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I Need To File My 2010 Taxes Free

Need To Amend 2012 Tax ReturnFree Federal Tax ReturnFree Taxes FilingEarned Income Tax Credit Calculator1040x Form For 2012Taxes 20092008 Amended Tax ReturnFiling 2012 Tax Return LateTaxact2011onlineCan I Still File My 2010 Taxes Online1040 NrezFree State Taxes Online1040 EasyVita TaxesFree Filing State TaxesIrs E File ApplicationE File Taxes FreeFree Tax Filing1040x Tax Form2011 Irs Form 1040ezState Tax EfileFile Free State TaxesHow Do I File State TaxesAmmend Return2011 Ez Tax FormFree Electronic State Tax FilingWhere Do I Send My 1040xFiling State Tax ReturnsFile 1040xHrblock Apply Tax Extension Free1040x Electronically FileCalif State Taxes WebsiteTaxes 2012 Forms2010 1040x1040x Form And InstructionsFree E File Federal And State Tax Return1040 Ez Form 2012Where Can I File My State Tax Return For FreeForm 1040nr 20111040ez Fillable Form

I Need To File My 2010 Taxes Free

I need to file my 2010 taxes free Publication 957 - Introductory Material Table of Contents Future Developments Introduction Future Developments For the latest information about developments related to Publication 957, such as legislation enacted after it was published, go to www. I need to file my 2010 taxes free irs. I need to file my 2010 taxes free gov/pub957. I need to file my 2010 taxes free Introduction The Social Security Administration (SSA) has special rules for back pay awarded by a court or government agency to enforce a worker protection statute (law). I need to file my 2010 taxes free The SSA also has rules for reporting special wage payments made to employees after they retire. I need to file my 2010 taxes free These rules enable the SSA to correctly compute an employee's benefits under the social security earnings test. I need to file my 2010 taxes free These rules are for social security coverage and benefit purposes only. I need to file my 2010 taxes free This publication, written primarily for employers, discusses back pay under a statute and special wage payments. I need to file my 2010 taxes free It also explains how to report these payments to the SSA. I need to file my 2010 taxes free For more information, visit SSA's website at www. I need to file my 2010 taxes free socialsecurity. I need to file my 2010 taxes free gov/employer. I need to file my 2010 taxes free To get a copy of Form SSA-131, Employer Report of Special Wage Payments, visit SSA's website at www. I need to file my 2010 taxes free socialsecurity. I need to file my 2010 taxes free gov/online/ssa-131. I need to file my 2010 taxes free html. I need to file my 2010 taxes free Prev  Up  Next   Home   More Online Publications
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The I Need To File My 2010 Taxes Free

I need to file my 2010 taxes free Publication 523 - Main Content Table of Contents Main HomeVacant land. I need to file my 2010 taxes free Factors used to determine main home. I need to file my 2010 taxes free Figuring Gain or LossSelling Price Amount Realized Adjusted Basis Amount of Gain or Loss Dispositions Other Than Sales Determining BasisCost As Basis Basis Other Than Cost Adjusted Basis Excluding the GainMaximum Exclusion Ownership and Use Tests Reduced Maximum Exclusion Nonqualified Use Business Use or Rental of HomeUnrecaptured section 1250 gain. I need to file my 2010 taxes free Property Used Partly for Business or Rental Reporting the SaleSeller-financed mortgage. I need to file my 2010 taxes free Individual taxpayer identification number (ITIN). I need to file my 2010 taxes free More information. I need to file my 2010 taxes free Comprehensive Examples Special SituationsException for sales to related persons. I need to file my 2010 taxes free Deducting Taxes in the Year of SaleForm 1099-S. I need to file my 2010 taxes free More information. I need to file my 2010 taxes free Recapturing (Paying Back) a Federal Mortgage Subsidy Recapture of First-Time Homebuyer CreditExample. I need to file my 2010 taxes free Worksheets How To Get Tax HelpLow Income Taxpayer Clinics Main Home This section explains the term “main home. I need to file my 2010 taxes free ” Usually, the home you live in most of the time is your main home and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. I need to file my 2010 taxes free To exclude gain under the rules in this publication, you in most cases must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale. I need to file my 2010 taxes free Land. I need to file my 2010 taxes free   If you sell the land on which your main home is located, but not the house itself, you cannot exclude any gain you have from the sale of the land. I need to file my 2010 taxes free Example. I need to file my 2010 taxes free You buy a piece of land and move your main home to it. I need to file my 2010 taxes free Then, you sell the land on which your main home was located. I need to file my 2010 taxes free This sale is not considered a sale of your main home, and you cannot exclude any gain on the sale of the land. I need to file my 2010 taxes free Vacant land. I need to file my 2010 taxes free   The sale of vacant land is not a sale of your main home unless: The vacant land is adjacent to land containing your home, You owned and used the vacant land as part of your main home, The separate sale of your home satisfies the requirements for exclusion and occurs within 2 years before or 2 years after the date of the sale of the vacant land, and The other requirements for excluding gain from the sale of a main home have been satisfied with respect to the vacant land. I need to file my 2010 taxes free If these requirements are met, the sale of the home and the sale of the vacant land are treated as one sale and only one maximum exclusion can be applied to any gain. I need to file my 2010 taxes free See Excluding the Gain , later. I need to file my 2010 taxes free The destruction of your home is treated as a sale of your home. I need to file my 2010 taxes free As a result, you may be able to meet these requirements if you sell vacant land used as a part of your main home within 2 years from the date of the destruction of your main home. I need to file my 2010 taxes free For information, see Publication 547. I need to file my 2010 taxes free More than one home. I need to file my 2010 taxes free   If you have more than one home, you can exclude gain only from the sale of your main home. I need to file my 2010 taxes free You must include in income the gain from the sale of any other home. I need to file my 2010 taxes free If you have two homes and live in each of them, your main home is ordinarily the one you live in most of the time during the year. I need to file my 2010 taxes free Example 1. I need to file my 2010 taxes free You own two homes, one in New York and one in Florida. I need to file my 2010 taxes free From 2009 through 2013, you live in the New York home for 7 months and in the Florida residence for 5 months of each year. I need to file my 2010 taxes free In the absence of facts and circumstances indicating otherwise, the New York home is your main home. I need to file my 2010 taxes free You would be eligible to exclude the gain from the sale of the New York home but not of the Florida home in 2013. I need to file my 2010 taxes free Example 2. I need to file my 2010 taxes free You own a house, but you live in another house that you rent. I need to file my 2010 taxes free The rented house is your main home. I need to file my 2010 taxes free Example 3. I need to file my 2010 taxes free You own two homes, one in Virginia and one in New Hampshire. I need to file my 2010 taxes free In 2009 and 2010, you lived in the Virginia home. I need to file my 2010 taxes free In 2011 and 2012, you lived in the New Hampshire home. I need to file my 2010 taxes free In 2013, you lived again in the Virginia home. I need to file my 2010 taxes free Your main home in 2009, 2010, and 2013 is the Virginia home. I need to file my 2010 taxes free Your main home in 2011 and 2012 is the New Hampshire home. I need to file my 2010 taxes free You would be eligible to exclude gain from the sale of either home (but not both) in 2013. I need to file my 2010 taxes free Factors used to determine main home. I need to file my 2010 taxes free   In addition to the amount of time you live in each home, other factors are relevant in determining which home is your main home. I need to file my 2010 taxes free Those factors include the following. I need to file my 2010 taxes free Your place of employment. I need to file my 2010 taxes free The location of your family members' main home. I need to file my 2010 taxes free Your mailing address for bills and correspondence. I need to file my 2010 taxes free The address listed on your: Federal and state tax returns, Driver's license, Car registration, and Voter registration card. I need to file my 2010 taxes free The location of the banks you use. I need to file my 2010 taxes free The location of recreational clubs and religious organizations of which you are a member. I need to file my 2010 taxes free Property used partly as your main home. I need to file my 2010 taxes free   If you use only part of the property as your main home, the rules discussed in this publication apply only to the gain or loss on the sale of that part of the property. I need to file my 2010 taxes free For details, see Business Use or Rental of Home , later. I need to file my 2010 taxes free Figuring Gain or Loss To figure the gain or loss on the sale of your main home, you must know the selling price, the amount realized, and the adjusted basis. I need to file my 2010 taxes free Subtract the adjusted basis from the amount realized to get your gain or loss. I need to file my 2010 taxes free     Selling price     − Selling expenses       Amount realized     − Adjusted basis       Gain or loss   Gain. I need to file my 2010 taxes free   Gain is the excess of the amount realized over the adjusted basis of the property. I need to file my 2010 taxes free Loss. I need to file my 2010 taxes free   Loss is the excess of the adjusted basis over the amount realized for the property. I need to file my 2010 taxes free Selling Price The selling price is the total amount you receive for your home. I need to file my 2010 taxes free It includes money and the fair market value of any other property or any other services you receive and all notes, mortgages or other debts assumed by the buyer as part of the sale. I need to file my 2010 taxes free Personal property. I need to file my 2010 taxes free   The selling price of your home does not include amounts you received for personal property sold with your home. I need to file my 2010 taxes free Personal property is property that is not a permanent part of the home. I need to file my 2010 taxes free Examples are furniture, draperies, rugs, a washer and dryer, and lawn equipment. I need to file my 2010 taxes free Separately