File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2014 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Colorado State Tax Return Online

Information About Tax Returns For StudentsFree Turbo Tax 2008H&r Block At Home 2011 Deluxe Federal State Efile1040ez Instruction BookletTaxact 2012 Tax ReturnFile Your Taxes OnlineFile 2009 Tax ReturnTax Planning Us 1040aIrs Amended Tax Return 2011Irs Gov 1040ez InstructionsHrblock OnlineFree State Tax Preparation OnlineAmend Your Taxes1040 Ez Tax FormsFiling 2010 Taxes OnlineFree Tax Filing 2012E File State ReturnFile Free State Tax ReturnFree Federal And Free State Tax Filing1040ez FormHow To Amend 2008 Tax ReturnState Tax Extension2013 Amended Tax ReturnFile Taxes Online FreeFree 1040 Ez FormsForm 1040ezAmend Tax Return 20132011 1040 EzState Tax Forms 20121040 EsTax Cut Software1040a Instruction BookTax Questions For StudentsState Tax FormsHow To File An Amended Return For 2013Turbo Tax Free Online1040ez 2009 Tax FormIrs Gov ComFree Online Federal Tax Filing 2011How To Fill Out 1040x

Colorado State Tax Return Online

Colorado state tax return online Index Symbols 401(k) Plan Elective Deferrals, Elective Deferrals (401(k) Plans) Safe harbor, Safe harbor 401(k) plan. Colorado state tax return online A Annual additions, Annual additions. Colorado state tax return online Annual benefits, Annual benefits. Colorado state tax return online Assistance (see Tax help) Automatic Enrollment, Automatic Enrollment B Business, definition, Business. Colorado state tax return online C Common-law employee, Common-law employee. Colorado state tax return online Compensation, Compensation. Colorado state tax return online Contribution Defined, Contribution. Colorado state tax return online Limits Qualified plans, Limits on Contributions and Benefits SEP-IRAs, Contribution Limits SIMPLE IRA plan, Contribution Limits D Deduction Defined, SIMPLE plans. Colorado state tax return online , Deduction. Colorado state tax return online Deduction worksheet for self-employed, Figuring your deduction. Colorado state tax return online Defined benefit plan Deduction limits, Defined benefit plans. Colorado state tax return online Limits on contributions, Defined benefit plan. Colorado state tax return online Defined contribution plan Automatic Enrollment, Automatic Enrollment Deduction limits, Defined contribution plans. Colorado state tax return online Eligible automatic contribution arrangement, Eligible automatic contribution arrangement. Colorado state tax return online Forfeitures, Forfeiture. Colorado state tax return online Limits on contributions, Defined contribution plan. Colorado state tax return online Money purchase pension plan, Money purchase pension plan. Colorado state tax return online Profit-sharing plan, Profit-sharing plan. Colorado state tax return online Qualified automatic contribution arrangement, Qualified automatic contribution arrangement. Colorado state tax return online Definitions you need to know, Definitions You Need To Know Disqualified person, Prohibited Transactions Distributions (withdrawals), Distributions (Withdrawals) E EACA, Eligible automatic contribution arrangement. Colorado state tax return online Earned income, Earned income. Colorado state tax return online Eligible automatic contribution arrangement, Eligible automatic contribution arrangement. Colorado state tax return online Employees Eligible, Eligible employee. Colorado state tax return online Excludable, Excludable employees. Colorado state tax return online Highly compensated, Highly compensated employee. Colorado state tax return online Leased, Leased employee. Colorado state tax return online Employer Defined, Employer. Colorado state tax return online Excess Deferrals, Treatment of Excess Deferrals Excise tax, Excise Tax on Reversion of Plan Assets Nondeductible (excess) contributions, Excise Tax for Nondeductible (Excess) Contributions Reduced benefit accrual, Notification of Significant Benefit Accrual Reduction SEP excess contributions, Excise tax. Colorado state tax return online Excludable employees, Excludable employees. Colorado state tax return online F Form 1040, Where To Deduct Contributions, Reporting the tax. Colorado state tax return online 1099-R, Reporting corrective distributions on Form 1099-R. Colorado state tax return online 5304–SIMPLE, How To Set Up a SIMPLE IRA Plan 5305–S, Setting up a SIMPLE IRA. Colorado state tax return online 5305–SA, Setting up a SIMPLE IRA. Colorado state tax return online 5305–SEP, Formal written agreement. Colorado state tax return online 5305–SIMPLE, How To Set Up a SIMPLE IRA Plan 5310, Form 5310. Colorado state tax return online 5329, Reporting the tax. Colorado state tax return online 5330, Reporting the tax. Colorado state tax return online , Tax on excess contributions of highly compensated employees. Colorado state tax return online , Excise Tax on Reversion of Plan Assets, Payment of the 15% tax. Colorado state tax return online 5500, Form 5500. Colorado state tax return online , Electronic filing of Forms 5500 and 5500-SF. Colorado state tax return online 5500-EZ, Form 5500-EZ. Colorado state tax return online Form W-2, Reporting on Form W-2. Colorado state tax return online Schedule K (Form 1065), Where To Deduct Contributions Free tax services, Free help with your return. Colorado state tax return online H Highly compensated employee, Highly compensated employee. Colorado state tax return online K Keogh plans (see Qualified plans) L Leased employee, Leased employee. Colorado state tax return online N Net earnings from self-employment, Net earnings from self-employment. Colorado state tax return online Notification requirements, Notification Requirement P Participant, definition, Participant. Colorado state tax return online Participation, Participation. Colorado state tax return online Partner, definition, Partner. Colorado state tax return online Publications (see Tax help) Q QACA, Qualified automatic contribution arrangement. Colorado state tax return online