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Irs Ez Tax Form

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Irs Ez Tax Form

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Understanding Your CP211D Notice

We denied your request to extend the time to file your Exempt Organization Return for an additional three months because your Form 8868, Application for Extension of Time To File an Exempt Organization Return, Part II, Line 7 didn’t explain the need for additional time OR establish reasons that prevented you from filing by the extended due date.


What you need to do

  • File your required Exempt Organization Return immediately to limit any late filing penalties. If your Exempt Organization Return is filed after the due date of the return (including any extensions), the return is considered late and subject to late filing penalties.
  • We encourage you to use electronic filing – the fastest and easiest way to file.

You may want to

  • Visit www.irs.gov/Charities-&-Non-Profits to learn about approved e-File providers, what types of returns can be filed electronically, and whether you are required to file electronically.

Answers to Common Questions

Q. Where can I go for more information about tax-exempt organizations?

A. For more information on Employee Benefit Plans, see Tax Information for Charities & Other Non-Profits.

Q. Can I get help over the phone?

A. If you have questions and/or need help, you can call 1-877-829-5500. Personal assistance is available Monday through Friday, 7:00 a.m. to 7:00 p.m. CT.


Tips for next year

Be sure to sign and mail your Form 8868 with a reason you need an extension on or before the due date of your return.

Page Last Reviewed or Updated: 24-Jan-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Irs Ez Tax Form

