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1040 Form For 2010

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1040 Form For 2010

1040 form for 2010 18. 1040 form for 2010   Pensión para el Cónyuge Divorciado Table of Contents IntroductionCónyuge o ex cónyuge. 1040 form for 2010 Documento (instrumento) de divorcio o separación judicial. 1040 form for 2010 Useful Items - You may want to see: Reglas GeneralesPagos hipotecarios. 1040 form for 2010 Impuestos y seguro. 1040 form for 2010 Otros pagos a terceros. 1040 form for 2010 Documentos Firmados Después de 1984Pagos a terceros. 1040 form for 2010 Excepción. 1040 form for 2010 Pagos sustitutivos. 1040 form for 2010 Específicamente designado como pensión para hijos menores. 1040 form for 2010 Contingencia relacionada con su hijo. 1040 form for 2010 Pago claramente asociado con una contingencia. 1040 form for 2010 Cómo Deducir la Pensión para el Cónyuge Divorciado que Pagó Cómo Declarar la Pensión para el Cónyuge Divorciado Recibida Regla de Recuperación Introduction Este capítulo trata de las reglas correspondientes si paga o recibe pensión para el cónyuge divorciado. 1040 form for 2010 Abarca los siguientes temas: Qué pagos se consideran pensión para el cónyuge divorciado. 1040 form for 2010 Qué pagos no se consideran pensión para el cónyuge divorciado, como la pensión para la manutención de hijos. 1040 form for 2010 Cómo deducir la pensión para el cónyuge divorciado que pagó. 1040 form for 2010 Cómo declarar la pensión para el cónyuge divorciado que recibió por concepto de ingresos. 1040 form for 2010 Si debe o no recuperar los beneficios tributarios de la pensión para el cónyuge divorciado. 1040 form for 2010 “Recuperar” significa volver a añadir a sus ingresos toda, o parte de, una deducción que haya tomado en un año anterior. 1040 form for 2010 La “pensión para el cónyuge divorciado” es un pago hecho a, o para, un cónyuge o ex cónyuge conforme a un documento (instrumento) de divorcio o separación judicial. 1040 form for 2010 No incluye pagos voluntarios que no sean hechos conforme a un documento de divorcio o separación. 1040 form for 2010 La pensión para el cónyuge divorciado es deducible por el pagador y tiene que ser incluida en los ingresos del cónyuge o ex cónyuge. 1040 form for 2010 Aunque en general este capítulo está dirigido al pagador de la pensión para el cónyuge divorciado, el cónyuge beneficiario puede usar la información para determinar si una cantidad recibida se considera pago de pensión para el cónyuge divorciado. 1040 form for 2010 Para considerarse pensión para el cónyuge divorciado, un pago tiene que cumplir ciertos requisitos. 1040 form for 2010 Requisitos distintos generalmente corresponden a pagos hechos conforme a documentos firmados después de 1984 y a pagos hechos conforme a documentos firmados antes de 1985. 1040 form for 2010 Este capítulo trata de las reglas relativas a pagos hechos conforme a documentos firmados después de 1984. 1040 form for 2010 Si usted necesita consultar las reglas para pagos hechos conforme a documentos firmados antes de 1985, obtenga y guarde una copia de la versión del año 2004 de la Publicación 504, Divorced or Separated Individuals (Personas divorciadas o separadas), en inglés. 1040 form for 2010 Ése fue el último año en que la información sobre documentos firmados antes de 1985 se incluyó en la Publicación 504. 1040 form for 2010 Use la Tabla 18-1 de este capítulo como guía para determinar si ciertos pagos se consideran pensión para el cónyuge divorciado. 1040 form for 2010 Definiciones. 1040 form for 2010   Las siguientes son definiciones aplicables a lo largo de este capítulo. 1040 form for 2010 Cónyuge o ex cónyuge. 1040 form for 2010   Salvo que se indique lo contrario, el término “cónyuge” incluye a un ex cónyuge. 1040 form for 2010 Documento (instrumento) de divorcio o separación judicial. 1040 form for 2010   El término “documento de divorcio o separación judicial” significa: Un decreto u orden de divorcio o de manutención por separación judicial o un documento (instrumento) por escrito relacionado con ese decreto u orden; Un acuerdo de separación por escrito o Un decreto o cualquier tipo de orden judicial, que le exige a un cónyuge que haga pagos para la manutención del otro cónyuge. 1040 form for 2010 Esto abarca un decreto temporal, un decreto interlocutorio (no final) y un decreto de pensión para el cónyuge divorciado pendente lite (en espera de que se tomen acciones con respecto al decreto o acuerdo final). 1040 form for 2010 Useful Items - You may want to see: Publicación 504 Divorced or Separated Individuals (Personas divorciadas o separadas), en inglés. 1040 form for 2010 Reglas Generales Las siguientes reglas corresponden a la pensión para el cónyuge divorciado independientemente de cuándo se firmó el documento de divorcio o separación judicial. 1040 form for 2010 Pagos que no son pensión para el cónyuge divorciado. 1040 form for 2010   No todos los pagos hechos conforme a un documento de divorcio o separación judicial son pensión para el cónyuge divorciado. 1040 form for 2010 La pensión para el cónyuge divorciado no abarca: Pensión para hijos menores; Acuerdos de división (distribución) de bienes que no sean en efectivo; Pagos que le corresponden a su cónyuge como parte de los ingresos de la comunidad de bienes conyugales, según se explica bajo Community Property (Bienes gananciales), en la Publicación 504, en inglés; Pagos hechos para el mantenimiento de los bienes del pagador o Uso de los bienes del pagador. 1040 form for 2010 Pagos a terceros. 1040 form for 2010   Los pagos en efectivo, cheques o giros hechos a un tercero en nombre de su cónyuge según las condiciones del documento de divorcio o separación judicial pueden ser pagos de pensión para el cónyuge divorciado, si por lo demás reúnen los requisitos. 1040 form for 2010 Estos abarcan pagos hechos para cubrir los gastos médicos de su cónyuge, costos de vivienda (alquiler, servicios públicos, etc. 1040 form for 2010 ), impuestos, matrícula escolar, etcétera. 1040 form for 2010 A estos pagos se les trata como si hubiesen sido recibidos por su cónyuge y luego pagados al tercero. 1040 form for 2010 Primas de un seguro de vida. 1040 form for 2010   La pensión para el cónyuge divorciado incluye las primas que tiene que pagar conforme a su documento de divorcio o separación judicial por su seguro de vida hasta la medida o el punto en que su cónyuge sea el dueño de la póliza. 1040 form for 2010 Pagos por una vivienda comprada conjuntamente. 1040 form for 2010   Si su documento de divorcio o separación judicial estipula que tiene que pagar los gastos de una vivienda que es propiedad de usted y su cónyuge, algunos de sus pagos pueden ser considerados pensión para el cónyuge divorciado. 1040 form for 2010 Pagos hipotecarios. 1040 form for 2010   Si tiene que pagar todos los pagos hipotecarios (capital e intereses) sobre una vivienda de propiedad conjunta y por lo demás estos pagos reúnen los requisitos para considerarse pensión para el cónyuge divorciado, puede deducir la mitad del total de los pagos como pensión para el cónyuge divorciado. 1040 form for 2010 Si detalla sus deducciones y la vivienda reúne los requisitos, puede declarar la mitad de los intereses al calcular sus intereses deducibles. 1040 form for 2010 Su cónyuge tiene que declarar la mitad de los pagos como pensión para el cónyuge divorciado recibida. 1040 form for 2010 Si su cónyuge detalla sus deducciones y la vivienda reúne los requisitos, él o ella puede declarar la mitad de los intereses sobre la hipoteca al calcular sus intereses deducibles. 1040 form for 2010 Impuestos y seguro. 1040 form for 2010   Si tiene que pagar todos los impuestos sobre bienes raíces o seguro de una vivienda que es tenencia común (tenancy in common), puede deducir la mitad de dichos pagos como pensión para el cónyuge divorciado. 1040 form for 2010 Su cónyuge tiene que declarar la mitad de estos pagos como pensión para el cónyuge divorciado recibida. 1040 form for 2010 Si usted y su cónyuge detallan sus deducciones, cada uno puede reclamar la mitad de los impuestos sobre bienes raíces y ninguna parte del seguro de la vivienda. 1040 form for 2010    Si es dueño de una vivienda de tenencia en su totalidad (tenancy by the entirety) o tenencia conjunta (joint tenancy), ninguno de sus pagos de impuestos o pagos de seguro se considera pensión para el cónyuge divorciado. 1040 form for 2010 Sin embargo, si detalla sus deducciones, puede reclamar todos los impuestos sobre bienes raíces y ninguna parte del seguro de vivienda. 1040 form for 2010 Otros pagos a terceros. 1040 form for 2010   Si hizo otros pagos a terceros, vea la Publicación 504, en inglés, para ver si alguna parte de los pagos reúne los requisitos como pensión para el cónyuge divorciado. 1040 form for 2010 Documentos Firmados Después de 1984 Las reglas siguientes de la pensión para el cónyuge divorciado corresponden a pagos hechos conforme a un documento de divorcio o separación judicial firmado después de 1984. 1040 form for 2010 Excepción para documentos firmados antes de 1985. 1040 form for 2010   Existen dos situaciones en las que las reglas para documentos firmados después de 1984 corresponden a documentos firmados antes de 1985: Un documento de divorcio o separación judicial firmado antes de 1985 y modificado después de 1984 para especificar que las reglas para documentos firmados después de 1984 se aplicarán. 1040 form for 2010 Un documento temporal de divorcio o separación judicial firmado antes de 1985 e incorporado dentro de, o adoptado por, un decreto final firmado después de 1984 que: Cambie la cantidad o el período del pago o Añada o suprima cualquier contingencia o condición. 1040 form for 2010   Para las reglas de los pagos de la pensión para el cónyuge divorciado hechos conforme a documentos anteriores a 1985 que no cumplan estas excepciones, consulte la versión de la Publicación 504 publicada en 2004, en inglés, en www. 1040 form for 2010 irs. 1040 form for 2010 gov/pub504. 1040 form for 2010 Ejemplo 1. 1040 form for 2010 En noviembre de 1984, usted y su ex cónyuge firmaron un acuerdo de separación judicial. 1040 form for 2010 En febrero de 1985, el acuerdo de separación judicial por escrito fue sustituido por un documento de divorcio. 1040 form for 2010 El documento de divorcio no cambió las condiciones relativas a la pensión para el cónyuge divorciado que le paga a su ex cónyuge. 1040 form for 2010 El documento de divorcio se trata como si hubiese sido firmado antes de 1985. 