Qualified automatic contribution arrangement, Qualified automatic contribution arrangement. Colorado state tax return online Qualified Plan, definition, Qualified plan. Colorado state tax return online Qualified plans, Limits on Contributions and Benefits Assignment of benefits, Benefits must not be assigned or alienated. Colorado state tax return online Benefits starting date, Benefit payment must begin when required. Colorado state tax return online Contributions, Contributions, Employer Contributions, Limits on Contributions and Benefits, When Contributions Are Considered Made, Where To Deduct Contributions Deduction limits, Deduction Limits, Defined contribution plans. Colorado state tax return online , Defined benefit plans. Colorado state tax return online , Deduction Limit for Self-Employed Individuals, Carryover of Excess Contributions, Excise Tax for Nondeductible (Excess) Contributions Deduction Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Deductions, Employer Deduction Deferrals, Treatment of contributions. Colorado state tax return online , Reporting on Form W-2. Colorado state tax return online Defined benefit plan, Defined Benefit Plan Defined contribution plan, Defined Contribution Plan Distributions, Distributions Minimum, Required Distributions Required beginning date, Required beginning date. Colorado state tax return online Rollover, Rollover. Colorado state tax return online Tax on excess benefits, Tax on Excess Benefits Tax on premature, Tax on Early Distributions Tax treatment, Tax Treatment of Distributions Elective Deferrals, Elective Deferrals (401(k) Plans) Limits, Limit on Elective Deferrals Employee nondeductible contributions, Employee Contributions Excess Deferrals, Treatment of Excess Deferrals Investing plan assets, Investing Plan Assets Kinds of plans, Kinds of Plans Leased employees, Leased employee. Colorado state tax return online Minimum requirements Coverage, Minimum coverage requirement must be met. Colorado state tax return online Funding, Minimum Funding Requirement Vesting, Minimum vesting standard must be met. Colorado state tax return online Prohibited transactions, Prohibited Transactions Qualification rules, Qualification Rules Rate Table for Self-Employed, Table and Worksheets for the Self-Employed Rate Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Reporting requirements, Reporting Requirements Setting up, Setting Up a Qualified Plan Qualified Plans Survivor benefits, Survivor benefits. Colorado state tax return online Qualified Roth Contribution Program, Qualified Roth Contribution Program R Rate Table for Self-Employed, Rate table for self-employed. Colorado state tax return online Rate Worksheet for Self-Employed, Rate worksheet for self-employed. Colorado state tax return online Required distributions, Required Distributions Rollovers, Rollover. Colorado state tax return online S Safe harbor 401(k) plan, Safe harbor 401(k) plan. Colorado state tax return online Salary reduction arrangement, Deferral percentage. Colorado state tax return online , Limit on Elective Deferrals Salary Reduction Simplified Employee Pension(SARSEP), Salary Reduction Simplified Employee Pensions (SARSEPs) SARSEP ADP test, SARSEP ADP test. Colorado state tax return online Section 402(f) notice, Section 402(f) Notice. Colorado state tax return online Self-employed individual, Self-employed individual. Colorado state tax return online SEP plans Deduction Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Rate Table for Self-Employed, Table and Worksheets for the Self-Employed Rate Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Reporting and Disclosure, Reporting and Disclosure Requirements SEP-IRAs Contributions, Contributions for yourself. Colorado state tax return online Deductible contributions, Deducting Contributions, Excise tax. Colorado state tax return online Carryover of excess contributions, Carryover of Excess SEP Contributions Deduction limits, Deduction Limit for Contributions for Participants Limits for self-employed, Deduction Limit for Self-Employed Individuals When to deduct, When To Deduct Contributions Where to deduct, Where To Deduct Contributions Distributions (withdrawals), Distributions (Withdrawals) Eligible employee, Eligible employee. Colorado state tax return online Excludable employees, Excludable employees. Colorado state tax return online SIMPLE IRA plan Compensation, Compensation. Colorado state tax return online Contributions, Contribution Limits Deductions, Nonelective contributions. Colorado state tax return online Distributions(withdrawals), Distributions (Withdrawals) Employee election period, Election period. Colorado state tax return online Employer matching contributions, Employer matching contributions. Colorado state tax return online Excludable employees, Excludable employees. Colorado state tax return online Notification requirements, Notification Requirement When to deduct contributions, When To Deduct Contributions SIMPLE plans, Who Can Set Up a SIMPLE IRA Plan?, Reporting on Form W-2. Colorado state tax return online SIMPLE 401(k), SIMPLE 401(k) Plan SIMPLE IRA plan, SIMPLE IRA Plan Simplified employee pension (SEP), Salary Reduction Simplified Employee Pensions (SARSEPs) Salary reduction arrangement Compensation of self-employed individuals, Compensation of self-employed individuals. Colorado state tax return online Employee compensation, Employee compensation. Colorado state tax return online Who can have a SARSEP, Who can have a SARSEP? SEP-IRA contributions, How Much Can I Contribute? Setting up a SEP, Setting Up a SEP Sixty-day employee election period, Election period. Colorado state tax return online Sole proprietor, definition, Sole proprietor. Colorado state tax return online T Tax help, How To Get Tax Help U User fee, User fee. Colorado state tax return online W Worksheets Deduction Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Rate Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Prev  Up     Home   More Online Publications
Español