stated amounts you received for these items should not be shown on Form 1099-S (discussed later). I need to file my 2010 taxes free Any gains from sales of personal property must be included in your income, but not as part of the sale of your home. I need to file my 2010 taxes free Payment by employer. I need to file my 2010 taxes free   You may have to sell your home because of a job transfer. I need to file my 2010 taxes free If your employer pays you for a loss on the sale or for your selling expenses, do not include the payment as part of the selling price. I need to file my 2010 taxes free Your employer will include it as wages in box 1 of your Form W-2 and you will include it in your income on Form 1040, line 7, or on Form 1040NR, line 8. I need to file my 2010 taxes free Option to buy. I need to file my 2010 taxes free   If you grant an option to buy your home and the option is exercised, add the amount you receive for the option to the selling price of your home. I need to file my 2010 taxes free If the option is not exercised, you must report the amount as ordinary income in the year the option expires. I need to file my 2010 taxes free Report this amount on Form 1040, line 21, or on Form 1040NR, line 21. I need to file my 2010 taxes free Form 1099-S. I need to file my 2010 taxes free   If you received Form 1099-S, box 2 (gross proceeds) should show the total amount you received for your home. I need to file my 2010 taxes free   However, box 2 will not include the fair market value of any services or property other than cash or notes you received or will receive. I need to file my 2010 taxes free Instead, box 4 will be checked to indicate your receipt or expected receipt of these items. I need to file my 2010 taxes free Amount Realized The amount realized is the selling price minus selling expenses. I need to file my 2010 taxes free Selling expenses. I need to file my 2010 taxes free   Selling expenses include: Commissions, Advertising fees, Legal fees, and Loan charges paid by the seller, such as loan placement fees or “points. I need to file my 2010 taxes free ” Adjusted Basis While you owned your home, you may have made adjustments (increases or decreases) to the basis. I need to file my 2010 taxes free This adjusted basis must be determined before you can figure gain or loss on the sale of your home. I need to file my 2010 taxes free For information on how to figure your home's adjusted basis, see Determining Basis , later. I need to file my 2010 taxes free Amount of Gain or Loss To figure the amount of gain or loss, compare the amount realized to the adjusted basis. I need to file my 2010 taxes free Gain on sale. I need to file my 2010 taxes free   If the amount realized is more than the adjusted basis, the difference is a gain and, except for any part you can exclude, generally is taxable. I need to file my 2010 taxes free Loss on sale. I need to file my 2010 taxes free   If the amount realized is less than the adjusted basis, the difference is a loss. I need to file my 2010 taxes free Generally, a loss on the sale of your main home cannot be deducted. I need to file my 2010 taxes free Jointly owned home. I need to file my 2010 taxes free   If you and your spouse sell your jointly owned home and file a joint return, you figure your gain or loss as one taxpayer. I need to file my 2010 taxes free Separate returns. I need to file my 2010 taxes free   If you file separate returns, each of you must figure your own gain or loss according to your ownership interest in the home. I need to file my 2010 taxes free Your ownership interest is generally determined by state law. I need to file my 2010 taxes free Joint owners not married. I need to file my 2010 taxes free   If you and a joint owner other than your spouse sell your jointly owned home, each of you must figure your own gain or loss according to your ownership interest in the home. I need to file my 2010 taxes free Each of you applies the rules discussed in this publication on an individual basis. I need to file my 2010 taxes free Dispositions Other Than Sales Some special rules apply to other dispositions of your main home. I need to file my 2010 taxes free Foreclosure or repossession. I need to file my 2010 taxes free   If your home was foreclosed on or repossessed, you have a disposition. I need to file my 2010 taxes free See Publication 4681 to determine if you have ordinary income, gain, or loss. I need to file my 2010 taxes free More information. I need to file my 2010 taxes free   If part of a home is used for business or rental purposes, see Foreclosures and Repossessions in chapter 1 of Publication 544 for more information. I need to file my 2010 taxes free Publication 544 has examples of how to figure gain or loss on a foreclosure or repossession. I need to file my 2010 taxes free Abandonment. I need to file my 2010 taxes free   If you abandon your home, see Publication 4681 to determine if you have ordinary income, gain, or loss. I need to file my 2010 taxes free Trading (exchanging) homes. I need to file my 2010 taxes free   If you trade your home for another home, treat the trade as a sale and a purchase. I need to file my 2010 taxes free Example. I need to file my 2010 taxes free You owned and lived in a home with an adjusted basis of $41,000. I need to file my 2010 taxes free A real estate dealer accepted your old home as a trade-in and allowed you $50,000 toward a new home priced at $80,000. I need to file my 2010 taxes free This is treated as a sale of your old home for $50,000 with a gain of $9,000 ($50,000 − $41,000). I need to file my 2010 taxes free If the dealer had allowed you $27,000 and assumed your unpaid mortgage of $23,000 on your old home, your sales price would still be $50,000 (the $27,000 trade-in allowed plus the $23,000 mortgage assumed). I need to file my 2010 taxes free Transfer to spouse. I need to file my 2010 taxes free   If you transfer your home to your spouse or you transfer it to your former spouse incident to your divorce, you in most cases have no gain or loss (unless the Exception, discussed next, applies). I need to file my 2010 taxes free This is true even if you receive cash or other consideration for the home. I need to file my 2010 taxes free As a result, the rules explained in this publication do not apply. I need to file my 2010 taxes free   If you owned your home jointly with your spouse and transfer your interest in the home to your spouse, or to your former spouse incident to your divorce, the same rule applies. I need to file my 2010 taxes free You have no gain or loss. I need to file my 2010 taxes free Exception. I need to file my 2010 taxes free   These transfer rules do not apply if your spouse or former spouse is a nonresident alien. I need to file my 2010 taxes free In that case, you generally will have a gain or loss. I need to file my 2010 taxes free More information. I need to file my 2010 taxes free    See Property Settlements in Publication 504, Divorced or Separated Individuals, for more information. I need to file my 2010 taxes free Involuntary conversion. I need to file my 2010 taxes free   You have a disposition when your home is destroyed or condemned and you receive other property or money in payment, such as insurance or a condemnation award. I need to file my 2010 taxes free This is treated as a sale and you may be able to exclude all or part of any gain from the destruction or condemnation of your home, as explained later under Special Situations (see Home destroyed or condemned ). I need to file my 2010 taxes free Determining Basis You need to know your basis in your home to figure any gain or loss when you sell it. I need to file my 2010 taxes free Your basis in your home is determined by how you got the home. I need to file my 2010 taxes free Generally, your basis is its cost if you bought it or built it. I need to file my 2010 taxes free If you got it in some other way (inheritance, gift, etc. I need to file my 2010 taxes free ), your basis is generally either its fair market value when you received it or the adjusted basis of the previous owner. I need to file my 2010 taxes free While you owned your home, you may have made adjustments (increases or decreases) to your home's basis. I need to file my 2010 taxes free The result of these adjustments is your home's adjusted basis, which is used to figure gain or loss on the sale of your home. I need to file my 2010 taxes free To figure your adjusted basis, you can use Worksheet 1, near the end of this publication. I need to file my 2010 taxes free Filled-in examples of that worksheet are included in the Comprehensive Examples , later. I need to file my 2010 taxes free Cost As Basis The cost of property is the amount you paid for it in cash, debt obligations, other property, or services. I need to file my 2010 taxes free Purchase. I need to file my 2010 taxes free   If you bought your home, your basis is its cost to you. I need to file my 2010 taxes free This includes the purchase price and certain settlement or closing costs. I need to file my 2010 taxes free In most cases, your purchase price includes your down payment and any debt, such as a first or second mortgage or notes you gave the seller in payment for the home. I need to file my 2010 taxes free If you build, or contract to build, a new home, your purchase price can include costs of construction, as discussed later. I need to file my 2010 taxes free Seller-paid points. I need to file my 2010 taxes free   If the person who sold you your home paid points on your loan, you may have to reduce your home's basis by the amount of the points, as shown in the following chart. I need to file my 2010 taxes free    IF you bought your home. I need to file my 2010 taxes free . I need to file my 2010 taxes free . I need to file my 2010 taxes free THEN reduce your home's basis by the seller-paid points. I need to file my 2010 taxes free . I need to file my 2010 taxes free . I need to file my 2010 taxes free after 1990 but before April 4, 1994 only if you deducted them as home mortgage interest in the year paid. I need to file my 2010 taxes free after April 3, 1994 even if you did not deduct them. I need to file my 2010 taxes free Settlement fees or closing costs. I need to file my 2010 taxes free   When you bought your home, you may have paid settlement fees or closing costs in addition to the contract price of the property. I need to file my 2010 taxes free You can include in your basis some of the settlement fees and closing costs you paid for buying the home, but not the fees and costs for getting a mortgage loan. I need to file my 2010 taxes free A fee paid for buying the home is any fee you would have had to pay even if you paid cash for the home (that is, without the need for financing). I need to file my 2010 taxes free   Settlement fees do not include amounts placed in escrow for the future payment of items such as taxes and insurance. I need to file