1040 form for 2010 Los pagos de pensión para el cónyuge divorciado hechos conforme a este documento no están sujetos a las reglas de pagos hechos conforme a documentos firmados después de 1984. 1040 form for 2010 Ejemplo 2. 1040 form for 2010 Suponga que los hechos son iguales a los del Ejemplo 1, salvo que el documento de divorcio cambió la cantidad de la pensión para el cónyuge divorciado. 1040 form for 2010 En este ejemplo, el documento de divorcio no se trata como si hubiese sido firmado antes de 1985. 1040 form for 2010 Los pagos de pensión para el cónyuge divorciado están sujetos a las reglas de pagos hechos conforme a documentos firmados después de 1984. 1040 form for 2010 Requisitos de la pensión para el cónyuge divorciado. 1040 form for 2010   Un pago realizado a, o para, un cónyuge conforme a un documento de divorcio o separación se considera pensión para el cónyuge divorciado si los cónyuges no presentan una declaración conjunta juntos y si todos los siguientes requisitos se cumplen: El pago es en efectivo. 1040 form for 2010 El documento no indica que el pago no es pensión para el cónyuge divorciado. 1040 form for 2010 Cónyuges que han sido separados legalmente conforme a un decreto de divorcio o un decreto de manutención por separación judicial no se consideran miembros de la misma vivienda. 1040 form for 2010 No hay obligación de hacer pago alguno (en efectivo o en bienes) después de la muerte del cónyuge beneficiario. 1040 form for 2010 El pago no se considera pensión para hijos menores. 1040 form for 2010 Cada uno de estos requisitos se trata a continuación. 1040 form for 2010 Requisito de pagos en efectivo. 1040 form for 2010   Sólo los pagos en efectivo, incluidos cheques y giros, se consideran pensión para el cónyuge divorciado. 1040 form for 2010 Los siguientes ejemplos no se consideran pensión para el cónyuge divorciado: Transferencias de servicios o bienes (incluyendo una escritura de deuda de un tercero o un contrato de anualidad). 1040 form for 2010 La firma de una escritura de deuda por parte del pagador. 1040 form for 2010 Uso de los bienes del pagador. 1040 form for 2010 Pagos a terceros. 1040 form for 2010   Los pagos en efectivo a terceros conforme a las condiciones de su documento de divorcio o separación judicial pueden considerarse pagos en efectivo hechos a su cónyuge. 1040 form for 2010 Vea Pagos a terceros bajo Reglas Generales, anteriormente. 1040 form for 2010   Además, los pagos en efectivo a terceros por medio de una solicitud escrita de parte de su cónyuge pudieran ser considerados pensión para el cónyuge divorciado si se cumplen los requisitos siguientes: Los pagos se hacen en lugar de pagos de la pensión para el cónyuge divorciado hechos directamente a su cónyuge. 1040 form for 2010 La solicitud por escrito declara que ambos cónyuges quieren que los pagos se consideren pagos de pensión para el cónyuge divorciado. 1040 form for 2010 Usted recibe la solicitud por escrito de su cónyuge antes de presentar su declaración para el año en que hizo los pagos. 1040 form for 2010 Pagos no designados como pensión para el cónyuge divorciado. 1040 form for 2010   Usted y su cónyuge pueden designar que los pagos que de otra manera se considerarían pensión para el cónyuge divorciado, en este caso, no se consideren como tal. 1040 form for 2010 Esto se hace incluyendo una disposición en su documento de divorcio o separación judicial que declare que sus pagos de pensión para el cónyuge divorciado no son deducibles y pueden ser excluidos de los ingresos de su cónyuge. 1040 form for 2010 Con este fin, todo instrumento (documento por escrito) firmado tanto por usted como por su cónyuge que haga esta designación y que se refiera a un acuerdo de separación judicial por escrito anterior se considera acuerdo de separación por escrito (y por lo tanto, un documento de divorcio o separación judicial). 1040 form for 2010 Si está sujeto a una orden temporal de manutención, la designación debe ser hecha en la orden original o en una orden temporal de manutención posterior. 1040 form for 2010   Su cónyuge puede excluir los pagos de los ingresos sólo si él o ella adjunta a la declaración de impuestos una copia del documento que los designa pagos que no son pensión para el cónyuge divorciado. 1040 form for 2010 La copia debe ser adjuntada cada año en el que la designación corresponda. 1040 form for 2010 Los cónyuges no pueden vivir en la misma vivienda. 1040 form for 2010    Los pagos a su cónyuge mientras ustedes vivan en la misma vivienda no son pensión para el cónyuge divorciado si están legalmente separados conforme a un documento de divorcio o de manutención por separación judicial. 1040 form for 2010 Una residencia que ambos compartieran antiguamente se considera una vivienda, aun si ustedes se separan físicamente en la residencia. 1040 form for 2010   No se consideran miembros de la misma vivienda si uno de ustedes se va a ir de la vivienda y se va a más tardar un mes después de la fecha del pago. 1040 form for 2010 Excepción. 1040 form for 2010   Si no está legalmente separado conforme a un documento de divorcio o de manutención por separación judicial, un pago hecho conforme a un acuerdo de separación por escrito, documento de manutención u otra orden judicial puede considerarse pensión para el cónyuge divorciado aun si ustedes son miembros de la misma vivienda cuando se hace el pago. 1040 form for 2010 Tabla 18-1. 1040 form for 2010 Requisitos de la Pensión para el Cónyuge Divorciado (Documentos Firmados Después de 1984) Los pagos SON pensión para el cónyuge divorciado si todas las condiciones siguientes le corresponden: Los pagos NO son pensión para el cónyuge divorciado si cualquiera de las condiciones siguientes le corresponden: Los pagos son requeridos por un documento de divorcio o de separación judicial. 1040 form for 2010 Los pagos no son requeridos por un documento de divorcio o de separación judicial. 1040 form for 2010 El cónyuge que paga y el cónyuge beneficiario del pago no presentan una declaración conjunta juntos. 1040 form for 2010 El cónyuge que paga y el cónyuge beneficiario del pago presentan una declaración conjunta juntos. 1040 form for 2010 Los pagos son en efectivo (incluyendo cheques o giros). 1040 form for 2010 El pago: No es en efectivo, Es un acuerdo de división (distribución) de bienes que no son en efectivo, Le corresponde a su cónyuge como su parte de los ingresos de la comunidad de bienes conyugales o Es para el mantenimiento de los bienes del cónyuge que paga. 1040 form for 2010 El documento no indica que el pago no es pensión para el cónyuge divorciado. 1040 form for 2010 El documento indica que el pago no es pensión para el cónyuge divorciado. 1040 form for 2010 Los cónyuges que están legalmente separados conforme a un decreto de divorcio o de manutención por separación judicial no son miembros de la misma vivienda. 1040 form for 2010 Los cónyuges que están legalmente separados conforme a un decreto de divorcio o de manutención por separación judicial viven en la misma vivienda. 1040 form for 2010 Los pagos no son requeridos después de la muerte del cónyuge beneficiario. 1040 form for 2010 Los pagos son requeridos después de la muerte del cónyuge beneficiario. 1040 form for 2010 El pago no se considera pensión para hijos menores. 1040 form for 2010 El pago se considera pensión para hijos menores. 1040 form for 2010 Estos pagos pueden ser deducidos por el cónyuge que paga y deben ser incluidos en los ingresos del cónyuge beneficiario. 1040 form for 2010 Estos pagos no pueden ser deducidos por el cónyuge que paga ni pueden ser incluidos en los ingresos del cónyuge beneficiario. 1040 form for 2010 Obligación de pagos después de la muerte del cónyuge beneficiario. 1040 form for 2010   Si tiene que continuar haciendo pagos por algún período después de la muerte de su cónyuge, la parte del pago que continuaría no se considera pensión para el cónyuge divorciado, independientemente de si se haya hecho antes o después de la muerte. 1040 form for 2010 Si la totalidad del pago continúa, ninguno de los pagos hechos antes o después de la muerte se considera pensión para el cónyuge divorciado. 1040 form for 2010   En el documento de divorcio o de separación judicial no tiene que constar expresamente que los pagos cesan al morir su cónyuge si, por ejemplo, la obligación de continuar con los pagos terminara conforme a la ley estatal. 1040 form for 2010 Ejemplo. 1040 form for 2010 Usted tiene que pagar a su ex cónyuge $10,000 en efectivo anualmente por 10 años. 1040 form for 2010 En su decreto de divorcio consta que los pagos cesarán al morir su ex cónyuge. 1040 form for 2010 También tiene que pagarle $20,000 en efectivo a su ex cónyuge, o al caudal hereditario (patrimonio) de su ex cónyuge, anualmente por 10 años. 1040 form for 2010 La muerte de su cónyuge no causaría el cese de estos pagos conforme a la ley estatal. 1040 form for 2010 Los pagos anuales de $10,000 podrían considerarse pensión para el cónyuge divorciado. 1040 form for 2010 Los pagos anuales de $20,000 que no cesan al morir su ex cónyuge no son pensión para el cónyuge divorciado. 1040 form for 2010 Pagos sustitutivos. 1040 form for 2010   Si tiene que hacer algún pago en efectivo o en bienes después de la muerte de su cónyuge para sustituir los pagos continuos que de otra manera corresponderían antes de la muerte, los pagos que de otra manera corresponderían no son considerados pensión para el cónyuge divorciado. 1040 form for 2010 Hasta el punto en que sus pagos comiencen, se aceleren o aumenten debido a la muerte de su cónyuge, los pagos que de otra manera corresponderían que usted hizo podrían considerarse pagos que no son pensión para el cónyuge divorciado. 1040 form for 2010 Si los pagos son o no considerados pensión para el cónyuge divorciado depende de todos los hechos y circunstancias. 1040 form for 2010 Ejemplo 1. 1040 form for 2010 Conforme a su decreto de divorcio, tiene que pagarle a su ex cónyuge $30,000 anualmente. 1040 form for 2010 Los pagos cesarán al final de 6 años o al morir su cónyuge, lo que suceda antes. 1040 form for 2010 Su ex cónyuge tiene la custodia de sus hijos menores de edad. 1040 form for 2010 El decreto estipula que si algún hijo aún es menor de edad al morir su cónyuge, tiene que pagar $10,000 anualmente a un fideicomiso hasta que su hijo más joven alcance la mayoría de edad. 1040 form for 2010 Los ingresos de fideicomiso y los bienes entregados en fideicomiso (capital) sólo pueden ser usados para el beneficio de sus hijos. 