Contact Us

Contact us about USA.gov or about any government question you have.

Frequently Asked Questions

Search our database of the most frequently asked questions about government programs and services.

Chat

Our web chat service is available Monday - Friday, 8:00 AM until 8:00 PM Eastern. Our chat service is only available in English, and is not available on federal holidays.

E-Mail

E-mail your questions, suggestions, compliments, complaints, or technical problems about USA.gov or the government. We will respond (in English or Spanish) within two business days.

Phone

Call us at 1 (800) FED INFO (333-4636)  – Our information specialists will answer your government questions between 8:00 AM and 8:00 PM Eastern Time, Monday through Friday, except federal holidays. This service is available in English and Spanish. Recorded information on frequently requested subjects is always available.

Social Media

You can connect with the government through Facebook, Twitter, blogs, and more!

Postal Mail

We prefer you contact us by e-mail or phone, so we can respond faster. Our mailing address is: 

USA.gov
U.S. General Services Administration
Office of Citizen Services and Innovative Technologies
1800 F Street, NW
Washington, DC 20405
U.S.A.

The Colorado State Tax Return Online

Colorado state tax return online 2. Colorado state tax return online   Possession Source Income Table of Contents Types of IncomeCompensation for Labor or Personal Services Investment Income Sales or Other Dispositions of Property Scholarships, Fellowships, Grants, Prizes, and Awards Effectively Connected Income In order to determine where to file your return and which form(s) you need to complete, you must determine the source of each item of income you received during the tax year. Colorado state tax return online Income you received from sources within, or that was effectively connected with the conduct of a trade or business within, the relevant possession must be identified separately from U. Colorado state tax return online S. Colorado state tax return online or foreign source income. Colorado state tax return online This chapter discusses the rules for determining if the source of your income is from: American Samoa, The Commonwealth of the Northern Mariana Islands (CNMI), The Commonwealth of Puerto Rico (Puerto Rico), Guam, or The U. Colorado state tax return online S. Colorado state tax return online Virgin Islands (USVI). Colorado state tax return online Generally, the same rules that apply for determining U. Colorado state tax return online S. Colorado state tax return online source income also apply for determining possession source income. Colorado state tax return online However, there are some important exceptions to these rules. Colorado state tax return online Both the general rules and the exceptions are discussed in this chapter. Colorado state tax return online U. Colorado state tax return online S. Colorado state tax return online income rule. Colorado state tax return online   This rule states that income is not possession source income if, under the rules of Internal Revenue Code sections 861–865, it is treated as income: From sources within the United States, or Effectively connected with the conduct of a trade or business within the United States. Colorado state tax return online Table 2-1 shows the general rules for determining whether income is from sources within the United States. Colorado state tax return online Table 2-1. Colorado state tax return online General Rules for Determining U. Colorado state tax return online S. Colorado state tax return online Source of Income Item of Income Factor Determining Source Salaries, wages, and other compensation for labor or personal services Where labor or services performed Pensions Contributions: Where services were performed that earned the pension Investment earnings: Where pension trust is located Interest Residence of payer Dividends Where corporation created or organized Rents Location of property Royalties:   Natural resources Location of property Patents, copyrights, etc. Colorado state tax return online Where property is used Sale of business inventory—purchased Where sold Sale of business inventory—produced Allocation if produced and sold in different locations Sale of real property Location of property Sale of personal property Seller's tax home (but see Special Rules for Gains From Dispositions of Certain Property , later, for exceptions) Sale of natural resources Allocation based on fair market value of product at export terminal. Colorado state tax return online For more information, see Regulations section 1. Colorado state tax return online 863-1(b). Colorado state tax return online Types of Income This section looks at the most common types of income received by individuals, and the rules for determining the source of the income. Colorado state tax return online Generally, the same rules shown in Table 2-1 are used to determine if you have possession source income. Colorado state tax return online Compensation for Labor or Personal Services Income from labor or personal services includes wages, salaries, commissions, fees, per diem allowances, employee allowances and bonuses, and fringe benefits. Colorado state tax return online It also includes income earned by sole proprietors and general partners from providing personal services in the course of their trade or business. Colorado state tax return online Services performed wholly within a relevant possession. Colorado state tax return online   Generally, all pay you receive for services performed in a