Irs ez tax form 4. Irs ez tax form   Detailed Examples Table of Contents These examples use actual forms to help you prepare your income tax return. Irs ez tax form However, the information shown on the filled-in forms is not from any actual person or scenario. Irs ez tax form Example 1—Mortgage loan modification. Irs ez tax form    In 2007, Nancy Oak bought a main home for $435,000. Irs ez tax form Nancy took out a $420,000 mortgage loan to buy the home and made a down payment of $15,000. Irs ez tax form The loan was secured by the home. Irs ez tax form The mortgage loan was a recourse debt, meaning that Nancy was personally liable for the debt. Irs ez tax form In 2008, Nancy took out a second mortgage loan (also a recourse debt) in the amount of $30,000 that was used to substantially improve her kitchen. Irs ez tax form    In 2011, when the outstanding principal of the first and second mortgage loans was $440,000, Nancy refinanced the two recourse loans into one recourse loan in the amount of $475,000. Irs ez tax form The FMV of Nancy's home at the time of the refinancing was $500,000. Irs ez tax form Nancy used the additional $35,000 debt ($475,000 new mortgage loan minus $440,000 outstanding principal of Nancy's first and second mortgage loans immediately before the refinancing) to pay off personal credit cards and to pay college tuition for her son. Irs ez tax form After the refinancing, Nancy has qualified principal residence indebtedness in the amount of $440,000 because the refinanced debt is qualified principal residence indebtedness only to the extent the amount of debt is not more than the old mortgage principal just before the refinancing. Irs ez tax form   In 2013, Nancy was unable to make her mortgage loan payments. Irs ez tax form On August 31, 2013, when the outstanding balance of her refinanced mortgage loan was still $475,000 and the FMV of the property was $425,000, Nancy's bank agreed to a loan modification (a “workout”) that resulted in a $40,000 reduction in the principal balance of her loan. Irs ez tax form Nancy was neither insolvent nor in bankruptcy at the time of the loan modification. Irs ez tax form   Nancy received a 2013 Form 1099-C from her bank in January 2014 showing canceled debt of $40,000 in box 2. Irs ez tax form Identifiable event code "F" appears in box 6. Irs ez tax form This box shows the reason the creditor has filed Form 1099-C. Irs ez tax form To determine if she must include the canceled debt in her income, Nancy must determine whether she meets any of the exceptions or exclusions that apply to canceled debts. Irs ez tax form Nancy determines that the only exception or exclusion that applies to her is the qualified principal residence indebtedness exclusion. Irs ez tax form   Next, Nancy determines the amount, if any, of the $40,000 of canceled debt that was qualified principal residence indebtedness. Irs ez tax form Although Nancy has $440,000 of qualified principal residence indebtedness, part of her loan ($35,000) was not qualified principal residence indebtedness because it was used to pay off personal credit cards and college tuition for her son. Irs ez tax form Applying the ordering rule, the qualified principal residence indebtedness exclusion applies only to the extent the amount canceled is more than the amount of the debt (immediately before the cancellation) that is not qualified principal residence indebtedness. Irs ez tax form Thus, Nancy can exclude only $5,000 of the canceled debt as qualified principal residence indebtedness ($40,000 amount canceled minus $35,000 nonqualified debt). Irs ez tax form   Because Nancy does not meet any other exception or exclusion, she checks only the box on line 1e of Form 982 and enters $5,000 on line 2. Irs ez tax form Nancy must also enter $5,000 on line 10b and reduce the basis of her main home by the $5,000 she excluded from income, bringing the adjusted basis in her home to $460,000 ($435,000 purchase price plus $30,000 substantial improvement minus $5,000). Irs ez tax form Nancy must also include the $35,000 nonqualified debt portion in income on Form 1040, line 21. Irs ez tax form You can see Nancy's Form 1099-C and a portion of her Form 1040 below. Irs ez tax form Nancy's 2013 Form 1099-C, Cancellation of Debt This image is too large to be displayed in the current screen. Irs ez tax form Please click the link to view the image. Irs ez tax form Form 1099-C, Cancellation of Debt Nancy's 2013 Form 1040 This image is too large to be displayed in the current screen. Irs ez tax form Please click the link to view the image. Irs ez tax form Form 1040, U. Irs ez tax form S. Irs ez tax form Individual Income Tax Nancy's Form 982 