez   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 new property is its cost decreased by the gain not recognized on the conversion. H&r block 1040ez Example. H&r block 1040ez The state condemned your property. H&r block 1040ez The property had an adjusted basis of $26,000 and the state paid you $31,000 for it. H&r block 1040ez You realized a gain of $5,000 ($31,000 − $26,000). H&r block 1040ez You bought replacement property similar in use to the converted property for $29,000. H&r block 1040ez You recognize a gain of $2,000 ($31,000 − $29,000), the unspent part of the payment from the state. H&r block 1040ez Your gain not recognized is $3,000, the difference between the $5,000 realized gain and the $2,000 recognized gain. H&r block 1040ez The basis of the new property is figured as follows: Cost of replacement property $29,000 Minus: Gain not recognized 3,000 Basis of the replacement property $26,000 Allocating the basis. H&r block 1040ez   If you buy more than one piece of replacement property, allocate your basis among the properties based on their respective costs. H&r block 1040ez Example. H&r block 1040ez The state in the previous example condemned your unimproved real property and the replacement property you bought was improved real property with both land and buildings. H&r block 1040ez Allocate the replacement property's $26,000 basis between land and buildings based on their respective costs. H&r block 1040ez More information. H&r block 1040ez   For more information about condemnations, see Involuntary Conversions in Publication 544. H&r block 1040ez For more information about casualty and theft losses, see Publication 547. H&r block 1040ez Nontaxable Exchanges A nontaxable exchange is an exchange in which you are not taxed on any gain and you cannot deduct any loss. H&r block 1040ez If you receive property in a nontaxable exchange, its basis is usually the same as the basis of the property you transferred. H&r block 1040ez A nontaxable gain or loss is also known as an unrecognized gain or loss. H&r block 1040ez Like-Kind Exchanges The exchange of property for the same kind of property is the most common type of nontaxable exchange. H&r block 1040ez 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. H&r block 1040ez There must also be an exchange of like-kind property. H&r block 1040ez For more information, see Like-Kind Exchanges in Publication 544. H&r block 1040ez The basis of the property you receive is the same as the basis of the property you gave up. H&r block 1040ez Example. H&r block 1040ez You exchange real estate (adjusted basis $50,000, FMV $80,000) held for investment for other real estate (FMV $80,000) held for investment. H&r block 1040ez Your basis in the new property is the same as the basis of the old ($50,000). H&r block 1040ez Exchange expenses. H&r block 1040ez   Exchange expenses are generally the closing costs you pay. H&r block 1040ez They include such items as brokerage commissions, attorney fees, deed preparation fees, etc. H&r block 1040ez Add them to the basis of the like-kind property received. H&r block 1040ez Property plus cash. H&r block 1040ez   If you trade property in a like-kind exchange and also pay money, the basis of the property received is the basis of the property you gave up increased by the money you paid. H&r block 1040ez Example. H&r block 1040ez You trade in a truck (adjusted basis $3,000) for another truck (FMV $7,500) and pay $4,000. H&r block 1040ez Your basis in the new truck is $7,000 (the $3,000 basis of the old truck plus the $4,000 paid). H&r block 1040ez Special rules for related persons. H&r block 1040ez   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. H&r block 1040ez Each person must report any gain or loss not recognized on the original exchange. H&r block 1040ez Each person reports it on the tax return filed for the year in which the later disposition occurs. H&r block 1040ez If this rule applies, the basis of the property received in the original exchange will be its fair market value. H&r block 1040ez   These rules generally do not apply to the following kinds of property dispositions. H&r block 1040ez Dispositions due to the death of either related person, Involuntary conversions, and Dispositions in which neither the original exchange nor the subsequent disposition had as a main purpose the avoidance of federal income tax. H&r block 1040ez Related persons. H&r block 1040ez   Generally, related persons are ancestors, lineal descendants, brothers and sisters (whole or half), and a spouse. H&r block 1040ez   For other related persons (for example, two corporations, an individual and a corporation, a grantor and fiduciary, etc. H&r block 1040ez ), see Nondeductible Loss in chapter 2 of Publication 544. H&r block 1040ez Exchange of business property. H&r block 1040ez   Exchanging the assets of one business for the assets of another business is a multiple property exchange. H&r block 1040ez For information on figuring basis, see Multiple Property Exchanges in chapter 1 of Publication 544. H&r block 1040ez Partially Nontaxable Exchange A partially nontaxable exchange is an exchange in which you receive unlike property or money in addition to like property. H&r block 1040ez The basis of the property you receive is the same as the basis of the property you gave up, with the following adjustments. H&r block 1040ez Decrease the basis by the following amounts. H&r block 1040ez Any money you receive, and Any loss you recognize on the exchange. H&r block 1040ez Increase the basis by the following amounts. H&r block 1040ez Any additional costs you incur, and Any gain you recognize on the exchange. H&r block 1040ez If the other party to the exchange