relevant possession is considered to be from sources within that possession. Colorado state tax return online However, there is an exception for income earned as a member of the U. Colorado state tax return online S. Colorado state tax return online Armed Forces or a civilian spouse. Colorado state tax return online U. Colorado state tax return online S. Colorado state tax return online Armed Forces. Colorado state tax return online   If you are a bona fide resident of a relevant possession, your military service pay will be sourced in that possession even if you perform the services in the United States or another possession. Colorado state tax return online However, if you are not a bona fide resident of a possession, your military service pay will be income from the  United States even if you perform services in a possession. Colorado state tax return online Civilian spouse of active duty member of the U. Colorado state tax return online S. Colorado state tax return online Armed Forces. Colorado state tax return online   If you are a bona fide resident of a U. Colorado state tax return online S. Colorado state tax return online possession and choose to keep that possession as your tax residence under MSRRA when relocating with your servicemember spouse under military orders, the source of income for your labor or personal services is considered to be that possession. Colorado state tax return online Likewise, if your tax residence is in one of the 50 states or the District of Columbia before relocating and you choose to keep it as your tax residence, the source of income for services performed in any of the U. Colorado state tax return online S. Colorado state tax return online possessions is considered to be the United States and, specifically, your state of residence or the District of Columbia. Colorado state tax return online Services performed partly inside and partly outside a relevant possession. Colorado state tax return online   If you are an employee and receive compensation for labor or personal services performed both inside and outside the relevant possession, special rules apply in determining the source of the compensation. Colorado state tax return online Compensation (other than certain fringe benefits) is sourced on a time basis. Colorado state tax return online Certain fringe benefits (such as housing and education) are sourced on a geographical basis. Colorado state tax return online   Or, you may be permitted to use an alternative basis to determine the source of compensation. Colorado state tax return online See Alternative basis , later. Colorado state tax return online   If you are self-employed, determine the source of your income for labor or personal services from self-employment on the basis that most correctly reflects the proper source of that income under the facts and circumstances of your particular case. Colorado state tax return online In many cases, the facts and circumstances will call for an apportionment on a time basis as explained next. Colorado state tax return online Time basis. Colorado state tax return online   Use a time basis to figure your compensation for labor or personal services from the relevant possession (other than the fringe benefits discussed later). Colorado state tax return online Do this by multiplying your total compensation (other than the fringe benefits discussed later) by the following fraction:   Number of days you performed  services in the relevant  possession during the year     Total number of days you  performed services during the year           You can use a unit of time less than a day in the above fraction, if appropriate. Colorado state tax return online The time period for which the income is made does not have to be a year. Colorado state tax return online Instead, you can use another distinct, separate, and continuous time period if you can establish to the satisfaction of the IRS that this other period is more appropriate. Colorado state tax return online Example. Colorado state tax return online In 2013, you worked in your employer's office in the United States for 60 days and in the Puerto Rico office for 180 days, earning a total of $80,000 for the year. Colorado state tax return online Your Puerto Rico source income is $60,000, figured as follows. Colorado state tax return online       180 days 240 days × $80,000 = $60,000                 Multi-year compensation. Colorado state tax return online   The source of multi-year compensation is generally determined on a time basis over the period to which the compensation is attributable. Colorado state tax return online Multi-year compensation is compensation that is included in your income in 1 tax year but is attributable to a period that includes 2 or more tax years. Colorado state tax return online You determine the period to which the income is attributable based on the facts and circumstances of your case. Colorado state tax return online For more information on multi-year compensation, see Treasury Decision (T. Colorado state tax return online D. Colorado state tax return online ) 9212 and Regulations section 1. Colorado state tax return online 861-4, 2005-35 I. Colorado state tax return online R. Colorado state tax return online B. Colorado state tax return online 429, available at www. Colorado state tax return online irs. Colorado state tax return online gov/irb/2005-35_IRB/ar14. Colorado state tax return online html. Colorado state tax return online Certain fringe benefits sourced on a geographical basis. Colorado state tax return online   If you received any of the following