This image is too large to be displayed in the current screen. Irs ez tax form Please click the link to view the image. Irs ez tax form Form 982 Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)              Example 2—Mortgage loan foreclosure. Irs ez tax form    In 2005, John and Mary Elm bought a main home for $335,000. Irs ez tax form John and Mary took out a $320,000 mortgage loan to buy the home and made a down payment of $15,000. Irs ez tax form The loan was secured by the home and is a recourse debt, meaning John and Mary are personally liable for the debt. Irs ez tax form   John and Mary became unable to make their mortgage loan payments and on March 1, 2013, when the outstanding balance of the mortgage loan was $315,000 and the FMV of the property was $290,000, the bank foreclosed on the property and simultaneously canceled the remaining mortgage debt. Irs ez tax form Immediately before the foreclosure, John and Mary's only other assets and liabilities were a checking account with a balance of $6,000, retirement savings of $13,000, and credit card debt of $5,500. Irs ez tax form   John and Mary received a 2013 Form 1099-C showing canceled debt of $25,000 in box 2 ($315,000 outstanding balance minus $290,000 FMV) and an FMV of $290,000 in box 7. Irs ez tax form Identifiable event code "D" appears in box 6. Irs ez tax form This box shows the reason the creditor has filed Form 1099-C. Irs ez tax form In order to determine if John and Mary must include the canceled debt in income, they must first determine whether they meet any of the exceptions or exclusions that apply to canceled debts. Irs ez tax form In this example, John and Mary meet both the insolvency and qualified principal residence indebtedness exclusions. Irs ez tax form Their sample Form 1099-C is shown on this page. Irs ez tax form   John and Mary complete the insolvency worksheet and determine that they were insolvent immediately before the cancellation because at that time their liabilities exceeded the FMV of their assets by $11,500 ($320,500 total liabilities minus $309,000 FMV of total assets). Irs ez tax form However, because the entire debt canceled is qualified principal residence indebtedness, the insolvency exclusion only applies if John and Mary elect to apply the insolvency exclusion instead of the qualified principal residence exclusion. Irs ez tax form   John and Mary do not elect to apply the insolvency exclusion instead of the qualified principal residence exclusion because under the insolvency exclusion their exclusion would be limited to the amount by which they were insolvent ($11,500). Irs ez tax form Instead, John and Mary check box 1e of Form 982 to exclude the canceled debt under the qualified principal residence exclusion. Irs ez tax form Under the qualified principal residence exclusion, the amount that John and Mary can exclude is not limited because their qualified principal residence indebtedness is not more than $2 million and no portion of the loan was nonqualified debt. Irs ez tax form As a result, John and Mary enter the full $25,000 of canceled debt on line 2 of Form 982. Irs ez tax form Because John and Mary no longer own the home due to the foreclosure, John and Mary have no remaining basis in the home at the time of the debt cancellation. Irs ez tax form Thus, John and Mary leave line 10b of Form 982 blank. Irs ez tax form   John and Mary must also determine whether they have a gain or loss from the foreclosure. Irs ez tax form John and Mary complete Table 1-1 (shown below) and find that they have a $45,000 loss from the foreclosure. Irs ez tax form Because this loss relates to their home, it is a nondeductible loss. Irs ez tax form   John and Mary's Form 1099-C, Insolvency Worksheet, and Form 982 follow. Irs ez tax form John and Mary's 2013 Form 1099-C, Cancellation of Debt This image is too large to be displayed in the current screen. Irs ez tax form Please click the link to view the image. Irs ez tax form Form 1099-C, Cancellation of Debt Table 1-1. Irs ez tax form Worksheet for Foreclosures and Repossessions (for John and Mary Elm) Part 1. Irs ez tax form Complete Part 1 only if you were personally liable for the debt (even if none of the debt was canceled). Irs ez tax form Otherwise, go to Part 2. Irs ez tax form 1. Irs ez tax form Enter the amount of outstanding debt immediately before the transfer of property reduced by any amount for which you remain personally liable immediately after the transfer of property $315,000. Irs ez tax form 00 2. Irs ez tax form Enter the fair market value of the transferred property $290,000. Irs ez tax form 00 3. Irs ez tax form Ordinary income from the cancellation of debt