1040 form for 2010 Estos hechos indican que los pagos que han de hacerse después de la muerte de su ex cónyuge sustituyen $10,000 de los pagos anuales de $30,000. 1040 form for 2010 De cada uno de los pagos anuales de $30,000, $10,000 no se consideran pensión para el cónyuge divorciado. 1040 form for 2010 Ejemplo 2. 1040 form for 2010 Conforme a su decreto de divorcio, usted tiene que pagarle a su ex cónyuge $30,000 anualmente. 1040 form for 2010 Los pagos cesarán al final de 15 años o al morir su ex cónyuge, lo que suceda antes. 1040 form for 2010 El decreto estipula que si su ex cónyuge fallece antes del final del período de 15 años, usted le tiene que pagar a su caudal hereditario (patrimonio) la diferencia entre $450,000 ($30,000 x 15) y el total de la cantidad pagada hasta ese momento. 1040 form for 2010 Por ejemplo, si su cónyuge fallece al final del décimo año, tiene que pagarle al caudal hereditario (patrimonio) $150,000 ($450,000 − $300,000). 1040 form for 2010 Estos hechos indican que el pago de suma global que ha de hacerse después de la muerte de su ex cónyuge sustituye la cantidad completa de los pagos anuales de $30,000. 1040 form for 2010 Ninguno de los pagos anuales se considera pensión para el cónyuge divorciado. 1040 form for 2010 El resultado sería el mismo si el pago que se requiere cuando ocurre la muerte se descontara por un factor de intereses correspondientes para justificar el pago por adelantado. 1040 form for 2010 Pensión para hijos menores. 1040 form for 2010   Un pago específicamente designado como pensión para hijos menores o tratado específicamente como pensión para hijos menores conforme a su documento de divorcio o separación judicial no se considera pensión para el cónyuge divorciado. 1040 form for 2010 La cantidad o parte designada podría variar con el tiempo. 1040 form for 2010 Los pagos de la pensión para hijos menores no son deducibles por parte del pagador ni están sujetos a impuestos por parte del beneficiario. 1040 form for 2010 Específicamente designado como pensión para hijos menores. 1040 form for 2010   Un pago se considera específicamente designado como pensión para hijos menores hasta el punto en que el pago sea reducido por una de las siguientes situaciones: En el caso de una contingencia relacionada con su hijo o En un momento que pueda ser claramente asociado con la contingencia. 1040 form for 2010 Un pago puede considerarse específicamente designado pensión para hijos menores aun si otros pagos por separado son específicamente designados como pensión para hijos menores. 1040 form for 2010 Contingencia relacionada con su hijo. 1040 form for 2010   Una contingencia está relacionada con su hijo si depende de algún suceso relacionado con ese hijo. 1040 form for 2010 No importa si es seguro o probable que el suceso vaya a ocurrir. 1040 form for 2010 Los sucesos relacionados con su hijo incluyen que éste: Obtenga un empleo, Muera, Deje la unidad familiar, Deje la escuela, Se case o Alcance una edad o un nivel de ingresos específico. 1040 form for 2010 Pago claramente asociado con una contingencia. 1040 form for 2010   Se considera que los pagos se reducirán en un momento que esté claramente asociado con el suceso de una contingencia relacionada con su hijo sólo en las siguientes situaciones: Los pagos han de ser reducidos dentro de un período de no más de 6 meses antes o después de la fecha en que su hijo alcance los 18 o 21 años de edad o la mayoría de edad en su localidad. 1040 form for 2010 Los pagos han de ser reducidos en dos o más ocasiones que ocurran a más tardar un año antes o después de que otro hijo suyo alcance cierta edad entre los 18 y 24 años. 1040 form for 2010 Esta edad tiene que ser la misma para cada hijo pero no tiene que ser en años completos. 1040 form for 2010 En todas las demás situaciones, las reducciones en pagos no se consideran claramente asociadas con el suceso de una contingencia relacionada con su hijo. 1040 form for 2010   Usted o el IRS puede evitar la presunción hecha en las dos situaciones anteriores. 1040 form for 2010 Esto se hace mostrando que el momento en el que los pagos han de ser reducidos fue determinado independientemente de toda contingencia relacionada con sus hijos. 1040 form for 2010 Por ejemplo, si puede mostrar que el período de pagos de la pensión para el cónyuge divorciado es el que se acostumbra en su jurisdicción local, tal como un período equivalente a la mitad de los años que duró el matrimonio, puede evitar la presunción y tal vez pueda tratar la cantidad que pagó como pensión para el cónyuge divorciado. 1040 form for 2010 Cómo Deducir la Pensión para el Cónyuge Divorciado que Pagó Puede deducir la pensión para el cónyuge divorciado que pagó, independientemente de si detalla sus deducciones en su declaración o no. 1040 form for 2010 Tiene que presentar el Formulario 1040. 1040 form for 2010 No puede usar el Formulario 1040A ni el Formulario 1040EZ. 1040 form for 2010 Anote la cantidad de la pensión para el cónyuge divorciado que pagó en la línea 31a del Formulario 1040. 1040 form for 2010 En el espacio provisto en la línea 31b, anote el número de Seguro Social (SSN, por sus siglas en inglés o su número de identificación de contribuyente individual para extranjeros (ITIN, por sus siglas en inglés)) de su cónyuge. 1040 form for 2010 Si le pagó pensión para el cónyuge divorciado a más de una persona, anote el número de Seguro Social o número de identificación de contribuyente individual para extranjeros de uno de los beneficiarios de pago. 1040 form for 2010 Muestre el número de Seguro Social o número de identificación de contribuyente individual para extranjeros y la cantidad pagada a cada otro beneficiario de pago en una hoja adjunta. 1040 form for 2010 Anote el total de sus pagos en la línea 31a. 1040 form for 2010 Tiene que proveer el SSN o ITIN de su cónyuge. 1040 form for 2010 Si no lo hace, quizás podría que pagar una multa de $50 y su deducción podría ser denegada. 1040 form for 2010 Para más información sobre los SSN o ITIN, consulte Número de Seguro Social , en el capítulo 1. 1040 form for 2010 Cómo Declarar la Pensión para el Cónyuge Divorciado Recibida Declare la pensión para el cónyuge divorciado que usted recibió en la línea 11 del Formulario 1040. 1040 form for 2010 No puede usar el Formulario 1040A ni el Formulario 1040EZ. 1040 form for 2010 Tiene que darle su número de Seguro Social o número de identificación de contribuyente individual para extranjeros a la persona que pagó la pensión para el cónyuge divorciado. 1040 form for 2010 Si no lo hace, podría tener que pagar una multa de $50. 1040 form for 2010 Regla de Recuperación Si sus pagos de la pensión para el cónyuge divorciado disminuyen o cesan durante los primeros 3 años naturales, podría estar sujeto a la regla de recuperación. 1040 form for 2010 Si está sujeto a esta regla, tiene que incluir en sus ingresos del tercer año parte de los pagos de la pensión para el cónyuge divorciado que había deducido anteriormente. 1040 form for 2010 Su cónyuge puede deducir en el tercer año parte de los pagos de la pensión para el cónyuge divorciado que él o ella anteriormente había incluido en los ingresos. 1040 form for 2010 El período de los 3 años comienza con el primer año natural en el cual usted haga un pago que se considere pensión para el cónyuge divorciado conforme a un documento de divorcio o de separación judicial o conforme a un acuerdo de separación por escrito. 1040 form for 2010 No incluya ningún período en que los pagos se hayan hecho conforme a una orden de manutención temporal. 1040 form for 2010 El segundo y tercer año son los 2 años naturales siguientes, independientemente de si se hacen o no pagos durante esos años. 1040 form for 2010 Las causas de una reducción o cese de pagos de la pensión para el cónyuge divorciado que puedan requerir una recuperación incluyen: Un cambio en su documento de divorcio o separación, No hacer pagos oportunamente, Reducción en su capacidad de proveer manutención o Reducción en las necesidades de su cónyuge. 1040 form for 2010 Cuándo aplicar la regla de recuperación. 1040 form for 2010   Usted está sujeto a la regla de recuperación el tercer año si la pensión para el cónyuge divorciado que paga el tercer año disminuye por más de $15,000 en comparación con la cantidad que pagó en el segundo año o la pensión para el cónyuge divorciado que paga en el segundo y tercer año disminuye considerablemente de la cantidad de la pensión para el cónyuge divorciado que pagó en el primer año. 1040 form for 2010   Cuando calcule una disminución en la pensión para el cónyuge divorciado, no incluya las cantidades de los pagos siguientes: Pagos hechos conforme a una orden de manutención temporal. 1040 form for 2010 Pagos requeridos durante un período de por lo menos 3 años naturales que varían porque son una parte fija de sus ingresos provenientes de un negocio o bienes, o de la remuneración de empleo o empleo por cuenta propia. 1040 form for 2010 Pagos que disminuyen debido a la muerte de cualquiera de los cónyuges o porque el cónyuge beneficiario de pago se vuelve a casar antes de finalizar el tercer año. 1040 form for 2010 Cómo calcular la recuperación. 1040 form for 2010   Use la Worksheet 1 (Hoja de Trabajo 1) de la Publicación 504, en inglés, para calcular la pensión para el cónyuge divorciado recuperada. 1040 form for 2010 Cómo incluir la recuperación en los ingresos. 1040 form for 2010   Si tiene que incluir una cantidad recuperada en sus ingresos, anótela en la línea 11 (Formulario 1040), “Alimony received” (Pensión para el cónyuge divorciado recibida). 1040 form for 2010 Tache la palabra “received” (recibida) y anote, en inglés, la palabra “recapture” (recuperación). 1040 form for 2010 En la línea de puntos junto a la cantidad, escriba el apellido y número de Seguro Social o número de identificación de contribuyente individual para extranjeros de su cónyuge. 1040 form for 2010 Cómo deducir la recuperación. 1040 form for 2010   Si puede deducir una cantidad recuperada, anótela en la línea 31a (Formulario 1040), “Alimony paid” (Pensión para el cónyuge divorciado pagada). 1040 form for 2010 Tache la palabra “paid” (pagada) y anote, en inglés, la palabra “recapture” (recuperación). 1040 form for 2010 En el espacio provisto, anote el número de Seguro Social o número de identificación de contribuyente individual para extranjeros de su cónyuge. 1040 form for 2010 Prev  Up  Next   Home   More Online Publications
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Tax Relief for Victims of Hurricane Irene in Puerto Rico

