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Irs 12. Irs   How To Get Tax Help Table of Contents Low Income Taxpayer Clinics Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Irs Free help with your tax return. Irs   You can get free help preparing your return nationwide from IRS-certified volunteers. Irs The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Irs The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Irs Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Irs In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Irs To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Irs gov, download the IRS2Go app, or call 1-800-906-9887. Irs   As part of the TCE program, AARP offers the Tax-Aide counseling program. Irs To find the nearest AARP Tax-Aide site, visit AARP's website at www. Irs aarp. Irs org/money/taxaide or call 1-888-227-7669. Irs For more information on these programs, go to IRS. Irs gov and enter “VITA” in the search box. Irs Internet. Irs    IRS. Irs gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Irs Download the free IRS2Go app from the iTunes app store or from Google Play. Irs Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Irs Check the status of your 2013 refund with the Where's My Refund? application on IRS. Irs gov or download the IRS2Go app and select the Refund Status option. Irs The IRS issues more than 9 out of 10 refunds in less than 21 days. Irs Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Irs You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Irs Use the Interactive Tax Assistant (ITA) to research your tax questions. Irs No need to wait on the phone or stand in line. Irs The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Irs When you reach the response screen, you can print the entire interview and the final response for your records. Irs New subject areas are added on a regular basis. Irs  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Irs gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Irs You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Irs The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Irs When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Irs Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Irs You can also ask the IRS to mail a return or an account transcript to you. Irs Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Irs gov or by calling 1-800-908-9946. Irs Tax return and tax account transcripts are generally available for the current year and the past three years. Irs Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Irs Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Irs If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Irs Check the status of your amended return using Where's My Amended Return? Go to IRS. Irs gov and enter Where's My Amended Return? in the search box. Irs You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Irs It can take up to 3 weeks from the date you mailed it to show up in our system. Irs Make a payment using one of several safe and convenient electronic payment options available on IRS. Irs gov. Irs Select the Payment tab on the front page of IRS. Irs gov for more information. Irs Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Irs Figure your income tax withholding with the IRS Withholding Calculator on IRS. Irs gov. Irs Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Irs Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Irs gov. Irs Request an Electronic Filing PIN by going to IRS. Irs gov and entering Electronic Filing PIN in the search box. Irs Download forms, instructions and publications, including accessible versions for people with disabilities. Irs Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Irs gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Irs An employee can answer questions about your tax account or help you set up a payment plan. Irs Before you visit, check the Office Locator on IRS. Irs gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Irs If you have a special need, such as a disability, you can request an appointment. Irs Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Irs Apply for an Employer Identification Number (EIN). Irs Go to IRS. Irs gov and enter Apply for an EIN in the search box. Irs Read the Internal Revenue Code, regulations, or other official guidance. Irs Read Internal Revenue Bulletins. Irs Sign up to receive local and national tax news and more by email. Irs Just click on “subscriptions” above the search box on IRS. Irs gov and choose from a variety of options. Irs Phone. Irs    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Irs Download the free IRS2Go app from the iTunes app store or from Google Play. Irs Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Irs gov, or download the IRS2Go app. Irs Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Irs The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Irs Most VITA and TCE sites offer free electronic filing. Irs Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Irs Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Irs Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Irs If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Irs The IRS issues more than 9 out of 10 refunds in less than 21 days. Irs Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Irs The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Irs Note, the above information is for our automated hotline. Irs Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Irs Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Irs You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Irs It can take up to 3 weeks from the date you mailed it to show up in our system. Irs Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Irs You should receive your order within 10 business days. Irs Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Irs If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Irs Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Irs The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Irs These individuals can also contact the IRS through relay services such as the Federal Relay Service. Irs Walk-in. Irs   You can find a selection of forms, publications and services — in-person. Irs Products. Irs You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Irs Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Irs Services. Irs You can walk in to your local TAC for face-to-face tax help. Irs An employee can answer questions about your tax account or help you set up a payment plan. Irs Before visiting, use the Office Locator tool on IRS. Irs gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Irs   Please contact the office for times when assistance will be available. Irs Mail. Irs   You can send your order for forms, instructions, and publications to the address below. Irs You should receive a response within 10 business days after your request is received. Irs Internal Revenue Service 1201 N. Irs Mitsubishi Motorway Bloomington, IL 61705-6613   Taxpayer Advocate Service. Irs   The Taxpayer Advocate Service Is here to help you. Irs The Taxpayer Advocate Service (TAS) is your voice at the IRS. Irs Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Irs   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Irs We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Irs You face (or your business is facing) an immediate threat of adverse action. Irs You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Irs   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Irs Here's why we can help: TAS is an independent organization within the IRS. Irs Our advocates know how to work with the IRS. Irs Our services are free and tailored to meet your needs. Irs We have offices in every state, the District of Columbia, and Puerto Rico. Irs   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Irs  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Irs If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Irs Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Irs Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Irs Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Irs Prev  Up  Next   Home   More Online Publications Skip to content
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Recalls API Server