assumes your liabilities, treat the debt assumption as money you received in the exchange. H&r block 1040ez Example. H&r block 1040ez You traded a truck (adjusted basis $6,000) for a new truck (FMV $5,200) and $1,000 cash. H&r block 1040ez You realized a gain of $200 ($6,200 − $6,000). H&r block 1040ez This is the FMV of the truck received plus the cash minus the adjusted basis of the truck you traded ($5,200 + $1,000 – $6,000). H&r block 1040ez You include all the gain in income (recognized gain) because the gain is less than the cash received. H&r block 1040ez Your basis in the new truck is: Adjusted basis of old truck $6,000 Minus: Cash received (adjustment 1(a)) 1,000   $5,000 Plus: Gain recognized (adjustment 2(b)) 200 Basis of new truck $5,200 Allocation of basis. H&r block 1040ez   Allocate the basis first to the unlike property, other than money, up to its FMV on the date of the exchange. H&r block 1040ez The rest is the basis of the like property. H&r block 1040ez Example. H&r block 1040ez You had an adjusted basis of $15,000 in real estate you held for investment. H&r block 1040ez You exchanged it for other real estate to be held for investment with an FMV of $12,500, a truck with an FMV of $3,000, and $1,000 cash. H&r block 1040ez The truck is unlike property. H&r block 1040ez You realized a gain of $1,500 ($16,500 − $15,000). H&r block 1040ez This is the FMV of the real estate received plus the FMV of the truck received plus the cash minus the adjusted basis of the real estate you traded ($12,500 + $3,000 + $1,000 – $15,000). H&r block 1040ez 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. H&r block 1040ez Your basis in the properties you received is figured as follows. H&r block 1040ez Adjusted basis of real estate transferred $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). H&r block 1040ez This is the truck's FMV. H&r block 1040ez The rest ($12,500) is the basis of the real estate. H&r block 1040ez 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. H&r block 1040ez Example. H&r block 1040ez You are a salesperson and you use one of your cars 100% for business. H&r block 1040ez You have used this car in your sales activities for 2 years and have depreciated it. H&r block 1040ez Your adjusted basis in the car is $22,600 and its FMV is $23,100. H&r block 1040ez You are interested in a new car, which sells for $28,000. H&r block 1040ez If you trade your old car and pay $4,900 for the new one, your basis for depreciation for the new car would be $27,500 ($4,900 plus the $22,600 basis of your old car). H&r block 1040ez However, you want a higher basis for depreciating the new car, so you agree to pay the dealer $28,000 for the new car if he will pay you $23,100 for your old car. H&r block 1040ez Because the two transactions are dependent on each other, you are treated as having exchanged your old car for the new one and paid $4,900 ($28,000 − $23,100). H&r block 1040ez Your basis for depreciating the new car is $27,500, the same as if you traded the old car. H&r block 1040ez Partial Business Use of Property If you have property used partly for business and partly for personal use, and you exchange it in a nontaxable exchange for property to be used wholly or partly in your business, the basis of the property you receive is figured as if you had exchanged two properties. H&r block 1040ez The first is an exchange of like-kind property. H&r block 1040ez The second is personal-use property on which gain is recognized and loss is not recognized. H&r block 1040ez First, figure your adjusted basis in the property as if you transferred two separate properties. H&r block 1040ez Figure the adjusted basis of each part of the property by taking into account any adjustments to basis. H&r block 1040ez Deduct the depreciation you took or could have taken from the adjusted basis of the business part. H&r block 1040ez Then figure the amount realized for your property and allocate it to the business and nonbusiness parts of the property. H&r block 1040ez The business part of the property is permitted to be exchanged tax free. H&r block 1040ez However, you must recognize any gain from the exchange of the nonbusiness part. H&r block 1040ez You are deemed to have received, in exchange for the nonbusiness part, an amount equal to its FMV on the date of the exchange. H&r block 1040ez The basis of the property you acquired is the total basis of the property transferred (adjusted to the date of the exchange), increased by any gain recognized on the nonbusiness part. H&r block 1040ez If the nonbusiness part of the property transferred is your main home, you may qualify to exclude from income all or part of the gain on that part. H&r block 1040ez For more information, see Publication 523. H&r block 1040ez Trade of car used partly in business. H&r block 1040ez   If you trade in a car you used partly in your business for another car you will use in your business, your basis for depreciation of the new car is not the same as your basis for figuring a gain or loss on its sale. H&r block 1040ez   For information on figuring your basis for depreciation, see Publication 463. H&r block 1040ez Property Transferred From a Spouse The basis of property transferred to you or transferred in trust for your benefit by your spouse (or former spouse if the transfer is incident to divorce), is the same as your spouse's adjusted basis. H&r block 1040ez However, adjust your basis for any gain recognized by your spouse or former spouse on property transferred in trust. H&r block 1040ez This rule applies only to a transfer of property in trust in which the liabilities assumed, plus the liabilities to which the property is subject, are more than the