Updated 9/29/11 to add the municipalities of Adjuntas, Ciales, Guaynabo.

Updated 9/13/11 to add the municipalities of Fajardo, Gurabo, Las Piedras, Naguabo, Naranjito, Río Grande, San Lorenzo, Trujillo Alto, Vega Baja, Vieques and Villalba.

Updated 9/6/11 to add the municipalities of Arroyo, Aguas Buenas, Cidra, Coamo, Comerio, Humacao, Jayuya, Juncos, Orocovis, Patillas and Ponce.

SP-FL-2011-14, Aug. 30, 2011

MIAMI — Victims of Hurricane Irene that began on Aug. 21, 2011 in parts of Puerto Rico may qualify for tax relief from the Internal Revenue Service.

The President has declared the following municipalities a federal disaster area: Adjuntas, Arroyo, Aguas Buenas, Caguas, Canóvanas, Carolina, Cayey, Cidra, Ciales, Coamo, Comerío, Fajardo, Guaynabo, Gurabo, Humacao, Jayuya, Juncos, Las Piedras, Loíza, Luquillo, Naguabo, Naranjito, Orocovis, Patillas, Ponce, Río Grande,  San Juan, San Lorenzo, Trujillo Alto, Vega Baja, Vieques and Villalba. Individuals who reside or have a business in these municipalities may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Aug. 21, and on or before Oct. 31, have been postponed to Oct. 31, 2011. This includes corporations and other businesses that previously obtained an extension until Sept. 15 to file their 2010 returns, and individuals and businesses that received a similar extension until Oct. 17. It also includes the estimated tax payment for the third quarter, normally due Sept. 15.  

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Aug. 21, and on or before Sept. 6, as long as the deposits are made by Sept. 6, 2011.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.

Covered Disaster Area

The municipalities listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until Oct. 31 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Aug. 21 and on or before Oct. 31.

The IRS also gives affected taxpayers until Oct. 31 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Aug. 21 and on or before Oct. 31.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Aug. 21 and on or before Sept. 6 provided the taxpayer makes these deposits by Sept. 6.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.
Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “Puerto Rico/Hurricane Irene” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.

Related Information

SP-FL-2011-14SP, Alivio Tributario a Víctimas del Huracán Irene en Puerto Rico
Disaster Assistance and Emergency Relief for Individuals and Businesses
Recent IRS Disaster Relief Announcements

 