upon foreclosure or repossession. Irs ez tax form * Subtract line 2 from line 1. Irs ez tax form If less than zero, enter zero. Irs ez tax form Next, go to Part 2 $ 25,000. Irs ez tax form 00 Part 2. Irs ez tax form Gain or loss from foreclosure or repossession. Irs ez tax form   4. Irs ez tax form Enter the smaller of line 1 or line 2. Irs ez tax form If you did not complete Part 1 (because you were not personally liable for the debt), enter the amount of outstanding debt immediately before the transfer of property $290,000. Irs ez tax form 00 5. Irs ez tax form Enter any proceeds you received from the foreclosure sale   6. Irs ez tax form Add line 4 and line 5 $290,000. Irs ez tax form 00 7. Irs ez tax form Enter the adjusted basis of the transferred property $335,000. Irs ez tax form 00 8. Irs ez tax form Gain or loss from foreclosure or repossession. Irs ez tax form Subtract line 7 from line 6 ($ 45,000. Irs ez tax form 00) * The income may not be taxable. Irs ez tax form See chapter 1 for more details. Irs ez tax form Insolvency Worksheet—John and Mary Elm Date debt was canceled (mm/dd/yy) 03/01/13 Part I. Irs ez tax form Total liabilities immediately before the cancellation (do not include the same liability in more than one category) Liabilities (debts) Amount Owed Immediately Before the Cancellation 1. Irs ez tax form Credit card debt $ 5,500 2. Irs ez tax form Mortgage(s) on real property (including first and second mortgages and home equity loans) (mortgage(s) can be on personal residence, any additional residence, or property held for investment or used in a trade or business) $ 315,000 3. Irs ez tax form Car and other vehicle loans $ 4. Irs ez tax form Medical bills owed $ 5. Irs ez tax form Student loans $ 6. Irs ez tax form Accrued or past-due mortgage interest $ 7. Irs ez tax form Accrued or past-due real estate taxes $ 8. Irs ez tax form Accrued or past-due utilities (water, gas, electric) $ 9. Irs ez tax form Accrued or past-due child care costs $ 10. Irs ez tax form Federal or state income taxes remaining due (for prior tax years) $ 11. Irs ez tax form Judgments $ 12. Irs ez tax form Business debts (including those owed as a sole proprietor or partner) $ 13. Irs ez tax form Margin debt on stocks and other debt to purchase or secured by investment assets other than real property $ 14. Irs ez tax form Other liabilities (debts) not included above $ 15. Irs ez tax form Total liabilities immediately before the cancellation. Irs ez tax form Add lines 1 through 14. Irs ez tax form $ 320,500 Part II. Irs ez tax form Fair market value (FMV) of assets owned immediately before the cancellation (do not include the FMV of the same asset in more than one category) Assets FMV Immediately Before  the Cancellation 16. Irs ez tax form Cash and bank account balances $ 6,000 17. Irs ez tax form Real property, including the value of land (can be main home, any additional home, or property held for investment or used in a trade or business) $ 290,000 18. Irs ez tax form Cars and other vehicles $ 19. Irs ez tax form Computers $ 20. Irs ez tax form Household goods and furnishings (for example, appliances, electronics, furniture, etc. Irs ez tax form ) $ 21. Irs ez tax form Tools $ 22. Irs ez tax form Jewelry $ 23. Irs ez tax form Clothing $ 24. Irs ez tax form Books $ 25. Irs ez tax form Stocks and bonds $ 26. Irs ez tax form Investments in coins, stamps, paintings, or other collectibles $ 27. Irs ez tax form Firearms, sports, photographic, and other hobby equipment $ 28. Irs ez tax form Interest in retirement accounts (IRA accounts, 401(k) accounts, and other retirement accounts) $ 13,000 29. Irs ez tax form Interest in a pension plan $ 30. Irs ez tax form Interest in education accounts $ 31. Irs ez tax form Cash value of life insurance $ 32. Irs ez tax form Security deposits with landlords, utilities, and others $ 33. Irs ez tax form Interests in partnerships $ 34. Irs ez tax form Value of investment in a business $ 35. Irs ez tax form Other investments (for example, annuity contracts, guaranteed investment contracts, mutual funds, commodity accounts, interests in hedge funds, and options) $ 36. Irs ez tax form Other assets not included above $ 37. Irs ez tax form FMV of total assets immediately before the cancellation. Irs ez tax form Add lines 16 through 36. Irs ez tax form $ 309,000 Part III. Irs ez tax form Insolvency 38. Irs ez tax form Amount of Insolvency. Irs ez tax form Subtract line 37 from line 15. Irs ez tax form If zero or less, you are not insolvent. Irs ez tax form $ 11,500 John and Mary's Form 982 This image is too large to be displayed in the current screen. Irs ez tax form Please click the link to view