my 2010 taxes free   Some of the settlement fees or closing costs that you can include in your basis are: Abstract fees (abstract of title fees), Charges for installing utility services, Legal fees (including fees for the title search and preparing the sales contract and deed), Recording fees, Survey fees, Transfer or stamp taxes, Owner's title insurance, and Any amounts the seller owes that you agree to pay, such as: Certain real estate taxes (discussed later), Back interest, Recording or mortgage fees, Charges for improvements or repairs, and Sales commissions. I need to file my 2010 taxes free   Some settlement fees and closing costs you cannot include in your basis are: Fire insurance premiums, Rent for occupancy of the house before closing, Charges for utilities or other services related to occupancy of the house before closing, Any fee or cost that you deducted as a moving expense (allowed for certain fees and costs before 1994), Charges connected with getting a mortgage loan, such as: Mortgage insurance premiums (including funding fees connected with loans guaranteed by the Department of Veterans Affairs), Loan assumption fees, Cost of a credit report, Fee for an appraisal required by a lender, and Fees for refinancing a mortgage. I need to file my 2010 taxes free Real estate taxes. I need to file my 2010 taxes free   Real estate taxes for the year you bought your home may affect your basis, as shown in the following chart. I need to file my 2010 taxes free    IF. I need to file my 2010 taxes free . I need to file my 2010 taxes free . I need to file my 2010 taxes free AND. I need to file my 2010 taxes free . I need to file my 2010 taxes free . I need to file my 2010 taxes free THEN the taxes. I need to file my 2010 taxes free . I need to file my 2010 taxes free . I need to file my 2010 taxes free you pay taxes that the seller owed on the home up to the date of sale the seller does not reimburse you are added to the basis of your home. I need to file my 2010 taxes free the seller reimburses you do not affect the basis of your home. I need to file my 2010 taxes free the seller pays taxes for you (taxes owed beginning on the date of sale) you do not reimburse the seller are subtracted from the basis of your home. I need to file my 2010 taxes free you reimburse the seller do not affect the basis of your home. I need to file my 2010 taxes free Construction. I need to file my 2010 taxes free   If you contracted to have your house built on land you own, your basis is: The cost of the land, plus The amount it cost you to complete the house, including: The cost of labor and materials, Any amounts paid to a contractor, Any architect's fees, Building permit charges, Utility meter and connection charges, and Legal fees directly connected with building the house. I need to file my 2010 taxes free   Your cost includes your down payment and any debt such as a first or second mortgage or notes you gave the seller or builder. I need to file my 2010 taxes free It also includes certain settlement or closing costs. I need to file my 2010 taxes free You may have to reduce your basis by points the seller paid for you. I need to file my 2010 taxes free For more information, see Seller-paid points and Settlement fees or closing costs , earlier. I need to file my 2010 taxes free Built by you. I need to file my 2010 taxes free   If you built all or part of your house yourself, its basis is the total amount it cost you to complete it. I need to file my 2010 taxes free Do not include in the cost of the house: The value of your own labor, or The value of any other labor you did not pay for. I need to file my 2010 taxes free Temporary housing. I need to file my 2010 taxes free   If a builder gave you temporary housing while your home was being finished, you must reduce your basis by the part of the contract price that was for the temporary housing. I need to file my 2010 taxes free To figure the amount of the reduction, multiply the contract price by a fraction. I need to file my 2010 taxes free The numerator is the value of the temporary housing, and the denominator is the sum of the value of the temporary housing plus the value of the new home. I need to file my 2010 taxes free Cooperative apartment. I need to file my 2010 taxes free   If you are a tenant-stockholder in a cooperative housing corporation, your basis in the cooperative apartment used as your home is usually the cost of your stock in the corporation. I need to file my 2010 taxes free This may include your share of a mortgage on the apartment building. I need to file my 2010 taxes free Condominium. I need to file my 2010 taxes free   To determine your basis in a condominium apartment used as your home, use the same rules as for any other home. I need to file my 2010 taxes free Basis Other Than Cost You must use a basis other than cost, such as adjusted basis or fair market value, if you received your home as a gift, inheritance, a trade, or from your spouse. I need to file my 2010 taxes free These situations are discussed in the following pages. I need to file my 2010 taxes free Also, the instructions for Worksheet 1 (near the end of the publication) address each of these issues. I need to file my 2010 taxes free Other special rules may apply in certain situations. I need to file my 2010 taxes free If you converted the property, or some part of it, to business or rental use, see Property Changed to Business or Rental Use, in Publication 551. I need to file my 2010 taxes free Home received as gift. I need to file my 2010 taxes free   Use the following chart to find the basis of a home you received as a gift. I need to file my 2010 taxes free IF the donor's adjusted basis at the time of the gift was. I need to file my 2010 taxes free . I need to file my 2010 taxes free . I need to file my 2010 taxes free THEN your basis is. I need to file my 2010 taxes free . I need to file my 2010 taxes free . I need to file my 2010 taxes free more than the fair market value of the home at that time the same as the donor's adjusted basis at the time of the gift. I need to file my 2010 taxes free   Exception: If using the donor's adjusted basis results in a loss when you sell the home, you must use the fair market value of the home at the time of the gift as your basis. I need to file my 2010 taxes free If using the fair market value results in a gain, you have neither gain nor loss. I need to file my 2010 taxes free equal to or less than the fair market value at that time, and you received the gift before 1977 the smaller of the: • donor's adjusted basis, plus  any federal gift tax paid on  the gift, or • the home's fair market value  at the time of the gift. I need to file my 2010 taxes free equal to or less than the fair market value at that time, and you received the gift after 1976 the same as the donor's adjusted basis, plus the part of any federal gift tax paid that is due to the net increase in value of the home (explained next). I need to file my 2010 taxes free Fair market value. I need to file my 2010 taxes free   The fair market value of property at the time of the gift is the value of the property as appraised for purposes of the federal gift tax. I need to file my 2010 taxes free If the gift was not subject to the federal gift tax, the fair market value is the value as appraised for the purposes of a state gift tax. I need to file my 2010 taxes free Part of federal gift tax due to net increase in value. I need to file my 2010 taxes free   Figure the part of the federal gift tax paid that is due to the net increase in value of the home by multiplying the total federal gift tax paid by a fraction. I need to file my 2010 taxes free The numerator of the fraction is the net increase in the value of the home, and the denominator is the value of the home for gift tax purposes after reduction by any annual exclusion and marital or charitable deduction that applies to the gift. I need to file my 2010 taxes free The net increase in the value of the home is its fair market value minus the donor's adjusted basis immediately before the gift. I need to file my 2010 taxes free Home acquired from a decedent who died before or after 2010. I need to file my 2010 taxes free   If you inherited your home from a decedent who died before or after 2010, your basis is the fair market value of the property on the date of the decedent's death (or the later alternate valuation date chosen by the personal representative of the estate). I need to file my 2010 taxes free If an estate tax return was filed or required to be filed, the value of the property listed on the estate tax return is your basis. I need to file my 2010 taxes free If a federal estate tax return did not have to be filed, your basis in the home is the same as its appraised value at the date of death, for purposes of state inheritance or transmission taxes. I need to file my 2010 taxes free Surviving spouse. I need to file my 2010 taxes free   If you are a surviving spouse and you owned your home jointly, your basis in the home will change. I need to file my 2010 taxes free The new basis for the interest your spouse owned will be its fair market value on the date of death (or alternate valuation date). I need to file my 2010 taxes free The basis in your interest will remain the same. I need to file my 2010 taxes free Your new basis in the home is the total of these two amounts. I need to file my 2010 taxes free   If you and your spouse owned the home either as tenants by the entirety or as joint tenants with right of survivorship, you will each be considered to have owned one-half of the home. I need to file my 2010 taxes free Example. I need to file my 2010 taxes free Your jointly owned home (owned as joint tenants with right of survivorship) had an adjusted basis of $50,000 on the date of your spouse's death, and the fair market value on that date was $100,000. I need to file my 2010 taxes free Your new basis in the home is $75,000 ($25,000 for one-half of the adjusted basis plus $50,000 for one-half of the fair market value). I need to file my 2010 taxes free Community property. I need to file my 2010 taxes free   In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), each spouse is usually considered to own half of the community property. I need to file my 2010 taxes free When either spouse dies, the total fair market value of the community property becomes the basis of the entire property, including the part belonging to the surviving spouse. I need to file my 2010 taxes free For this to apply, at least half the value of the community property interest must be includible in the decedent's gross estate, whether or not the estate must file a return. I need to file my 2010 taxes free   For more information about community property, see Publication 555, Community Property. I need to file my 2010 taxes free    If you are selling a home in which you acquired an interest from a decedent who died in 