fringe benefits as compensation for labor or services performed as an employee partly inside and partly outside a relevant possession, you must source that income on a geographical basis. Colorado state tax return online Housing. Colorado state tax return online Education. Colorado state tax return online Local transportation. Colorado state tax return online Tax reimbursement. Colorado state tax return online Hazardous or hardship duty pay. Colorado state tax return online Moving expense reimbursement. Colorado state tax return online For information on determining the source of the fringe benefits listed above, see Regulations section 1. Colorado state tax return online 861-4. Colorado state tax return online Alternative basis. Colorado state tax return online   You can determine the source of your compensation under an alternative basis if you establish to the satisfaction of the IRS that, under the facts and circumstances of your case, the alternative basis more properly determines the source of your income than the time or geographical basis. Colorado state tax return online If you use an alternative basis, you must keep (and have available for inspection) records to document why the alternative basis more properly determines the source of your income. Colorado state tax return online De minimis exception. Colorado state tax return online   There is an exception to the rule for determining the source of income earned in a possession. Colorado state tax return online Generally, you will not have income from a possession if during a tax year you: Are a U. Colorado state tax return online S. Colorado state tax return online citizen or resident, Are not a bona fide resident of that possession, Are not employed by or under contract with an individual, partnership, or corporation that is engaged in a trade or business in that possession, Temporarily perform services in that possession for 90 days or less, and Earned $3,000 or less from such services. Colorado state tax return online This exception began with income earned during your 2008 tax year. Colorado state tax return online Pensions. Colorado state tax return online   Generally, pension income has two components: contributions to the pension plan and the earnings accrued from investing those contributions. Colorado state tax return online The contribution portion is sourced according to where services were performed that earned the pension. Colorado state tax return online The investment earnings portion is sourced according to the location of the pension trust. Colorado state tax return online Example. Colorado state tax return online You are a U. Colorado state tax return online S. Colorado state tax return online citizen who worked in Puerto Rico for a U. Colorado state tax return online S. Colorado state tax return online company. Colorado state tax return online All services were performed in Puerto Rico. Colorado state tax return online Upon retirement you remained in Puerto Rico and began receiving your pension from the U. Colorado state tax return online S. Colorado state tax return online pension trust of your employer. Colorado state tax return online Distributions from the U. Colorado state tax return online S. Colorado state tax return online pension trust must be allocated between (1) contributions, which are Puerto Rico source income, and (2) investment earnings, which are U. Colorado state tax return online S. Colorado state tax return online source income. Colorado state tax return online Investment Income This category includes such income as interest, dividends, rents, and royalties. Colorado state tax return online Interest income. Colorado state tax return online   The source of interest income is generally determined by the residence of the payer. Colorado state tax return online Interest paid by corporations created or organized in a relevant possession (possession corporation) or by individuals who are bona fide residents of a relevant possession is considered income from sources within that possession. Colorado state tax return online   However, there is an exception to this rule if you are a bona fide resident of a relevant possession, receive interest from a corporation created or organized in that possession, and are a shareholder of that corporation who owns, directly or indirectly, at least 10% of the total voting stock of the corporation. Colorado state tax return online See Regulations section 1. Colorado state tax return online 937-2(i) for more information. Colorado state tax return online Dividends. Colorado state tax return online   Generally, dividends paid by a corporation created or organized in a relevant possession will be considered income from sources within that possession. Colorado state tax return online There are additional rules for bona fide residents of a relevant possession who receive dividend income from possession corporations, and who own, directly or indirectly, at least 10% of the voting stock of the corporation. Colorado state tax return online For more information, see Regulations section 1. Colorado state tax return online 937-2(g). Colorado state tax return online Rental income. Colorado state tax return online   Rents from property located in a relevant possession are treated as income from sources within that possession. Colorado state tax return online Royalties. Colorado state tax return online   Royalties from natural resources located in a relevant possession are considered income from sources within that possession. Colorado state tax return online   Also considered possession source