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Georgia 500ez Form 2013

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Georgia 500ez Form 2013

Georgia 500ez form 2013 Publication 509 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionOrdering forms and publications. Georgia 500ez form 2013 Tax questions. Georgia 500ez form 2013 Background Information for Using the Tax CalendarsElectronic deposit requirement. Georgia 500ez form 2013 Legal holidays. Georgia 500ez form 2013 Statewide legal holidays. Georgia 500ez form 2013 Future Developments For the latest information about developments related to Publication 509, such as legislation enacted after it was published, go to www. Georgia 500ez form 2013 irs. Georgia 500ez form 2013 gov/pub509. Georgia 500ez form 2013 What's New Publication 1518 discontinued after 2013. Georgia 500ez form 2013  Publication 1518, IRS Tax Calendar for Small Businesses and Self-Employed, is discontinued after 2013. Georgia 500ez form 2013 An IRS Tax Calendar and most of the information previously contained in Publication 1518 can be found at www. Georgia 500ez form 2013 irs. Georgia 500ez form 2013 gov/taxcalendar. Georgia 500ez form 2013 Reminders Photographs of missing children. Georgia 500ez form 2013  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Georgia 500ez form 2013 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Georgia 500ez form 2013 You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Georgia 500ez form 2013 Introduction A tax calendar is a 12-month calendar divided into quarters. Georgia 500ez form 2013 The calendar gives specific due dates for: Filing tax forms, Paying taxes, and Taking other actions required by federal tax law. Georgia 500ez form 2013 What does this publication contain?   This publication contains the following. Georgia 500ez form 2013 A section on how to use the tax calendars. Georgia 500ez form 2013 Three tax calendars: General Tax Calendar, Employer's Tax Calendar, and Excise Tax Calendar. Georgia 500ez form 2013 A table showing the semiweekly deposit due dates for payroll taxes for 2014. Georgia 500ez form 2013   Most of the due dates discussed in this publication are also included in the IRS Tax Calendar available at www. Georgia 500ez form 2013 irs. Georgia 500ez form 2013 gov/taxcalendar. Georgia 500ez form 2013 Who should use this publication?   Primarily, employers need to use this publication. Georgia 500ez form 2013 However, the General Tax Calendar has important due dates for all businesses and individuals. Georgia 500ez form 2013 Anyone who must pay excise taxes may need the Excise Tax Calendar . Georgia 500ez form 2013 What are the advantages of using a tax calendar?   The following are advantages of using a calendar. Georgia 500ez form 2013 You do not have to figure the due dates yourself. Georgia 500ez form 2013 You can file or pay timely and avoid penalties. Georgia 500ez form 2013 You do not have to adjust the due dates for Saturdays, Sundays, and legal holidays. Georgia 500ez form 2013 You do not have to adjust the due dates for special banking rules if you use the Employer's Tax Calendar or Excise Tax Calendar . Georgia 500ez form 2013 Which calendar(s) should I use?   To decide which calendar(s) to use, first look at the General Tax Calendar and highlight the dates that apply to you. Georgia 500ez form 2013 If you are an employer, also use the Employer's Tax Calendar . Georgia 500ez form 2013 If you must pay excise taxes, use the Excise Tax Calendar . Georgia 500ez form 2013 Depending on your situation, you may need to use more than one calendar. Georgia 500ez form 2013 Table 1. Georgia 500ez form 2013 Useful Publications IF you are. Georgia 500ez form 2013 . Georgia 500ez form 2013 . Georgia 500ez form 2013 THEN you may need. Georgia 500ez form 2013 . Georgia 500ez form 2013 . Georgia 500ez form 2013 An employer • Publication 15 (Circular E), Employer's Tax Guide. Georgia 500ez form 2013  • Publication 15-A, Employer's Supplemental Tax Guide. Georgia 500ez form 2013  • Publication 15-B, Employer's Tax Guide to Fringe Benefits. Georgia 500ez form 2013  • Publication 926, Household Employer's Tax Guide. Georgia 500ez form 2013 A farmer • Publication 51 (Circular A), Agricultural Employer's Tax Guide. Georgia 500ez form 2013  • Publication 225, Farmer's Tax Guide. Georgia 500ez form 2013 An individual • Publication 505, Tax Withholding and Estimated Tax. Georgia 500ez form 2013 Required to pay excise taxes • Publication 510, Excise Taxes. Georgia 500ez form 2013 What is not in these calendars?   