2010, see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, to determine your basis. I need to file my 2010 taxes free Home received as trade. I need to file my 2010 taxes free   If you acquired your home as a trade for other property, in most cases, the basis of your home is the fair market value (at the time of the trade) of the property you gave up. I need to file my 2010 taxes free If you traded one home for another, you have made a sale and purchase. I need to file my 2010 taxes free In that case, you may have a gain. I need to file my 2010 taxes free See Trading (exchanging) homes under Dispositions Other Than Sales, earlier, for an example of figuring the gain. I need to file my 2010 taxes free Home received from spouse. I need to file my 2010 taxes free   If you received your home from your spouse or from your former spouse incident to your divorce, your basis in the home depends on the date of the transfer. I need to file my 2010 taxes free Transfers after July 18, 1984. I need to file my 2010 taxes free   If you received the home after July 18, 1984, there was no gain or loss on the transfer. I need to file my 2010 taxes free In most cases, your basis in this home is the same as your spouse's (or former spouse's) adjusted basis just before you received it. I need to file my 2010 taxes free This rule applies even if you received the home in exchange for cash, the release of marital rights, the assumption of liabilities, or other considerations. I need to file my 2010 taxes free   If you owned a home jointly with your spouse and your spouse transferred his or her interest in the home to you, in most cases, your basis in the half interest received from your spouse is the same as your spouse's adjusted basis just before the transfer. I need to file my 2010 taxes free This also applies if your former spouse transferred his or her interest in the home to you incident to your divorce. I need to file my 2010 taxes free Your basis in the half interest you already owned does not change. I need to file my 2010 taxes free Your new basis in the home is the total of these two amounts. I need to file my 2010 taxes free Transfers before July 19, 1984. I need to file my 2010 taxes free   If you received your home before July 19, 1984, in exchange for your release of marital rights, in most cases, your basis in the home is generally its fair market value at the time you received it. I need to file my 2010 taxes free More information. I need to file my 2010 taxes free   For more information on property received from a spouse or former spouse, see Property Settlements in Publication 504. I need to file my 2010 taxes free Involuntary conversion. I need to file my 2010 taxes free   If your home is destroyed or condemned, you may receive insurance proceeds or a condemnation award. I need to file my 2010 taxes free If you acquired a replacement home with these proceeds, the basis is its cost decreased by any gain not recognized on the conversion under the rules explained in: Publication 547, in the case of a home that was destroyed, or Chapter 1 of Publication 544, in the case of a home that was condemned. I need to file my 2010 taxes free Example. I need to file my 2010 taxes free A fire destroyed your home that you owned and used for only 6 months. I need to file my 2010 taxes free The home had an adjusted basis of $80,000 and the insurance company paid you $130,000 for the loss. I need to file my 2010 taxes free Your gain is $50,000 ($130,000 − $80,000). I need to file my 2010 taxes free You bought a replacement home for $100,000. I need to file my 2010 taxes free The part of your gain that is taxable is $30,000 ($130,000 − $100,000), the unspent part of the payment from the insurance company. I need to file my 2010 taxes free The rest of the gain ($20,000) is not taxable, so that amount reduces your basis in the new home. I need to file my 2010 taxes free The basis of the new home is figured as follows. I need to file my 2010 taxes free Cost of replacement home $100,000 Minus: Gain not recognized 20,000 Basis of the replacement home $80,000 More information. I need to file my 2010 taxes free   For more information about basis, see Publication 551. I need to file my 2010 taxes free Adjusted Basis Adjusted basis is your cost or other basis increased or decreased by certain amounts. I need to file my 2010 taxes free To figure your adjusted basis, you can use Worksheet 1, found toward the end of this publication. I need to file my 2010 taxes free Filled-in examples of that worksheet are included in Comprehensive Examples , later. I need to file my 2010 taxes free Recordkeeping. I need to file my 2010 taxes free You should keep records to prove your home's adjusted basis. I need to file my 2010 taxes free Ordinarily, you must keep records for 3 years after the due date for filing your return for the tax year in which you sold your home. I need to file my 2010 taxes free But if you sold a home before May 7, 1997, and postponed tax on any gain, the basis of that home affects the basis of the new home you bought. I need to file my 2010 taxes free Keep records proving the basis of both homes as long as they are needed for tax purposes. I need to file my 2010 taxes free The records you should keep include: Proof of the home's purchase price and purchase expenses; Receipts and other records for all improvements, additions, and other items that affect the home's adjusted basis; Any worksheets or other computations you used to figure the adjusted basis of the home you sold, the gain or loss on the sale, the exclusion, and the taxable gain; Any Form 982 you filed to exclude any discharge of qualified principal residence indebtedness; Any Form 2119, Sale of Your Home, you filed to postpone gain from the sale of a previous home before May 7, 1997; and Any worksheets you used to prepare Form 2119, such as the Adjusted Basis of Home Sold Worksheet or the Capital Improvements Worksheet from the Form 2119 instructions, or other source of computations. I need to file my 2010 taxes free Increases to Basis These include the following. I need to file my 2010 taxes free Additions and other improvements that have a useful life of more than 1 year. I need to file my 2010 taxes free Special assessments for local improvements. I need to file my 2010 taxes free Amounts you spent after a casualty to restore damaged property. I need to file my 2010 taxes free Improvements. I need to file my 2010 taxes free   These add to the value of your home, prolong its useful life, or adapt it to new uses. I need to file my 2010 taxes free You add the cost of additions and other improvements to the basis of your property. I need to file my 2010 taxes free   The following chart lists some other examples of improvements. I need to file my 2010 taxes free Examples of Improvements That Increase Basis Additions Bedroom Bathroom Deck Garage Porch Patio Heating & Air Conditioning Heating system Central air conditioning Furnace Duct work Central humidifier Filtration system Lawn & Grounds Landscaping Driveway Walkway Fence  Retaining wall Sprinkler system Swimming pool  Miscellaneous Storm windows, doors New roof Central vacuum Wiring upgrades Satellite dish Security system  Plumbing Septic system Water heater Soft water system Filtration system  Interior Improvements Built-in appliances  Kitchen modernization  Flooring Wall-to-wall carpeting  Insulation Attic Walls Floors Pipes and duct work Improvements no longer part of home. I need to file my 2010 taxes free   Your home's adjusted basis does not include the cost of any improvements that are replaced and are no longer part of the home. I need to file my 2010 taxes free Example. I need to file my 2010 taxes free You put wall-to-wall carpeting in your home 15 years ago. I need to file my 2010 taxes free Later, you replaced that carpeting with new wall-to-wall carpeting. I need to file my 2010 taxes free The cost of the old carpeting you replaced is no longer part of your home's adjusted basis. I need to file my 2010 taxes free Repairs. I need to file my 2010 taxes free   These maintain your home in good condition but do not add to its value or prolong its life. I need to file my 2010 taxes free You do not add their cost to the basis of your property. I need to file my 2010 taxes free Examples. I need to file my 2010 taxes free Repainting your house inside or outside, fixing your gutters or floors, repairing leaks or plastering, and replacing broken window panes are examples of repairs. I need to file my 2010 taxes free Exception. I need to file my 2010 taxes free   The entire job is considered an improvement if items that would otherwise be considered repairs are done as part of an extensive remodeling or restoration of your home. I need to file my 2010 taxes free For example, if you have a casualty and your home is damaged, increase your basis by the amount you spend on repairs that restore the property to its pre-casualty condition. I need to file my 2010 taxes free Decreases to Basis These include the following. I need to file my 2010 taxes free Discharge of qualified principal residence indebtedness that was excluded from income (but not below zero). I need to file my 2010 taxes free For details, see Publication 4681. I need to file my 2010 taxes free Some or all of the cancellation of debt income that was excluded due to your bankruptcy or insolvency. I need to file my 2010 taxes free For details, see Publication 4681. I need to file my 2010 taxes free Gain you postponed from the sale of a previous home before May 7, 1997. I need to file my 2010 taxes free Deductible casualty losses. I need to file my 2010 taxes free Insurance payments you received or expect to receive for casualty losses. I need to file my 2010 taxes free Payments you received for granting an easement or right-of-way. I need to file my 2010 taxes free Depreciation allowed or allowable if you used your home for business or rental purposes. I need to file my 2010 taxes free Energy-related credits allowed for expenditures made on the residence. I need to file my 2010 taxes free (Reduce the increase in basis otherwise allowable for expenditures on the residence by the amount of credit allowed for those expenditures. I need to file my 2010 taxes free ) Adoption credit you claimed for improvements added to the basis of your home. I need to file my 2010 taxes free Nontaxable payments from an adoption assistance program of your employer you used for improvements you added to the basis of your home. I need to file my 2010 taxes free Energy conservation subsidy excluded from your gross income because you received it (directly or indirectly) from a public utility after 1992 to buy or install any energy conservation measure. I need to file my 2010 taxes free An energy conservation measure is an installation or modification primarily designed either to reduce consumption of electricity or natural gas or to improve the management of energy demand for a home. I