adjusted basis of the property transferred. H&r block 1040ez If the property transferred to you is a series E, series EE, or series I United States savings bond, the transferor must include in income the interest accrued to the date of transfer. H&r block 1040ez Your basis in the bond immediately after the transfer is equal to the transferor's basis increased by the interest income includible in the transferor's income. H&r block 1040ez For more information on these bonds, see Publication 550. H&r block 1040ez At the time of the transfer, the transferor must give you the records necessary to determine the adjusted basis and holding period of the property as of the date of transfer. H&r block 1040ez For more information, see Publication 504, Divorced or Separated Individuals. H&r block 1040ez 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, its FMV at the time it was given to you, and any gift tax paid on it. H&r block 1040ez FMV Less Than Donor's Adjusted Basis 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. H&r block 1040ez Your basis for figuring gain is the same as the donor's adjusted basis plus or minus any required adjustment to basis while you held the property. H&r block 1040ez Your basis for figuring loss is its FMV when you received the gift plus or minus any required adjustment to basis while you held the property (see Adjusted Basis earlier). H&r block 1040ez 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 have a gain, you have neither gain nor loss on the sale or disposition of the property. H&r block 1040ez Example. H&r block 1040ez You received an acre of land as a gift. H&r block 1040ez At the time of the gift, the land had an FMV of $8,000. H&r block 1040ez The donor's adjusted basis was $10,000. H&r block 1040ez After you received the land, no events occurred to increase or decrease your basis. H&r block 1040ez If you sell the land for $12,000, you will have a $2,000 gain because you must use the donor's adjusted basis ($10,000) at the time of the gift as your basis to figure gain. H&r block 1040ez If you sell the land for $7,000, you will have a $1,000 loss because you must use the FMV ($8,000) at the time of the gift as your basis to figure a loss. H&r block 1040ez If the sales price is between $8,000 and $10,000, you have neither gain nor loss. H&r block 1040ez For instance, if the sales price was $9,000 and you tried to figure a gain using the donor's adjusted basis ($10,000), you would get a $1,000 loss. H&r block 1040ez If you then tried to figure a loss using the FMV ($8,000), you would get a $1,000 gain. H&r block 1040ez Business property. H&r block 1040ez   If you hold the gift as business property, your basis for figuring any depreciation, depletion, or amortization deduction is the same as the donor's adjusted basis plus or minus any required adjustments to basis while you hold the property. H&r block 1040ez FMV Equal to or More Than Donor's Adjusted Basis 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 at the time you received the gift. H&r block 1040ez Increase your basis by all or part of any gift tax paid, depending on the date of the gift. H&r block 1040ez 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 by any required adjustments to basis while you held the property. H&r block 1040ez See Adjusted Basis earlier. H&r block 1040ez Gift received before 1977. H&r block 1040ez   If you received a gift before 1977, increase your basis in the gift (the donor's adjusted basis) by any gift tax paid on it. H&r block 1040ez However, do not increase your basis above the FMV of the gift at the time it was given to you. H&r block 1040ez Example 1. H&r block 1040ez You were given a house in 1976 with an FMV of $21,000. H&r block 1040ez The donor's adjusted basis was $20,000. H&r block 1040ez The donor paid a gift tax of $500. H&r block 1040ez Your basis is $20,500, the donor's adjusted basis plus the gift tax paid. H&r block 1040ez Example 2. H&r block 1040ez If, in Example 1, the gift tax paid had been $1,500, your basis would be $21,000. H&r block 1040ez This is the donor's adjusted basis plus the gift tax paid, limited to the FMV of the house at the time you received the gift. H&r block 1040ez Gift received after 1976. H&r block 1040ez   If you received a gift after 1976, increase your basis in the gift (the donor's adjusted basis) by the part of the gift tax paid on it that is due to the net increase in value of the gift. H&r block 1040ez Figure the increase by multiplying the gift tax paid by a fraction. H&r block 1040ez The numerator of the fraction is the net increase in value of the gift and the denominator is the amount of the gift. H&r block 1040ez   The net increase in value of the gift is the FMV of the gift less the donor's adjusted basis. H&r block 1040ez 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. H&r block 1040ez For information on the gift tax, see Publication 950, Introduction to Estate and Gift Taxes. H&r block 1040ez Example. H&r block 1040ez In 2010, you received a gift of property from your mother that had an FMV of $50,000. H&r block 1040ez Her adjusted basis was $20,000. H&r block 1040ez The amount of the gift for gift tax purposes was $37,000 ($50,000 minus the $13,000 annual exclusion). H&r block 1040ez She paid a gift tax of $9,000. H&r block 1040ez Your basis, $27,290, is figured as follows: Fair market value $50,000 Minus: Adjusted basis 20,000 Net increase in value $30,000 Gift tax paid $9,000 Multiplied by ($30,000 ÷ $37,000) . H&r block 1040ez 81 Gift tax due to net increase in value $7,290 Adjusted basis of property to your mother 20,000 Your basis in the property $27,290 Inherited Property Special rules apply to property acquired from a