When you're buying and using products, safety comes first.

Access the Data

Use our Recalls API to tap into a list of car, drug, food, and product safety data and recalls.

See the most recent recalls in JSON or RSS.

You can also see how this data is used when searching for recalls on USA.gov.

Contribute to the Code

The server code that runs our Recalls API is here on Github. If you're a Ruby developer, keep reading. Fork this repo to add features (such as additional datasets) or fix bugs.

Ruby

This code is currently tested against Ruby 2.1.

Gems

We use bundler to manage gems. You can install bundler and other required gems like this:

gem install bundler
bundle install

Solr

We're using Solr for fulltext search. You can start/stop/reindex Solr like this:

bundle exec rake sunspot:solr:start
bundle exec rake sunspot:solr:stop
bundle exec rake sunspot:solr:run
bundle exec rake sunspot:solr:reindex

Database

database.yml assumes you have a local database server up and running (preferably MySQL >= 5.1.65), accessible from user 'root' with no password.

Create and setup your development and test databases:

bundle exec rake db:setup
bundle exec rake db:setup RAILS_ENV=test

Seed data

Populate recall data for your development database:

bundle exec rake usagov:recalls:import_cdc_data
bundle exec rake usagov:recalls:import_cpsc_data
bundle exec rake usagov:recalls:import_nhtsa_data

You need to run these tasks daily to receive the latest recalls data.

Running it

Fire up a server and try it all out:

bundle exec rails s

http://127.0.0.1:3000/search.json?query=stroller

API Versioning

We support API versioning with json format. The current version is v1.

You can specify a a specific JSON version of recalls data like this:

curl -H 'Accept: application/vnd.usagov.recalls.v1' http://localhost:3000/search.json

Parameters

Seven generic parameters are accepted: (1) query, (2) organization, (3) start_date, (4) end_date, (5) page, (6) per_page, and (7) sort. There are additional parameters that are specific to food, product, and car safety recalls. None are required.

Full documentation on the parameters is in our Recalls API documentation.

Tests

Tests require a Solr server to be spun up.

bundle exec rake sunspot:solr:start RAILS_ENV=test

Make sure the tests run:

bundle exec rake spec

Code Coverage

We track test coverage of the codebase over time, to help identify areas where we could write better tests and to see when poorly tested code got introduced.

After running your tests, view the report by opening coverage/rcov/index.html in your browser.

Click around on the files that have < 100% coverage to see what lines weren't exercised.

License

This project is covered under the terms of the GNU General Public License, version 2 or later.

Terms of Use

By accessing this Recalls API server, you agree to our Terms of Service.

Feedback

You can send feedback via Github Issues.


Something went wrong with that request. Please try again.