Page Last Reviewed or Updated: 20-Mar-2014

The 1040 Form For 2010

1040 form for 2010 10. 1040 form for 2010   Installment Sales Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Installment Sale of a Farm Installment MethodWhen to elect out. 1040 form for 2010 Revoking the election. 1040 form for 2010 More information. 1040 form for 2010 Figuring Installment Sale Income Payments Received or Considered Received ExampleSection 1231 gains. 1040 form for 2010 Summary. 1040 form for 2010 Introduction An installment sale is a sale of property where you receive at least one payment after the tax year of the sale. 1040 form for 2010 If you realize a gain on an installment sale, you may be able to report part of your gain when you receive each payment. 1040 form for 2010 This method of reporting gain is called the installment method. 1040 form for 2010 You cannot use the installment method to report a loss. 1040 form for 2010 You can choose to report all of your gain in the year of sale. 1040 form for 2010 Installment obligation. 1040 form for 2010   The buyer's obligation to make future payments to you can be in the form of a deed of trust, note, land contract, mortgage, or other evidence of the buyer's debt to you. 1040 form for 2010 Topics - This chapter discusses: The general rules that apply to using the installment method Installment sale of a farm Useful Items - You may want to see: Publication 523 Selling Your Home 535 Business Expenses 537 Installment Sales 538 Accounting Periods and Methods 544 Sales and Other Dispositions of Assets Form (and Instructions) 4797 Sales of Business Property 6252 Installment Sale Income See chapter 16 for information about getting publications and forms. 1040 form for 2010 Installment Sale of a Farm The installment sale of a farm for one overall price under a single contract is not the sale of a single asset. 1040 form for 2010 It generally includes the sale of real property and personal property reportable on the installment method. 1040 form for 2010 It may also include the sale of property for which you must maintain an inventory, which cannot be reported on the installment method. 1040 form for 2010 See Inventory , later. 1040 form for 2010 The selling price must be allocated to determine the amount received for each class of asset. 1040 form for 2010 The tax treatment of the gain or loss on the sale of each class of assets is determined by its classification as a capital asset, as property used in the business, or as property held for sale and by the length of time the asset was held. 1040 form for 2010 (See chapter 8 for a discussion of capital assets and chapter 9 for a discussion of property used in the business. 1040 form for 2010 ) Separate computations must be made to figure the gain or loss for each class of asset sold. 1040 form for 2010 See Sale of a Farm in chapter 8. 1040 form for 2010 If you report the sale of property on the installment method, any depreciation recapture under section 1245 or 1250 of the Internal Revenue Code is generally taxable as ordinary income in the year of sale. 1040 form for 2010 See Depreciation recapture , later. 1040 form for 2010 This applies even if no payments are received in that year. 1040 form for 2010 Installment Method An installment sale is a sale of property where you receive at least one payment after the tax year of the sale. 1040 form for 2010 A farmer who is not required to maintain an inventory can use the installment method to report gain from the sale of property used or produced in farming. 1040 form for 2010 See Inventory , later, for information on the sale of farm property where inventory items are included in the assets sold. 1040 form for 2010 If a sale qualifies as an installment sale, the gain must be reported under the installment method unless you elect out of using the installment method. 1040 form for 2010 Electing out of the installment method. 1040 form for 2010   If you elect not to use the installment method, you generally report the entire gain in the year of sale, even though you do not receive all the sale proceeds in that year. 1040 form for 2010   To make this election, do not report your sale on Form 6252. 1040 form for 2010 Instead, report it on Schedule D (Form 1040), Form 4797, or both. 1040 form for 2010 When to elect out. 1040 form for 2010   Make this election by the due date, including extensions, for filing your tax return for the year the sale takes place. 1040 form for 2010   However, if you timely file your tax return for the year the sale takes place without making the election, you still can make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). 1040 form for 2010 Write “Filed pursuant to section 301. 1040 form for 2010 9100-2” at the top of the amended return and file it where the original return was filed. 1040 form for 2010 Revoking the election. 1040 form for 2010   Once made, the election can be revoked only with IRS approval. 1040 form for 2010 A revocation is retroactive. 1040 form for 2010 More information. 1040 form for 2010   See Electing Out of the Installment Method in Publication 537 for more information. 1040 form for 2010 Inventory. 1040 form for 2010   The sale of farm inventory items cannot be reported on the installment method. 1040 form for 2010 All gain or loss on their sale must be reported in the year of sale, even if you receive payment in later years. 1040 form for 2010   If inventory items are included in an installment sale, you may have an agreement stating which payments are for inventory and which are for the other assets being sold. 1040 form for 2010 If you do not, each payment must be allocated between the inventory and the other assets sold. 1040 form for 2010 Sale at a loss. 1040 form for 2010   If your sale results in a loss, you cannot use the installment method. 1040 form for 2010 If the loss is on an installment sale of business assets, you can deduct it only in the tax year of sale. 1040 form for 2010 Figuring Installment Sale Income Each payment on an installment sale usually consists of the following three parts. 1040 form for 2010 Interest income. 1040 form for 2010 Return of your adjusted basis in the property. 1040 form for 2010 Gain on the sale. 1040 form for 2010 In each year you receive a payment, you must include in income both the interest part and the part that is your gain on the sale. 1040 form for 2010 You do not include in income the part that is the return of your basis in the property. 1040 form for 2010 Basis is the amount of your investment in the property for installment sale purposes. 1040 form for 2010 Interest income. 1040 form for 2010   You must report interest as ordinary income. 1040 form for 2010 Interest is generally not included in a down payment. 1040 form for 2010 However, you may have to treat part of each later payment as interest, even if it is not called interest in your agreement with the buyer. 1040 form for 2010 Interest provided in the agreement is called stated interest. 1040 form for 2010 If the agreement does not provide for enough stated interest, there may be unstated interest or original issue discount. 1040 form for 2010 See Unstated interest , later. 1040 form for 2010    You must continue to report the interest income on payments you receive in subsequent years as interest income. 1040 form for 2010 Adjusted basis and installment sale income (gain on sale). 1040 form for 2010   After you have determined how much of each payment to treat as interest, you treat the rest of each payment as if it were made up of two parts. 1040 form for 2010 A tax-free return of your adjusted basis in the property, and Your gain (referred to as “installment sale income” on Form 6252). 1040 form for 2010 Figuring adjusted basis for installment sale purposes. 1040 form for 2010   You can use Worksheet 10-1 to figure your adjusted basis in the property for installment sale purposes. 1040 form for 2010 When you have completed the worksheet, you will also have determined the gross profit percentage necessary to figure your installment sale income (gain) for this year. 1040 form for 2010    Worksheet 10-1. 1040 form for 2010 Figuring Adjusted Basis and Gross Profit Percentage 1. 1040 form for 2010 Enter the selling price for the property   2. 1040 form for 2010 Enter your adjusted basis for the property     3. 1040 form for 2010 Enter your selling expenses     4. 1040 form for 2010 Enter any depreciation recapture     5. 1040 form for 2010 Add lines 2, 3, and 4. 1040 form for 2010  This is your adjusted basis  for installment sale purposes   6. 1040 form for 2010 Subtract line 5 from line 1. 1040 form for 2010 If zero or less, enter -0-. 1040 form for 2010  This is your gross profit     If the amount entered on line 6 is zero, Stop here. 1040 form for 2010 You cannot use the installment method. 1040 form for 2010   7. 1040 form for 2010 Enter the contract price for the property   8. 1040 form for 2010 Divide line 6 by line 7. 1040 form for 2010 This is your gross profit percentage   Selling price. 1040 form for 2010   The selling price is the total cost of the property to the buyer and includes the following. 1040 form for 2010 Any money you are to receive. 1040 form for 2010 The fair market value (FMV) of any property you are to receive (FMV is discussed at Property used as a payment under Payments Received or Considered Received ). 1040 form for 2010 Any existing mortgage or other debt the buyer pays, assumes, or takes (a note, mortgage, or any other liability, such as a lien, accrued interest, or taxes you owe on the property). 1040 form for 2010 Any of your selling expenses the buyer pays. 1040 form for 2010 Do not include stated interest, unstated interest, any amount recomputed or recharacterized as interest, or original issue discount. 1040 form for 2010 Adjusted basis for installment sale purposes. 1040 form for 2010   Your adjusted basis is the total of the following three items. 1040 form for 2010 Adjusted basis. 1040 form for 2010 Selling expenses. 1040 form for 2010 Depreciation recapture. 1040 form for 2010 Adjusted basis. 1040 form for 2010   Basis is your investment in the property for installment sale purposes. 1040 form for 2010 The way you figure basis depends on how you acquire the property. 1040 form for 2010 The basis of property you buy is generally its cost. 1040 form for 2010 The basis of property you inherit, receive as a gift, build yourself, or receive in a tax-free exchange is figured differently. 1040 form for 2010   While you own property, various events may change your original basis. 