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Free Sites For Filing State Income Taxes

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Free Sites For Filing State Income Taxes

Free sites for filing state income taxes 1. Free sites for filing state income taxes   Filing Information Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Filing RequirementsWhen To File and Pay Foreign Currency Does My Return Have To Be On Paper? Where To File Nonresident Alien Spouse Treated as a ResidentSocial Security Number (SSN) How To Make the Choice Suspending the Choice Ending the Choice Estimated Tax Other Forms You May Have To File Topics - This chapter discusses: Whether you have to file a return, When to file your return and pay any tax due, How to treat foreign currency, How to file electronically, Where to file your return, When you can treat your nonresident alien spouse as a resident, and When you may have to make estimated tax payments. Free sites for filing state income taxes Useful Items - You may want to see: Publication 3 Armed Forces' Tax Guide 501 Exemptions, Standard Deduction, and Filing Information 505 Tax Withholding and Estimated Tax 519 U. Free sites for filing state income taxes S. Free sites for filing state income taxes Tax Guide for Aliens 970 Tax Benefits for Education Form (and Instructions) 1040-ES Estimated Tax for Individuals 1040X Amended U. Free sites for filing state income taxes S. Free sites for filing state income taxes Individual Income Tax Return 2350 Application for Extension of Time To File U. Free sites for filing state income taxes S. Free sites for filing state income taxes Income Tax Return 2555 Foreign Earned Income 2555-EZ Foreign Earned Income Exclusion 4868 Application for Automatic Extension of Time To File U. Free sites for filing state income taxes S. Free sites for filing state income taxes Individual Income Tax Return 8822 Change of Address See chapter 7 for information about getting these publications and forms. Free sites for filing state income taxes Filing Requirements If you are a U. Free sites for filing state income taxes S. Free sites for filing state income taxes citizen or resident alien, the rules for filing income, estate, and gift tax returns and for paying estimated tax are generally the same whether you are in the United States or abroad. Free sites for filing state income taxes Your income, filing status, and age generally determine whether you must file an income tax return. Free sites for filing state income taxes Generally, you must file a return for 2013 if your gross income from worldwide sources is at least the amount shown for your filing status in the following table. Free sites for filing state income taxes Filing Status*   Amount Single $10,000 65 or older $11,500 Head of household $12,850 65 or older $14,350 Qualifying widow(er) $16,100 65 or older $17,300 Married filing jointly $20,000 Not living with spouse at end of year $3,900 One spouse 65 or older $21,200 Both spouses 65 or older $22,400 Married filing separately $3,900 *If you are the dependent of another taxpayer, see the instructions for Form 1040 for more information on whether you must file a return. Free sites for filing state income taxes Gross income. Free sites for filing state income taxes   This includes all income you receive in the form of money, goods, property, and services that is not exempt from tax. Free sites for filing state income taxes   For purposes of determining whether you must file a return, gross income includes any income that you can exclude as foreign earned income or as a foreign housing amount. Free sites for filing state income taxes If you are self-employed, your gross income includes the amount on Part I, line 7 of Schedule C (Form 1040), Profit or Loss From Business, or line 1 of Schedule C-EZ (Form 1040), Net Profit From Business. Free sites for filing state income taxes Self-employed individuals. Free sites for filing state income taxes   If your net earnings from self-employment are $400 or more, you must file a return even if your gross income is below the amount listed for your filing status in the table shown earlier. Free sites for filing state income taxes Net earnings from self-employment are defined in Publication 334, Tax Guide for Small Business. Free sites for filing state income taxes 65 or older. Free sites for filing state income taxes   You are considered to be age 65 on the day before your 65th birthday. Free sites for filing state income taxes For example, if your 65th birthday is on January 1, 2014, you are considered 65 for 2013. Free sites for filing state income taxes Residents of U. Free sites for filing state income taxes S. Free sites for filing state income taxes possessions. Free sites for filing state income taxes   If you are (or were) a bona fide resident of a U. Free sites for filing state income taxes S. Free sites for filing state income taxes possession, you may be required to file Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U. Free sites for filing state income taxes S. Free sites for filing state income taxes Possession. Free sites for filing state income taxes See the instructions for the form for more information. Free sites for filing state income taxes When To File and Pay If you file on a calendar year basis, the due date for filing your return is April 15 of the following year. Free sites for filing state income taxes If you file on a fiscal year basis (a year ending on the last day of any month except December), the due date is 3 months and 15 days after the close of your fiscal year. Free sites for filing state income taxes In general, the tax shown on your return should be paid by the due date of the return, without regard to any extension of time for filing the return. Free sites for filing state income taxes When the due date for doing any act for tax purposes—filing a return, paying taxes, etc. Free sites for filing state income taxes — falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. Free sites for filing state income taxes A tax return delivered by the U. Free sites for filing state income taxes S. Free sites for filing state income taxes mail or a designated delivery service that is postmarked or dated by the delivery service on or before the due date is considered to have been filed on or before that date. Free sites for filing state income taxes See your Form 1040 or Form 1040A instructions for a list of designated delivery services. Free sites for filing state income taxes Foreign wire transfers. Free sites for filing state income taxes   If you have a U. Free sites for filing state income taxes S. Free sites for filing state income taxes bank account, you can use: EFTPS (Electronic Federal Tax Payment System), or Federal Tax Application (same-day wire transfer). Free sites for filing state income taxes If you do not have a U. Free sites for filing state income taxes S. Free sites for filing state income taxes bank account, ask if your financial institution has a U. Free sites for filing state income taxes S. Free sites for filing state income taxes affiliate that can help you make same-day wire transfers. Free sites for filing state income taxes   For more information, visit www. Free sites for filing state income taxes eftps. Free sites for filing state income taxes gov. Free sites for filing state income taxes Extensions You can get an extension of time to file your return. Free sites for filing state income taxes In some circumstances, you also can get an extension of time to file and pay any tax due. Free sites for filing state income taxes However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. Free sites for filing state income taxes This publication discusses four extensions: an automatic 2-month extension, an automatic 6-month extension, an additional extension for taxpayers out of the country, and an extension of time to meet tests. Free sites for filing state income taxes If you served in a combat zone or qualified hazardous duty area, see Publication 3 for a discussion of extensions of deadlines. Free sites for filing state income taxes Automatic 2-month extension. Free sites for filing state income taxes   You are allowed an automatic 2-month extension to file your return and pay federal income tax if you are a U. Free sites for filing state income taxes S. Free sites for filing state income taxes citizen or resident alien, and on the regular due date of your return: You are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico, or You are in military or naval service on duty outside the United States and Puerto Rico. Free sites for filing state income taxes   If you use a calendar year, the regular due date of your return is April 15. Free sites for filing state income taxes Even if you are allowed an extension, you will have to pay interest on any tax not paid by the regular due date of your return. Free sites for filing state income taxes Married taxpayers. Free sites for filing state income taxes   If you file a joint return, either you or your spouse can qualify for the automatic extension. Free sites for filing state income taxes If you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies for it. Free sites for filing state income taxes How to get the extension. Free sites for filing state income taxes   To use this automatic 2-month extension, you must attach a statement to your return explaining which of the two situations listed earlier qualified you for the extension. Free sites for filing state income taxes Automatic 6-month extension. Free sites for filing state income taxes   If you are not able to file your return by the due date, you generally can get an automatic 6-month extension of time to file (but not of time to pay). Free sites for filing state income taxes To get this automatic extension, you must file a paper Form 4868 or use IRS e-file (electronic filing). Free sites for filing state income taxes For more information about filing electronically, see E-file options , later. Free sites for filing state income taxes   The form must show your properly estimated tax liability based on the information available to you. Free sites for filing state income taxes    You may not be eligible. Free sites for filing state income taxes You cannot use the automatic 6-month extension of time to file if: You want the IRS to figure your tax, or You are under a court order to file by the regular due date. Free sites for filing state income taxes E-file options. Free sites for filing state income taxes    You can use e-file to get an extension of time to file. Free sites for filing state income taxes You can either file Form 4868 electronically or you can pay part or all of your estimate of tax due using a credit or debit card. Free sites for filing state income taxes   First, complete Form 4868 to use as a worksheet. Free sites for filing state income taxes If you think you may owe tax when you file your return, use Part II of the form to estimate your balance due. Free sites for filing state income taxes    Then, do one of the following. Free sites for filing state income taxes E-file Form 4868. Free sites for filing state income taxes You can use a tax software package with your personal computer or a tax professional to file Form 4868 electronically. Free sites for filing state income taxes You will need to provide certain information from your tax return for 2012. Free sites for filing state income taxes If you wish to make a payment by electronic funds withdrawal, see the instructions for Form 4868. Free sites for filing state income taxes If you e-file Form 4868, do not also send a paper Form 4868. Free sites for filing state income taxes E-file and pay by credit or debit card. Free sites for filing state income taxes You can get an extension by paying part or all of your estimate of tax due by using a credit or debit card. Free sites for filing state income taxes You can do this by phone or over the Internet. Free sites for filing state income taxes If you do this, you do not file Form 4868. Free sites for filing state income taxes For more information, see the instructions for your tax return. Free sites for filing state income taxes When to file. Free sites for filing state income taxes   Generally, you must request the 6-month extension by the regular due date of your return. Free sites for filing state income taxes Previous 2-month extension. Free sites for filing state income taxes   If you cannot file your return within the automatic 2-month extension period, you generally can get an additional 4 months to file your return, for a total of 6 months. Free sites for filing state income taxes The 2-month period and the 6-month period start at the same time. Free sites for filing state income taxes You have to request the additional 4 months by the new due date allowed by the 2-month extension. Free sites for filing state income taxes   The additional 4 months of time to file (unlike the original 2-month extension) is not an extension of time to pay. Free sites for filing state income taxes You must make an accurate estimate of your tax based on the information available to you. Free sites for filing state income taxes If you find you cannot pay the full amount due with Form 4868, you can still get the extension. Free sites for filing state income taxes You will owe interest on the unpaid amount from the original due date of the return. Free sites for filing state income taxes   You also may be charged a penalty for paying the tax late unless you have reasonable cause for not paying your tax when due. Free sites for filing state income taxes Penalties for paying the tax late are assessed from the original due date of your return, unless you qualify for the automatic 2-month extension. Free sites for filing state income taxes In that situation, penalties for paying late are assessed from the extended due date of the payment (June 15 for calendar year taxpayers). Free sites for filing state income taxes Additional extension of time for taxpayers out of the country. Free sites for filing state income taxes   In addition to the 6-month extension, taxpayers who are out of the country can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). Free sites for filing state income taxes   To request this extension, you must send the Internal Revenue Service a letter explaining the reasons why you need the additional 2 months. Free sites for filing state income taxes Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0045   You will not receive any notification from the Internal Revenue Service unless your request is denied. Free sites for filing state income taxes   The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time to file on Form 2350, discussed next. Free sites for filing state income taxes Extension of time to meet tests. Free sites for filing state income taxes   You generally cannot get an extension of more than 6 months. Free sites for filing state income taxes However, if you are outside the United States and meet certain requirements, you may be able to get a longer extension. Free sites for filing state income taxes   You can get an extension of more than 6 months to file your tax return if you need the time to meet either the bona fide residence test or the physical presence test to qualify for either the foreign earned income exclusion or the foreign housing exclusion or deduction. Free sites for filing state income taxes The tests, the exclusions, and the deduction are explained in chapter 4. Free sites for filing state income taxes   You should request an extension if all three of the following apply. Free sites for filing state income taxes You are a U. Free sites for filing state income taxes S. Free sites for filing state income taxes citizen or resident alien. Free sites for filing state income taxes You expect to meet either the bona fide residence test or the physical presence test, but not until after your tax return is due. Free sites for filing state income taxes Your tax home is in a foreign country (or countries) throughout your period of bona fide residence or physical presence, whichever applies. Free sites for filing state income taxes   If you are granted an extension, it generally will be to 30 days beyond the date on which you can reasonably expect to qualify for an exclusion or deduction under either the bona fide residence test or the physical presence test. Free sites for filing state income taxes However, if you have moving expenses that are for services performed in 2 years, you may be granted an extension until after the end of the second year. Free sites for filing state income taxes How to get an extension. Free sites for filing state income taxes   To obtain an extension, file Form 2350 either by giving it to a local IRS representative or other IRS employee or by mailing it to the: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0045   You must file Form 2350 by the due date for filing your return. Free sites for filing state income taxes Generally, if both your tax