The calendars do not cover the employment or excise tax deposit rules. Georgia 500ez form 2013 You can find the deposit rules for employment taxes in Publication 15 (Circular E), Employer's Tax Guide. Georgia 500ez form 2013 The deposit rules for excise taxes are in Publication 510, Excise Taxes, and in the Instructions for Form 720, Quarterly Federal Excise Tax Return. Georgia 500ez form 2013 In addition, the calendars do not cover filing forms and other requirements for: Estate taxes, Gift taxes, Trusts, Exempt organizations, Certain types of corporations, or Foreign partnerships. Georgia 500ez form 2013 What other publications and tax forms will I need?   Table 1 lists other publications you may need to order. Georgia 500ez form 2013 Each calendar lists the forms you may need. Georgia 500ez form 2013   See How To Get Tax Help near the end of this publication for information about getting publications and forms. Georgia 500ez form 2013 Comments and suggestions. Georgia 500ez form 2013   We welcome your comments about this publication and your suggestions for future editions. Georgia 500ez form 2013   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Georgia 500ez form 2013 NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Georgia 500ez form 2013 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Georgia 500ez form 2013   You can send us comments from www. Georgia 500ez form 2013 irs. Georgia 500ez form 2013 gov/formspubs. Georgia 500ez form 2013 Click on More Information and then click on Comment on Tax Forms and Publications. Georgia 500ez form 2013   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our forms and publications. Georgia 500ez form 2013 Ordering forms and publications. Georgia 500ez form 2013   Visit www. Georgia 500ez form 2013 irs. Georgia 500ez form 2013 gov/formspubs to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Georgia 500ez form 2013 Internal Revenue Service 1201 N. Georgia 500ez form 2013 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Georgia 500ez form 2013   If you have a tax question, check the information available on IRS. Georgia 500ez form 2013 gov or call 1-800-829-1040. Georgia 500ez form 2013 We cannot answer tax questions sent to either of the above addresses. Georgia 500ez form 2013 Background Information for Using the Tax Calendars The following brief explanations may be helpful to you in using the tax calendars. Georgia 500ez form 2013 IRS e-services make taxes easier. Georgia 500ez form 2013   Now more than ever before, businesses can enjoy the benefits of filing and paying their federal taxes electronically. Georgia 500ez form 2013 Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make taxes easier. Georgia 500ez form 2013    You can e-file your Form 1040; certain business tax returns such as Forms 1120, 1120S, and 1065; certain employment tax returns such as Forms 940 and 941; certain excise tax returns such as Forms 720, 2290, and 8849; and Form 1099 and other information returns. Georgia 500ez form 2013 Visit www. Georgia 500ez form 2013 irs. Georgia 500ez form 2013 gov/efile for more information. Georgia 500ez form 2013 You can pay taxes online or by phone using the Electronic Federal Tax Payments System (EFTPS). Georgia 500ez form 2013 For detailed information about using this free service, see Electronic deposit requirement below. Georgia 500ez form 2013   Use these electronic options to make filing and paying taxes easier. Georgia 500ez form 2013 For more information on electronic payments, visit the IRS website at www. Georgia 500ez form 2013 irs. Georgia 500ez form 2013 gov/e-pay. Georgia 500ez form 2013 Tax deposits. Georgia 500ez form 2013   Some taxes can be paid with the return on which they are reported. Georgia 500ez form 2013 However, in many cases, you have to deposit the tax before the due date for filing the return. Georgia 500ez form 