1040 form for 2010 Some events, such as adding rooms or making permanent improvements, increase basis. 1040 form for 2010 Others, such as deductible casualty losses or depreciation previously allowed or allowable, decrease basis. 1040 form for 2010 The result is adjusted basis. 1040 form for 2010 See chapter 6 and Publication 551, Basis of Assets, for more information. 1040 form for 2010 Selling expenses. 1040 form for 2010   Selling expenses relate to the sale of the property. 1040 form for 2010 They include commissions, attorney fees, and any other expenses paid on the sale. 1040 form for 2010 Selling expenses are added to the basis of the sold property. 1040 form for 2010 Depreciation recapture. 1040 form for 2010   If the property you sold was depreciable property, you may need to recapture part of the gain on the sale as ordinary income. 1040 form for 2010 See Depreciation Recapture in chapter 9 and Depreciation Recapture Income in Publication 537. 1040 form for 2010 Gross profit. 1040 form for 2010   Gross profit is the total gain you report on the installment method. 1040 form for 2010   To figure your gross profit, subtract your adjusted basis for installment sale purposes from the selling price. 1040 form for 2010 If the property you sold was your home, subtract from the gross profit any gain you can exclude. 1040 form for 2010 Contract price. 1040 form for 2010   Contract price equals: The selling price, minus The mortgages, debts, and other liabilities assumed or taken by the buyer, plus The amount by which the mortgages, debts, and other liabilities assumed or taken by the buyer exceed your adjusted basis for installment sale purposes. 1040 form for 2010 Gross profit percentage. 1040 form for 2010   A certain percentage of each payment (after subtracting interest) is reported as installment sale income. 1040 form for 2010 This percentage is called the gross profit percentage and is figured by dividing your gross profit from the sale by the contract price. 1040 form for 2010   The gross profit percentage generally remains the same for each payment you receive. 1040 form for 2010 However, see the example under Selling price reduced , later, for a situation where the gross profit percentage changes. 1040 form for 2010 Amount to report as installment sale income. 1040 form for 2010   Multiply the payments you receive each year (less interest) by the gross profit percentage. 1040 form for 2010 The result is your installment sales income for the tax year. 1040 form for 2010 In certain circumstances, you may be treated as having received a payment, even though you received nothing directly. 1040 form for 2010 A receipt of property or the assumption of a mortgage on the property sold may be treated as a payment. 1040 form for 2010 For a detailed discussion, see Payments Received or Considered Received , later. 1040 form for 2010 Selling price reduced. 1040 form for 2010   If the selling price is reduced at a later date, the gross profit on the sale also will change. 1040 form for 2010 You then must refigure the gross profit percentage for the remaining payments. 1040 form for 2010 Refigure your gross profit using Worksheet 10-2. 1040 form for 2010 New Gross Profit Percentage — Selling Price Reduced. 1040 form for 2010 You will spread any remaining gain over future installments. 1040 form for 2010    Worksheet 10-2. 1040 form for 2010 New Gross Profit Percentage — Selling Price Reduced 1. 1040 form for 2010 Enter the reduced selling  price for the property   2. 1040 form for 2010 Enter your adjusted  basis for the  property     3. 1040 form for 2010 Enter your selling  expenses     4. 1040 form for 2010 Enter any depreciation  recapture     5. 1040 form for 2010 Add lines 2, 3, and 4. 1040 form for 2010   6. 1040 form for 2010 Subtract line 5 from line 1. 1040 form for 2010  This is your adjusted  gross profit   7. 1040 form for 2010 Enter any installment sale  income reported in  prior year(s)   8. 1040 form for 2010 Subtract line 7 from line 6   9. 1040 form for 2010 Future installments     10. 1040 form for 2010 Divide line 8 by line 9. 1040 form for 2010  This is your new  gross profit percentage*. 1040 form for 2010   * Apply this percentage to all future payments to determine how much of each of those payments is installment sale income. 1040 form for 2010 Example. 1040 form for 2010 In 2011, you sold land with a basis of $40,000 for $100,000. 1040 form for 2010 Your gross profit was $60,000. 1040 form for 2010 You received a $20,000 down payment and the buyer's note for $80,000. 1040 form for 2010 The note provides for monthly payments of $1,953 each, figured at 8% interest, amortized over four years, beginning in January 2012. 1040 form for 2010 Your gross profit percentage was 60%. 1040 form for 2010 You received the down payment of $20,000 in 2011 and total payments of $23,436 in 2012, of which $17,675 was principal and $5,761 was interest according to the amortization schedule. 1040 form for 2010 You reported a gain of $12,000 on the down payment received in 2011 and $10,605 ($17,675 X 60% (. 1040 form for 2010 60)) in 2012. 1040 form for 2010 In January 2013, you and the buyer agreed to reduce the purchase price to $85,000 and payments during 2013, 2014, and 2015 are reduced to $1,483 a month amortized over the remaining three years. 1040 form for 2010 The new gross profit percentage, 47. 1040 form for 2010 32%, is figured in Example — Worksheet 10-2. 1040 form for 2010 Example — Worksheet 10-2. 1040 form for 2010 New Gross Profit Percentage — Selling Price Reduced 1. 1040 form for 2010 Enter the reduced selling  price for the property 85,000 2. 1040 form for 2010 Enter your adjusted  basis for the  property 40,000   3. 1040 form for 2010 Enter your selling  expenses -0-   4. 1040 form for 2010 Enter any depreciation  recapture -0-   5. 1040 form for 2010 Add lines 2, 3, and 4. 1040 form for 2010 40,000 6. 1040 form for 2010 Subtract line 5 from line 1. 1040 form for 2010  This is your adjusted  gross profit 45,000 7. 1040 form for 2010 Enter any installment sale  income reported in  prior year(s) 22,605 8. 1040 form for 2010 Subtract line 7 from line 6 22,395 9. 1040 form for 2010 Future installments   47,325 10. 1040 form for 2010 Divide line 8 by line 9. 1040 form for 2010  This is your new  gross profit percentage*. 1040 form for 2010 47. 1040 form for 2010 32% * Apply this percentage to all future payments to determine how much of each of those payments is installment sale income. 1040 form for 2010 You will report installment sale income of $6,878 (47. 1040 form for 2010 32% of $14,535) in 2013, $7,449 (47. 1040 form for 2010 32% of $15,742) in 2014, and $8,067 (47. 1040 form for 2010 32% of $17,048) in 2015. 1040 form for 2010 Form 6252. 1040 form for 2010   Use Form 6252 to report an installment sale in the year it takes place and to report payments received, or considered received because of related party resales, in later years. 1040 form for 2010 Attach it to your tax return for each year. 1040 form for 2010 Disposition of Installment Obligation If you are using the installment method and you dispose of the installment obligation, generally you will have a gain or loss to report. 1040 form for 2010 It is considered gain or loss on the sale of the property for which you received the installment obligation. 1040 form for 2010 Cancellation. 1040 form for 2010   If an installment obligation is canceled or otherwise becomes unenforceable, it is treated as a disposition other than a sale or exchange. 1040 form for 2010 Your gain or loss is the difference between your basis in the obligation and its fair market value (FMV) at the time you cancel it. 1040 form for 2010 If the parties are related, the FMV of the obligation is considered to be no less than its full face value. 1040 form for 2010 Transfer due to death. 1040 form for 2010   The transfer of an installment obligation (other than to a buyer) as a result of the death of the seller is not a disposition. 1040 form for 2010 Any unreported gain from the installment obligation is not treated as gross income to the decedent. 1040 form for 2010 No income is reported on the decedent's return due to the transfer. 1040 form for 2010 Whoever receives the installment obligation as a result of the seller's death is taxed on the installment payments the same as the seller would have been had the seller lived to receive the payments. 1040 form for 2010   However, if the installment obligation is canceled, becomes unenforceable, or is transferred to the buyer because of the death of the holder of the obligation, it is a disposition. 1040 form for 2010 The estate must figure its gain or loss on the disposition. 1040 form for 2010 If the holder and the buyer were related, the FMV of the installment obligation is considered to be no less than its full face value. 1040 form for 2010 More information. 1040 form for 2010   For more information on the disposition of an installment obligation, see Publication 537. 1040 form for 2010 Sale of depreciable property. 1040 form for 2010   You generally cannot report gain from the sale of depreciable property to a related person on the installment method. 1040 form for 2010 See Sale to a Related Person in Publication 537. 1040 form for 2010   You cannot use the installment method to report any depreciation recapture income up to the gain on the sale. 1040 form for 2010 However, report any gain greater than the recapture income on the installment method. 1040 form for 2010   The recapture income reported in the year of sale is included in your installment sale basis to determine your gross profit on the installment sale. 1040 form for 2010   Figure your depreciation recapture income (including the section 179 deduction and the section 179A deduction recapture) in Part III of Form 4797. 1040 form for 2010 Report the depreciation recapture income in Part II of Form 4797 as ordinary income in the year of sale. 1040 form for 2010    If you sell depreciable business property, prepare Form 4797 first in order to figure the amount to enter on line 12 of Part I, Form 6252. 1040 form for 2010 See the Form 6252 instructions for details. 1040 form for 2010   For more information on the section 179 deduction, see Section 179 Expense Deduction in chapter 7. 1040 form for 2010 For more information on depreciation recapture, see Depreciation Recapture in  chapter 9. 