The Irs

Irs 4. Irs   Detailed Examples Table of Contents These examples use actual forms to help you prepare your income tax return. Irs However, the information shown on the filled-in forms is not from any actual person or scenario. Irs Example 1—Mortgage loan modification. Irs    In 2007, Nancy Oak bought a main home for $435,000. Irs Nancy took out a $420,000 mortgage loan to buy the home and made a down payment of $15,000. Irs The loan was secured by the home. Irs The mortgage loan was a recourse debt, meaning that Nancy was personally liable for the debt. Irs 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    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 The FMV of Nancy's home at the time of the refinancing was $500,000. Irs 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 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   In 2013, Nancy was unable to make her mortgage loan payments. Irs 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 Nancy was neither insolvent nor in bankruptcy at the time of the loan modification. Irs   Nancy received a 2013 Form 1099-C from her bank in January 2014 showing canceled debt of $40,000 in box 2. Irs Identifiable event code "F" appears in box 6. Irs This box shows the reason the creditor has filed Form 1099-C. Irs 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 Nancy determines that the only exception or exclusion that applies to her is the qualified principal residence indebtedness exclusion. Irs   Next, Nancy determines the amount, if any, of the $40,000 of canceled debt that was qualified principal residence indebtedness. Irs 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 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 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   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 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 Nancy must also include the $35,000 nonqualified debt portion in income on Form 1040, line 21. Irs You can see Nancy's Form 1099-C and a portion of her Form 1040 below. Irs Nancy's 2013 Form 1099-C, Cancellation of Debt This image is too large to be displayed in the current screen. Irs Please click the link to view the image. Irs Form 1099-C, Cancellation of Debt Nancy's 2013 Form 1040 This image is too large to be displayed in the current screen. Irs Please click the link to view the image. Irs Form 1040, U. Irs S. Irs Individual Income Tax Nancy's Form 982 This image is too large to be displayed in the current screen. Irs Please click the link to view the image. Irs Form 982 Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)              Example 2—Mortgage loan foreclosure. Irs    In 2005, John and Mary Elm bought a main home for $335,000. Irs John and Mary took out a $320,000 mortgage loan to buy the home and made a down payment of $15,000. Irs The loan was secured by the home and is a recourse debt, meaning John and Mary are personally liable for the debt. Irs   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 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   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 Identifiable event code "D" appears in box 6. Irs This box shows the reason the creditor has filed Form 1099-C. Irs 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 In this example, John and Mary meet both the insolvency and qualified principal residence indebtedness exclusions. Irs Their sample Form 1099-C is shown on this page. Irs   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 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   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 Instead, John and Mary check box 1e of Form 982 to exclude the canceled debt under the qualified principal residence exclusion. Irs 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 As a result, John and Mary enter the full $25,000 of canceled debt on line 2 of Form 982. Irs 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 Thus, John and Mary leave line 10b of Form 982 blank. Irs   John and Mary must also determine whether they have a gain or loss from the foreclosure. Irs John and Mary complete Table 1-1 (shown below) and find that they have a $45,000 loss from the foreclosure. Irs Because this loss relates to their home, it is a nondeductible loss. Irs   John and Mary's Form 1099-C, Insolvency Worksheet, and Form 982 follow. Irs John and Mary's 2013 Form 1099-C, Cancellation of Debt This image is too large to be displayed in the current screen. Irs Please click the link to view the image. Irs Form 1099-C, Cancellation of Debt Table 1-1. Irs Worksheet for Foreclosures and Repossessions (for John and Mary Elm) Part 1. Irs Complete Part 1 only if you were personally liable for the debt (even if none of the debt was canceled). Irs Otherwise, go to Part 2. Irs 1. Irs 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 00 2. Irs Enter the fair market value of the transferred property $290,000. Irs 00 3. Irs Ordinary income from the cancellation of debt upon foreclosure or repossession. Irs * Subtract line 2 from line 1. Irs If less than zero, enter zero. Irs Next, go to Part 2 $ 25,000. Irs 00 Part 2. Irs Gain or loss from foreclosure or repossession. Irs   4. Irs Enter the smaller