home and your abode are outside the United States and Puerto Rico on the regular due date of your return and you file on a calendar year basis, the due date for filing your return is June 15. Free sites for filing state income taxes What if tests are not met. Free sites for filing state income taxes   If you obtain an extension and unforeseen events make it impossible for you to meet either the bona fide residence test or the physical presence test, you should file your income tax return as soon as possible because you must pay interest on any tax due after the regular due date of the return (even though an extension was granted). Free sites for filing state income taxes    You should make any request for an extension early, so that if it is denied you still can file your return on time. Free sites for filing state income taxes Otherwise, if you file late and additional tax is due, you may be subject to a penalty. Free sites for filing state income taxes Return filed before test is met. Free sites for filing state income taxes   If you file a return before you meet the bona fide residence test or the physical presence test, you must include all income from both U. Free sites for filing state income taxes S. Free sites for filing state income taxes and foreign sources and pay the tax on that income. Free sites for filing state income taxes If you later meet either of the tests, you can claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction on Form 1040X. Free sites for filing state income taxes Foreign Currency You must express the amounts you report on your U. Free sites for filing state income taxes S. Free sites for filing state income taxes tax return in U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollars. Free sites for filing state income taxes If you receive all or part of your income or pay some or all of your expenses in foreign currency, you must translate the foreign currency into U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollars. Free sites for filing state income taxes How you do this depends on your functional currency. Free sites for filing state income taxes Your functional currency generally is the U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollar unless you are required to use the currency of a foreign country. Free sites for filing state income taxes You must make all federal income tax determinations in your functional currency. Free sites for filing state income taxes The U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollar is the functional currency for all taxpayers except some qualified business units (QBUs). Free sites for filing state income taxes A QBU is a separate and clearly identified unit of a trade or business that maintains separate books and records. Free sites for filing state income taxes Even if you have a QBU, your functional currency is the dollar if any of the following apply. Free sites for filing state income taxes You conduct the business in U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollars. Free sites for filing state income taxes The principal place of business is located in the United States. Free sites for filing state income taxes You choose to or are required to use the U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollar as your functional currency. Free sites for filing state income taxes The business books and records are not kept in the currency of the economic environment in which a significant part of the business activities is conducted. Free sites for filing state income taxes Make all income tax determinations in your functional currency. Free sites for filing state income taxes If your functional currency is the U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollar, you must immediately translate into U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollars all items of income, expense, etc. Free sites for filing state income taxes (including taxes), that you receive, pay, or accrue in a foreign currency and that will affect computation of your income tax. Free sites for filing state income taxes Use the exchange rate prevailing when you receive, pay, or accrue the item. Free sites for filing state income taxes If there is more than one exchange rate, use the one that most properly reflects your income. Free sites for filing state income taxes You can generally get exchange rates from banks and U. Free sites for filing state income taxes S. Free sites for filing state income taxes Embassies. Free sites for filing state income taxes If your functional currency is not the U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollar, make all income tax determinations in your functional currency. Free sites for filing state income taxes At the end of the year, translate the results, such as income or loss, into U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollars to report on your income tax return. Free sites for filing state income taxes Blocked Income You generally must report your foreign income in terms of U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollars and, with one exception (see Fulbright Grant, later), you must pay taxes due on it in U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollars. Free sites for filing state income taxes If, because of restrictions in a foreign country, your income is not readily convertible into U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollars or into other money or property that is readily convertible into U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollars, your income is “blocked” or “deferrable” income. Free sites for filing state income taxes You can report this income in one of two ways: Report the income and pay your federal income tax with U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollars that you have in the United States or in some other country, or Postpone the reporting of the income until it becomes unblocked. Free sites for filing state income taxes If you choose to postpone the reporting of the income, you must file an information return with your tax return. Free sites for filing state income taxes For this information return, you should use another Form 1040 labeled “Report of Deferrable Foreign Income, pursuant to Rev. Free sites for filing state income taxes Rul. Free sites for filing state income taxes 74-351. Free sites for filing state income taxes ” You must declare on the information return that you will include the deferrable income in your taxable income for the year that it becomes unblocked. Free sites for filing state income taxes You also must state that you waive any right to claim that the deferrable income was includible in your income for any earlier year. Free sites for filing state income taxes You must report your income on your information return using the foreign currency in which you received that income. Free sites for filing state income taxes If you have blocked income from more than one foreign country, include a separate information return for each country. Free sites for filing state income taxes Income becomes unblocked and reportable for tax purposes when it becomes convertible, or when it is converted, into U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollars or into other money or property that is convertible into U. Free sites for filing state income taxes S. Free sites for filing state income taxes currency. Free sites for filing state income taxes Also, if you use blocked income for your personal expenses or dispose of it by gift, bequest, or devise, you must treat it as unblocked and reportable. Free sites for filing state income taxes If you have received blocked income on which you have not paid tax, you should check to see whether that income is still blocked. Free sites for filing state income taxes If it is not, you should take immediate steps to pay tax on it, file a declaration or amended declaration of estimated tax, and include the income on your tax return for the year in which the income became unblocked. Free sites for filing state income taxes If you choose to postpone reporting blocked income and in a later tax year you wish to begin including it in gross income although it is still blocked, you must obtain the permission of the IRS to do so. Free sites for filing state income taxes To apply for permission, file Form 3115, Application for Change in Accounting Method. Free sites for filing state income taxes You also must request permission from the IRS on Form 3115 if you have not chosen to defer the reporting of blocked income in the past, but now wish to begin reporting blocked income under the deferred method. Free sites for filing state income taxes See the instructions for Form 3115 for information on changing your accounting method. Free sites for filing state income taxes Fulbright Grant All income must be reported in U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollars. Free sites for filing state income taxes In most cases, the tax also must be paid in U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollars. Free sites for filing state income taxes If, however, at least 70% of your Fulbright grant has been paid in nonconvertible foreign currency (blocked income), you can use the currency of the host country to pay the part of the U. Free sites for filing state income taxes S. Free sites for filing state income taxes tax that is based on the blocked income. Free sites for filing state income taxes Paying U. Free sites for filing state income taxes S. Free sites for filing state income taxes tax in foreign currency. Free sites for filing state income taxes   To qualify for this method of payment, you must prepare a statement that shows the following information. Free sites for filing state income taxes You were a Fulbright grantee and were paid in nonconvertible foreign currency. Free sites for filing state income taxes The total grant you received during the year and the amount you received in nonconvertible foreign currency. Free sites for filing state income taxes At least 70% of the grant was paid in nonconvertible foreign currency. Free sites for filing state income taxes The statement must be certified by the U. Free sites for filing state income taxes S. Free sites for filing state income taxes educational foundation or commission paying the grant or other person having control of grant payments to you. Free sites for filing state income taxes   You should prepare at least two copies of this statement. Free sites for filing state income taxes Attach one copy to your Form 1040 and keep the other copy for identification purposes when you make a tax deposit of nonconvertible foreign currency. Free sites for filing state income taxes Figuring actual tax. Free sites for filing state income taxes   When you prepare your income tax return, you may owe tax or the entire liability may have been satisfied with your estimated tax payments. Free sites for filing state income taxes If you owe tax, figure the part due to (and payable in) the nonconvertible foreign currency by using the following formula. Free sites for filing state income taxes   Adjusted gross income that is blocked income × Total U. Free sites for filing state income taxes S. Free sites for filing state income taxes tax = Tax on blocked income     Total adjusted  gross income     You must attach all of the following to the return. Free sites for filing state income taxes A copy of the certified statement discussed earlier. Free sites for filing state income taxes A detailed statement showing the allocation of tax attributable to amounts received in foreign currency and the rates of exchange used in determining your tax liability in U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollars. Free sites for filing state income taxes The original deposit receipt for any balance of tax due that you paid in nonconvertible foreign currency. Free sites for filing state income taxes Figuring estimated tax on nonconvertible foreign currency. Free sites for filing state income taxes   If you are liable for estimated tax (discussed later), figure the amount you can pay to the IRS in nonconvertible foreign currency using the following formula. Free sites for filing state income taxes   Adjusted gross income that is blocked income × Total estimated U. Free sites for filing state income taxes S. Free sites for filing state income taxes tax = Estimated tax on blocked income     Total adjusted  gross income     If you must pay your host country income tax on your grant, subtract any estimated foreign tax credit that applies to your grant from the estimated tax on the blocked income. Free sites for filing state income taxes Deposit of foreign currency with disbursing officer. Free sites for filing state income taxes   Once you have determined the amount of the actual tax or estimated tax that you can pay in nonconvertible foreign currency, deposit that amount with the disbursing officer of the Department of State in the foreign country in which the foundation or commission paying the grant is located. Free sites for filing state income taxes Estimated tax installments. Free sites for filing state income taxes   You can either deposit the full estimated tax amount before the first installment due date or make four equal payments before the installment due dates. Free sites for filing state income taxes See Estimated Tax , later. Free sites for filing state income taxes Deposit receipt. Free sites for filing state income taxes   Upon accepting the foreign currency, the disbursing officer will give you a receipt in duplicate. Free sites for filing state income taxes The original of this receipt (showing the amount of foreign currency deposited and its equivalent in U. Free sites for filing state income taxes S. Free sites for filing state income taxes dollars) should be attached to your Form 1040 or payment voucher from Form 1040-ES. Free sites for filing state income taxes Keep the copy for your records. Free sites for filing state income taxes Does My Return Have To Be On Paper? IRS e-file (electronic filing) is the fastest, easiest, and most convenient way to file your income tax return electronically. Free sites for filing state income taxes IRS e-file offers accurate, safe, and fast alternatives to filing on paper. Free sites for filing state income taxes IRS computers quickly and automatically check for errors or other missing information. Free sites for filing state income taxes Even returns with a foreign address can be e-filed! How to e-file. Free sites for filing state income taxes   There are three ways you can e-file. Free sites for filing state income taxes Use your personal computer. Free sites for filing state income taxes Use a volunteer. Free sites for filing state income taxes Many programs offering free tax help can e-file your return. Free sites for filing state income taxes Use a tax professional. Free sites for filing state income taxes Most tax professionals can e-file your return. Free sites for filing state income taxes These methods are explained in detail in the instructions for your tax return. Free sites for filing state income taxes Where To File If any of the following situations apply to you, do not file your return with the service center listed for your home state. Free sites for filing state income taxes You claim the foreign earned income exclusion. Free sites for filing state income taxes You claim the foreign housing exclusion or deduction. Free sites for filing state income taxes You live in a foreign country. Free sites for filing state income taxes Instead, use one of the following special addresses. Free sites for filing state income taxes If you are not enclosing a check or money order, file your return with the: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 USA If you are enclosing a check or money order, file your return with: Internal Revenue Service Center P. Free sites for filing state income taxes O. Free sites for filing state income taxes Box 1303 Charlotte, NC 28201-1303 USA If you do not know where your legal residence is and you do not have a principal place of business in the United States, you can file with the appropriate address listed above. Free sites for filing state income taxes However, you should not file with the addresses listed above if you are a bona fide resident of the U. Free sites for filing state income taxes S. Free sites for filing state income taxes Virgin Islands, Guam, or the Commonwealth of the Northern Mariana Islands during your entire tax year. Free sites for filing state income taxes Resident of U. Free sites for filing state income taxes S. Free sites for filing state income taxes Virgin Islands (USVI). Free sites for filing state income taxes   If you are a bona fide resident of the USVI during your entire tax year, you generally are not required to file a U. Free sites for filing state income taxes S. Free sites for filing state income taxes return. Free sites for filing state income taxes However, you must file a return with the