need to file my 2010 taxes free District of Columbia first-time homebuyer credit allowed on the purchase of a principal residence in the District of Columbia. I need to file my 2010 taxes free General sales taxes claimed as an itemized deduction on Schedule A (Form 1040) that were imposed on the purchase of personal property, such as a houseboat used as your home or a mobile home. I need to file my 2010 taxes free Discharges of qualified principal residence indebtedness. I need to file my 2010 taxes free   You may be able to exclude from gross income a discharge of qualified principal residence indebtedness. I need to file my 2010 taxes free This exclusion applies to discharges made after 2006 and before 2014. I need to file my 2010 taxes free If you choose to exclude this income, you must reduce (but not below zero) the basis of your principal residence by the amount excluded from gross income. I need to file my 2010 taxes free   File Form 982 with your tax return. I need to file my 2010 taxes free See the form's instructions for detailed information. I need to file my 2010 taxes free    A decrease in basis due to a discharge of qualified principal residence indebtedness that is excluded from income occurs only if you retain ownership of the principal residence after a discharge. I need to file my 2010 taxes free In most cases, this would occur in a refinancing or a restructuring of the mortgage. I need to file my 2010 taxes free Excluding the Gain You may qualify to exclude from your income all or part of any gain from the sale of your main home. I need to file my 2010 taxes free This means that, if you qualify, you will not have to pay tax on the gain up to the limit described under Maximum Exclusion , next. I need to file my 2010 taxes free To qualify, you must meet the ownership and use tests described later. I need to file my 2010 taxes free You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. I need to file my 2010 taxes free This choice can be made (or revoked) at any time before the expiration of a 3-year period beginning on the due date of your return (not including extensions) for the year of the sale. I need to file my 2010 taxes free You can use Worksheet 2 (near the end of this publication) to figure the amount of your exclusion and your taxable gain, if any. I need to file my 2010 taxes free If you have any taxable gain from the sale of your home, you may have to increase your withholding or make estimated tax payments. I need to file my 2010 taxes free See Publication 505, Tax Withholding and Estimated Tax. I need to file my 2010 taxes free Maximum Exclusion You can exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. I need to file my 2010 taxes free You meet the ownership test. I need to file my 2010 taxes free You meet the use test. I need to file my 2010 taxes free During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. I need to file my 2010 taxes free For details on gain allocated to periods of nonqualified use, see Nonqualified Use , later. I need to file my 2010 taxes free If you and another person owned the home jointly but file separate returns, each of you can exclude up to $250,000 of gain from the sale of your interest in the home if each of you meets the three conditions just listed. I need to file my 2010 taxes free You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . I need to file my 2010 taxes free Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. I need to file my 2010 taxes free This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). I need to file my 2010 taxes free Exception. I need to file my 2010 taxes free   If you owned and lived in the property as your main home for less than 2 years, you can still claim an exclusion in some cases. I need to file my 2010 taxes free However, the maximum amount you may be able to exclude will be reduced. I need to file my 2010 taxes free See Reduced Maximum Exclusion , later. I need to file my 2010 taxes free Example 1—home owned and occupied for at least 2 years. I need to file my 2010 taxes free Mya bought and moved into her main home in September 2011. I need to file my 2010 taxes free She sold the home at a gain in October 2013. I need to file my 2010 taxes free During the 5-year period ending on the date of sale in October 2013, she owned and lived in the home for more than 2 years. I need to file my 2010 taxes free She meets the ownership and use tests. I need to file my 2010 taxes free Example 2—ownership test met but use test not met. I need to file my 2010 taxes free Ayden bought a home, lived in it for 6 months, moved out, and never occupied the home again. I need to file my 2010 taxes free He later sold the home for a gain in June 2013. I need to file my 2010 taxes free He owned the home during the entire 5-year period ending on the date of sale. I need to file my 2010 taxes free He meets the ownership test but not the use test. I need to file my 2010 taxes free He cannot exclude any part of his gain on the sale unless he qualified for a reduced maximum exclusion (explained later). I need to file my 2010 taxes free Period of Ownership and Use The required 2 years of ownership and use during the 5-year period ending on the date of the sale do not have to be continuous nor do they both have to occur at the same time. I need to file my 2010 taxes free You meet the tests if you can show that you owned and lived in the property as your main home for either 24 full months or 730 days (365 × 2) during the 5-year period ending on the date of sale. I need to file my 2010 taxes free Example. I need to file my 2010 taxes free Naomi bought and moved into a house in July 2009. I need to file my 2010 taxes free She lived there for 13 months and then moved in with a friend. I need to file my 2010 taxes free She later moved back into her house and lived there for 12 months until she sold it in August 2013. I need to file my 2010 taxes free Naomi meets the ownership and use tests because, during the 5-year period ending on the date of sale, she owned the house for more than 2 years and lived in it for a total of 25 (13 + 12) months. I need to file my 2010 taxes free Temporary absence. I need to file my 2010 taxes free   Short temporary absences for vacations or other seasonal absences, even if you rent out the property during the absences, are counted as periods of use. I need to file my 2010 taxes free The following examples assume that the reduced maximum exclusion (discussed later) does not apply to the sales. I need to file my 2010 taxes free Example 1. I need to file my 2010 taxes free David Johnson, who is single, bought and moved into his home on February 1, 2011. I need to file my 2010 taxes free Each year during 2011 and 2012, David left his home for a 2-month summer vacation. I need to file my 2010 taxes free David sold the house on March 1, 2013. I need to file my 2010 taxes free Although the total time David lived in his home is less than 2 years (21 months), he meets the use requirement and may exclude gain. I need to file my 2010 taxes free The 2-month vacations are short temporary absences and are counted as periods of use in determining whether David used the home for the required 2 years. I need to file my 2010 taxes free Example 2. I need to file my 2010 taxes free Professor Paul Beard, who is single, bought and moved into a house in December 2010, went abroad for a 1-year sabbatical leave in January 2012, returned to the house in January 2013, and sold it at a gain in February 2013. I need to file my 2010 taxes free Because his leave was not a short temporary absence, he cannot include the period of leave to meet the 2-year use test. I need to file my 2010 taxes free He cannot exclude any part of his gain because he did not use the residence for the required 2 years. I need to file my 2010 taxes free Ownership and use tests met at different times. I need to file my 2010 taxes free   You can meet the ownership and use tests during different 2-year periods. I need to file my 2010 taxes free However, you must meet both tests during the 5-year period ending on the date of the sale. I need to file my 2010 taxes free Example. I need to file my 2010 taxes free Beginning in 2002, Helen Jones lived in a rented apartment. I need to file my 2010 taxes free The apartment building was later converted to condominiums, and she bought her same apartment on December 3, 2010. I need to file my 2010 taxes free In 2011, Helen became ill and on April 14 of that year she moved to her daughter's home. I need to file my 2010 taxes free On July 12, 2013, while still living in her daughter's home, she sold her condominium. I need to file my 2010 taxes free Helen can exclude gain on the sale of her condominium because she met the ownership and use tests during the 5-year period from July 13, 2008, to July 12, 2013, the date she sold the condominium. I need to file my 2010 taxes free She owned her condominium from December 3, 2010, to July 12, 2013 (more than 2 years). I need to file my 2010 taxes free She lived in the property from July 13, 2008 (the beginning of the 5-year period), to April 14, 2011 (more than 2 years). I need to file my 2010 taxes free The time Helen lived in her daughter's home during the 5-year period can be counted toward her period of ownership, and the time she lived in her rented apartment during the 5-year period can be counted toward her period of use. I need to file my 2010 taxes free Cooperative apartment. I need to file my 2010 taxes free   If you sold stock as a tenant-shareholder in a cooperative housing corporation, the ownership and use tests are met if, during the 5-year period ending on the date of sale, you: Owned the stock for at least 2 years, and Lived in the house or apartment that the stock entitled you to occupy as your main home for at least 2 years. I need to file my 2010 taxes free Exceptions to Ownership and Use Tests The following sections contain exceptions to the ownership and use tests for certain taxpayers. I need to file my 2010 taxes free Exception for individuals with a disability. I need to file my 2010 taxes free   There is an exception to the use test if: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year during the 5-year period before the sale of your home. I need to file my 2010 taxes free Under this exception, you are considered to live in your home during any time within the 5-year period that you own the home and live in a facility (including a nursing home) licensed by a state or political subdivision to care for persons in your condition. I need to file my 2010 taxes free   If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. I need to file my 2010 taxes free Previous home destroyed or condemned. I need to file my 2010 taxes free   For the ownership and use tests, you add the time you owned and lived in a previous home that was destroyed or condemned to the time you owned and lived in the replacement home on whose sale you wish