of line 1 or line 2. Irs 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 00 5. Irs Enter any proceeds you received from the foreclosure sale   6. Irs Add line 4 and line 5 $290,000. Irs 00 7. Irs Enter the adjusted basis of the transferred property $335,000. Irs 00 8. Irs Gain or loss from foreclosure or repossession. Irs Subtract line 7 from line 6 ($ 45,000. Irs 00) * The income may not be taxable. Irs See chapter 1 for more details. Irs Insolvency Worksheet—John and Mary Elm Date debt was canceled (mm/dd/yy) 03/01/13 Part I. Irs 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 Credit card debt $ 5,500 2. Irs 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 Car and other vehicle loans $ 4. Irs Medical bills owed $ 5. Irs Student loans $ 6. Irs Accrued or past-due mortgage interest $ 7. Irs Accrued or past-due real estate taxes $ 8. Irs Accrued or past-due utilities (water, gas, electric) $ 9. Irs Accrued or past-due child care costs $ 10. Irs Federal or state income taxes remaining due (for prior tax years) $ 11. Irs Judgments $ 12. Irs Business debts (including those owed as a sole proprietor or partner) $ 13. Irs Margin debt on stocks and other debt to purchase or secured by investment assets other than real property $ 14. Irs Other liabilities (debts) not included above $ 15. Irs Total liabilities immediately before the cancellation. Irs Add lines 1 through 14. Irs $ 320,500 Part II. Irs 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 Cash and bank account balances $ 6,000 17. Irs 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 Cars and other vehicles $ 19. Irs Computers $ 20. Irs Household goods and furnishings (for example, appliances, electronics, furniture, etc. Irs ) $ 21. Irs Tools $ 22. Irs Jewelry $ 23. Irs Clothing $ 24. Irs Books $ 25. Irs Stocks and bonds $ 26. Irs Investments in coins, stamps, paintings, or other collectibles $ 27. Irs Firearms, sports, photographic, and other hobby equipment $ 28. Irs Interest in retirement accounts (IRA accounts, 401(k) accounts, and other retirement accounts) $ 13,000 29. Irs Interest in a pension plan $ 30. Irs Interest in education accounts $ 31. Irs Cash value of life insurance $ 32. Irs Security deposits with landlords, utilities, and others $ 33. Irs Interests in partnerships $ 34. Irs Value of investment in a business $ 35. Irs Other investments (for example, annuity contracts, guaranteed investment contracts, mutual funds, commodity accounts, interests in hedge funds, and options) $ 36. Irs Other assets not included above $ 37. Irs FMV of total assets immediately before the cancellation. Irs Add lines 16 through 36. Irs $ 309,000 Part III. Irs Insolvency 38. Irs Amount of Insolvency. Irs Subtract line 37 from line 15. Irs If zero or less, you are not insolvent. Irs $ 11,500 John and Mary's Form 982 This image is too large to be displayed in the current screen. Irs Please click the link to view the image. Irs 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    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 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 Kathy and Frank are personally liable for the mortgage loan, which is secured by the home. Irs   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 The lender foreclosed on the property and, on December 5, 2013, sold the property to another buyer for $1,750,000. Irs On December 26, 2013, the lender canceled the remaining debt. Irs Kathy and Frank have no tax attributes other than basis of personal-use property. Irs   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 Identifiable event code "D" appears in box 6. Irs This box shows the reason the creditor has filed Form 1099-C. Irs 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 Kathy and Frank are filing a joint return for 2013. Irs   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 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 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 Because this loss relates to their home, it is a nondeductible loss. Irs   Because the lender later canceled the remaining amount of the debt, Kathy and Frank must also determine whether that canceled debt is taxable. Irs 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 Kathy and Frank also had the $750,000 remaining balance on the mortgage loan at that time. Irs The household furnishings originally cost $30,000. Irs The car had been fully paid off (so there was no related outstanding debt) and was originally purchased for $16,000. Irs Kathy and Frank had no adjustments to the cost basis of the car. Irs Kathy and Frank had no other assets or liabilities at the time of the cancellation. Irs 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   At the beginning of 2014, Kathy and Frank had $9,000 in their savings account and $15,000 in credit card debt. Irs 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 Kathy and Frank had no other assets or liabilities at that time. Irs Kathy and Frank no longer own the home because the lender foreclosed on it in 2013. Irs   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 The maximum amount that Kathy and Frank can treat as qualified principal residence indebtedness is $2,000,000. Irs 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 