USVI. Free sites for filing state income taxes    Send your return to the:     Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. Free sites for filing state income taxes Thomas, Virgin Islands 00802 Non-USVI resident with USVI income. Free sites for filing state income taxes   If you are a U. Free sites for filing state income taxes S. Free sites for filing state income taxes citizen or resident alien and you have income from sources in the USVI or income effectively connected with the conduct of a trade or business in the USVI, and you are not a bona fide resident of the USVI during your entire tax year, you must file identical tax returns with the United States and the USVI. Free sites for filing state income taxes File the original return with the United States and file a signed copy of the U. Free sites for filing state income taxes S. Free sites for filing state income taxes return (including all attachments, forms, and schedules) with the Virgin Islands Bureau of Internal Revenue. Free sites for filing state income taxes   You must complete Form 8689, Allocation of Individual Income Tax to the U. Free sites for filing state income taxes S. Free sites for filing state income taxes Virgin Islands, and attach a copy to both your U. Free sites for filing state income taxes S. Free sites for filing state income taxes return and your USVI return. Free sites for filing state income taxes You should file your U. Free sites for filing state income taxes S. Free sites for filing state income taxes return with the address listed under Where To File. Free sites for filing state income taxes   See Publication 570, Tax Guide for Individuals With Income From U. Free sites for filing state income taxes S. Free sites for filing state income taxes Possessions, for information about filing Virgin Islands returns. Free sites for filing state income taxes Resident of Guam. Free sites for filing state income taxes   If you are a bona fide resident of Guam during your entire tax year, you should file a return with Guam. Free sites for filing state income taxes    Send your return to the:     Department of Revenue and Taxation Government of Guam P. Free sites for filing state income taxes O. Free sites for filing state income taxes Box 23607 GMF, GU 96921   However, if you have income from sources within Guam and you are a U. Free sites for filing state income taxes S. Free sites for filing state income taxes citizen or resident alien, but not a bona fide resident of Guam during the entire tax year, you should file a return with the United States. Free sites for filing state income taxes Send your return to the address listed under Where To File. Free sites for filing state income taxes   See Publication 570 for information about filing Guam returns. Free sites for filing state income taxes Resident of the Commonwealth of the Northern Mariana Islands. Free sites for filing state income taxes   If you are a bona fide resident of the Commonwealth of the Northern Mariana Islands (CNMI) during your entire tax year, you should file a return with the Northern Mariana Islands. Free sites for filing state income taxes    Send your return to the:      Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Free sites for filing state income taxes O. Free sites for filing state income taxes Box 5234, CHRB Saipan, MP 96950   However, if you have income from sources within the CNMI and you are a U. Free sites for filing state income taxes S. Free sites for filing state income taxes citizen or resident alien, but not a bona fide resident of the CNMI during the entire tax year, you should file a return with the United States. Free sites for filing state income taxes Send your return to the address listed under Where To File. Free sites for filing state income taxes   See Publication 570 for information about filing Northern Mariana Islands returns. Free sites for filing state income taxes Nonresident Alien Spouse Treated as a Resident If, at the end of your tax year, you are married and one spouse is a U. Free sites for filing state income taxes S. Free sites for filing state income taxes citizen or a resident alien and the other is a nonresident alien, you can choose to treat the nonresident as a U. Free sites for filing state income taxes S. Free sites for filing state income taxes resident. Free sites for filing state income taxes This includes situations in which one of you is a nonresident alien at the beginning of the tax year and a resident alien at the end of the year and the other is a nonresident alien at the end of the year. Free sites for filing state income taxes If you make this choice, the following two rules apply. Free sites for filing state income taxes You and your spouse are treated, for income tax purposes, as residents for all tax years that the choice is in effect. Free sites for filing state income taxes You must file a joint income tax return for the year you make the choice. Free sites for filing state income taxes This means that neither of you can claim under any tax treaty not to be a U. Free sites for filing state income taxes S. Free sites for filing state income taxes resident for a tax year for which the choice is in effect. Free sites for filing state income taxes You can file joint or separate returns in years after the year in which you make the choice. Free sites for filing state income taxes Example 1. Free sites for filing state income taxes Pat Smith, a U. Free sites for filing state income taxes S. Free sites for filing state income taxes citizen, is married to Norman, a nonresident alien. Free sites for filing state income taxes Pat and Norman make the choice to treat Norman as a resident alien by attaching a statement to their joint return. Free sites for filing state income taxes Pat and Norman must report their worldwide income for the year they make the choice and for all later years unless the choice is ended or suspended. Free sites for filing state income taxes Although Pat and Norman must file a joint return for the year they make the choice, they can file either joint or separate returns for later years. Free sites for filing state income taxes Example 2. Free sites for filing state income taxes When Bob and Sharon Williams got married, both were nonresident aliens. Free sites for filing state income taxes In June of last year, Bob became a resident alien and remained a resident for the rest of the year. Free sites for filing state income taxes Bob and Sharon both choose to be treated as resident aliens by attaching a statement to their joint return for last year. Free sites for filing state income taxes Bob and Sharon must report their worldwide income for last year and all later years unless the choice is ended or suspended. Free sites for filing state income taxes Bob and Sharon must file a joint return for last year, but they can file either joint or separate returns for later years. Free sites for filing state income taxes If you do not choose to treat your nonresident alien spouse as a U. Free sites for filing state income taxes S. Free sites for filing state income taxes resident, you may be able to use head of household filing status. Free sites for filing state income taxes To use this status, you must pay more than half the cost of maintaining a household for certain dependents or relatives other than your nonresident alien spouse. Free sites for filing state income taxes For more information, see Publication 501. Free sites for filing state income taxes Social Security Number (SSN) If you choose to treat your nonresident alien spouse as a U. Free sites for filing state income taxes S. Free sites for filing state income taxes resident, your spouse must have either an SSN or an individual taxpayer identification number (ITIN). Free sites for filing state income taxes To get an SSN for a nonresident alien spouse, apply at an office of the U. Free sites for filing state income taxes S. Free sites for filing state income taxes Social Security Administration (SSA) or U. Free sites for filing state income taxes S. Free sites for filing state income taxes consulate. Free sites for filing state income taxes You must complete Form SS-5, Application for a Social Security Card, available at www. Free sites for filing state income taxes socialsecurity. Free sites for filing state income taxes gov or by calling 1-800-772-1213. Free sites for filing state income taxes You must also provide original or certified copies of documents to verify that spouse's age, identity, and citizenship. Free sites for filing state income taxes If the nonresident alien spouse is not eligible to get an SSN, he or she can file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS to apply for an ITIN. Free sites for filing state income taxes How To Make the Choice Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. Free sites for filing state income taxes It should contain the following: A declaration that one spouse was a nonresident alien and the other spouse a U. Free sites for filing state income taxes S. Free sites for filing state income taxes citizen or resident alien on the last day of your tax year and that you choose to be treated as U. Free sites for filing state income taxes S. Free sites for filing state income taxes residents for the entire tax year, and The name, address, and social security number (or individual taxpayer identification number) of each spouse. Free sites for filing state income taxes (If one spouse died, include the name and address of the person making the choice for the deceased spouse. Free sites for filing state income taxes ) You generally make this choice when you file your joint return. Free sites for filing state income taxes However, you also can make the choice by filing a joint amended return on Form 1040X. Free sites for filing state income taxes Attach Form 1040, 1040A, or 1040EZ and print “Amended” across the top of the amended return. Free sites for filing state income taxes If you make the choice with an amended return, you and your spouse also must amend any returns that you may have filed after the year for which you made the choice. Free sites for filing state income taxes You generally must file the amended joint return within 3 years from the date you filed your original U. Free sites for filing state income taxes S. Free sites for filing state income taxes income tax return or 2 years from the date you paid your income tax for that year, whichever is later. Free sites for filing state income taxes Table 1–1. Free sites for filing state income taxes Ending the Choice To Treat Nonresident Alien Spouse as a Resident Revocation   Either spouse can revoke the choice for any tax year. Free sites for filing state income taxes   • The revocation must be made by the due date for filing the tax return for that tax year. Free sites for filing state income taxes   • The spouse who revokes the choice must attach a signed statement declaring that the choice is being revoked. Free sites for filing state income taxes The statement revoking the choice must include the following:     • The name, address, and social security number (or taxpayer identification number) of each spouse. Free sites for filing state income taxes     • The name and address of any person who is revoking the choice for a deceased spouse. Free sites for filing state income taxes     • A list of any states, foreign countries, and possessions that have community property laws in which either spouse is domiciled or where real property is located from which either spouse receives income. Free sites for filing state income taxes   • If the spouse revoking the choice does not have to file a return and does not file a claim for refund, send the statement to the Internal Revenue Service Center where the last joint return was filed. Free sites for filing state income taxes Death   The death of either spouse ends the choice, beginning with the first tax year following the year in which the spouse died. Free sites for filing state income taxes   • If the surviving spouse is a U. Free sites for filing state income taxes S. Free sites for filing state income taxes citizen or resident alien and is entitled to the joint tax rates as a surviving spouse, the choice will not end until the close of the last year for which these joint rates may be used. Free sites for filing state income taxes   • If both spouses die in the same tax year, the choice ends on the first day after the close of the tax year in which the spouses died. Free sites for filing state income taxes Divorce or  Legal separation   A divorce or legal separation ends the choice as of the beginning of the tax year in which the legal separation occurs. Free sites for filing state income taxes Inadequate records   The Internal Revenue Service can end the choice for any tax year that either spouse has failed to keep adequate books, records, and other information necessary to determine the correct income tax liability, or to provide adequate access to those records. Free sites for filing state income taxes Suspending the Choice The choice to be treated as a resident alien does not apply to any later tax year if neither of you is a U. Free sites for filing state income taxes S. Free sites for filing state income taxes citizen or resident alien at any time during the later tax year. Free sites for filing state income taxes Example. Free sites for filing state income taxes Dick Brown was a resident alien on December 31, 2010, and married to Judy, a nonresident alien. Free sites for filing state income taxes They chose to treat Judy as a resident alien and filed a joint 2010 income tax return. Free sites for filing state income taxes On January 10, 2012, Dick became a nonresident alien. Free sites for filing state income taxes Judy had remained a nonresident alien. Free sites for filing state income taxes Because Dick was a resident alien during part of 2012, Dick and Judy can file joint or separate returns for that year. Free sites for filing state income taxes Neither Dick nor Judy was a resident alien at any time during 2013 and their choice is suspended for that year. Free sites for filing state income taxes For 2013, both are treated as nonresident aliens. Free sites for filing state income taxes If Dick becomes a resident alien again in 2014, their choice is no longer suspended and both are treated as resident aliens. Free sites for filing state income taxes Ending the Choice Once made, the choice to be treated as a resident applies to all later years unless suspended (as explained earlier) or ended in one of the ways shown in Table 1-1. Free sites for filing state income taxes If the choice is ended for any of the reasons listed in Table 1-1, neither spouse can make a choice in any later tax year. Free sites for filing state income taxes Estimated Tax The requirements for determining who must pay estimated tax are the same for a U. Free sites for filing state income taxes S. Free sites for filing state income taxes citizen or resident abroad as for a taxpayer in the United States. Free sites for filing state income taxes For current instructions on making estimated tax payments, see Form 1040-ES. Free sites for filing state income taxes If you had a tax liability for 2013, you may have to pay estimated tax for 2014. Free sites for filing state income taxes Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax for 2014 after subtracting your withholding and credits and you expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return. Free sites for filing state income taxes (The return must cover all 12 months. Free sites for filing state income taxes ) If less than two-thirds of your gross income for 2013 and 2014 is from farming or fishing and your adjusted gross income for 2013 is more than $150,000 ($75,000 if you are married and file separately), substitute 110% for 100% in (2). Free sites for filing state income taxes See Publication 505 for more information. Free sites for filing state income taxes The first installment of estimated tax is due on April 15, 2014. Free sites for filing state income taxes Foreign earned income exclusion. Free sites for filing state income taxes   When figuring your estimated gross income, subtract amounts you expect to exclude under the foreign earned income exclusion and the foreign housing exclusion. Free sites for filing state income taxes In addition, you can reduce your income by your estimated foreign housing deduction. Free sites for filing state income taxes However, you must estimate tax on your nonexcluded income using the tax rates that will apply had you not excluded the income. Free sites for filing state income taxes If the actual amount of the exclusion or deduction is less than you estimate, you may have to pay a penalty for underpayment of estimated tax. Free sites for filing state income taxes   For more information about figuring your estimated tax, see Publication 505. Free sites for filing state income taxes Other Forms You May Have To File FinCEN Form 114 (replaces Form TD F 