1040 form for 2010 Payments Received or Considered Received You must figure your gain each year on the payments you receive, or are treated as receiving, from an installment sale. 1040 form for 2010 In certain situations, you are considered to have received a payment, even though the buyer does not pay you directly. 1040 form for 2010 These situations occur when the buyer assumes or pays any of your debts, such as a loan, or pays any of your expenses, such as a sales commission. 1040 form for 2010 However, as discussed later, the buyer's assumption of your debt is treated as a recovery of basis, rather than as a payment, in many cases. 1040 form for 2010 Buyer pays seller's expenses. 1040 form for 2010   If the buyer pays any of your expenses related to the sale of your property, it is considered a payment to you in the year of sale. 1040 form for 2010 Include these expenses in the selling and contract prices when figuring the gross profit percentage. 1040 form for 2010 Buyer assumes mortgage. 1040 form for 2010   If the buyer assumes or pays off your mortgage, or otherwise takes the property subject to the mortgage, the following rules apply. 1040 form for 2010 Mortgage less than basis. 1040 form for 2010   If the buyer assumes a mortgage that is not more than your installment sale basis in the property, it is not considered a payment to you. 1040 form for 2010 It is considered a recovery of your basis. 1040 form for 2010 The contract price is the selling price minus the mortgage. 1040 form for 2010 Example. 1040 form for 2010 You sell property with an adjusted basis of $19,000. 1040 form for 2010 You have selling expenses of $1,000. 1040 form for 2010 The buyer assumes your existing mortgage of $15,000 and agrees to pay you $10,000 (a cash down payment of $2,000 and $2,000 (plus 8% interest) in each of the next 4 years). 1040 form for 2010 The selling price is $25,000 ($15,000 + $10,000). 1040 form for 2010 Your gross profit is $5,000 ($25,000 − $20,000 installment sale basis). 1040 form for 2010 The contract price is $10,000 ($25,000 − $15,000 mortgage). 1040 form for 2010 Your gross profit percentage is 50% ($5,000 ÷ $10,000). 1040 form for 2010 You report half of each $2,000 payment received as gain from the sale. 1040 form for 2010 You also report all interest you receive as ordinary income. 1040 form for 2010 Mortgage more than basis. 1040 form for 2010   If the buyer assumes a mortgage that is more than your installment sale basis in the property, you recover your entire basis. 1040 form for 2010 The part of the mortgage greater than your basis is treated as a payment received in the year of sale. 1040 form for 2010   To figure the contract price, subtract the mortgage from the selling price. 1040 form for 2010 This is the total amount (other than interest) you will receive directly from the buyer. 1040 form for 2010 Add to this amount the payment you are considered to have received (the difference between the mortgage and your installment sale basis). 1040 form for 2010 The contract price is then the same as your gross profit from the sale. 1040 form for 2010    If the mortgage the buyer assumes is equal to or more than your installment sale basis, the gross profit percentage always will be 100%. 1040 form for 2010 Example. 1040 form for 2010 The selling price for your property is $9,000. 1040 form for 2010 The buyer will pay you $1,000 annually (plus 8% interest) over the next 3 years and assume an existing mortgage of $6,000. 1040 form for 2010 Your adjusted basis in the property is $4,400. 1040 form for 2010 You have selling expenses of $600, for a total installment sale basis of $5,000. 1040 form for 2010 The part of the mortgage that is more than your installment sale basis is $1,000 ($6,000 − $5,000). 1040 form for 2010 This amount is included in the contract price and treated as a payment received in the year of sale. 1040 form for 2010 The contract price is $4,000: Selling price $9,000 Minus: Mortgage (6,000) Amount actually received $3,000 Add difference:   Mortgage $6,000   Minus: Installment sale basis 5,000 1,000 Contract price $4,000   Your gross profit on the sale is also $4,000: Selling price $9,000 Minus: Installment sale basis (5,000) Gross profit $4,000   Your gross profit percentage is 100%. 1040 form for 2010 Report 100% of each payment (less interest) as gain from the sale. 1040 form for 2010 Treat the $1,000 difference between the mortgage and your installment sale basis as a payment and report 100% of it as gain in the year of sale. 1040 form for 2010 Buyer assumes other debts. 1040 form for 2010   If the buyer assumes any other debts, such as a loan or back taxes, it may be considered a payment to you in the year of sale. 1040 form for 2010   If the buyer assumes the debt instead of paying it off, only part of it may have to be treated as a payment. 1040 form for 2010 Compare the debt to your installment sale basis in the property being sold. 1040 form for 2010 If the debt is less than your installment sale basis, none of it is treated as a payment. 1040 form for 2010 If it is more, only the difference is treated as a payment. 1040 form for 2010 If the buyer assumes more than one debt, any part of the total that is more than your installment sale basis is considered a payment. 1040 form for 2010 These rules are the same as the rules discussed earlier under Buyer assumes mortgage . 1040 form for 2010 However, they apply only to the following types of debt the buyer assumes. 1040 form for 2010 Those acquired from ownership of the property you are selling, such as a mortgage, lien, overdue interest, or back taxes. 1040 form for 2010 Those acquired in the ordinary course of your business, such as a balance due for inventory you purchased. 1040 form for 2010   If the buyer assumes any other type of debt, such as a personal loan or your legal fees relating to the sale, it is treated as if the buyer had paid off the debt at the time of the sale. 1040 form for 2010 The value of the assumed debt is then considered a payment to you in the year of sale. 1040 form for 2010 Property used as a payment. 1040 form for 2010   If you receive property rather than money from the buyer, it is still considered a payment in the year received. 1040 form for 2010 However, see Trading property for like-kind property , later. 1040 form for 2010 Generally, the amount of the payment is the property's FMV on the date you receive it. 1040 form for 2010 Exception. 1040 form for 2010   If the property the buyer gives you is payable on demand or readily tradable (see examples later), the amount you should consider as payment in the year received is: The FMV of the property on the date you receive it if you use the cash method of accounting, The face amount of the obligation on the date you receive it if you use an accrual method of accounting, or The stated redemption price at maturity less any original issue discount (OID) or, if there is no OID, the stated redemption price at maturity appropriately discounted to reflect total unstated interest. 1040 form for 2010 See Unstated interest , later. 1040 form for 2010 Examples. 1040 form for 2010 If you receive a note from the buyer as payment, and the note stipulates that you can demand payment from the buyer at any time, the note is payable on demand. 1040 form for 2010 If you receive marketable securities from the buyer as payment, and you can sell the securities on an established securities market (such as the New York Stock Exchange) at any time, the securities are readily tradable. 1040 form for 2010 In these examples, use the above rules to determine the amount you should consider as payment in the year received. 1040 form for 2010 Debt not payable on demand. 1040 form for 2010   Any evidence of debt you receive from the buyer that is not payable on demand is not considered a payment. 1040 form for 2010 This is true even if the debt is guaranteed by a third party, including a government agency. 1040 form for 2010 Fair market value (FMV). 1040 form for 2010   This is the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having a reasonable knowledge of all the necessary facts. 1040 form for 2010 Third-party note. 1040 form for 2010   If the property the buyer gives you is a third-party note (or other obligation of a third party), you are considered to have received a payment equal to the note's FMV. 1040 form for 2010 Because the FMV of the note is itself a payment on your installment sale, any payments you later receive from the third party are not considered payments on the sale. 1040 form for 2010 The excess of the note's face value over its FMV is interest. 1040 form for 2010 Exclude this interest in determining the selling price of the property. 1040 form for 2010 However, see Exception under Property used as a payment , earlier. 1040 form for 2010 Example. 1040 form for 2010 You sold real estate in an installment sale. 1040 form for 2010 As part of the down payment, the buyer assigned to you a $50,000, 8% third-party note. 1040 form for 2010 The FMV of the third-party note at the time of the sale was $30,000. 1040 form for 2010 This amount, not $50,000, is a payment to you in the year of sale. 1040 form for 2010 The third-party note had an FMV equal to 60% of its face value ($30,000 ÷ $50,000), so 60% of each principal payment you receive on this note is a nontaxable return of capital. 1040 form for 2010 The remaining 40% is interest taxed as ordinary income. 1040 form for 2010 Bond. 1040 form for 2010   A bond or other evidence of debt you receive from the buyer that is payable on demand or readily tradable in an established securities market is treated as a payment in the year you receive it. 1040 form for 2010 For more information on the amount you should treat as a payment, see Exception under Property used as a payment , earlier. 1040 form for 2010   If you receive a government or corporate bond for a sale before October 22, 2004, and the bond has interest coupons attached or can be readily traded in an established securities market, you are considered to have received payment equal to the bond's FMV. 1040 form for 2010 However, see Exception under Property used as a payment , earlier. 1040 form for 2010 Buyer's note. 1040 form for 2010   The buyer's note (unless payable on demand) is not considered payment on the sale. 1040 form for 2010 However, its full face value is included when figuring the selling price and the contract price. 1040 form for 2010 Payments you receive on the note are used to figure your gain in the year received. 1040 form for 2010 Sale to a related person. 