to exclude gain. I need to file my 2010 taxes free This rule applies if any part of the basis of the home you sold depended on the basis of the destroyed or condemned home (see Involuntary Conversions in Publication 551). I need to file my 2010 taxes free Otherwise, you must have owned and lived in the same home for 2 of the 5 years before the sale to qualify for the exclusion. I need to file my 2010 taxes free Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps. I need to file my 2010 taxes free   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve on qualified official extended duty (defined later) as a member of the uniformed services or Foreign Service of the United States, or as an employee of the intelligence community. I need to file my 2010 taxes free You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve outside the United States either as an employee of the Peace Corps on qualified official extended duty (defined later) or as an enrolled volunteer or volunteer leader of the Peace Corps. I need to file my 2010 taxes free This means that you may be able to meet the 2-year use test even if, because of your service, you did not actually live in your home for at least the required 2 years during the 5-year period ending on the date of sale. I need to file my 2010 taxes free   If this helps you qualify to exclude gain, you can choose to have the 5-year test period suspended by filing a return for the year of sale that does not include the gain. I need to file my 2010 taxes free Example. I need to file my 2010 taxes free John bought and moved into a home in 2005. I need to file my 2010 taxes free He lived in it as his main home for 2½ years. I need to file my 2010 taxes free For the next 6 years, he did not live in it because he was on qualified official extended duty with the Army. I need to file my 2010 taxes free He then sold the home at a gain in 2013. I need to file my 2010 taxes free To meet the use test, John chooses to suspend the 5-year test period for the 6 years he was on qualified official extended duty. I need to file my 2010 taxes free This means he can disregard those 6 years. I need to file my 2010 taxes free Therefore, John's 5-year test period consists of the 5 years before he went on qualified official extended duty. I need to file my 2010 taxes free He meets the ownership and use tests because he owned and lived in the home for 2½ years during this test period. I need to file my 2010 taxes free Period of suspension. I need to file my 2010 taxes free   The period of suspension cannot last more than 10 years. I need to file my 2010 taxes free Together, the 10-year suspension period and the 5-year test period can be as long as, but no more than, 15 years. I need to file my 2010 taxes free You cannot suspend the 5-year period for more than one property at a time. I need to file my 2010 taxes free You can revoke your choice to suspend the 5-year period at any time. I need to file my 2010 taxes free Example. I need to file my 2010 taxes free Mary bought a home on April 1, 1997. I need to file my 2010 taxes free She used it as her main home until August 31, 2000. I need to file my 2010 taxes free On September 1, 2000, she went on qualified official extended duty with the Navy. I need to file my 2010 taxes free She did not live in the house again before selling it on July 31, 2013. I need to file my 2010 taxes free Mary chooses to use the entire 10-year suspension period. I need to file my 2010 taxes free Therefore, the suspension period would extend back from July 31, 2013, to August 1, 2003, and the 5-year test period would extend back to August 1, 1998. I need to file my 2010 taxes free During that period, Mary owned the house all 5 years and lived in it as her main home from August 1, 1998, until August 31, 2000, a period of more than 24 months. I need to file my 2010 taxes free She meets the ownership and use tests because she owned and lived in the home for at least 2 years during this test period. I need to file my 2010 taxes free Uniformed services. I need to file my 2010 taxes free   The uniformed services are: The Armed Forces (the Army, Navy, Air Force, Marine Corps, and Coast Guard), The commissioned corps of the National Oceanic and Atmospheric Administration, and The commissioned corps of the Public Health Service. I need to file my 2010 taxes free Foreign Service member. I need to file my 2010 taxes free   For purposes of the choice to suspend the 5-year test period for ownership and use, you are a member of the Foreign Service if you are any of the following. I need to file my 2010 taxes free A Chief of mission. I need to file my 2010 taxes free An Ambassador at large. I need to file my 2010 taxes free A member of the Senior Foreign Service. I need to file my 2010 taxes free A Foreign Service officer. I need to file my 2010 taxes free Part of the Foreign Service personnel. I need to file my 2010 taxes free Employee of the intelligence community. I need to file my 2010 taxes free   For purposes of the choice to suspend the 5-year test period for ownership and use, you are an employee of the intelligence community if you are an employee of any of the following. I need to file my 2010 taxes free The Office of the Director of National Intelligence. I need to file my 2010 taxes free The Central Intelligence Agency. I need to file my 2010 taxes free The National Security Agency. I need to file my 2010 taxes free The Defense Intelligence Agency. I need to file my 2010 taxes free The National Geospatial-Intelligence Agency. I need to file my 2010 taxes free The National Reconnaissance Office and any other office within the Department of Defense for the collection of specialized national intelligence through reconnaissance programs. I need to file my 2010 taxes free Any of the intelligence elements of the Army, the Navy, the Air Force, the Marine Corps, the Federal Bureau of Investigation, the Department of Treasury, the Department of Energy, and the Coast Guard. I need to file my 2010 taxes free The Bureau of Intelligence and Research of the Department of State. I need to file my 2010 taxes free Any of the elements of the Department of Homeland Security concerned with the analyses of foreign intelligence information. I need to file my 2010 taxes free Qualified official extended duty. I need to file my 2010 taxes free   You are on qualified official extended duty if you are on extended duty while: Serving at a duty station at least 50 miles from your main home, or Living in Government quarters under Government orders. I need to file my 2010 taxes free   You are on extended duty when you are called or ordered to active duty for a period of more than 90 days or for an indefinite period. I need to file my 2010 taxes free Married Persons If you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use tests, you can exclude up to $250,000 of the gain. I need to file my 2010 taxes free (But see Special rules for joint returns, next. I need to file my 2010 taxes free ) Special rules for joint returns. I need to file my 2010 taxes free   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. I need to file my 2010 taxes free You are married and file a joint return for the year. I need to file my 2010 taxes free Either you or your spouse meets the ownership test. I need to file my 2010 taxes free Both you and your spouse meet the use test. I need to file my 2010 taxes free During the 2-year period ending on the date of the sale, neither you nor your spouse excluded gain from the sale of another home. I need to file my 2010 taxes free If either spouse does not satisfy all these requirements, the maximum exclusion that can be claimed by the couple is the total of the maximum exclusions that each spouse would qualify for if not married and the amounts were figured separately. I need to file my 2010 taxes free For this purpose, each spouse is treated as owning the property during the period that either spouse owned the property. I need to file my 2010 taxes free Example 1—one spouse sells a home. I need to file my 2010 taxes free Emily sells her home in June 2013 for a gain of $300,000. I need to file my 2010 taxes free She marries Jamie later in the year. I need to file my 2010 taxes free She meets the ownership and use tests, but Jamie does not. I need to file my 2010 taxes free Emily can exclude up to $250,000 of gain on a separate or joint return for 2013. I need to file my 2010 taxes free The $500,000 maximum exclusion for certain joint returns does not apply because Jamie does not meet the use test. I need to file my 2010 taxes free Example 2—each spouse sells a home. I need to file my 2010 taxes free The facts are the same as in Example 1 except that Jamie also sells a home in 2013 for a gain of $200,000 before he marries Emily. I need to file my 2010 taxes free He meets the ownership and use tests on his home, but Emily does not. I need to file my 2010 taxes free Emily can exclude $250,000 of gain and Jamie can exclude $200,000 of gain on the respective sales of their individual homes. I need to file my 2010 taxes free However, Emily cannot use Jamie's unused exclusion to exclude more than $250,000 of gain. I need to file my 2010 taxes free Therefore, Emily and Jamie must recognize $50,000 of gain on the sale of Emily's home. I need to file my 2010 taxes free The $500,000 maximum exclusion for certain joint returns does not apply because Emily and Jamie do not both meet the use test for the same home. I need to file my 2010 taxes free Sale of main home by surviving spouse. I need to file my 2010 taxes free   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. I need to file my 2010 taxes free   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home. I need to file my 2010 taxes free The sale or exchange took place after 2008. I need to file my 2010 taxes free The sale or exchange took place no more than 2 years after the date of death of your spouse. I need to file my 2010 taxes free You have not remarried. I need to file my 2010 taxes free You and your spouse met the use test at the time of your spouse's death. I need to file my 2010 taxes free You or your spouse met the ownership test at the time of your spouse's death. I need to file my 2010 taxes free Neither you nor your spouse excluded gain from the sale of another home during the last 2 years before the date of death. I need to file my 2010 taxes free The ownership and use tests were described earlier. I need to file my 2010 taxes free Example. I need to file my 2010 taxes free Harry owned and used a house as his main home since 2009. I need to file my 2010 taxes free Harry and Wilma married on July 1, 2013, and from that date they used Harry's house as their main home. I need to file my 2010 taxes free Harry died on August 15, 2013, and Wilma inherited the property. I need to file my 2010 taxes free Wilma sold the property on September 1, 2013, at which time she had not remarried. I need to file my 