income are royalties received for the use of, or for the privilege of using, in a relevant possession, patents, copyrights, secret processes and formulas, goodwill, trademarks, trade brands, franchises, and other like property. Colorado state tax return online Sales or Other Dispositions of Property The source rules for sales or other dispositions of property are varied. Colorado state tax return online The most common situations are discussed below. Colorado state tax return online Real property. Colorado state tax return online   Real property includes land and buildings, and generally anything built on, growing on, or attached to land. Colorado state tax return online The location of the property generally determines the source of income from the sale. Colorado state tax return online For example, if you are a bona fide resident of Guam and sell your home that is located in Guam, the gain on the sale is sourced in Guam. Colorado state tax return online If, however, the home you sold was located in the United States, the gain is U. Colorado state tax return online S. Colorado state tax return online source income. Colorado state tax return online Personal property. Colorado state tax return online   The term “personal property” refers to property (such as machinery, equipment, or furniture) that is not real property. Colorado state tax return online Generally, gain (or loss) from the sale or other disposition is sourced according to the seller's tax home. Colorado state tax return online If personal property is sold by a bona fide resident of a relevant possession, the gain (or loss) from the sale is treated as sourced within that possession. Colorado state tax return online   This rule does not apply to the sale of inventory, intangible property, depreciable personal property, or property sold through a foreign office or fixed place of business. Colorado state tax return online The rules applying to sales of inventory are discussed below. Colorado state tax return online For information on sales of the other types of property mentioned, see Internal Revenue Code section 865. Colorado state tax return online Inventory. Colorado state tax return online   Your inventory is personal property that is stock in trade or that is held primarily for sale to customers in the ordinary course of your trade or business. Colorado state tax return online The source of income from the sale of inventory depends on whether the inventory was purchased or produced. Colorado state tax return online Purchased. Colorado state tax return online   Income from the sale of inventory that you purchased is sourced where you sell the property. Colorado state tax return online Generally, this is where title to the property passes to the buyer. Colorado state tax return online Produced. Colorado state tax return online   Income from the sale of inventory that you produced in a relevant possession and sold outside that possession (or vice versa) is sourced based on an allocation. Colorado state tax return online For information on making the allocation, see Regulations section 1. Colorado state tax return online 863-3(f). Colorado state tax return online Special Rules for Gains From Dispositions of Certain Property There are special rules for gains from dispositions of certain investment property (for example, stocks, bonds, debt instruments, diamonds, and gold) owned by a U. Colorado state tax return online S. Colorado state tax return online citizen or resident alien prior to becoming a bona fide resident of a possession. Colorado state tax return online You are subject to these special rules if you meet both of the following conditions. Colorado state tax return online For the tax year for which the source of the gain must be determined, you are a bona fide resident of the relevant possession. Colorado state tax return online For any of the 10 years preceding that year, you were a citizen or resident alien of the United States (other than a bona fide resident of the relevant possession). Colorado state tax return online If you meet these conditions, gains from the disposition of this property will not be treated as income from sources within the relevant possession for purposes of the Internal Revenue Code. Colorado state tax return online Accordingly, bona fide residents of American Samoa and Puerto Rico, for example, may not exclude the gain on their U. Colorado state tax return online S. Colorado state tax return online tax return. Colorado state tax return online (See chapter 3 for additional filing information. Colorado state tax return online ) With respect to the CNMI, Guam, and the USVI, the gain from the disposition of this property will not meet the requirements for certain tax rules that may allow bona fide residents of those possessions to reduce or obtain a rebate of taxes on income from sources within the relevant possessions. Colorado state tax return online These rules apply to dispositions after April 11, 2005. Colorado state tax return online For details, see Regulations section 1. Colorado state tax return online 937-2(f)(1) and Examples 1 and 2 of section 1. Colorado state tax return online 937-2(k). Colorado state tax return online Example 1. Colorado state tax return online In 2007, Cheryl Jones, a U. Colorado state tax return online S. Colorado state tax return online citizen, lived in the United States and paid $1,000 for 100 shares of stock in the Rose Corporation, a U. Colorado state tax return online S. Colorado state tax return online corporation listed on the New York Stock Exchange. Colorado state tax return online