90-22. Free sites for filing state income taxes 1). Free sites for filing state income taxes   Beginning October 1, 2013, Form 114, Report of Foreign Bank and Financial Accounts (FBAR), must be filed instead of Form TD F 90-22. Free sites for filing state income taxes 1. Free sites for filing state income taxes Form 114 is filed electronically with the Financial Crimes Enforcement Network (FinCEN). Free sites for filing state income taxes See the filing instructions at www. Free sites for filing state income taxes bsaefiling. Free sites for filing state income taxes fincen. Free sites for filing state income taxes treas. Free sites for filing state income taxes gov/main. Free sites for filing state income taxes html. Free sites for filing state income taxes   You must file Form 114 if you had any financial interest in, or signature or other authority over a bank, securities, or other financial account in a foreign country. Free sites for filing state income taxes You do not need to file the report if the assets are with a U. Free sites for filing state income taxes S. Free sites for filing state income taxes military banking facility operated by a financial institution or if the combined assets in the account(s) are $10,000 or less during the entire year. Free sites for filing state income taxes   More information about the filing of Form 114 can be found in the instructions for the form. Free sites for filing state income taxes FinCEN Form 105. Free sites for filing state income taxes   You must file Form 105, Report of International Transportation of Currency or Monetary Instruments, if you physically transport, mail, ship, or cause to be physically transported, mailed, or shipped into or out of the United States, currency or other monetary instruments totaling more than $10,000 at one time. Free sites for filing state income taxes Certain recipients of currency or monetary instruments also must file Form 105. Free sites for filing state income taxes   More information about the filing of Form 105 can be found in the instructions on the back of the form. Free sites for filing state income taxes Form 8938. Free sites for filing state income taxes   You must file Form 8938 to report the ownership of specified foreign financial assets if the total value of those assets exceeds an applicable threshold amount (the “reporting threshold ”). Free sites for filing state income taxes The reporting threshold varies depending on whether you live in the United States, are married, or file a joint income tax return with your spouse. Free sites for filing state income taxes Specified foreign financial assets include any financial account maintained by a foreign financial institution and, to the extent held for investment, any stock, securities, or any other interest in a foreign entity and any financial instrument or contract with an issuer or counterparty that is not a U. Free sites for filing state income taxes S. Free sites for filing state income taxes person. Free sites for filing state income taxes   You may have to pay penalties if you are required to file Form 8938 and fail to do so, or if you have an understatement of tax due to any transaction involving an undisclosed foreign financial asset. Free sites for filing state income taxes   More information about the filing of Form 8938 can be found in the separate instructions for Form 8938. Free sites for filing state income taxes Prev  Up  Next   Home   More Online Publications
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The Free Sites For Filing State Income Taxes

Free sites for filing state income taxes 11. Free sites for filing state income taxes   Casualties, Thefts, and Condemnations Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Casualties and TheftsDeductible losses. Free sites for filing state income taxes Nondeductible losses. Free sites for filing state income taxes Family pet. Free sites for filing state income taxes Progressive deterioration. Free sites for filing state income taxes Decline in market value of stock. Free sites for filing state income taxes Mislaid or lost property. Free sites for filing state income taxes Farming Losses How To Figure a Loss Deduction Limits on Losses of Personal-Use Property When Loss Is Deductible Proof of Loss Figuring a Gain Other Involuntary ConversionsCondemnation Irrigation Project Livestock Losses Tree Seedlings Postponing GainException. Free sites for filing state income taxes Related persons. Free sites for filing state income taxes Replacement Property Replacement Period How To Postpone Gain Disaster Area LossesWho is eligible. Free sites for filing state income taxes Covered disaster area. Free sites for filing state income taxes Reporting Gains and Losses Introduction This chapter explains the tax treatment of casualties, thefts, and condemnations. Free sites for filing state income taxes A casualty occurs when property is damaged, destroyed, or lost due to a sudden, unexpected, or unusual event. Free sites for filing state income taxes A theft occurs when property is stolen. Free sites for filing state income taxes A condemnation occurs when private property is legally taken for public use without the owner's consent. Free sites for filing state income taxes A casualty, theft, or condemnation may result in a deductible loss or taxable gain on your federal income tax return. Free sites for filing state income taxes You may have a deductible loss or a taxable gain even if only a portion of your property was affected by a casualty, theft, or condemnation. Free sites for filing state income taxes An involuntary conversion occurs when you receive money or other property as reimbursement for a casualty, theft, condemnation, disposition of property under threat of condemnation, or certain other events discussed in this chapter. Free sites for filing state income taxes If an involuntary conversion results in a gain and you buy qualified replacement property within the specified replacement period, you can postpone reporting the gain on your income tax return. Free sites for filing state income taxes For more information, see Postponing Gain , later. Free sites for filing state income taxes Topics - This chapter discusses: Casualties and thefts How to figure a loss or gain Other involuntary conversions Postponing gain Disaster area losses Reporting gains and losses Drought involving property connected with a trade or business or a transaction entered into for profit Useful Items - You may want to see: Publication 523 Selling Your Home 525 Taxable and Nontaxable Income 536 Net Operating Losses (NOLs) for Individuals, Estates, and Trusts 544 Sales and Other Dispositions of Assets 547 Casualties, Disasters, and Thefts 584 Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property) 584-B Business Casualty, Disaster, and Theft Loss Workbook Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch D (Form 1040) Capital Gains and Losses Sch F (Form 1040) Profit or Loss From Farming 4684 Casualties and Thefts 4797 Sales of Business Property See chapter 16 for information about getting publications and forms. Free sites for filing state income taxes Casualties and Thefts If your property is destroyed, damaged, or stolen, you may have a deductible loss. Free sites for filing state income taxes If the insurance or other reimbursement is more than the adjusted basis of the destroyed, damaged, or stolen property, you may have a taxable gain. Free sites for filing state income taxes Casualty. Free sites for filing state income taxes   A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. Free sites for filing state income taxes A sudden event is one that is swift, not gradual or progressive. Free sites for filing state income taxes An unexpected event is one that is ordinarily unanticipated and unintended. Free sites for filing state income taxes An unusual event is one that is not a day-to-day occurrence and that is not typical of the activity in which you were engaged. Free sites for filing state income taxes Deductible losses. Free sites for filing state income taxes   Deductible casualty losses can result from a number of different causes, including the following. Free sites for filing state income taxes Airplane crashes. Free sites for filing state income taxes Car, truck, or farm equipment accidents not resulting from your willful act or willful negligence. Free sites for filing state income taxes Earthquakes. Free sites for filing state income taxes Fires (but see Nondeductible losses next for exceptions). Free sites for filing state income taxes Floods. Free sites for filing state income taxes Freezing. Free sites for filing state income taxes Government-ordered demolition or relocation of a home that is unsafe to use because of a disaster as discussed under Disaster Area Losses, in Publication 547. Free sites for filing state income taxes Lightning. Free sites for filing state income taxes Storms, including hurricanes and tornadoes. Free sites for filing state income taxes Terrorist attacks. Free sites for filing state income taxes Vandalism. Free sites for filing state income taxes Volcanic eruptions. Free sites for filing state income taxes Nondeductible losses. Free sites for filing state income taxes   A casualty loss is not deductible if the damage or destruction is caused by the following. Free sites for filing state income taxes Accidentally breaking articles such as glassware or china under normal conditions. Free sites for filing state income taxes A family pet (explained below). Free sites for filing state income taxes A fire if you willfully set it, or pay someone else to set it. Free sites for filing state income taxes A car, truck, or farm equipment accident if your willful negligence or willful act caused it. Free sites for filing state income taxes The same is true if the willful act or willful negligence of someone acting for you caused the accident. Free sites for filing state income taxes Progressive deterioration (explained below). Free sites for filing state income taxes Family pet. Free sites for filing state income taxes   Loss of property due to damage by a family pet is not deductible as a casualty loss unless the requirements discussed above under Casualty are met. Free sites for filing state income taxes Example. Free sites for filing state income taxes You keep your horse in your yard. Free sites for filing state income taxes The ornamental fruit trees in your yard were damaged when your horse stripped the bark from them. Free sites for filing state income taxes Some of the trees were completely girdled and died. Free sites for filing state income taxes Because the damage was not unexpected or unusual, the loss is not deductible. Free sites for filing state income taxes Progressive deterioration. Free sites for filing state income taxes   Loss of property due to progressive deterioration is not deductible as a casualty loss. Free sites for filing state income taxes This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. Free sites for filing state income taxes Examples of damage due to progressive deterioration include damage from rust, corrosion, or termites. Free sites for filing state income taxes However, weather-related conditions or disease may cause another type of involuntary conversion. Free sites for filing state income taxes See Other Involuntary Conversions , later. Free sites for filing state income taxes Theft. Free sites for filing state income taxes   A theft is the taking and removing of money or property with the intent to deprive the owner of it. Free sites for filing state income taxes The taking of property must be illegal under the law of the state where it occurred and it must have been done with criminal intent. Free sites for filing state income taxes You do not need to show a conviction for theft. Free sites for filing state income taxes   Theft includes the taking of money or property by the following means: Blackmail, Burglary, Embezzlement, Extortion, Kidnapping for ransom, Larceny, Robbery, or Threats. Free sites for filing state income taxes The taking of money or property through fraud or misrepresentation is theft if it is illegal under state or local law. Free sites for filing state income taxes Decline in market value of stock. Free sites for filing state income taxes   You cannot deduct as a theft loss the decline in market value of stock acquired on the open market for investment if the decline is caused by disclosure of accounting fraud or other illegal misconduct by the officers or directors of the corporation that issued the stock. Free sites for filing state income taxes However, you can deduct as a capital loss the loss you sustain when you sell or exchange the stock or the stock becomes completely worthless. Free sites for filing state income taxes You report a capital loss on Schedule D (Form 1040). Free sites for filing state income taxes For more information about stock sales, worthless stock, and capital losses, see chapter 4 of Publication 550. Free sites for filing state income taxes Mislaid or lost property. Free sites for filing state income taxes   The simple disappearance of money or property is not a theft. Free sites for filing state income taxes However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. Free sites for filing state income taxes Example. Free sites for filing state income taxes A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Free sites for filing state income taxes The diamond falls from the ring and is never found. Free sites for filing state income taxes The loss of the diamond is a casualty. Free sites for filing state income taxes Farming Losses You can deduct certain casualty or theft losses that occur in the business of farming. Free sites for filing state income taxes The following is a discussion of some losses you can deduct and some you cannot deduct. Free sites for filing state income taxes Livestock or produce bought for resale. Free sites for filing state income taxes   Casualty or theft losses of livestock or produce bought for resale are deductible if you report your income on the cash method. Free sites for filing state income taxes If you report your income on an accrual method, take casualty and theft losses on property bought for resale by omitting the item from the closing inventory for the year of the loss. Free sites for filing state income taxes You cannot take a separate deduction. Free sites for filing state income taxes Livestock, plants, produce, and crops raised for sale. Free sites for filing state income taxes   Losses of livestock, plants, produce, and crops raised for sale are generally not deductible if you report your income on the cash method. Free sites for filing state income taxes You have already deducted the cost of raising these items as farm expenses, so their basis is equal to zero. Free sites for filing state income taxes   For plants with a preproductive period of more than 2 years, you may have a deductible loss if you have a tax basis in the plants. Free sites for filing state income taxes You usually have a tax basis if you capitalized the expenses associated with these plants under the uniform capitalization rules. Free sites for filing state income taxes The uniform capitalization rules are discussed in chapter 6. Free sites for filing state income taxes   If you report your income on an accrual method, casualty or theft losses are deductible only if you included the items in your inventory at the beginning of your tax year. Free sites for filing state income taxes You get the deduction by omitting the item from your inventory at the close of your tax year. Free sites for filing state income taxes You cannot take a separate casualty or theft deduction. Free sites for filing state income taxes Income loss. Free sites for filing state income taxes   A loss of future income is not deductible. Free sites for filing state income taxes Example. Free sites for filing state income taxes A severe flood destroyed your crops. Free sites for filing state income taxes Because you are a cash method taxpayer and already deducted the cost of raising the crops as farm expenses, this loss is not deductible, as explained above under Livestock, plants, produce, and crops raised for sale . Free sites for filing state income taxes You estimate that the crop loss will reduce your farm income by $25,000. Free sites for filing state income taxes This loss of future income is also not deductible. Free sites for filing state income taxes Loss of timber. Free sites for filing state income taxes   If you sell timber downed as a result of a casualty, treat the proceeds from the sale as a reimbursement. Free sites for filing state income taxes If you use the proceeds to buy qualified replacement property, you can postpone reporting the gain. Free sites for filing state income taxes See Postponing Gain , later. Free sites for filing state income taxes Property used in farming. Free sites for filing state income taxes   Casualty and theft losses of property