2010 taxes free Although Wilma owned and used the house for less than 2 years, Wilma is considered to have satisfied the ownership and use tests because her period of ownership and use includes the period that Harry owned and used the property before death. I need to file my 2010 taxes free Home transferred from spouse. I need to file my 2010 taxes free   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. I need to file my 2010 taxes free Use of home after divorce. I need to file my 2010 taxes free   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. I need to file my 2010 taxes free Reduced Maximum Exclusion If you fail to meet the requirements to qualify for the $250,000 or $500,000 exclusion, you may still qualify for a reduced exclusion. I need to file my 2010 taxes free This applies to those who: Fail to meet the ownership and use tests, or Have used the exclusion within 2 years of selling their current home. I need to file my 2010 taxes free In both cases, to qualify for a reduced exclusion, the sale of your main home must be due to one of the following reasons. I need to file my 2010 taxes free A change in place of employment. I need to file my 2010 taxes free Health. I need to file my 2010 taxes free Unforeseen circumstances. I need to file my 2010 taxes free Qualified individual. I need to file my 2010 taxes free   For purposes of the reduced maximum exclusion, a qualified individual is any of the following. I need to file my 2010 taxes free You. I need to file my 2010 taxes free Your spouse. I need to file my 2010 taxes free A co-owner of the home. I need to file my 2010 taxes free A person whose main home is the same as yours. I need to file my 2010 taxes free Primary reason for sale. I need to file my 2010 taxes free   One of the three reasons above will be considered to be the primary reason you sold your home if either (1) or (2) is true. I need to file my 2010 taxes free You qualify under a “safe harbor. I need to file my 2010 taxes free ” This is a specific set of facts and circumstances that, if applicable, qualifies you to claim a reduced maximum exclusion. I need to file my 2010 taxes free Safe harbors corresponding to the reasons listed above are described later. I need to file my 2010 taxes free A safe harbor does not apply, but you can establish, based on facts and circumstances, that the primary reason for the sale is a change in place of employment, health, or unforeseen circumstances. I need to file my 2010 taxes free  Factors that may be relevant in determining your primary reason for sale include whether: Your sale and the circumstances causing it were close in time, The circumstances causing your sale occurred during the time you owned and used the property as your main home, The circumstances causing your sale were not reasonably foreseeable when you began using the property as your main home, Your financial ability to maintain the property became materially impaired, The suitability of the property as your main home materially changed, and During the time you owned the property, you used it as your home. I need to file my 2010 taxes free Change in Place of Employment You may qualify for a reduced exclusion if the primary reason for the sale of your main home is a change in the location of employment of a qualified individual. I need to file my 2010 taxes free Employment. I need to file my 2010 taxes free   For this purpose, employment includes the start of work with a new employer or continuation of work with the same employer. I need to file my 2010 taxes free It also includes the start or continuation of self-employment. I need to file my 2010 taxes free Distance safe harbor. I need to file my 2010 taxes free   A change in place of employment is considered to be the reason you sold your home if: The change occurred during the period you owned and used the property as your main home, and The new place of employment is at least 50 miles farther from the home you sold than was the former place of employment (or, if there was no former place of employment, the distance between your new place of employment and the home sold is at least 50 miles). I need to file my 2010 taxes free Example. I need to file my 2010 taxes free Justin was unemployed and living in a townhouse in Florida he had owned and used as his main home since 2012. I need to file my 2010 taxes free He got a job in North Carolina and sold his townhouse in 2013. I need to file my 2010 taxes free Because the distance between Justin's new place of employment and the home he sold is at least 50 miles, the sale satisfies the conditions of the distance safe harbor. I need to file my 2010 taxes free Justin's sale of his home is considered to be because of a change in place of employment, and he is entitled to claim a reduced maximum exclusion of gain from the sale. I need to file my 2010 taxes free Health The sale of your main home is because of health if your primary reason for the sale is: To obtain, provide, or facilitate the diagnosis, cure, mitigation, or treatment of disease, illness, or injury of a qualified individual, or To obtain or provide medical or personal care for a qualified individual suffering from a disease, illness, or injury. I need to file my 2010 taxes free The sale of your home is not because of health if the sale merely benefits a qualified individual's general health or well-being. I need to file my 2010 taxes free For purposes of this reason, a qualified individual includes, in addition to the individuals listed earlier under Qualified individual , any of the following family members of these individuals. I need to file my 2010 taxes free Parent, grandparent, stepmother, stepfather. I need to file my 2010 taxes free Child, grandchild, stepchild, adopted child, eligible foster child. I need to file my 2010 taxes free Brother, sister, stepbrother, stepsister, half-brother, half-sister. I need to file my 2010 taxes free Mother-in-law, father-in-law, brother-in-law, sister-in-law, son-in-law, or daughter-in-law. I need to file my 2010 taxes free Uncle, aunt, nephew, niece, or cousin. I need to file my 2010 taxes free Example. I need to file my 2010 taxes free In 2012, Chase and Lauren, spouses, bought a house that they used as their main home. I need to file my 2010 taxes free Lauren's father has a chronic disease and is unable to care for himself. I need to file my 2010 taxes free In 2013, Chase and Lauren sold their home in order to move into Lauren's father's house to provide care for him. I need to file my 2010 taxes free Because the primary reason for the sale of their home was to provide care for Lauren's father, Chase and Lauren are entitled to a reduced maximum exclusion. I need to file my 2010 taxes free Doctor's recommendation safe harbor. I need to file my 2010 taxes free   Health is considered to be the reason you sold your home if, for one or more of the reasons listed at the beginning of this discussion, a doctor recommends a change of residence. I need to file my 2010 taxes free Unforeseen Circumstances The sale of your main home is because of an unforeseen circumstance if your primary reason for the sale is the occurrence of an event that you could not reasonably have anticipated before buying and occupying that home. I need to file my 2010 taxes free You are not considered to have an unforeseen circumstance if the primary reason you sold your home was that you preferred to get a different home or because your finances improved. I need to file my 2010 taxes free Specific event safe harbors. I need to file my 2010 taxes free   Unforeseen circumstances are considered to be the reason for selling your home if any of the following events occurred while you owned and used the property as your main home. I need to file my 2010 taxes free An involuntary conversion of your home, such as when your home is destroyed or condemned. I need to file my 2010 taxes free Natural or man-made disasters or acts of war or terrorism resulting in a casualty to your home, whether or not your loss is deductible. I need to file my 2010 taxes free In the case of qualified individuals (listed earlier under Qualified individual ): Death, Unemployment (if the individual is eligible for unemployment compensation), A change in employment or self-employment status that results in the individual's inability to pay reasonable basic living expenses (listed under Reasonable basic living expenses , later) for his or her household, Divorce or legal separation under a decree of divorce or separate maintenance, or Multiple births resulting from the same pregnancy. I need to file my 2010 taxes free An event the IRS determined to be an unforeseen circumstance in published guidance of general applicability. I need to file my 2010 taxes free For example, the IRS determined the September 11, 2001, terrorist attacks to be an unforeseen circumstance. I need to file my 2010 taxes free Reasonable basic living expenses. I need to file my 2010 taxes free   Reasonable basic living expenses for your household include the following. I need to file my 2010 taxes free Amounts spent for food. I need to file my 2010 taxes free Amounts spent for clothing. I need to file my 2010 taxes free Housing and related expenses. I need to file my 2010 taxes free Medical expenses. I need to file my 2010 taxes free Transportation expenses. I need to file my 2010 taxes free Tax payments. I need to file my 2010 taxes free Court-ordered payments. I need to file my 2010 taxes free Expenses reasonably necessary to produce income. I need to file my 2010 taxes free   Any of these amounts spent to maintain an affluent or luxurious standard of living are not reasonable basic living expenses. I need to file my 2010 taxes free Nonqualified Use Gain from the sale or exchange of the main home is not excludable from income if it is allocable to periods of nonqualified use. I need to file my 2010 taxes free Nonqualified use means any period after 2008 where neither you nor your spouse (or your former spouse) used the property as a main home, with certain exceptions (see next). I need to file my 2010 taxes free Exceptions. I need to file my 2010 taxes free   A period of nonqualified use does not include: Any portion of the 5-year period ending on the date of the sale or exchange after the last date you (or your spouse) use the property as a main home; Any period (not to exceed an aggregate period of 10 years) during which you (or your spouse) are serving on qualified official extended duty: As a member of the uniformed services; As a member of the Foreign Service of the United States; or As an employee of the intelligence community; and Any other period of temporary absence (not to exceed an aggregate period of 2 years) due to change of employment, health conditions, or such other unforeseen circumstances as may be specified by the IRS. I need to file my 2010 taxes free Calculation. I need to file my 2010 taxes free   To figure the portion of the gain