decedent who died in 2010. H&r block 1040ez See Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, for details. H&r block 1040ez If you inherited property from a decedent who died before 2010, your basis in property you inherit from a decedent is generally one of the following. H&r block 1040ez The FMV of the property at the date of the individual's death. H&r block 1040ez The FMV on the alternate valuation date if the personal representative for the estate chooses to use alternate valuation. H&r block 1040ez For information on the alternate valuation date, see the Instructions for Form 706. H&r block 1040ez The value under the special-use valuation method for real property used in farming or a closely held business if chosen for estate tax purposes. H&r block 1040ez This method is discussed later. H&r block 1040ez The decedent's adjusted basis in land to the extent of the value excluded from the decedent's taxable estate as a qualified conservation easement. H&r block 1040ez For information on a qualified conservation easement, see the Instructions for Form 706. H&r block 1040ez 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. H&r block 1040ez For more information, see the Instructions for Form 706. H&r block 1040ez Appreciated property. H&r block 1040ez   The above rule does not apply to appreciated property you receive from a decedent if you or your spouse originally gave the property to the decedent within 1 year before the decedent's death. H&r block 1040ez Your basis in this property is the same as the decedent's adjusted basis in the property immediately before his or her death, rather than its FMV. H&r block 1040ez Appreciated property is any property whose FMV on the day it was given to the decedent is more than its adjusted basis. H&r block 1040ez Community Property In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), husband and wife are each usually considered to own half the community property. H&r block 1040ez When either spouse dies, the total value of the community property, even the part belonging to the surviving spouse, generally becomes the basis of the entire property. H&r block 1040ez For this rule to apply, at least half the value of the community property interest must be includable in the decedent's gross estate, whether or not the estate must file a return. H&r block 1040ez For example, you and your spouse owned community property that had a basis of $80,000. H&r block 1040ez When your spouse died, half the FMV of the community interest was includible in your spouse's estate. H&r block 1040ez The FMV of the community interest was $100,000. H&r block 1040ez The basis of your half of the property after the death of your spouse is $50,000 (half of the $100,000 FMV). H&r block 1040ez The basis of the other half to your spouse's heirs is also $50,000. H&r block 1040ez For more information on community property, see Publication 555, Community Property. H&r block 1040ez Property Held by Surviving Tenant The following example explains the rule for the basis of property held by a surviving tenant in joint tenancy or tenancy by the entirety. H&r block 1040ez Example. H&r block 1040ez John and Jim owned, as joint tenants with right of survivorship, business property they purchased for $30,000. H&r block 1040ez John furnished two-thirds of the purchase price and Jim furnished one-third. H&r block 1040ez Depreciation deductions allowed before John's death were $12,000. H&r block 1040ez Under local law, each had a half interest in the income from the property. H&r block 1040ez At the date of John's death, the property had an FMV of $60,000, two-thirds of which is includable in John's estate. H&r block 1040ez Jim figures his basis in the property at the date of John's death as follows: Interest Jim bought with his own funds—1/3 of $30,000 cost $10,000   Interest Jim received on John's death—2/3 of $60,000 FMV 40,000 $50,000 Minus: ½ of $12,000 depreciation before John's death 6,000 Jim's basis at the date of John's death $44,000 If Jim had not contributed any part of the purchase price, his basis at the date of John's death would be $54,000. H&r block 1040ez This is figured by subtracting from the $60,000 FMV, the $6,000 depreciation allocated to Jim's half interest before the date of death. H&r block 1040ez If under local law Jim had no interest in the income from the property and he contributed no part of the purchase price, his basis at John's death would be $60,000, the FMV of the property. H&r block 1040ez Qualified Joint Interest Include one-half of the value of a qualified joint interest in the decedent's gross estate. H&r block 1040ez It does not matter how much each spouse contributed to the purchase price. H&r block 1040ez Also, it does not matter which spouse dies first. H&r block 1040ez A qualified joint interest is any interest in property held by husband and wife as either of the following. H&r block 1040ez Tenants by the entirety, or Joint tenants with right of survivorship if husband and wife are the only joint tenants. H&r block 1040ez Basis. H&r block 1040ez   As the surviving spouse, your basis in property you owned with your spouse as a qualified joint interest is the cost of your half of the property with certain adjustments. H&r block 1040ez Decrease the cost by any deductions allowed to you for depreciation and depletion. H&r block 1040ez Increase the reduced cost by your basis in the half you inherited. H&r block 1040ez Farm or Closely Held Business Under certain conditions, when a person dies the executor or personal representative of that person's estate can choose to value the qualified real property on other than its FMV. H&r block 1040ez If so, the executor or personal