used in your farm business usually result in deductible losses. Free sites for filing state income taxes If a fire or storm destroyed your barn, or you lose by casualty or theft an animal you bought for draft, breeding, dairy, or sport, you may have a deductible loss. Free sites for filing state income taxes See How To Figure a Loss , later. Free sites for filing state income taxes Raised draft, breeding, dairy, or sporting animals. Free sites for filing state income taxes   Generally, losses of raised draft, breeding, dairy, or sporting animals do not result in deductible casualty or theft losses because you have no basis in the animals. Free sites for filing state income taxes However, you may have a basis in the animal and therefore may be able to claim a deduction if either of the following situations applies to you. Free sites for filing state income taxes You use inventories to determine your income and you included the animals in your inventory. Free sites for filing state income taxes You capitalized the expenses associated with the animals under the uniform capitalization rules and therefore have a tax basis in the animals subject to a casualty or theft. Free sites for filing state income taxes When you include livestock in inventory, its last inventory value is its basis. Free sites for filing state income taxes When you lose an inventoried animal held for draft, breeding, dairy, or sport by casualty or theft during the year, decrease ending inventory by the amount you included in inventory for the animal. Free sites for filing state income taxes You cannot take a separate deduction. Free sites for filing state income taxes How To Figure a Loss How you figure a deductible casualty or theft loss depends on whether the loss was to farm or personal-use property and whether the property was stolen or partly or completely destroyed. Free sites for filing state income taxes Farm property. Free sites for filing state income taxes   Farm property is the property you use in your farming business. Free sites for filing state income taxes If your farm property was completely destroyed or stolen, your loss is figured as follows:      Your adjusted basis in the property     MINUS     Any salvage value     MINUS     Any insurance or other reimbursement you  receive or expect to receive      You can use the schedules in Publication 584-B to list your stolen, damaged, or destroyed business property and to figure your loss. Free sites for filing state income taxes   If your farm property was partially damaged, use the steps shown under Personal-use property next to figure your casualty loss. Free sites for filing state income taxes However, the deduction limits, discussed later, do not apply to farm property. Free sites for filing state income taxes Personal-use property. Free sites for filing state income taxes   Personal-use property is property used by you or your family members for personal purposes and not used in your farm business or for income-producing purposes. Free sites for filing state income taxes The following items are examples of personal-use property: Your main home. Free sites for filing state income taxes Furniture and electronics used in your main home and not used in a home office or for business purposes. Free sites for filing state income taxes Clothing and jewelry. Free sites for filing state income taxes An automobile used for nonbusiness purposes. Free sites for filing state income taxes You figure the casualty or theft loss on this property by taking the following steps. Free sites for filing state income taxes Determine your adjusted basis in the property before the casualty or theft. Free sites for filing state income taxes Determine the decrease in fair market value of the property as a result of the casualty or theft. Free sites for filing state income taxes From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you receive or expect to receive. Free sites for filing state income taxes You must apply the deduction limits, discussed later, to determine your deductible loss. Free sites for filing state income taxes    You can use Publication 584 to list your stolen or damaged personal-use property and figure your loss. Free sites for filing state income taxes It includes schedules to help you figure the loss on your home, its contents, and your motor vehicles. Free sites for filing state income taxes Adjusted basis. Free sites for filing state income taxes   Adjusted basis is your basis (usually cost) increased or decreased by various events, such as improvements and casualty losses. Free sites for filing state income taxes For more information about adjusted basis, see chapter 6. Free sites for filing state income taxes Decrease in fair market value (FMV). Free sites for filing state income taxes   The decrease in FMV is the difference between the property's value immediately before the casualty or theft and its value immediately afterward. Free sites for filing state income taxes FMV is defined in chapter 10 under Payments Received or Considered Received . Free sites for filing state income taxes Appraisal. Free sites for filing state income taxes   To figure the decrease in FMV because of a casualty or theft, you generally need a competent appraisal. Free sites for filing state income taxes But other measures, such as the cost of cleaning up or making repairs (discussed next) can be used to establish decreases in FMV. Free sites for filing state income taxes   An appraisal to determine the difference between the FMV of the property immediately before a casualty or theft and immediately afterward should be made by a competent appraiser. Free sites for filing state income taxes The appraiser must recognize the effects of any general market decline that may occur along with the casualty. Free sites for filing state income taxes This information is needed to limit any deduction to the actual loss resulting from damage to the property. Free sites for filing state income taxes Cost of cleaning up or making repairs. Free sites for filing state income taxes   The cost of cleaning up after a casualty is not part of a casualty loss. Free sites for filing state income taxes Neither is the cost of repairing damaged property after a casualty. Free sites for filing state income taxes But you can use the cost of cleaning up or making repairs after a casualty as a measure of the decrease in FMV if you meet all the following conditions. Free sites for filing state income taxes The repairs are actually made. Free sites for filing state income taxes The repairs are necessary to bring the property back to its condition before the casualty. Free sites for filing state income taxes The amount spent for repairs is not excessive. Free sites for filing state income taxes The repairs fix the damage only. Free sites for filing state income taxes The value of the property after the repairs is not, due to the repairs, more than the value of the property before the casualty. Free sites for filing state income taxes Related expenses. Free sites for filing state income taxes   The incidental expenses due to a casualty or theft, such as expenses for the treatment of personal injuries, temporary housing, or a rental car, are not part of your casualty or theft loss. Free sites for filing state income taxes However, they may be deductible as farm business expenses if the damaged or stolen property is farm property. Free sites for filing state income taxes Separate computations for more than one item of property. Free sites for filing state income taxes   Generally, if a single casualty or theft involves more than one item of property, you must figure your loss separately for each item of property. Free sites for filing state income taxes Then combine the losses to determine your total loss. Free sites for filing state income taxes    There is an exception to this rule for personal-use real property. Free sites for filing state income taxes See Exception for personal-use real property, later. Free sites for filing state income taxes Example. Free sites for filing state income taxes A fire on your farm damaged a tractor and the barn in which it was stored. Free sites for filing state income taxes The tractor had an adjusted basis of $3,300. Free sites for filing state income taxes Its FMV was $28,000 just before the fire and $10,000 immediately afterward. Free sites for filing state income taxes The barn had an adjusted basis of $28,000. Free sites for filing state income taxes Its FMV was $55,000 just before the fire and $25,000 immediately afterward. Free sites for filing state income taxes You received insurance reimbursements of $2,100 on the tractor and $26,000 on the barn. Free sites for filing state income taxes Figure your deductible casualty loss separately for the two items of property. Free sites for filing state income taxes     Tractor Barn 1) Adjusted basis $3,300 $28,000 2) FMV before fire $28,000 $55,000 3) FMV after fire 10,000 25,000 4) Decrease in FMV  (line 2 − line 3) $18,000 $30,000 5) Loss (lesser of line 1 or line 4) $3,300 $28,000 6) Minus: Insurance 2,100 26,000 7) Deductible casualty loss $1,200 $2,000 8) Total deductible casualty loss $3,200 Exception for personal-use real property. Free sites for filing state income taxes   In figuring a casualty loss on personal-use real property, the entire property (including any improvements, such as buildings, trees, and shrubs) is treated as one item. Free sites for filing state income taxes Figure the loss using the smaller of the following. Free sites for filing state income taxes The decrease in FMV of the entire property. Free sites for filing state income taxes The adjusted basis of the entire property. Free sites for filing state income taxes Example. Free sites for filing state income taxes You bought a farm in 1990 for $160,000. Free sites for filing state income taxes The adjusted basis of the residential part is now $128,000. Free sites for filing state income taxes In 2013, a windstorm blew down shade trees and three ornamental trees planted at a cost of $7,500 on the residential part. Free sites for filing state income taxes The adjusted basis of the residential part includes the $7,500. Free sites for filing state income taxes The fair market value (FMV) of the residential part immediately before the storm was $400,000, and $385,000 immediately after the storm. Free sites for filing state income taxes The trees were not covered by insurance. Free sites for filing state income taxes 1) Adjusted basis $128,000 2) FMV before the storm $400,000 3) FMV after the storm 385,000 4) Decrease in FMV (line 2 − line 3) $15,000 5) Loss before insurance (lesser of line 1 or line 4) $15,000 6) Minus: Insurance -0- 7) Amount of loss $15,000 Insurance and other reimbursements. Free sites for filing state income taxes   If you receive an insurance or other type of reimbursement, you must subtract the reimbursement when you figure your loss. Free sites for filing state income taxes You do not have a casualty or theft loss to the extent you are reimbursed. Free sites for filing state income taxes   If you expect to be reimbursed for part or all of your loss, you must subtract the expected reimbursement when you figure your loss. Free sites for filing state income taxes You must reduce your loss even if you do not receive payment until a later tax year. Free sites for filing state income taxes    Do not subtract from your loss any insurance payments you receive for living expenses if you lose the use of your main home or are denied access to it because of a casualty. Free sites for filing state income taxes You may have to include a portion of these payments in your income. Free sites for filing state income taxes See Insurance payments for living expenses in Publication 547 for details. Free sites for filing state income taxes Disaster relief. Free sites for filing state income taxes   Food, medical supplies, and other forms of assistance you receive do not reduce your casualty loss, unless they are replacements for lost or destroyed property. Free sites for filing state income taxes Excludable cash gifts you receive also do not reduce your casualty loss if there are no limits on how you can use the money. Free sites for filing state income taxes   Generally, disaster relief grants received under the Robert T. Free sites for filing state income taxes Stafford Disaster Relief and Emergency Assistance Act are not included in your income. Free sites for filing state income taxes See Federal disaster relief grants , later, under Disaster Area Losses . Free sites for filing state income taxes   Qualified disaster relief payments for expenses you incurred as a result of a federally declared disaster are not taxable income to you. Free sites for filing state income taxes See Qualified disaster relief payments , later, under Disaster Area Losses . Free sites for filing state income taxes Reimbursement received after deducting loss. Free sites for filing state income taxes   If you figure your casualty or theft loss using your expected reimbursement, you may have to adjust your tax return for the tax year in which you get your actual reimbursement. Free sites for filing state income taxes Actual reimbursement less than expected. Free sites for filing state income taxes   If you later receive less reimbursement than you expected, include that difference as a loss with your other losses (if any) on your return for the year in which you can reasonably expect no more reimbursement. Free sites for filing state income taxes Actual reimbursement more than expected. Free sites for filing state income taxes   If you later receive more reimbursement than you expected after you have claimed a deduction for the loss, you may have to include the extra reimbursement in your income for the year you receive it. Free sites for filing state income taxes However, if any part of your original deduction did not reduce your tax for the earlier year, do not include that part of the reimbursement in your income. Free sites for filing state income taxes Do not refigure your tax for the year you claimed the deduction. Free sites for filing state income taxes See Recoveries in Publication 525 to find out how much extra reimbursement to include in income. Free sites for filing state income taxes If the total of all the reimbursements you receive is more than your adjusted basis in the destroyed or stolen property, you will have a gain on the casualty or theft. Free sites for filing state income taxes See Figuring a Gain in Publication 547 for information on how to treat a gain from the reimbursement you receive because of a casualty or theft. Free sites for filing state income taxes Actual reimbursement same as expected. Free sites for filing state income taxes   If you receive exactly the reimbursement you expected to receive, you do not have to include any of the reimbursement in your income and you cannot deduct any additional loss. Free sites for filing state income taxes Lump-sum reimbursement. Free sites for filing state income taxes   If you have a casualty or theft loss of several assets at the same time without an allocation of reimbursement to specific assets, divide the lump-sum reimbursement among the assets according to the fair market value of each asset at the time of the loss. Free sites for filing state income taxes Figure the gain or loss separately for each asset that has a separate basis. Free sites for filing state income taxes Adjustments to basis. Free sites for filing state income taxes   If you have a casualty or theft loss, you must decrease your basis in the property by any insurance or other reimbursement you receive and by any deductible loss. Free sites for filing state income taxes The result is your adjusted basis in the property. Free sites for filing state income taxes Amounts you spend on repairs to restore your property to its pre-casualty condition increase your adjusted basis. Free sites for filing state income taxes See Adjusted Basis in chapter 6 for more information. Free sites for filing state income taxes Example. Free sites for filing state income taxes You built a new silo for $25,000. Free sites for filing state income taxes This is the basis in your silo because that is the total cost you incurred to build it. Free sites for filing state income taxes During the year, a tornado damaged your silo and your allowable casualty loss deduction was $1,000. Free sites for filing state income taxes In addition, your insurance company reimbursed you $4,000 for the damage and you spent $6,000 to restore the silo to its pre-casualty condition. Free sites for filing state income taxes Your adjusted basis in the silo after the casualty is $26,000 ($25,000 - $1,000 - $4,000 + $6,000). Free sites for filing state income taxes Deduction Limits on Losses of Personal-Use Property Casualty and theft losses of property held for personal use may be deductible if you itemize deductions on Schedule A (Form 1040). Free sites for filing state