allocated to the period of nonqualified use, multiply the gain (net of any depreciation allowed or allowable on the property for periods after May 6, 1997) by the following fraction:   Total nonqualified use during the period of ownership after 2008     Total period of ownership     This calculation can be found in Worksheet 2, line 10, later in this publication. I need to file my 2010 taxes free   For examples of this calculation, see Business Use or Rental of Home , next. I need to file my 2010 taxes free Business Use or Rental of Home You may be able to exclude gain from the sale of a home you have used for business or to produce rental income if you meet the ownership and use tests. I need to file my 2010 taxes free Example 1. I need to file my 2010 taxes free On May 23, 2007, Amy, who is unmarried for all years in this example, bought a house. I need to file my 2010 taxes free She moved in on that date and lived in it until May 31, 2009, when she moved out of the house and put it up for rent. I need to file my 2010 taxes free The house was rented from June 1, 2009, to March 31, 2011. I need to file my 2010 taxes free Amy claimed depreciation deductions in 2009 through 2011 totaling $10,000. I need to file my 2010 taxes free Amy moved back into the house on April 1, 2011, and lived there until she sold it on January 31, 2013, for a gain of $200,000. I need to file my 2010 taxes free During the 5-year period ending on the date of the sale (January 31, 2008–January 31, 2013), Amy owned and lived in the house for more than 2 years as shown in the following table. I need to file my 2010 taxes free Five-Year Period Used as Home Used as Rental 1/31/08 – 5/31/09 16 months   6/01/09 – 3/31/11   22 months 4/01/11 – 1/31/13 22 months     38 months 22 months       During the period Amy owned the house (2,080 days), her period of nonqualified use was 668 days. I need to file my 2010 taxes free Because the gain attributable to periods of nonqualified use is $60,990, Amy can exclude $129,010 of her gain, as shown on Worksheet 2. I need to file my 2010 taxes free Example 2. I need to file my 2010 taxes free William owned and used a house as his main home from 2007 through 2010. I need to file my 2010 taxes free On January 1, 2011, he moved to another state. I need to file my 2010 taxes free He rented his house from that date until April 30, 2013, when he sold it. I need to file my 2010 taxes free During the 5-year period ending on the date of sale (May 1, 2008-April 30, 2013), William owned and lived in the house for more than 2 years. I need to file my 2010 taxes free Because it was rental property at the time of the sale, he must report the sale on Form 4797. I need to file my 2010 taxes free Because the period of nonqualified use does not include any part of the 5-year period after the last date William lived in the house, he has no period of nonqualified use. I need to file my 2010 taxes free Because he met the ownership and use tests, he can exclude gain up to $250,000. I need to file my 2010 taxes free However, he cannot exclude the part of the gain equal to the depreciation he claimed or could have claimed for renting the house, as explained next. I need to file my 2010 taxes free Depreciation after May 6, 1997. I need to file my 2010 taxes free   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. I need to file my 2010 taxes free If you can show by adequate records or other evidence that the depreciation allowed was less than the amount allowable, then you may limit the amount of gain recognized to the depreciation allowed. I need to file my 2010 taxes free Unrecaptured section 1250 gain. I need to file my 2010 taxes free   This is the part of any long-term capital gain from the sale of your home that is due to depreciation and cannot be excluded. I need to file my 2010 taxes free To figure the amount of unrecaptured section 1250 gain to be reported on Schedule D (Form 1040), you must also take into account certain gains or losses from the sale of property other than your home. I need to file my 2010 taxes free Use the Unrecaptured Section 1250 Gain Worksheet in the Schedule D instructions for this purpose. I need to file my 2010 taxes free Worksheet 2. I need to file my 2010 taxes free Taxable Gain on Sale of Home—Completed Example 1 for Amy Part 1. I need to file my 2010 taxes free Gain or (Loss) on Sale       1. I need to file my 2010 taxes free   Selling price of home 1. I need to file my 2010 taxes free     2. I need to file my 2010 taxes free   Selling expenses (including commissions, advertising and legal fees, and seller-paid loan charges) 2. I need to file my 2010 taxes free     3. I need to file my 2010 taxes free   Subtract line 2 from line 1. I need to file my 2010 taxes free This is the amount realized 3. I need to file my 2010 taxes free     4. I need to file my 2010 taxes free   Adjusted basis of home sold (from Worksheet 1, line 13) 4. I need to file my 2010 taxes free     5. I need to file my 2010 taxes free   Gain or (loss) on the sale. I need to file my 2010 taxes free Subtract line 4 from line 3. I need to file my 2010 taxes free If this is a loss, stop here 5. I need to file my 2010 taxes free 200,000   Part 2. I need to file my 2010 taxes free Exclusion and Taxable Gain       6. I need to file my 2010 taxes free   Enter any depreciation allowed or allowable on the property for periods after May 6, 1997. I need to file my 2010 taxes free If none, enter -0- 6. I need to file my 2010 taxes free 10,000   7. I need to file my 2010 taxes free   Subtract line 6 from line 5. I need to file my 2010 taxes free If the result is less than zero, enter -0- 7. I need to file my 2010 taxes free 190,000   8. I need to file my 2010 taxes free   Aggregate number of days of nonqualified use after 2008. I need to file my 2010 taxes free If none, enter -0-. I need to file my 2010 taxes free  If line 8 is equal to zero, skip to line 12 and enter the amount from line 7 on line 12 8. I need to file my 2010 taxes free 668   9. I need to file my 2010 taxes free   Number of days taxpayer owned the property 9. I need to file my 2010 taxes free 2,080   10. I need to file my 2010 taxes free   Divide the amount on line 8 by the amount on line 9. I need to file my 2010 taxes free Enter the result as a decimal (rounded to at least 3 places). I need to file my 2010 taxes free But do not enter an amount greater than 1. I need to file my 2010 taxes free 00 10. I need to file my 2010 taxes free 0. I need to file my 2010 taxes free 321   11. I need to file my 2010 taxes free   Gain allocated to nonqualified use. I need to file my 2010 taxes free (Line 7 multiplied by line 10) 11. I need to file my 2010 taxes free 60,990   12. I need to file my 2010 taxes free   Gain eligible for exclusion. I need to file my 2010 taxes free Subtract line 11 from line 7 12. I need to file my 2010 taxes free 129,010   13. I need to file my 2010 taxes free   If you qualify to exclude gain on the sale, enter your maximum exclusion (see Maximum Exclusion ). I need to file my 2010 taxes free  If you qualify for a reduced maximum exclusion, enter the amount from Worksheet 3, line 7. I need to file my 2010 taxes free If you do  not qualify to exclude gain, enter -0- 13. I need to file my 2010 taxes free 250,000   14. I need to file my 2010 taxes free   Exclusion. I need to file my 2010 taxes free Enter the smaller of line 12 or line 13 14. I need to file my 2010 taxes free 129,010   15. I need to file my 2010 taxes free   Taxable gain. I need to file my 2010 taxes free Subtract line 14 from line 5. I need to file my 2010 taxes free Report your taxable gain as described under Reporting the Sale . I need to file my 2010 taxes free If the amount on line 6 is more than zero, complete line 16 15. I need to file my 2010 taxes free 70,990   16. I need to file my 2010 taxes free   Enter the smaller of line 6 or line 15. I need to file my 2010 taxes free Enter this amount on line 12 of the Unrecaptured Section 1250 Gain  Worksheet in the instructions for Schedule D (Form 1040) 16. I need to file my 2010 taxes free 10,000 Property Used Partly for Business or Rental If you use property partly as a home and partly for business or to produce rental income, the treatment of any gain on the sale depends partly on whether the business or rental part of the property is part of your home or separate from it. I need to file my 2010 taxes free Part of Home Used for Business or Rental If the part of your property used for business or to produce rental income is within your home, such as a room used as a home office for a business, you do not need to allocate gain on the sale of the property between the business part of the property and the part used as a home. I need to file my 2010 taxes free In addition, you do not need to report the sale of the business or rental part on Form 4797. I need to file my 2010 taxes free This is true whether or not you were entitled to claim any depreciation. I need to file my 2010 taxes free However, you cannot exclude the part of any gain equal to any depreciation allowed or allowable after May 6, 1997. I need to file my 2010 taxes free See Depreciation after May 6, 1997, earlier. I need to file my 2010 taxes free Example 1. I need to file my 2010 taxes free Ray sold his main home in 2013 at a $30,000 gain. I need to file my 2010 taxes free He has no gains or losses from the sale of property other than the gain from the sale of his home. I need to file my 2010 taxes free He meets the ownership and use tests to exclude the gain from his income. I need to file my 2010 taxes free However, he used part of the home as a business office in 2012 and claimed $500 depreciation. I need to file my 2010 taxes free Because the business office was part of his home (not separate from it), he does not have to allocate the gain on the sale between the business part of the property and the part used as a home. I need to file my 2010 taxes free In addition, he does not have to report any part of the gain on Form 4797. I need to file my 2010 taxes free Because Ray was entitled to take a depreciation deduction, he must recognize $500 of the gain as unrecaptured section 1250 gain. I need to file my 2010 taxes free He reports his gain, exclusion, and the taxable gain of $500 on Form 8949 and Schedule D (Form 1040). I need to file my 2010 taxes free Example 2. I need to file my 2010 taxes free The facts are the same as in Example 1 except that Ray was not entitled to claim depreciation for the business use of his home. I need to file my 2010 taxes free Since Ray did not claim any depreciation, he can exclude the entire $30,000 gain. I need to file my 2010 taxes free Separate Part of Property Used for Business or Rental You may have used part of your property as your home and a separate part of it for business or to produce rental income. I need to file my 2010 taxes free Examples are: A working farm on which your house was located, A duplex in w