the image. Irs ez tax form Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)          Example 3—Mortgage loan foreclosure with debt exceeding $2 million limit. Irs ez tax form    In 2011, Kathy and Frank Willow got married and entered into a contract with Hive Construction Corporation to build a house for $3,000,000 to be used as their main home. Irs ez tax form Kathy and Frank made a $400,000 down payment and took out a $2,600,000 mortgage to finance the remaining cost of the house. Irs ez tax form Kathy and Frank are personally liable for the mortgage loan, which is secured by the home. Irs ez tax form   In November 2013, when the outstanding principal balance on the mortgage loan was $2,500,000, the FMV of the property fell to $1,750,000 and Kathy and Frank abandoned the property by permanently moving out. Irs ez tax form The lender foreclosed on the property and, on December 5, 2013, sold the property to another buyer for $1,750,000. Irs ez tax form On December 26, 2013, the lender canceled the remaining debt. Irs ez tax form Kathy and Frank have no tax attributes other than basis of personal-use property. Irs ez tax form   The lender issued a 2013 Form 1099-C to Kathy and Frank showing canceled debt of $750,000 in box 2 (the remaining balance on the $2,500,000 mortgage debt after application of the foreclosure sale proceeds) and $1,750,000 in box 7 (FMV of the property). Irs ez tax form Identifiable event code "D" appears in box 6. Irs ez tax form This box shows the reason the creditor has filed Form 1099-C. Irs ez tax form Although Kathy and Frank abandoned the property, the lender did not need to also file a Form 1099-A because the lender canceled the debt in connection with the foreclosure in the same calendar year. Irs ez tax form Kathy and Frank are filing a joint return for 2013. Irs ez tax form   Because the foreclosure occurred prior to the debt cancellation, Kathy and Frank first calculate their gain or loss from the foreclosure using Table 1-1. Irs ez tax form Because Kathy and Frank remained personally liable for the $750,000 debt remaining after the foreclosure ($2,500,000 outstanding debt immediately before the foreclosure minus $1,750,000 satisfied through the sale of the home), Kathy and Frank enter $1,750,000 on line 1 of Table 1-1 ($2,500,000 outstanding debt immediately before the foreclosure minus the $750,000 for which they remained liable). Irs ez tax form Completing Table 1-1, Kathy and Frank find that they have no ordinary income from the cancellation of debt upon foreclosure and that they have a $1,250,000 loss. Irs ez tax form Because this loss relates to their home, it is a nondeductible loss. Irs ez tax form   Because the lender later canceled the remaining amount of the debt, Kathy and Frank must also determine whether that canceled debt is taxable. Irs ez tax form Immediately before the cancellation, Kathy and Frank had $15,000 in a savings account, household furnishings with an FMV of $17,000, a car with an FMV of $10,000, and $18,000 in credit card debt. Irs ez tax form Kathy and Frank also had the $750,000 remaining balance on the mortgage loan at that time. Irs ez tax form The household furnishings originally cost $30,000. Irs ez tax form The car had been fully paid off (so there was no related outstanding debt) and was originally purchased for $16,000. Irs ez tax form Kathy and Frank had no adjustments to the cost basis of the car. Irs ez tax form Kathy and Frank had no other assets or liabilities at the time of the cancellation. Irs ez tax form Kathy and Frank complete the insolvency worksheet to calculate that they were insolvent to the extent of $726,000 immediately before the cancellation ($768,000 of total liabilities minus $42,000 FMV of total assets). Irs ez tax form   At the beginning of 2014, Kathy and Frank had $9,000 in their savings account and $15,000 in credit card debt. Irs ez tax form Kathy and Frank also owned the same car at that time (still with an FMV of $10,000 and basis of $16,000) and the same household furnishings (still with an FMV of $17,000 and a basis of $30,000). Irs ez tax form Kathy and Frank had no other assets or liabilities at that time. Irs ez tax form Kathy and Frank no longer own the home because the lender foreclosed on it in 2013. Irs ez tax form   Because the canceled debt is qualified principal residence indebtedness, the insolvency exclusion does not apply unless Kathy and Frank elect to apply the insolvency exclusion instead of the qualified principal residence indebtedness exclusion. Irs ez tax form The maximum amount that Kathy and Frank can treat as qualified principal residence indebtedness is $2,000,000. Irs ez tax form The remaining $500,000 ($2,500,000 outstanding mortgage loan minus $2,000,000 limit on qualified principal residence indebtedness) is not qualified principal residence indebtedness. Irs ez tax form Because only a part of the loan is qualified principal residence indebtedness, Kathy and Frank must apply the ordering rule to the canceled debt. Irs ez tax form Under the ordering rule, the qualified principal residence indebtedness exclusion applies only to the extent that the amount canceled ($750,000) exceeds the amount of the loan (immediately before the cancellation) that is not qualified principal residence indebtedness ($500,000). Irs ez tax form This means that Kathy and Frank can only exclude $250,000 ($750,000 amount canceled minus $500,000 nonqualified debt) under the qualified principal residence indebtedness exclusion. Irs ez tax form   Kathy and Frank do not elect to have the insolvency exclusion apply instead of the qualified principal residence exclusion. Irs ez tax form Nonetheless, they can still apply the insolvency exclusion to the $500,000 nonqualified debt because it is not qualified principal residence indebtedness. Irs ez tax form Kathy and Frank can exclude the remaining $500,000 canceled debt under the insolvency exclusion because they were insolvent immediately before the cancellation to the extent of $726,000. Irs ez tax form Thus, Kathy and Frank check the boxes on lines 1b and 1e of Form 982 and enter $750,000 on line 2 ($250,000 excluded under the qualified principal residence indebtedness exclusion plus $500,000 excluded under the insolvency exclusion). Irs ez tax form   Next, Kathy and Frank reduce their tax attributes using Part II of Form 982. Irs ez tax form Because Kathy and Frank no longer own the home due to the foreclosure, Kathy and Frank have no remaining basis in the home at the time of the debt cancellation. Irs ez tax form Thus, Kathy and Frank leave line 10b of Form 982 blank. Irs ez tax form However, Kathy and Frank are also excluding nonqualified debt under the insolvency exclusion. Irs ez tax form As a result, Kathy and Frank must reduce the basis of property they own based on the amount of canceled debt they are excluding from income under the insolvency rules. Irs ez tax form Because Kathy and Frank have no tax attributes other than basis of personal-use property to reduce, Kathy and Frank figure the amount they must include on line 10a of Form 982 by taking the smallest of: The $46,000 bases of their personal-use property held at the beginning of 2014 ($16,000 basis in the car plus $30,000 basis in household furnishings), The $500,000 of the nonbusiness debt (other than qualified principal residence indebtedness) that they are excluding from income on line 2 of Form 982, or The $43,000 excess of the total bases of the property and the amount of money they held immediately after the cancellation over their total liabilities immediately after the cancellation ($15,000 in savings account plus $30,000 basis in household furnishings plus $16,000 adjusted basis in car minus $18,000 credit card debt). Irs ez tax form Kathy and Frank enter $43,000 on Form 982, line 10a and reduce their bases in the car and the household furnishings in proportion to the total adjusted bases in all their property. Irs ez tax form Kathy and Frank reduce the basis in the car by $14,956. Irs ez tax form 52 ($43,000 x $16,000/$46,000). Irs ez tax form And they reduce the basis in the household furnishings by $28,043. Irs ez tax form 48 ($43,000 x $30,000/$46,000). Irs ez tax form   Following are Kathy and Frank's sample forms and worksheets. Irs ez tax form Frank and Kathy's 2013 Form 1099-C, Cancellation of Debt This image is too large to be displayed in the current screen. Irs ez tax form Please click the link to view the image. Irs ez tax form Form 1099-C, Cancellation of Debt Table 1-1. Irs ez tax form Worksheet for Foreclosures and Repossessions (for Frank and Kathy Willow) Part 1. Irs ez tax form Complete Part 1 only if you were personally liable for the debt (even if none of the debt was canceled). Irs ez tax form Otherwise, go to Part 2. Irs ez tax form 1. Irs ez tax form Enter the amount of outstanding debt immediately before the transfer of property reduced by any amount for which you remain personally liable immediately after the transfer of property $1,750,000. Irs ez tax form 00 2. Irs ez tax form Enter the fair market value of the transferred property $1,750,000. Irs ez tax form 00 3. Irs ez tax form Ordinary income from the cancellation of debt upon foreclosure or repossession. Irs ez tax form * Subtract line 2 from line 1. Irs ez tax form If less than zero, enter zero. Irs ez tax form Next, go to Part 