income taxes There are two limits on the deduction for casualty or theft loss of personal-use property. Free sites for filing state income taxes You figure these limits on Form 4684. Free sites for filing state income taxes $100 rule. Free sites for filing state income taxes   You must reduce each casualty or theft loss on personal-use property by $100. Free sites for filing state income taxes This rule applies after you have subtracted any reimbursement. Free sites for filing state income taxes 10% rule. Free sites for filing state income taxes   You must further reduce the total of all your casualty or theft losses on personal-use property by 10% of your adjusted gross income. Free sites for filing state income taxes Apply this rule after you reduce each loss by $100. Free sites for filing state income taxes Adjusted gross income is on line 38 of Form 1040. Free sites for filing state income taxes Example. Free sites for filing state income taxes In June, you discovered that your house had been burglarized. Free sites for filing state income taxes Your loss after insurance reimbursement was $2,000. Free sites for filing state income taxes Your adjusted gross income for the year you discovered the burglary is $57,000. Free sites for filing state income taxes Figure your theft loss deduction as follows: 1. Free sites for filing state income taxes Loss after insurance $2,000 2. Free sites for filing state income taxes Subtract $100 100 3. Free sites for filing state income taxes Loss after $100 rule $1,900 4. Free sites for filing state income taxes Subtract 10% (. Free sites for filing state income taxes 10) × $57,000 AGI $5,700 5. Free sites for filing state income taxes Theft loss deduction -0- You do not have a theft loss deduction because your loss ($1,900) is less than 10% of your adjusted gross income ($5,700). Free sites for filing state income taxes    If you have a casualty or theft gain in addition to a loss, you will have to make a special computation before you figure your 10% limit. Free sites for filing state income taxes See 10% Rule in Publication 547. Free sites for filing state income taxes When Loss Is Deductible Generally, you can deduct casualty losses that are not reimbursable only in the tax year in which they occur. Free sites for filing state income taxes You generally can deduct theft losses that are not reimbursable only in the year you discover your property was stolen. Free sites for filing state income taxes However, losses in federally declared disaster areas are subject to different rules. Free sites for filing state income taxes See Disaster Area Losses , later, for an exception. Free sites for filing state income taxes If you are not sure whether part of your casualty or theft loss will be reimbursed, do not deduct that part until the tax year when you become reasonably certain that it will not be reimbursed. Free sites for filing state income taxes Leased property. Free sites for filing state income taxes   If you lease property from someone else, you can deduct a loss on the property in the year your liability for the loss is fixed. Free sites for filing state income taxes This is true even if the loss occurred or the liability was paid in a different year. Free sites for filing state income taxes You are not entitled to a deduction until your liability under the lease can be determined with reasonable accuracy. Free sites for filing state income taxes Your liability can be determined when a claim for recovery is settled, adjudicated, or abandoned. Free sites for filing state income taxes Example. Free sites for filing state income taxes Robert leased a tractor from First Implement, Inc. Free sites for filing state income taxes , for use in his farm business. Free sites for filing state income taxes The tractor was destroyed by a tornado in June 2012. Free sites for filing state income taxes The loss was not insured. Free sites for filing state income taxes First Implement billed Robert for the fair market value of the tractor on the date of the loss. Free sites for filing state income taxes Robert disagreed with the bill and refused to pay it. Free sites for filing state income taxes First Implement later filed suit in court against Robert. Free sites for filing state income taxes In 2013, Robert and First Implement agreed to settle the suit for $20,000, and the court entered a judgment in favor of First Implement. Free sites for filing state income taxes Robert paid $20,000 in June 2013. Free sites for filing state income taxes He can claim the $20,000 as a loss on his 2013 tax return. Free sites for filing state income taxes Net operating loss (NOL). Free sites for filing state income taxes   If your deductions, including casualty or theft loss deductions, are more than your income for the year, you may have an NOL. Free sites for filing state income taxes An NOL can be carried back or carried forward and deducted from income in other years. Free sites for filing state income taxes See Publication 536 for more information on NOLs. Free sites for filing state income taxes Proof of Loss To deduct a casualty or theft loss, you must be able to prove that there was a casualty or theft. Free sites for filing state income taxes You must have records to support the amount you claim for the loss. Free sites for filing state income taxes Casualty loss proof. Free sites for filing state income taxes   For a casualty loss, your records should show all the following information. Free sites for filing state income taxes The type of casualty (car accident, fire, storm, etc. Free sites for filing state income taxes ) and when it occurred. Free sites for filing state income taxes That the loss was a direct result of the casualty. Free sites for filing state income taxes That you were the owner of the property or, if you leased the property from someone else, that you were contractually liable to the owner for the damage. Free sites for filing state income taxes Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. Free sites for filing state income taxes Theft loss proof. Free sites for filing state income taxes   For a theft loss, your records should show all the following information. Free sites for filing state income taxes When you discovered your property was missing. Free sites for filing state income taxes That your property was stolen. Free sites for filing state income taxes That you were the owner of the property. Free sites for filing state income taxes Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. Free sites for filing state income taxes Figuring a Gain A casualty or theft may result in a taxable gain. Free sites for filing state income taxes If you receive an insurance payment or other reimbursement that is more than your adjusted basis in the destroyed, damaged, or stolen property, you have a gain from the casualty or theft. Free sites for filing state income taxes You generally report your gain as income in the year you receive the reimbursement. Free sites for filing state income taxes However, depending on the type of property you receive, you may not have to report your gain. Free sites for filing state income taxes See Postponing Gain , later. Free sites for filing state income taxes Your gain is figured as follows: The amount you receive, minus Your adjusted basis in the property at the time of the casualty or theft. Free sites for filing state income taxes Even if the decrease in FMV of your property is smaller than the adjusted basis of your property, use your adjusted basis to figure the gain. Free sites for filing state income taxes Amount you receive. Free sites for filing state income taxes   The amount you receive includes any money plus the value of any property you receive, minus any expenses you have in obtaining reimbursement. Free sites for filing state income taxes It also includes any reimbursement used to pay off a mortgage or other lien on the damaged, destroyed, or stolen property. Free sites for filing state income taxes Example. Free sites for filing state income taxes A tornado severely damaged your barn. Free sites for filing state income taxes The adjusted basis of the barn was $25,000. Free sites for filing state income taxes Your insurance company reimbursed you $40,000 for the damaged barn. Free sites for filing state income taxes However, you had legal expenses of $2,000 to collect that insurance. Free sites for filing state income taxes Your insurance minus your expenses to collect the insurance is more than your adjusted basis in the barn, so you have a gain. Free sites for filing state income taxes 1) Insurance reimbursement $40,000 2) Legal expenses 2,000 3) Amount received  (line 1 − line 2) $38,000 4) Adjusted basis 25,000 5) Gain on casualty (line 3 − line 4) $13,000 Other Involuntary Conversions In addition to casualties and thefts, other events cause involuntary conversions of property. Free sites for filing state income taxes Some of these are discussed in the following paragraphs. Free sites for filing state income taxes Gain or loss from an involuntary conversion of your property is usually recognized for tax purposes. Free sites for filing state income taxes You report the gain or deduct the loss on your tax return for the year you realize it. Free sites for filing state income taxes However, depending on the type of property you receive, you may not have to report your gain on the involuntary conversion. Free sites for filing state income taxes See Postponing Gain , later. Free sites for filing state income taxes Condemnation Condemnation is the process by which private property is legally taken for public use without the owner's consent. Free sites for filing state income taxes The property may be taken by the federal government, a state government, a political subdivision, or a private organization that has the power to legally take property. Free sites for filing state income taxes The owner receives a condemnation award (money or property) in exchange for the property taken. Free sites for filing state income taxes A condemnation is a forced sale, the owner being the seller and the condemning authority being the buyer. Free sites for filing state income taxes Threat of condemnation. Free sites for filing state income taxes   Treat the sale of your property under threat of condemnation as a condemnation, provided you have reasonable grounds to believe that your property will be condemned. Free sites for filing state income taxes Main home condemned. Free sites for filing state income taxes   If you have a gain because your main home is condemned, you generally can exclude the gain from your income as if you had sold or exchanged your home. Free sites for filing state income taxes For information on this exclusion, see Publication 523. Free sites for filing state income taxes If your gain is more than the amount you can exclude, but you buy replacement property, you may be able to postpone reporting the excess gain. Free sites for filing state income taxes See Postponing Gain , later. Free sites for filing state income taxes (You cannot deduct a loss from the condemnation of your main home. Free sites for filing state income taxes ) More information. Free sites for filing state income taxes   For information on how to figure the gain or loss on condemned property, see chapter 1 in Publication 544. Free sites for filing state income taxes Also see Postponing Gain , later, to find out if you can postpone reporting the gain. Free sites for filing state income taxes Irrigation Project The sale or other disposition of property located within an irrigation project to conform to the acreage limits of federal reclamation laws is an involuntary conversion. Free sites for filing state income taxes Livestock Losses Diseased livestock. Free sites for filing state income taxes   If your livestock die from disease, or are destroyed, sold, or exchanged because of disease, even though the disease is not of epidemic proportions, treat these occurrences as involuntary conversions. Free sites for filing state income taxes If the livestock were raised or purchased for resale, follow the rules for livestock discussed earlier under Farming Losses . Free sites for filing state income taxes Otherwise, figure the gain or loss from these conversions using the rules discussed under Determining Gain or Loss in chapter 8. Free sites for filing state income taxes If you replace the livestock, you may be able to postpone reporting the gain. Free sites for filing state income taxes See Postponing Gain below. Free sites for filing state income taxes Reporting dispositions of diseased livestock. Free sites for filing state income taxes   If you choose to postpone reporting gain on the disposition of diseased livestock, you must attach a statement to your return explaining that the livestock were disposed of because of disease. Free sites for filing state income taxes You must also include other information on this statement. Free sites for filing state income taxes See How To Postpone Gain , later, under Postponing Gain . Free sites for filing state income taxes Weather-related sales of livestock. Free sites for filing state income taxes   If you sell or exchange livestock (other than poultry) held for draft, breeding, or dairy purposes solely because of drought, flood, or other weather-related conditions, treat the sale or exchange as an involuntary conversion. Free sites for filing state income taxes Only livestock sold in excess of the number you normally would sell under usual business practice, in the absence of weather-related conditions, are considered involuntary conversions. Free sites for filing state income taxes Figure the gain or loss using the rules discussed under Determining Gain or Loss in chapter 8. Free sites for filing state income taxes If you replace the livestock, you may be able to postpone reporting the gain. Free sites for filing state income taxes See Postponing Gain below. Free sites for filing state income taxes Example. Free sites for filing state income taxes It is your usual business practice to sell five of your dairy animals during the year. Free sites for filing state income taxes This year you sold 20 dairy animals because of drought. Free sites for filing state income taxes The sale of 15 animals is treated as an involuntary conversion. Free sites for filing state income taxes    If you do not replace the livestock, you may be able to report the gain in the following year's income. Free sites for filing state income taxes This rule also applies to other livestock (including poultry). Free sites for filing state income taxes See Sales Caused by Weather-Related Conditions in chapter 3. Free sites for filing state income taxes Tree Seedlings If, because of an abnormal drought, the failure of planted tree seedlings is greater than normally anticipated, you may have a deductible loss. Free sites for filing state income taxes Treat the loss as a loss from an involuntary conversion. Free sites for filing state income taxes The loss equals the previously capitalized reforestation costs you had to duplicate on replanting. Free sites for filing state income taxes You deduct the loss on the return for the year the seedlings died. Free sites for filing state income taxes Postponing Gain Do not report a gain if you receive reimbursement in the form of property similar or related in service or use to the destroyed, stolen, or other involuntarily converted property. Free sites for filing state income taxes Your basis in the new property is generally the same as your adjusted basis in the property it replaces. Free sites for filing state income taxes You must ordinarily report the gain on your stolen, destroyed, or other involuntarily converted property if you receive money or unlike property as reimbursement. Free sites for filing state income taxes However, you can choose to postpone reporting the gain if you purchase replacement property similar or related in service or use to your destroyed, stolen, or other involuntarily converted property within a specific replacement period. Free sites for filing state income taxes If you have a gain on damaged property, you can postpone reporting the gain if you spend the reimbursement to restore the property. Free sites for filing state income taxes To postpone reporting all the gain, the cost of your replacement property must be at least as much as the reimbursement you receive. Free sites for filing state income taxes If the cost of the replacement property is less than the reimbursement, you must include the gain in your income up to the amount of the unspent reimbursement. Free sites for filing state income taxes Example 1. Free sites for filing state income taxes In 1985, you constructed a barn to store farm equipment at a cost of $20,000. Free sites for filing state income taxes In 1987, you added a silo to the barn at a cost of $15,000 to store grain. Free sites for filing state income taxes In May of this year, the property was worth $100,000. Free sites for