representative values the qualified real property based on its use as a farm or its use in a closely held business. H&r block 1040ez If the executor or personal representative chooses this method of valuation for estate tax purposes, that value is the basis of the property for the heirs. H&r block 1040ez Qualified heirs should be able to get the necessary value from the executor or personal representative of the estate. H&r block 1040ez Special-use valuation. H&r block 1040ez   If you are a qualified heir who received special-use valuation property, your basis in the property is the estate's or trust's basis in that property immediately before the distribution. H&r block 1040ez Increase your basis by any gain recognized by the estate or trust because of post-death appreciation. H&r block 1040ez 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 the alternate valuation date. H&r block 1040ez Figure all FMVs without regard to the special-use valuation. H&r block 1040ez   You can elect to increase your basis in special-use valuation property if it becomes subject to the additional estate tax. H&r block 1040ez This tax is assessed if, within 10 years after the death of the decedent, you transfer the property to a person who is not a member of your family or the property stops being used as a farm or in a closely held business. H&r block 1040ez   To increase your basis in the property, 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 the payment of the additional estate tax. H&r block 1040ez 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. H&r block 1040ez The increase in your basis is considered to have occurred immediately before the event that results in the additional estate tax. H&r block 1040ez   You make the election by filing with Form 706-A a statement that does all of the following. H&r block 1040ez Contains your name, address, and taxpayer identification number and those of the estate; Identifies the election as an election under section 1016(c) of the Internal Revenue Code; Specifies the property for which the election is made; and Provides any additional information required by the Instructions for Form 706-A. H&r block 1040ez   For more information, see the Instructions for Form 706 and the Instructions for Form 706-A. H&r block 1040ez Property Changed to Business or Rental Use If 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. H&r block 1040ez An example of changing property held for personal use to business use would be renting out your former main home. H&r block 1040ez Basis for depreciation. H&r block 1040ez   The basis for depreciation is the lesser of the following amounts. H&r block 1040ez The FMV of the property on the date of the change, or Your adjusted basis on the date of the change. H&r block 1040ez Example. H&r block 1040ez Several years ago you paid $160,000 to have your home built on a lot that cost $25,000. H&r block 1040ez You paid $20,000 for permanent improvements to the house and claimed a $2,000 casualty loss deduction for damage to the house before changing the property to rental use last year. H&r block 1040ez Because land is not depreciable, you include only the cost of the house when figuring the basis for depreciation. H&r block 1040ez Your adjusted basis in the house when you changed its use was $178,000 ($160,000 + $20,000 − $2,000). H&r block 1040ez On the same date, your property had an FMV of $180,000, of which $15,000 was for the land and $165,000 was for the house. H&r block 1040ez The basis for figuring depreciation on the house is its FMV on the date of change ($165,000) because it is less than your adjusted basis ($178,000). H&r block 1040ez Sale of property. H&r block 1040ez   If you later sell or dispose of property changed to business or rental use, the basis of the property you use will depend on whether you are figuring gain or loss. H&r block 1040ez Gain. H&r block 1040ez   The basis for figuring a gain is your adjusted basis when you sell the property. H&r block 1040ez Example. H&r block 1040ez Assume the same facts as in the previous example except that you sell the property at a gain after being allowed depreciation deductions of $37,500. H&r block 1040ez Your adjusted basis for figuring gain is $165,500 ($178,000 + $25,000 (land) − $37,500). H&r block 1040ez Loss. H&r block 1040ez   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. H&r block 1040ez Then adjust this amount for the period after the change in the property's use, as discussed earlier under Adjusted Basis, to arrive at a basis for loss. H&r block 1040ez Example. H&r block 1040ez Assume the same facts as in the previous example, except that you sell the property at a loss after being allowed depreciation deductions of $37,500. H&r block 1040ez In this case, you would start with the FMV on the date of the change to rental use ($180,000) because it is less than the adjusted basis of $203,000 ($178,000 + $25,000) on that date. H&r block 1040ez Reduce that amount ($180,000) by the depreciation deductions to arrive at a basis for loss of $142,500 ($180,000 − $37,500). H&r block 1040ez How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. H&r block 1040ez By selecting the method that is best for you, you will have quick and easy access to tax help. H&r block 1040ez Contacting your Taxpayer Advocate. H&r block 1040ez   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS. H&r block 1040ez We help taxpayers who are experiencing economic harm, such as not being able to provide necessities like housing, transportation, or food; taxpayers who are seeking help in resolving tax problems with the IRS; and those who believe that an IRS system or procedure is not working as it should. H&r block 1040ez