On March 1, 2010, she moved to Puerto Rico and changed her tax home to Puerto Rico on the same date. Colorado state tax return online Cheryl satisfied the presence test in 2010 and, under the year-of-move exception, she was considered a bona fide resident of Puerto Rico for the rest of 2010. Colorado state tax return online On March 1, 2010, the closing value of Cheryl's stock in the Rose Corporation was $2,000. Colorado state tax return online On January 5, 2013, while still a bona fide resident of Puerto Rico, Cheryl sold all her Rose Corporation stock for $7,000. Colorado state tax return online Under the earlier rules, none of Cheryl's $6,000 gain will be treated as income from sources within Puerto Rico. Colorado state tax return online The source rules discussed in the preceding paragraphs supplement, and may apply in conjunction with, an existing special rule. Colorado state tax return online This existing special rule applies if you are a U. Colorado state tax return online S. Colorado state tax return online citizen or resident alien who becomes a bona fide resident of American Samoa, the CNMI, or Guam, and who has gain from the disposition of certain U. Colorado state tax return online S. Colorado state tax return online assets during the 10-year period beginning when you became a bona fide resident. Colorado state tax return online The gain is U. Colorado state tax return online S. Colorado state tax return online source income that generally is subject to U. Colorado state tax return online S. Colorado state tax return online tax if the property is either (1) located in the United States; (2) stock issued by a U. Colorado state tax return online S. Colorado state tax return online corporation or a debt obligation of a U. Colorado state tax return online S. Colorado state tax return online person or of the United States, a state (or political subdivision), or the District of Columbia; or (3) property that has a basis in whole or in part by reference to property described in (1) or (2). Colorado state tax return online See chapter 3 for filing information. Colorado state tax return online Special election. Colorado state tax return online   For dispositions after April 11, 2005, you can choose to treat the part of gain (or loss) attributable to the time you held the property while a bona fide resident of the relevant possession (the possession holding period) as gain (or loss) from sources within that possession. Colorado state tax return online Make the election by reporting the gain attributable to the possession holding period on your income tax return for the year of disposition. Colorado state tax return online This election overrides both of the special rules discussed earlier. Colorado state tax return online   There are two methods for figuring the gain for the possession holding period, one for marketable securities and another for other types of investment property. Colorado state tax return online Marketable securities. Colorado state tax return online   Marketable securities are those actively traded on an established financial market, such as stock in a publicly held corporation. Colorado state tax return online Under the special election, allocate the gain (or loss) by figuring the appreciation separately for your possession and U. Colorado state tax return online S. Colorado state tax return online holding periods. Colorado state tax return online   Your possession holding period begins on the first day you do not have a tax home outside the relevant possession. Colorado state tax return online The gain (or loss) attributable to the possession holding period is the difference in fair market value of the security at the close of the market on the first and last days of this holding period. Colorado state tax return online This is your gain (or loss) that is treated as being from sources within the relevant possession. Colorado state tax return online If you were a bona fide resident of the relevant possession for more than one continuous period, combine the gains (or losses) from each possession holding period. Colorado state tax return online Example 2. Colorado state tax return online Assume the same facts as in Example 1, except that Cheryl makes the special election to allocate the gain between her U. Colorado state tax return online S. Colorado state tax return online and possession holding periods. Colorado state tax return online Cheryl's possession holding period began March 1, 2010, the date her tax home changed to Puerto Rico. Colorado state tax return online Therefore, the portion of gain attributable to her possession holding period is $5,000 ($7,000 sale price – $2,000 closing value on first day of the possession holding period). Colorado state tax return online By reporting $5,000 of her $6,000 gain as Puerto Rico source income on her 2013 Puerto Rico tax return (and the remainder as non-Puerto Rico source income), Cheryl elects to treat that amount as Puerto Rico source income. Colorado state tax return online Other personal property. Colorado state tax return online   For personal property other than marketable securities, use a time-based allocation. Colorado state tax return online Figure the gain (or loss) attributable to the possession holding period by multiplying your total gain (or loss) by the following fraction. Colorado state tax return online      Number of days in the  possession holding period     Total number of days  in your holding period         The result is your gain (or loss) that is treated as being from sources within the relevant possession. Colorado