filing state income taxes In June the barn and silo were destroyed by a tornado. Free sites for filing state income taxes At the time of the tornado, you had an adjusted basis of $0 in the property. Free sites for filing state income taxes You received $85,000 from the insurance company. Free sites for filing state income taxes You had a gain of $85,000 ($85,000 – $0). Free sites for filing state income taxes You spent $80,000 to rebuild the barn and silo. Free sites for filing state income taxes Since this is less than the insurance proceeds received, you must include $5,000 ($85,000 – $80,000) in your income. Free sites for filing state income taxes Example 2. Free sites for filing state income taxes In 1970, you bought a cabin in the mountains for your personal use at a cost of $18,000. Free sites for filing state income taxes You made no further improvements or additions to it. Free sites for filing state income taxes When a storm destroyed the cabin this January, the cabin was worth $250,000. Free sites for filing state income taxes You received $146,000 from the insurance company in March. Free sites for filing state income taxes You had a gain of $128,000 ($146,000 − $18,000). Free sites for filing state income taxes You spent $144,000 to rebuild the cabin. Free sites for filing state income taxes Since this is less than the insurance proceeds received, you must include $2,000 ($146,000 − $144,000) in your income. Free sites for filing state income taxes Buying replacement property from a related person. Free sites for filing state income taxes   You cannot postpone reporting a gain from a casualty, theft, or other involuntary conversion if you buy the replacement property from a related person (discussed later). Free sites for filing state income taxes This rule applies to the following taxpayers. Free sites for filing state income taxes C corporations. Free sites for filing state income taxes Partnerships in which more than 50% of the capital or profits interest is owned by C corporations. Free sites for filing state income taxes Individuals, partnerships (other than those in (2) above), and S corporations if the total realized gain for the tax year on all involuntarily converted properties on which there are realized gains is more than $100,000. Free sites for filing state income taxes For involuntary conversions described in (3) above, gains cannot be offset by any losses when determining whether the total gain is more than $100,000. Free sites for filing state income taxes If the property is owned by a partnership, the $100,000 limit applies to the partnership and each partner. Free sites for filing state income taxes If the property is owned by an S corporation, the $100,000 limit applies to the S corporation and each shareholder. Free sites for filing state income taxes Exception. Free sites for filing state income taxes   This rule does not apply if the related person acquired the property from an unrelated person within the period of time allowed for replacing the involuntarily converted property. Free sites for filing state income taxes Related persons. Free sites for filing state income taxes   Under this rule, related persons include, for example, a parent and child, a brother and sister, a corporation and an individual who owns more than 50% of its outstanding stock, and two partnerships in which the same C corporations own more than 50% of the capital or profits interests. Free sites for filing state income taxes For more information on related persons, see Nondeductible Loss under Sales and Exchanges Between Related Persons in chapter 2 of Publication 544. Free sites for filing state income taxes Death of a taxpayer. Free sites for filing state income taxes   If a taxpayer dies after having a gain, but before buying replacement property, the gain must be reported for the year in which the decedent realized the gain. Free sites for filing state income taxes The executor of the estate or the person succeeding to the funds from the involuntary conversion cannot postpone reporting the gain by buying replacement property. Free sites for filing state income taxes Replacement Property You must buy replacement property for the specific purpose of replacing your property. Free sites for filing state income taxes Your replacement property must be similar or related in service or use to the property it replaces. Free sites for filing state income taxes You do not have to use the same funds you receive as reimbursement for your old property to acquire the replacement property. Free sites for filing state income taxes If you spend the money you receive for other purposes, and borrow money to buy replacement property, you can still choose to postpone reporting the gain if you meet the other requirements. Free sites for filing state income taxes Property you acquire by gift or inheritance does not qualify as replacement property. Free sites for filing state income taxes Owner-user. Free sites for filing state income taxes   If you are an owner-user, similar or related in service or use means that replacement property must function in the same way as the property it replaces. Free sites for filing state income taxes Examples of property that functions in the same way as the property it replaces are a home that replaces another home, a dairy cow that replaces another dairy cow, and farm land that replaces other farm land. Free sites for filing state income taxes A grinding mill that replaces a tractor does not qualify. Free sites for filing state income taxes Neither does a breeding or draft animal that replaces a dairy cow. Free sites for filing state income taxes Soil or other environmental contamination. Free sites for filing state income taxes   If, because of soil or other environmental contamination, it is not feasible for you to reinvest your insurance money or other proceeds from destroyed or damaged livestock in property similar or related in service or use to the livestock, you can treat other property (including real property) used for farming purposes, as property similar or related in service or use to the destroyed or damaged livestock. Free sites for filing state income taxes Weather-related conditions. Free sites for filing state income taxes   If, because of drought, flood, or other weather-related conditions, it is not feasible for you to reinvest the insurance money or other proceeds in property similar or related in service or use to the livestock, you can treat other property (excluding real property) used for farming purposes, as property similar or related in service or use to the livestock you disposed of. Free sites for filing state income taxes Example. Free sites for filing state income taxes Each year you normally sell 25 cows from your beef herd. Free sites for filing state income taxes However, this year you had to sell 50 cows. Free sites for filing state income taxes This is because a severe drought significantly reduced the amount of hay and pasture yield needed to feed your herd for the rest of the year. Free sites for filing state income taxes Because, as a result of the severe drought, it is not feasible for you to use the proceeds from selling the extra cows to buy new cows, you can treat other property (excluding real property) used for farming purposes, as property similar or related in service or use to the cows you sold. Free sites for filing state income taxes Standing crop destroyed by casualty. Free sites for filing state income taxes   If a storm or other casualty destroyed your standing crop and you use the insurance money to acquire either another standing crop or a harvested crop, this purchase qualifies as replacement property. Free sites for filing state income taxes The costs of planting and raising a new crop qualify as replacement costs for the destroyed crop only if you use the crop method of accounting (discussed in chapter 2). Free sites for filing state income taxes In that case, the costs of bringing the new crop to the same level of maturity as the destroyed crop qualify as replacement costs to the extent they are incurred during the replacement period. Free sites for filing state income taxes Timber loss. Free sites for filing state income taxes   Standing timber you bought with the proceeds from the sale of timber downed as a result of a casualty, such as high winds, earthquakes, or volcanic eruptions, qualifies as replacement property. Free sites for filing state income taxes If you bought the standing timber within the replacement period, you can postpone reporting the gain. Free sites for filing state income taxes Business or income-producing property located in a federally declared disaster area. Free sites for filing state income taxes   If your destroyed business or income-producing property was located in a federally declared disaster area, any tangible replacement property you acquire for use in any business is treated as similar or related in service or use to the destroyed property. Free sites for filing state income taxes For more information, see Disaster Area Losses in Publication 547. Free sites for filing state income taxes Substituting replacement property. Free sites for filing state income taxes   Once you have acquired qualified replacement property that you designate as replacement property in a statement attached to your tax return, you cannot substitute other qualified replacement property. Free sites for filing state income taxes This is true even if you acquire the other property within the replacement period. Free sites for filing state income taxes However, if you discover that the original replacement property was not qualified replacement property, you can, within the replacement period, substitute the new qualified replacement property. Free sites for filing state income taxes Basis of replacement property. Free sites for filing state income taxes   You must reduce the basis of your replacement property (its cost) by the amount of postponed gain. Free sites for filing state income taxes In this way, tax on the gain is postponed until you dispose of the replacement property. Free sites for filing state income taxes Replacement Period To postpone reporting your gain, you must buy replacement property within a specified period of time. Free sites for filing state income taxes This is the replacement period. Free sites for filing state income taxes The replacement period begins on the date your property was damaged, destroyed, stolen, sold, or exchanged. Free sites for filing state income taxes The replacement period generally ends 2 years after the close of the first tax year in which you realize any part of your gain from the involuntary conversion. Free sites for filing state income taxes Example. Free sites for filing state income taxes You are a calendar year taxpayer. Free sites for filing state income taxes While you were on vacation, farm equipment that cost $2,200 was stolen from your farm. Free sites for filing state income taxes You discovered the theft when you returned to your farm on November 11, 2012. Free sites for filing state income taxes Your insurance company investigated the theft and did not settle your claim until January 5, 2013, when they paid you $3,000. Free sites for filing state income taxes You first realized a gain from the reimbursement for the theft during 2013, so you have until December 31, 2015, to replace the property. Free sites for filing state income taxes Main home in disaster area. Free sites for filing state income taxes   For your main home (or its contents) located in a federally declared disaster area, the replacement period ends 4 years after the close of the first tax year in which you realize any part of your gain from the involuntary conversion. Free sites for filing state income taxes See Disaster Area Losses , later. Free sites for filing state income taxes Property in the Midwestern disaster areas. Free sites for filing state income taxes   For property located in the Midwestern disaster areas (defined in Table 4 in the 2008 Publication 547) that was destroyed, damaged, stolen, or condemned, the replacement period ends 5 years after the close of the first tax year in which any part of your gain is realized. Free sites for filing state income taxes This 5-year replacement period applies only if substantially all of the use of the replacement property is in the Midwestern disaster areas. Free sites for filing state income taxes Property in the Kansas disaster area. Free sites for filing state income taxes   For property located in the Kansas disaster area that was destroyed, damaged, stolen, or condemned after May 3, 2007, as a result of the Kansas storms and tornadoes, the replacement period ends 5 years after the close of the first tax year in which any part of your gain is realized. Free sites for filing state income taxes This 5-year replacement period applies only if substantially all of the use of the replacement property is in the Kansas disaster area. Free sites for filing state income taxes Property in the Hurricane Katrina disaster area. Free sites for filing state income taxes   For property located in the Hurricane Katrina disaster area that was destroyed, damaged, stolen, or condemned after August 24, 2005, as a result of Hurricane Katrina, the replacement period ends 5 years after the close of the first tax year in which any part of your gain is realized. Free sites for filing state income taxes This 5-year replacement period applies only if substantially all of the use of the replacement property is in the Hurricane Katrina disaster area. Free sites for filing state income taxes Weather-related sales of livestock in an area eligible for federal assistance. Free sites for filing state income taxes   For the sale or exchange of livestock due to drought, flood, or other weather-related conditions in an area eligible for federal assistance, the replacement period ends 4 years after the close of the first tax year in which you realize any part of your gain from the sale or exchange. Free sites for filing state income taxes The IRS may extend the replacement period on a regional basis if the weather-related conditions continue for longer than 3 years. Free sites for filing state income taxes   For information on extensions of the replacement period because of persistent drought, see Notice 2006-82, 2006-39 I. Free sites for filing state income taxes R. Free sites for filing state income taxes B. Free sites for filing state income taxes 529, available at  www. Free sites for filing state income taxes irs. Free sites for filing state income taxes gov/irb/2006-39_IRB/ar11. Free sites for filing state income taxes html. Free sites for filing state income taxes For a list of counties for which exceptional, extreme, or severe drought was reported during the 12 months ending August 31, 2013, see Notice 2013-62, available at IRS. Free sites for filing state income taxes gov. Free sites for filing state income taxes Condemnation. Free sites for filing state income taxes   The replacement period for a condemnation begins on the earlier of the following dates. Free sites for filing state income taxes The date on which you disposed of the condemned property. Free sites for filing state income taxes The date on which the threat of condemnation began. Free sites for filing state income taxes The replacement period generally ends 2 years after the close of the first tax year in which any part of the gain on the condemnation is realized. Free sites for filing state income taxes But see Main home in disaster area , Property in the Midwestern disaster areas , Property in the Kansas disaster area , and Property in the Hurricane Katrina disaster area , earlier, for exceptions. Free sites for filing state income taxes Business or investment real property. Free sites for filing state income taxes   If real property held for use in a trade or business or for investment (not including property held primarily for sale) is condemned, the replacement period ends 3 years after the close of the first tax year in which any part of the gain on the condemnation is realized. Free sites for filing state income taxes Extension. Free sites for filing state income taxes   You can apply for an extension of the replacement period. Free sites for filing state income taxes Send your written application to the Internal Revenue Service Center where you file your tax return. Free sites for filing state income taxes See your tax return instructions for the address. Free sites for filing state income taxes Include all the details about your need for an extension. Free sites for filing state income taxes Make your application before the end of the replacement period. Free sites for filing state income taxes However, you can file an application within a reasonable time after the replacement period ends if you can show a good reason for the delay. Free sites for filing state income taxes You will get an extension of the replacement period if you can show reasonable cause for not making