Here are seven things every taxpayer should know about TAS. H&r block 1040ez TAS is your voice at the IRS. H&r block 1040ez Our service is free, confidential, and tailored to meet your needs. H&r block 1040ez You may be eligible for our help if you have tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just isn't working as it should. H&r block 1040ez We help taxpayers whose problems are causing financial difficulty or significant cost, including the cost of professional representation. H&r block 1040ez This includes businesses as well as individuals. H&r block 1040ez Our employees know the IRS and how to navigate it. H&r block 1040ez If you qualify for our help, we'll assign your case to an advocate who will listen to your problem, help you understand what needs to be done to resolve it, and stay with you every step of the way until your problem is resolved. H&r block 1040ez We have at least one local taxpayer advocate in every state, the District of Columbia, and Puerto Rico. H&r block 1040ez You can call your local advocate, whose number is in your phone book, in Publication 1546, Taxpayer Advocate Service—Your Voice at the IRS, and on our website at www. H&r block 1040ez irs. H&r block 1040ez gov/advocate. H&r block 1040ez You can also call our toll-free line at 1-877-777-4778 or TTY/TDD 1-800-829-4059. H&r block 1040ez You can learn about your rights and responsibilities as a taxpayer by visiting our online tax toolkit at www. H&r block 1040ez taxtoolkit. H&r block 1040ez irs. H&r block 1040ez gov. H&r block 1040ez You can get updates on hot tax topics by visiting our YouTube channel at www. H&r block 1040ez youtube. H&r block 1040ez com/tasnta and our Facebook page at www. H&r block 1040ez facebook. H&r block 1040ez com/YourVoiceAtIRS, or by following our tweets at www. H&r block 1040ez twitter. H&r block 1040ez com/YourVoiceAtIRS. H&r block 1040ez Low Income Taxpayer Clinics (LITCs). H&r block 1040ez   The Low Income Taxpayer Clinic program serves individuals who have a problem with the IRS and whose income is below a certain level. H&r block 1040ez LITCs are independent from the IRS. H&r block 1040ez Most LITCs can provide representation before the IRS or in court on audits, tax collection disputes, and other issues for free or a small fee. H&r block 1040ez If an individual's native language is not English, some clinics can provide multilingual information about taxpayer rights and responsibilities. H&r block 1040ez For more information, see Publication 4134, Low Income Taxpayer Clinic List. H&r block 1040ez This publication is available at IRS. H&r block 1040ez gov, by calling 1-800-TAX-FORM (1-800-829-3676), or at your local IRS office. H&r block 1040ez Free tax services. H&r block 1040ez   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. H&r block 1040ez Learn about free tax information from the IRS, including publications, services, and education and assistance programs. H&r block 1040ez The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. H&r block 1040ez The majority of the information and services listed in this publication are available to you free of charge. H&r block 1040ez If there is a fee associated with a resource or service, it is listed in the publication. H&r block 1040ez   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with d
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The H&r Block 1040ez

H&r block 1040ez 34. H&r block 1040ez   Crédito Tributario por Hijos Table of Contents Introduction Useful Items - You may want to see: Hijo Calificado Cantidad de CréditoLímites del Crédito Cómo Reclamar el Crédito Crédito Tributario Adicional por Hijos Cómo Completar el Anexo 8812 (Formulario 1040A o Formulario 1040)Parte I Partes II a IV Introduction El crédito tributario por hijos es un crédito que puede reducir su impuesto hasta $1,000 por cada uno de sus hijos calificados. H&r block 1040ez El crédito tributario adicional por hijos es un crédito que podría tomar en el caso de que no pueda reclamar la cantidad completa del crédito tributario por hijos. H&r block 1040ez Este capítulo le explica lo siguiente: Quién es un hijo calificado. H&r block 1040ez La cantidad del crédito. H&r block 1040ez Cómo se puede reclamar el crédito. H&r block 1040ez El crédito tributario por hijos y el crédito tributario adicional por hijos no deben confundirse con el crédito por gastos del cuidado de menores y dependientes, el cual se explica en el capítulo 32. H&r block 1040ez Si no está sujeto al pago de impuestos. H&r block 1040ez   Algunos créditos, tales como el crédito tributario por hijos o el crédito por gastos del cuidado de menores y dependientes, se usan para reducir el impuesto. H&r block 1040ez Si la cantidad del impuesto en la línea 46 del Formulario 1040 o en la línea 28 del Formulario 1040A es cero, no calcule el crédito tributario por hijos ya que no hay impuesto que se pueda reducir. H&r block 1040ez Sin embargo, podría reunir los requisitos para el crédito tributario adicional por hijos en la línea 65 (Formulario 1040) o en la línea 39 (Formulario 1040A). H&r block 1040ez Useful Items - You may want to see: Publicación 972 Child Tax Credit (Crédito tributario por hijos), en inglés Formulario (e Instrucciones) Anexo 8812   (Formulario 1040A o 1040) Child Tax Credit (Crédito tributario por hijos), en inglés W-4(SP) Certificado de Exención de Retenciones del Empleado W-4 Employee's Withholding Allowance Certificate (Certificado de exención de retenciones del empleado), en inglés Hijo Calificado Un hijo calificado, para propósitos del crédito tributario por hijos, es aquél que: Es su hijo o hija, hijastro o hijastra, hijo de crianza, hermano o hermana, hermanastro o hermanastra o descendiente