2 $0. Irs ez tax form 00 Part 2. Irs ez tax form Gain or loss from foreclosure or repossession. Irs ez tax form   4. Irs ez tax form Enter the smaller of line 1 or line 2. Irs ez tax form If you did not complete Part 1 (because you were not personally liable for the debt), enter the amount of outstanding debt immediately before the transfer of property. Irs ez tax form $1,750,000. Irs ez tax form 00 5. Irs ez tax form Enter any proceeds you received from the foreclosure sale   6. Irs ez tax form Add line 4 and line 5 $1,750,000. Irs ez tax form 00 7. Irs ez tax form Enter the adjusted basis of the transferred property $3,000,000. Irs ez tax form 00 8. Irs ez tax form Gain or loss from foreclosure or repossession. Irs ez tax form Subtract line 7 from line 6 ($1,250,000. Irs ez tax form 00) * The income may not be taxable. Irs ez tax form See chapter 1 for more details. Irs ez tax form    Insolvency Worksheet—Frank and Kathy Willow Date debt was canceled (mm/dd/yy) 12/26/13 Part I. Irs ez tax form Total liabilities immediately before the cancellation (do not include the same liability in more than one category) Liabilities (debts) Amount Owed Immediately Before the Cancellation 1. Irs ez tax form Credit card debt $ 18,000 2. Irs ez tax form Mortgage(s) on real property (including first and second mortgages and home equity loans) (mortgage(s) can be on personal residence, any additional residence, or property held for investment or used in a trade or business) $ 750,000 3. Irs ez tax form Car and other vehicle loans $ 4. Irs ez tax form Medical bills owed $ 5. Irs ez tax form Student loans $ 6. Irs ez tax form Accrued or past-due mortgage interest $ 7. Irs ez tax form Accrued or past-due real estate taxes $ 8. Irs ez tax form Accrued or past-due utilities (water, gas, electric) $ 9. Irs ez tax form Accrued or past-due child care costs $ 10. Irs ez tax form Federal or state income taxes remaining due (for prior tax years) $ 11. Irs ez tax form Judgments $ 12. Irs ez tax form Business debts (including those owed as a sole proprietor or partner) $ 13. Irs ez tax form Margin debt on stocks and other debt to purchase or secured by investment assets other than real property $ 14. Irs ez tax form Other liabilities (debts) not included above $ 15. Irs ez tax form Total liabilities immediately before the cancellation. Irs ez tax form Add lines 1 through 14. Irs ez tax form $ 768,000 Part II. Irs ez tax form Fair market value (FMV) of assets owned immediately before the cancellation (do not include the FMV of the same asset in more than one category) Assets FMV Immediately Before  the Cancellation 16. Irs ez tax form Cash and bank account balances $ 15,000 17. Irs ez tax form Real property, including the value of land (can be main home, any additional home, or property held for investment or used in a trade or business) $ 18. Irs ez tax form Cars and other vehicles $ 10,000 19. Irs ez tax form Computers $ 20. Irs ez tax form Household goods and furnishings (for example, appliances, electronics, furniture, etc. Irs ez tax form ) $ 17,000 21. Irs ez tax form Tools $ 22. Irs ez tax form Jewelry $ 23. Irs ez tax form Clothing $ 24. Irs ez tax form Books $ 25. Irs ez tax form Stocks and bonds $ 26. Irs ez tax form Investments in coins, stamps, paintings, or other collectibles $ 27. Irs ez tax form Firearms, sports, photographic, and other hobby equipment $ 28. Irs ez tax form Interest in retirement accounts (IRA accounts, 401(k) accounts, and other retirement accounts) $ 29. Irs ez tax form Interest in a pension plan $ 30. Irs ez tax form Interest in education accounts $ 31. Irs ez tax form Cash value of life insurance $ 32. Irs ez tax form Security deposits with landlords, utilities, and others $ 33. Irs ez tax form Interests in partnerships $ 34. Irs ez tax form Value of investment in a business $ 35. Irs ez tax form Other investments (for example, annuity contracts, guaranteed investment contracts, mutual funds, commodity accounts, interests in hedge funds, and options) $ 36. Irs ez tax form Other assets not included above $ 37. Irs ez tax form FMV of total assets immediately before the cancellation. Irs ez tax form Add lines 16 through 36. Irs ez tax form $ 42,000 Part III. Irs ez tax form Insolvency 38. Irs ez tax form Amount of Insolvency. Irs ez tax form Subtract line 37 from line 15. Irs ez tax form If zero or less, you are not insolvent. Irs ez tax form $ 726,000    Frank and Kathy's Form 982 This image is too large to be displayed in the current screen. Irs ez tax form Please click the link to view the image. Irs ez tax form Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) Prev  Up  Next   Home   More Online Publications