1040 form for 2010   If you sell depreciable property to a related person and the sale is an installment sale, you may not be able to report the sale using the installment method. 1040 form for 2010 For information on these rules, see the Instructions for Form 6252 and Sale to a Related Person in Publication 537. 1040 form for 2010 Trading property for like-kind property. 1040 form for 2010   If you trade business or investment property solely for the same kind of property to be held as business or investment property, you can postpone reporting the gain. 1040 form for 2010 See Like-Kind Exchanges in chapter 8 for a discussion of like-kind property. 1040 form for 2010   If, in addition to like-kind property, you receive an installment obligation in the exchange, the following rules apply to determine installment sale income each year. 1040 form for 2010 The contract price is reduced by the FMV of the like-kind property received in the trade. 1040 form for 2010 The gross profit is reduced by any gain on the trade that can be postponed. 1040 form for 2010 Like-kind property received in the trade is not considered payment on the installment obligation. 1040 form for 2010 Unstated interest. 1040 form for 2010   An installment sale contract may provide that each deferred payment on the sale will include interest or that there will be an interest payment in addition to the principal payment. 1040 form for 2010 Interest provided in the contract is called stated interest. 1040 form for 2010   If an installment sale contract does not provide for adequate stated interest, part of the stated principal amount of the contract may be recharacterized as interest. 1040 form for 2010 If Internal Revenue Code section 483 applies to the contract, this interest is called unstated interest. 1040 form for 2010   If Internal Revenue Code section 1274 applies to the contract, this interest is called original issue discount (OID). 1040 form for 2010   Generally, if a buyer gives a debt in consideration for personal use property, the unstated interest rules do not apply. 1040 form for 2010 Therefore, the buyer cannot deduct the unstated interest. 1040 form for 2010 The seller must report the unstated interest as income. 1040 form for 2010 Personal-use property is any property in which substantially all of its use by the buyer is not in connection with a trade or business or an investment activity. 1040 form for 2010   If the debt is subject to the Internal Revenue Code section 483 rules and is also subject to the below-market loan rules, such as a gift loan, compensation-related loan or corporation-shareholder loan, then both parties are subject to the below-market loan rules rather than the unstated interest rules. 1040 form for 2010   Unstated interest reduces the stated selling price of the property and the buyer's basis in the property. 1040 form for 2010 It increases the seller's interest income and the buyer's interest expense. 1040 form for 2010   In general, an installment sale contract provides for adequate stated interest if the stated interest rate (based on an appropriate compounding period) is at least equal to the applicable federal rate (AFR). 1040 form for 2010    The AFRs are published monthly in the Internal Revenue Bulletin (IRB). 1040 form for 2010 You can get this information by contacting an IRS office. 1040 form for 2010 IRBs are also available at IRS. 1040 form for 2010 gov. 1040 form for 2010 More information. 1040 form for 2010   For more information, see Unstated Interest and Original Issue Discount (OID) in Publication 537. 1040 form for 2010 Example. 1040 form for 2010 You sell property at a contract price of $6,000 and your gross profit is $1,500. 1040 form for 2010 Your gross profit percentage is 25% ($1,500 ÷ $6,000). 1040 form for 2010 After subtracting interest, you report 25% of each payment, including the down payment, as installment sale income from the sale for the tax year you receive the payment. 1040 form for 2010 The remainder (balance) of each payment is the tax-free return of your adjusted basis. 1040 form for 2010 Example On January 3, 2013, you sold your farm, including the home, farm land and buildings. 1040 form for 2010 You received $50,000 down and the buyer's note for $200,000. 1040 form for 2010 In addition, the buyer assumed an outstanding $50,000 mortgage on the farm land. 1040 form for 2010 The total selling price was $300,000. 1040 form for 2010 The note payments of $25,000 each, plus adequate interest, are due every July 1 and January 1, beginning in July 2013. 1040 form for 2010 Your selling expenses were $15,000. 1040 form for 2010 Adjusted basis and depreciation. 1040 form for 2010   The adjusted basis and depreciation claimed on each asset sold are as follows:   Depreciation Adjusted Asset Claimed Basis Home* -0- $33,743 Farm land -0- 73,610 Buildings $31,500 35,130 * Owned and used as main home for at least 2 of the 5 years prior to the sale Gain on each asset. 1040 form for 2010   The following schedule shows the assets included in the sale, each asset's selling price based on its respective value, the selling expense allocated to each asset, the adjusted basis of each asset, and the gain on each asset. 1040 form for 2010 The selling expense for each asset is 5% of the selling price ($15,000 selling expense ÷ $300,000 selling price). 1040 form for 2010   Selling Selling Adjusted     Price Expense Basis Gain Home* $60,000 $3,000 $33,743 $23,257 Farm land  165,000  8,250  73,610  83,140 Buildings 75,000 3,750 35,130 36,120   $300,000 $15,000 $142,483 $142,517 * Owned and used as main home for at least 2 of the 5 years prior to the sale Depreciation recapture. 1040 form for 2010   The buildings are section 1250 property. 1040 form for 2010 There is no depreciation recapture income for them because they were depreciated using the straight line method. 1040 form for 2010 See chapter 9 for more information on depreciation recapture. 1040 form for 2010   Special rules may apply when you sell section 1250 assets depreciated under the straight line method. 1040 form for 2010 See the Unrecaptured Section 1250 Gain Worksheet in the Instructions for Schedule D (Form 1040). 1040 form for 2010 See chapter 3 of Publication 544, Sales and Other Dispositions of Assets, for more information on section 1250 assets. 1040 form for 2010 Installment sale basis and gross profit. 1040 form for 2010   The following table shows each asset reported on the installment method, its selling price, installment sale basis, and gross profit. 1040 form for 2010     Installment     Selling Sale Gross   Price Basis Profit Farm land $165,000 $73,610 $83,140 Buildings 75,000 35,130 36,120   $240,000 $108,740 $119,260 Section 1231 gains. 1040 form for 2010   The gain on the farm land and buildings is reported as section 1231 gains. 1040 form for 2010 See Section 1231 Gains and Losses in chapter 9. 1040 form for 2010 Contract price and gross profit percentage. 1040 form for 2010   The contract price is $250,000 for the part of the sale reported on the installment method. 1040 form for 2010 This is the selling price ($300,000) minus the mortgage assumed ($50,000). 1040 form for 2010   Gross profit percentage for the sale is 47. 1040 form for 2010 70% ($119,260 gross profit ÷ $250,000 contract price). 1040 form for 2010 The gross profit percentage for each asset is figured as follows:   Percent Farm land ($83,140 ÷ $250,000) 33. 1040 form for 2010 256 Buildings ($36,120 ÷ $250,000) 14. 1040 form for 2010 448 Total 47. 1040 form for 2010 70 Figuring the gain to report on the installment method. 1040 form for 2010   One hundred percent (100%) of each payment is reported on the installment method. 1040 form for 2010 The total amount received on the sale in 2013 is $75,000 ($50,000 down payment + $25,000 payment on July 1). 1040 form for 2010 The installment sale part of the total payments received in 2013 is also $75,000. 1040 form for 2010 Figure the gain to report for each asset by multiplying its gross profit percentage times $75,000. 1040 form for 2010   Income Farm land—33. 1040 form for 2010 256% × $75,000 $24,942 Buildings—14. 1040 form for 2010 448% × $75,000 10,836 Total installment income for 2013 $35,778 Reporting the sale. 1040 form for 2010   Report the installment sale on Form 6252. 1040 form for 2010 Then report the amounts from Form 6252 on Form 4797 and Schedule D (Form 1040). 1040 form for 2010 Attach a separate page to Form 6252 that shows the computations in the example. 1040 form for 2010 If you sell depreciable business property, prepare Form 4797 first in order to figure the amount to enter on line 12 of Part I, Form 6252. 1040 form for 2010 Section 1231 gains. 1040 form for 2010   The gains on the farm land and buildings are section 1231 gains. 1040 form for 2010 They may be reported as either capital or ordinary gain depending on the net balance when combined with other section 1231 losses. 1040 form for 2010 A net 1231 gain is capital gain and a net 1231 loss is an ordinary loss. 1040 form for 2010 Installment income for years after 2013. 1040 form for 2010   You figure installment income for the years after 2013 by applying the same gross profit percentages to the payments you receive each year. 1040 form for 2010 If you receive $50,000 during the year, the entire $50,000 is considered received on the installment sale (100% × $50,000). 1040 form for 2010 You realize income as follows:   Income Farm land—33. 1040 form for 2010 256% × $50,000 $16,628 Buildings—14. 1040 form for 2010 448% × $50,000 7,224 Total installment income $23,852   In this example, no gain ever is recognized from the sale of your home. 1040 form for 2010 You will combine your section 1231 gains from this sale with section 1231 gains and losses from other sales in each of the later years to determine whether to report them as ordinary or capital gains. 1040 form for 2010 The interest received with each payment will be included in full as ordinary income. 1040 form for 2010 Summary. 1040 form for 2010   The installment income (rounded to the nearest dollar) from the sale of the farm is reported as follows: Selling price $190,000 Minus: Installment basis (108,740) Gross profit $81,260     Gain reported in 2012 (year of sale) $35,778 Gain reported in 2013:   $50,000 × 47. 1040 form for 2010 70% 23,850 Gain reported in 2014:   $50,000 × 47. 1040 form for 2010 70% 23,850 Gain reported in 2015:   $50,000 × 47. 1040 form for 2010 70% 23,850 Gain reported in 2016:   $25,000 × 47. 1040 form for 2010 70% 11,925 Total gain reported $119,253 Prev  Up  Next   Home   More Online Publications