the replacement within the regular period. Free sites for filing state income taxes How To Postpone Gain You postpone reporting your gain by reporting your choice on your tax return for the year you have the gain. Free sites for filing state income taxes You have the gain in the year you receive insurance proceeds or other reimbursements that result in a gain. Free sites for filing state income taxes Required statement. Free sites for filing state income taxes   You should attach a statement to your return for the year you have the gain. Free sites for filing state income taxes This statement should include all the following information. Free sites for filing state income taxes The date and details of the casualty, theft, or other involuntary conversion. Free sites for filing state income taxes The insurance or other reimbursement you received. Free sites for filing state income taxes How you figured the gain. Free sites for filing state income taxes Replacement property acquired before return filed. Free sites for filing state income taxes   If you acquire replacement property before you file your return for the year you have the gain, your statement should also include detailed information about all the following items. Free sites for filing state income taxes The replacement property. Free sites for filing state income taxes The postponed gain. Free sites for filing state income taxes The basis adjustment that reflects the postponed gain. Free sites for filing state income taxes Any gain you are reporting as income. Free sites for filing state income taxes Replacement property acquired after return filed. Free sites for filing state income taxes   If you intend to buy replacement property after you file your return for the year you realize gain, your statement should also say that you are choosing to replace the property within the required replacement period. Free sites for filing state income taxes   You should then attach another statement to your return for the year in which you buy the replacement property. Free sites for filing state income taxes This statement should contain detailed information on the replacement property. Free sites for filing state income taxes If you acquire part of your replacement property in one year and part in another year, you must attach a statement to each year's return. Free sites for filing state income taxes Include in the statement detailed information on the replacement property bought in that year. Free sites for filing state income taxes Reporting weather-related sales of livestock. Free sites for filing state income taxes   If you choose to postpone reporting the gain on weather-related sales or exchanges of livestock, show all the following information on a statement attached to your return for the tax year in which you first realize any of the gain. Free sites for filing state income taxes Evidence of the weather-related conditions that forced the sale or exchange of the livestock. Free sites for filing state income taxes The gain realized on the sale or exchange. Free sites for filing state income taxes The number and kind of livestock sold or exchanged. Free sites for filing state income taxes The number of livestock of each kind you would have sold or exchanged under your usual business practice. Free sites for filing state income taxes   Show all the following information and the preceding information on the return for the year in which you replace the livestock. Free sites for filing state income taxes The dates you bought the replacement property. Free sites for filing state income taxes The cost of the replacement property. Free sites for filing state income taxes Description of the replacement property (for example, the number and kind of the replacement livestock). Free sites for filing state income taxes Amended return. Free sites for filing state income taxes   You must file an amended return (Form 1040X) for the tax year of the gain in either of the following situations. Free sites for filing state income taxes You do not acquire replacement property within the replacement period, plus extensions. Free sites for filing state income taxes On this amended return, you must report the gain and pay any additional tax due. Free sites for filing state income taxes You acquire replacement property within the required replacement period, plus extensions, but at a cost less than the amount you receive from the casualty, theft, or other involuntary conversion. Free sites for filing state income taxes On this amended return, you must report the part of the gain that cannot be postponed and pay any additional tax due. Free sites for filing state income taxes Disaster Area Losses Special rules apply to federally declared disaster area losses. Free sites for filing state income taxes A federally declared disaster is a disaster that occurred in an area declared by the President to be eligible for federal assistance under the Robert T. Free sites for filing state income taxes Stafford Disaster Relief and Emergency Assistance Act. Free sites for filing state income taxes It includes a major disaster or emergency declaration under the act. Free sites for filing state income taxes A list of the areas warranting public or individual assistance (or both) under the Act is available at the Federal Emergency Management Agency (FEMA) web site at www. Free sites for filing state income taxes fema. Free sites for filing state income taxes gov. Free sites for filing state income taxes This part discusses the special rules for when to deduct a disaster area loss and what tax deadlines may be postponed. Free sites for filing state income taxes For other special rules, see Disaster Area Losses in Publication 547. Free sites for filing state income taxes When to deduct the loss. Free sites for filing state income taxes   You generally must deduct a casualty loss in the year it occurred. Free sites for filing state income taxes However, if you have a deductible loss from a disaster that occurred in an area warranting public or individual assistance (or both), you can choose to deduct that loss on your return or amended return for the tax year immediately preceding the tax year in which the disaster happened. Free sites for filing state income taxes If you make this choice, the loss is treated as having occurred in the preceding year. Free sites for filing state income taxes    Claiming a qualifying disaster loss on the previous year's return may result in a lower tax for that year, often producing or increasing a cash refund. Free sites for filing state income taxes   You must make the choice to take your casualty loss for the disaster in the preceding year by the later of the following dates. Free sites for filing state income taxes The due date (without extensions) for filing your tax return for the tax year in which the disaster actually occurred. Free sites for filing state income taxes The due date (with extensions) for the return for the preceding tax year. Free sites for filing state income taxes Federal disaster relief grants. Free sites for filing state income taxes   Do not include post-disaster relief grants received under the Robert T. Free sites for filing state income taxes Stafford Disaster Relief and Emergency Assistance Act in your income if the grant payments are made to help you meet necessary expenses or serious needs for medical, dental, housing, personal property, transportation, or funeral expenses. Free sites for filing state income taxes Do not deduct casualty losses or medical expenses to the extent they are specifically reimbursed by these disaster relief grants. Free sites for filing state income taxes If the casualty loss was specifically reimbursed by the grant and you received the grant after the year in which you deducted the casualty loss, see Reimbursement received after deducting loss , earlier. Free sites for filing state income taxes Unemployment assistance payments under the Act are taxable unemployment compensation. Free sites for filing state income taxes Qualified disaster relief payments. Free sites for filing state income taxes   Qualified disaster relief payments are not included in the income of individuals to the extent any expenses compensated by these payments are not otherwise compensated for by insurance or other reimbursement. Free sites for filing state income taxes These payments are not subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). Free sites for filing state income taxes No withholding applies to these payments. Free sites for filing state income taxes   Qualified disaster relief payments include payments you receive (regardless of the source) for the following expenses. Free sites for filing state income taxes Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a federally declared disaster. Free sites for filing state income taxes Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a federally declared disaster. Free sites for filing state income taxes (A personal residence can be a rented residence or one you own. Free sites for filing state income taxes ) Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a federally declared disaster. Free sites for filing state income taxes   Qualified disaster relief payments include amounts paid by a federal, state, or local government in connection with a federally declared disaster to individuals affected by the disaster. Free sites for filing state income taxes    Qualified disaster relief payments do not include: Payments for expenses otherwise paid for by insurance or other reimbursements, or Income replacement payments, such as payments of lost wages, lost business income, or unemployment compensation. Free sites for filing state income taxes Qualified disaster mitigation payments. Free sites for filing state income taxes   Qualified disaster mitigation payments made under the Robert T. Free sites for filing state income taxes Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act (as in effect on April 15, 2005) are not included in income. Free sites for filing state income taxes These are payments you, as a property owner, receive to reduce the risk of future damage to your property. Free sites for filing state income taxes You cannot increase your basis in property, or take a deduction or credit, for expenditures made with respect to those payments. Free sites for filing state income taxes Sale of property under hazard mitigation program. Free sites for filing state income taxes   Generally, if you sell or otherwise transfer property, you must recognize any gain or loss for tax purposes unless the property is your main home. Free sites for filing state income taxes You report the gain or deduct the loss on your tax return for the year you realize it. Free sites for filing state income taxes (You cannot deduct a loss on personal-use property unless the loss resulted from a casualty, as discussed earlier. Free sites for filing state income taxes ) However, if you sell or otherwise transfer property to the Federal Government, a state or local government, or an Indian tribal government under a hazard mitigation program, you can choose to postpone reporting the gain if you buy qualifying replacement property within a certain period of time. Free sites for filing state income taxes See Postponing Gain , earlier, for the rules that apply. Free sites for filing state income taxes Other federal assistance programs. Free sites for filing state income taxes    For more information about other federal assistance programs, see Crop Insurance and Crop Disaster Payments and Feed Assistance and Payments in chapter 3 earlier. Free sites for filing state income taxes Postponed tax deadlines. Free sites for filing state income taxes   The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a federally declared disaster. Free sites for filing state income taxes The tax deadlines the IRS may postpone include those for filing income, excise, and employment tax returns, paying income, excise, and employment taxes, and making contributions to a traditional IRA or Roth IRA. Free sites for filing state income taxes   If any tax deadline is postponed, the IRS will publicize the postponement in your area and publish a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). Free sites for filing state income taxes Go to http://www. Free sites for filing state income taxes irs. Free sites for filing state income taxes gov/uac/Tax-Relief-in-Disaster-Situations to find out if a tax deadline has been postponed for your area. Free sites for filing state income taxes Who is eligible. Free sites for filing state income taxes   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Free sites for filing state income taxes Any individual whose main home is located in a covered disaster area (defined next). Free sites for filing state income taxes Any business entity or sole proprietor whose principal place of business is located in a covered disaster area. Free sites for filing state income taxes Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered disaster area. Free sites for filing state income taxes Any individual, business entity, or sole proprietorship whose records are needed to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. Free sites for filing state income taxes The main home or principal place of business does not have to be located in the covered disaster area. Free sites for filing state income taxes Any estate or trust that has tax records necessary to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. Free sites for filing state income taxes The spouse on a joint return with a taxpayer who is eligible for postponements. Free sites for filing state income taxes Any individual, business entity, or sole proprietorship not located in a covered disaster area, but whose necessary records to meet a postponed tax deadline are located in the covered disaster area. Free sites for filing state income taxes Any individual visiting the covered disaster area who was killed or injured as a result of the disaster. Free sites for filing state income taxes Any other person determined by the IRS to be affected by a federally declared disaster. Free sites for filing state income taxes Covered disaster area. Free sites for filing state income taxes   This is an area of a federally declared disaster area in which the IRS has decided to postpone tax deadlines for up to 1 year. Free sites for filing state income taxes Abatement of interest and penalties. Free sites for filing state income taxes   The IRS may abate the interest and penalties on the underpaid income tax for the length of any postponement of tax deadlines. Free sites for filing state income taxes Reporting Gains and Losses You will have to file one or more of the following forms to report your gains or losses from involuntary conversions. Free sites for filing state income taxes Form 4684. Free sites for filing state income taxes   Use this form to report your gains and losses from casualties and thefts. Free sites for filing state income taxes Form 4797. Free sites for filing state income taxes   Use this form to report involuntary conversions (other than from casualty or theft) of property used in your trade or business and capital assets held in connection with a trade or business or a transaction entered into for profit. Free sites for filing state income taxes Also use this form if you have a gain from a casualty or theft on trade, business or income-producing property held for more than 1 year and you have to recapture some or all of your gain as ordinary income. Free sites for filing state income taxes Form 8949. Free sites for filing state income taxes   Use this form to report gain from an involuntary conversion (other than from casualty or theft) of personal-use property. Free sites for filing state income taxes Schedule A (Form 1040). Free sites for filing state income taxes   Use this form to deduct your losses from casualties and thefts of personal-use property and income-producing property, that you reported on Form 4684. Free sites for filing state income taxes Schedule D (Form 1040). Free sites for filing state income taxes   Use this form to carry over the following gains. Free sites for filing state income taxes Net gain shown on Form 4797 from an involuntary conversion of business property held for more than 1 year. Free sites for filing state income taxes Net gain shown on Form 4684 from the casualty or theft of personal-use property. Free sites for filing state income taxes    Also use this form to figure the overall gain or loss from transactions reported on Form 8949. Free sites for filing state income taxes Schedule F (Form 1040). Free sites for filing state income taxes   Use this form to deduct your losses from casualty or theft of livestock or produce bought for sale under Other expenses in Part II, line 32, if you use the cash method of accounting and have not otherwise deducted these losses. Free sites for filing state income taxes Prev  Up  Next   Home   More Online Publications