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 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 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   Kathy and Frank do not elect to have the insolvency exclusion apply instead of the qualified principal residence exclusion. Irs Nonetheless, they can still apply the insolvency exclusion to the $500,000 nonqualified debt because it is not qualified principal residence indebtedness. Irs 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 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   Next, Kathy and Frank reduce their tax attributes using Part II of Form 982. Irs 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 Thus, Kathy and Frank leave line 10b of Form 982 blank. Irs However, Kathy and Frank are also excluding nonqualified debt under the insolvency exclusion. Irs 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 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 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 Kathy and Frank reduce the basis in the car by $14,956. Irs 52 ($43,000 x $16,000/$46,000). Irs And they reduce the basis in the household furnishings by $28,043. Irs 48 ($43,000 x $30,000/$46,000). Irs   Following are Kathy and Frank's sample forms and worksheets. Irs Frank and Kathy's 2013 Form 1099-C, Cancellation of Debt This image is too large to be displayed in the current screen. Irs Please click the link to view the image. Irs Form 1099-C, Cancellation of Debt Table 1-1. Irs Worksheet for Foreclosures and Repossessions (for Frank and Kathy Willow) Part 1. Irs Complete Part 1 only if you were personally liable for the debt (even if none of the debt was canceled). Irs Otherwise, go to Part 2. Irs 1. Irs 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 00 2. Irs Enter the fair market value of the transferred property $1,750,000. Irs 00 3. Irs Ordinary income from the cancellation of debt upon foreclosure or repossession. Irs * Subtract line 2 from line 1. Irs If less than zero, enter zero. Irs Next, go to Part 2 $0. Irs 00 Part 2. Irs Gain or loss from foreclosure or repossession. Irs   4. Irs Enter the smaller of line 1 or line 2. Irs 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 $1,750,000. Irs 00 5. Irs Enter any proceeds you received from the foreclosure sale   6. Irs Add line 4 and line 5 $1,750,000. Irs 00 7. Irs Enter the adjusted basis of the transferred property $3,000,000. Irs 00 8. Irs Gain or loss from foreclosure or repossession. Irs Subtract line 7 from line 6 ($1,250,000. Irs 00) * The income may not be taxable. Irs See chapter 1 for more details. Irs    Insolvency Worksheet—Frank and Kathy Willow Date debt was canceled (mm/dd/yy) 12/26/13 Part I. Irs 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 Credit card debt $ 18,000 2. Irs 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 Car and other vehicle loans $ 4. Irs Medical bills owed $ 5. Irs Student loans $ 6. Irs Accrued or past-due mortgage interest $ 7. Irs Accrued or past-due real estate taxes $ 8. Irs Accrued or past-due utilities (water, gas, electric) $ 9. Irs Accrued or past-due child care costs $ 10. Irs Federal or state income taxes remaining due (for prior tax years) $ 11. Irs Judgments $ 12. Irs Business debts (including those owed as a sole proprietor or partner) $ 13. Irs Margin debt on stocks and other debt to purchase or secured by investment assets other than real property $ 14. Irs Other liabilities (debts) not included above $ 15. Irs Total liabilities immediately before the cancellation. Irs Add lines 1 through 14. Irs $ 768,000 Part II. Irs 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 Cash and bank account balances $ 15,000 17. Irs 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 Cars and other vehicles $ 10,000 19. Irs Computers $ 20. Irs Household goods and furnishings (for example, appliances, electronics, furniture, etc. Irs ) $ 17,000 21. Irs Tools $ 22. Irs Jewelry $ 23. Irs Clothing $ 24. Irs Books $ 25. Irs Stocks and bonds $ 26. Irs Investments in coins, stamps, paintings, or other collectibles $ 27. Irs Firearms, sports, photographic, and other hobby equipment $ 28. Irs Interest in retirement accounts (IRA accounts, 401(k) accounts, and other retirement accounts) $ 29. Irs Interest in a pension plan $ 30. Irs Interest in education accounts $ 31. Irs Cash value of life insurance $ 32. Irs Security deposits with landlords, utilities, and others $ 33. Irs Interests in partnerships $ 34. Irs Value of investment in a business $ 35. Irs Other investments (for example, annuity contracts, guaranteed investment contracts, mutual funds, commodity accounts, interests in hedge funds, and options) $ 36. Irs Other assets not included above $ 37. Irs FMV of total assets immediately before the cancellation. Irs Add lines 16 through 36. Irs $ 42,000 Part III. Irs Insolvency 38. Irs Amount of Insolvency. Irs Subtract line 37 from line 15. Irs If zero or less, you are not insolvent. Irs $ 726,000    Frank and Kathy's Form 982 This image is too large to be displayed in the current screen. Irs Please click the link to view the image. Irs Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) Prev  Up  Next   Home   More Online Publications