de cualquiera de ellos (por ejemplo, su nieto, nieta, sobrina o sobrino), Tenía menos de 17 años de edad al finalizar el año 2013, No proveyó más de la mitad de su propia manutención durante el año 2013, Vivió con usted durante más de la mitad del año 2013 (vea Excepciones al tiempo vivido con usted , más adelante), Fue reclamado como dependiente en la declaración de usted, No presenta una declaración conjunta para el año (o la presenta solamente para reclamar un reembolso), y Era ciudadano, nacional o residente de los Estados Unidos. H&r block 1040ez Si el hijo fue adoptado, vea Hijo adoptivo , más adelante. H&r block 1040ez Para cada hijo calificado, tiene que marcar el recuadro que aparece en la línea 6c del Formulario 1040 o del Formulario 1040A. H&r block 1040ez Ejemplo 1. H&r block 1040ez Su hijo cumplió 17 años de edad el día 30 de diciembre del año 2013. H&r block 1040ez Él es ciudadano de los Estados Unidos y usted lo declara como dependiente en la declaración de impuestos. H&r block 1040ez Su hijo no es hijo calificado para el crédito tributario por hijos porque no tenía menos de 17 años de edad al finalizar el año 2013. H&r block 1040ez Ejemplo 2. H&r block 1040ez Su hija cumplió 8 años en el año 2013. H&r block 1040ez Ella no es ciudadana de los Estados Unidos, tiene un ITIN y vivió en México durante todo el año 2013. H&r block 1040ez Ella no es un hijo calificado para el crédito tributario por hijos debido a que no fue residente de los Estados Unidos en 2013. H&r block 1040ez Contribuyentes que tienen determinados hijos dependientes con un número de identificación personal del contribuyente (ITIN, por sus siglas en inglés). H&r block 1040ez   Si está reclamando un crédito tributario por hijos o un crédito tributario adicional por hijos basándose en un hijo que identificó en su declaración de impuestos con un número de identificación personal del contribuyente (ITIN, por sus siglas en inglés), en lugar de un número de Seguro Social (SSN, por sus siglas en inglés), tiene que completar la Parte I del Anexo 8812 (Formulario 1040A o 1040). H&r block 1040ez   Aun si su hijo es dependiente suyo, sólo puede reclamar un crédito tributario por hijos o un crédito tributario adicional por hijos basándose en un dependiente que sea ciudadano, nacional o residente de los Estados Unidos. H&r block 1040ez Para ser tratado como residente de los Estados Unidos, un hijo normalmente tiene que cumplir el requisito de presencia sustancial. H&r block 1040ez Para más información sobre el requisito de presencia sustancial, vea la Publicación 519, U. H&r block 1040ez S. H&r block 1040ez Tax Guide for Aliens (Guía sobre los impuestos federales estadounidenses para extranjeros), en inglés. H&r block 1040ez Hijo adoptivo. H&r block 1040ez   A un hijo adoptivo siempre se le trata como si fuera su hijo. H&r block 1040ez Un hijo adoptivo incluye un niño colocado en su hogar por una agencia autorizada, con la intención de que sea legalmente adoptado. H&r block 1040ez   Si usted es ciudadano o nacional de los EE. H&r block 1040ez UU. H&r block 1040ez y su hijo adoptivo vivió con usted como integrante de su unidad familiar durante todo el año en 2013, dicho hijo cumple el requisito (7), anteriormente, para ser un hijo calificado para propósitos del crédito tributario por hijos. H&r block 1040ez Excepciones al tiempo vivido con usted. H&r block 1040ez   Se considera que un hijo vivió con usted más de la mitad del año 2013 si nació o murió en el año 2013, y su hogar (el de usted) fue el hogar del hijo más de la mitad del tiempo en el cual estuvo vivo. H&r block 1040ez Las ausencias temporales por usted o su hijo debidas a circunstancias especiales, tales como las ausencias por educación, vacaciones, negocios, atención médica, servicio militar o estancia en un centro de detención para delincuentes juveniles cuentan como tiempo que el hijo vivió con usted. H&r block 1040ez   También hay excepciones para hijos secuestrados e hijos de padres divorciados o separados. H&r block 1040ez Para detalles, vea Requisito de Residencia , en el capítulo 3. H&r block 1040ez Hijo calificado de más de una persona. H&r block 1040ez   Se aplica una regla especial si su hijo calificado es el hijo calificado de más de una persona. H&r block 1040ez Para detalles, vea Requisito Especial para el Hijo Calificado de Más de una Persona , en el capítulo 3. H&r block 1040ez Cantidad de Crédito La cantidad máxima de crédito que puede reclamar es $1,000 por cada hijo calificado. H&r block 1040ez Límites del Crédito Usted tiene que reducir su crédito tributario por hijos si la condición (1) o la condición (2) le corresponde: La cantidad de la línea 46 (Formulario 1040) o de la línea 28 (Formulario 1040A) es menor que el crédito. H&r block 1040ez Si esta cantidad es cero, no puede reclamar este crédito porque no hay impuesto que se pueda reducir. H&r block 1040ez Sin embargo, es posible que pueda tomar el crédito tributario adicional por hijos. H&r block 1040ez Vea Crédito Tributario Adicional por Hijos , más adelante. H&r block 1040ez Su ingreso bruto ajustado (AGI, por sus siglas en inglés) modificado es mayor que la cantidad que se indica a continuación para su estado civil para efectos de la declaración. H&r block 1040ez Casados que presentan una declaración conjunta: $110,000. H&r block 1040ez Soltero, cabeza de familia o viudo que reúne los requisitos: $75,000. H&r block 1040ez Casados que presentan la declaración por separado: $55,000. H&r block 1040ez Ingresos brutos ajustados modificados. H&r block 1040ez   Para propósitos del crédito tributario por hijos, su ingreso bruto ajustado (AGI, por sus siglas en inglés) modificado es su ingreso bruto ajustado más las cantidades