state tax return online Example 3. Colorado state tax return online In addition to the stock in Rose Corporation, Cheryl acquired a 5% interest in the Alder Partnership on January 1, 2009. Colorado state tax return online On March 1, 2010, when she established bona fide residency in Puerto Rico, her partnership interest was not considered a marketable security. Colorado state tax return online On September 16, 2013, while still a bona fide resident of Puerto Rico, Cheryl sold her interest in Alder Partnership for a $100,000 gain. Colorado state tax return online She had owned the interest for a total of 1,720 days. Colorado state tax return online Cheryl's possession holding period (from March 1, 2010, through September 16, 2013) is 1,296 days. Colorado state tax return online The portion of her gain attributable to Puerto Rico is $75,349 ($100,000 x (1,296 Puerto Rico days ÷ 1,720 total days)). Colorado state tax return online By reporting $75,349 of her $100,000 gain as Puerto Rico source income on her 2013 Puerto Rico tax return (and the remainder as non-Puerto Rico source income), Cheryl elects to treat that amount as Puerto Rico source income. Colorado state tax return online Scholarships, Fellowships, Grants, Prizes, and Awards The source of these types of income is generally the residence of the payer, regardless of who actually disburses the funds. Colorado state tax return online Therefore, in order to be possession source income, the payer must be a resident of the relevant possession, such as an individual who is a bona fide resident or a corporation created or organized in that possession. Colorado state tax return online These rules do not apply to amounts paid as salary or other compensation for services. Colorado state tax return online See Compensation for Labor or Personal Services, earlier in this chapter, for the source rules that apply. Colorado state tax return online Effectively Connected Income In limited circumstances, some kinds of income from sources outside the relevant possession must be treated as effectively connected with a trade or business in that possession. Colorado state tax return online These circumstances are listed below. Colorado state tax return online You have an office or other fixed place of business in the relevant possession to which the income can be attributed. Colorado state tax return online That office or place of business is a material factor in producing the income. Colorado state tax return online The income is produced in the ordinary course of the trade or business carried on through that office or other fixed place of business. Colorado state tax return online An office or other fixed place of business is a material factor if it significantly contributes to, and is an essential economic element in, the earning of the income. Colorado state tax return online The three kinds of income from sources outside the relevant possession to which these rules apply are the following. Colorado state tax return online Rents and royalties for the use of, or for the privilege of using, intangible personal property located outside the relevant possession or from any interest in such property. Colorado state tax return online Included are rents or royalties for the use of, or for the privilege of using, outside the relevant possession, patents, copyrights, secret processes and formulas, goodwill, trademarks, trade brands, franchises, and similar properties if the rents or royalties are from the active conduct of a trade or business in the relevant possession. Colorado state tax return online Dividends or interest from the active conduct of a banking, financing, or similar business in the relevant possession. Colorado state tax return online Income, gain, or loss from the sale or exchange outside the relevant possession, through the office or other fixed place of business in the relevant possession, of: Stock in trade, Property that would be included in inventory if on hand at the end of the tax year, or Property held primarily for sale to customers in the ordinary course of business. Colorado state tax return online Item (3) will not apply if you sold the property for use, consumption, or disposition outside the relevant possession and an office or other fixed place of business in a foreign country was a material factor in the sale. Colorado state tax return online Example. Colorado state tax return online Marcy Jackson is a bona fide resident of American Samoa. Colorado state tax return online Her business, which she conducts from an office in American Samoa, is developing and selling specialized computer software. Colorado state tax return online A software purchaser will frequently pay Marcy an additional amount to install the software on the purchaser's operating system and to ensure that the software is functioning properly. Colorado state tax return online Marcy installs the software at the purchaser's place of business, which may be in American Samoa, in the United States, or in another country. Colorado state tax return online The income from selling the software is effectively connected with the conduct of Marcy's business in American Samoa, even though the product's destination may be outside the possession. Colorado state tax return online However, the compensation she receives for installing the software (personal services) outside of American Samoa is not effectively connected with the conduct of her business in the possession—the income is sourced where she performs the services. Colorado state tax return online Prev  Up  Next   Home   More Online Publications