siguientes que puedan ser aplicables en su caso: Toda cantidad excluida del ingreso debido a la exclusión de ingresos de fuentes de  Puerto Rico. H&r block 1040ez En la línea de puntos directamente al lado de la línea 38 del Formulario 1040, anote la cantidad excluida e indentifíquela como “ EPRI. H&r block 1040ez ” Además, adjunte una copia de todo Formulario 499R-2/W-2PR a su declaración. H&r block 1040ez Toda cantidad de las líneas 45 ó 50 del Formulario 2555, Foreign Earned Income (Ingreso devengado en el extranjero), en inglés. H&r block 1040ez Toda cantidad de la línea 18 del Formulario 2555-EZ, Foreign Earned Income Exclusion (Exclusión de ingreso devengado en el extranjero), en inglés. H&r block 1040ez Toda cantidad de la línea 15 del Formulario 4563, Exclusion of Income for Bona Fide Residents of American Samoa (Exclusión del ingreso para residentes bona fide de la Samoa Estadounidense), en inglés. H&r block 1040ez   Si no tiene ninguna de las cantidades mencionadas anteriormente, su ingreso bruto ajustado modificado es igual a su ingreso bruto ajustado. H&r block 1040ez Ingreso bruto ajustado. H&r block 1040ez   El ingreso bruto ajustado (AGI, por sus siglas en inglés) es la cantidad de la línea 38 del Formulario 1040 o de la línea 22 del Formulario 1040A. H&r block 1040ez Cómo Reclamar el Crédito Para reclamar el crédito tributario por hijos, tiene que presentar el Formulario 1040 o el Formulario 1040A. H&r block 1040ez No puede reclamar el crédito tributario por hijos en el Formulario 1040EZ. H&r block 1040ez Tiene que proveer el nombre y número de identificación (normalmente el número de Seguro Social) de cada hijo calificado en su declaración de impuestos. H&r block 1040ez Si reclama el crédito tributario por hijos con un hijo identificado por un ITIN, usted también tiene que presentar el Anexo 8812. H&r block 1040ez Para calcular el crédito, primero revise la Child Tax Credit Worksheet (Hoja de trabajo del crédito tributario por hijos), en las Instrucciones para el Formulario 1040 o el Formulario 1040A. H&r block 1040ez Si se le indica que consulte la Publicación 972, Child Tax Credit (Crédito tributario por hijos), en inglés, no puede utilizar la Hoja de trabajo de las instrucciones en la declaración de impuestos; en su lugar, usted tiene que utilizar la Publicación 972, en inglés, para calcular el crédito. H&r block 1040ez Si no se le indica que utilice la Publicación 972, puede usar la Hoja de trabajo del crédito tributario por hijos, que se encuentra en las Instrucciones para el Formulario 1040 o las Instrucciones para el Formulario 1040A o la Publicación 972, todas en inglés, para calcular el crédito. H&r block 1040ez Crédito Tributario Adicional por Hijos Este crédito es para determinadas personas que reciban menos de la cantidad total del crédito tributario por hijos. H&r block 1040ez El crédito tributario adicional por hijos puede darle un reembolso aunque no adeude ningún impuesto. H&r block 1040ez Cómo se reclama el crédito tributario adicional por hijos. H&r block 1040ez   Para reclamar el crédito tributario adicional por hijos, siga los pasos que aparecen a continuación: Asegúrese de haber calculado la cantidad, si existe, de su crédito tributario por hijos. H&r block 1040ez Vea anteriormente el tema titulado Cómo Reclamar el Crédito . H&r block 1040ez Use las Partes II a la IV del Anexo 8812 para determinar si puede reclamar el crédito tributario adicional por hijos si usted contestó “Yes” (Sí) en la línea 9 ó 10 de la Child Tax Credit Worksheet (Hoja de trabajo del crédito tributario por hijos) en las Instrucciones para el Formulario 1040 o en las Instrucciones para el Formulario 1040A, o en la línea 13 de la Child Tax Credit Worksheet (Hoja de trabajo del crédito tributario por hijos) en la Publicación 972, todas en inglés. H&r block 1040ez Si tiene un crédito tributario adicional por hijos en la línea 13 del Anexo 8812, anótelo en la línea 65 del Formulario 1040 o en la línea 39 del Formulario 1040A. H&r block 1040ez Cómo Completar el Anexo 8812 (Formulario 1040A o Formulario 1040) El Anexo 8812 tiene cuatro partes, pero se puede considerar como que consta de dos secciones. H&r block 1040ez La Parte I es independiente de las Partes II a la IV. H&r block 1040ez Si todos sus hijos tienen números de Seguro Social o números de identificación del contribuyente para adopción del IRS(ATIN, por sus siglas en inglés),y usted no reclama el crédito tributario adicional por hijos, no necesita completar ni adjuntar el Anexo 8812 a su declaración de impuestos. H&r block 1040ez Parte I Usted sólo necesitará completar la Parte I si está reclamando el crédito tributario por hijos para un hijo que aparece identificado con un número de identificación personal del contribuyente del IRS (ITIN, por sus siglas en inglés). H&r block 1040ez Si todos los hijos por los cuales usted marcó la casilla en la columna 4 de la línea 6c de su Formulario 1040 o Formulario 1040A tienen números de Seguro Social (SSN, por sus siglas en inglés) o números de identificación del contribuyente para adopción del IRS (ATIN, por sus siglas en inglés), no tiene que completar la Parte I del Anexo 8812. H&r block 1040ez Partes II a IV Las Partes II a la IV le ayudan a calcular el crédito adicional por hijos que le corresponde a usted. H&r block 1040ez Por lo general, deberá completar las Partes II a la IV únicamente si se le indica luego de que completa la Hoja de trabajo del crédito tributario por hijos que aparece en las instrucciones de su declaración de impuestos o en la Publicación 972. H&r block 1040ez Vea Cómo se reclama el crédito tributario adicional por hijos , anteriormente. H&r block 1040ez Prev  Up  Next   Home   More Online Publications