2013 Tax deposits are figured for periods of time that are shorter than the time period covered by the return. Georgia 500ez form 2013 See Publication 15 (Circular E) for the employment tax deposit rules. Georgia 500ez form 2013 For the excise tax deposit rules, see Publication 510 or the Instructions for Form 720. Georgia 500ez form 2013    Electronic deposit requirement. Georgia 500ez form 2013   You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). Georgia 500ez form 2013 Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Georgia 500ez form 2013 EFTPS is a free service provided by the Department of Treasury. Georgia 500ez form 2013 If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Georgia 500ez form 2013   To get more information or to enroll in EFTPS, call 1-800-555-4477 (business), 1-800-316-6541 (individual), or 1-800-733-4829 (TDD/TTY). Georgia 500ez form 2013 You can also visit the EFTPS website at www. Georgia 500ez form 2013 eftps. Georgia 500ez form 2013 gov. Georgia 500ez form 2013 Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide to Getting Started. Georgia 500ez form 2013    If you fail to timely, properly, and in full make your federal tax deposit, you may be subject to a failure-to-deposit penalty. Georgia 500ez form 2013 For an EFTPS deposit to be on time, you must initiate the deposit by 8 p. Georgia 500ez form 2013 m. Georgia 500ez form 2013 Eastern time the day before the date the deposit is due. Georgia 500ez form 2013 Saturday, Sunday, or legal holiday. Georgia 500ez form 2013   Generally, if a due date for performing any act for tax purposes falls on a Saturday, Sunday, or legal holiday, the act is considered to be performed timely if it is performed no later than the next day that is not a Saturday, Sunday, or legal holiday. Georgia 500ez form 2013 The term legal holiday means any legal holiday in the District of Columbia. Georgia 500ez form 2013 The calendars provided in this publication make the adjustment for Saturdays, Sundays, and legal holidays. Georgia 500ez form 2013 But you must make any adjustments for statewide legal holidays, as discussed next. Georgia 500ez form 2013 An exception to this rule for certain excise taxes is noted later under the Excise Tax Calendar. Georgia 500ez form 2013 Legal holidays. Georgia 500ez form 2013   Legal holidays for 2014 are listed below. Georgia 500ez form 2013 January 1— New Year's Day January 20— Birthday of Martin Luther King, Jr. Georgia 500ez form 2013 / Inauguration Day February 17— Washington's Birthday April 16— District of Columbia Emancipation Day May 26— Memorial Day July 4— Independence Day September 1— Labor Day October 13— Columbus Day November 11— Veterans Day November 27— Thanksgiving Day December 25— Christmas Day Statewide legal holidays. Georgia 500ez form 2013   A statewide legal holiday delays a due date for filing a return only if the IRS office where you are required to file is located in that state. Georgia 500ez form 2013 A statewide legal holiday does not delay a due date for making a federal tax deposit. Georgia 500ez form 2013 Extended due date for Forms 1098, 1099, and W-2 if filed electronically. Georgia 500ez form 2013   If you file Forms 1098, 1099, or W-2 electronically, your due date for filing them with the IRS or the Social Security Administration (SSA) will be extended to March 31. Georgia 500ez form 2013   For 2014, the due date for giving the recipient these forms is January 31. Georgia 500ez form 2013   For information about filing Forms 1098, 1099, or W-2G electronically, see Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically. Georgia 500ez form 2013 For information about filing Form W-2 electronically with the SSA, visit www. Georgia 500ez form 2013 ssa. Georgia 500ez form 2013 gov/employer or call 1-800-772-6270. Georgia 500ez form 2013 Penalties. Georgia 500ez form 2013   Whenever possible, you should take action before the listed due date. Georgia 500ez form 2013 If you are late, you may have to pay a penalty as well as interest on any overdue taxes. Georgia 500ez form 2013   Be sure to follow all the tax laws that apply to you. Georgia 500ez form 2013 In addition to civil penalties, criminal penalties may be imposed for intentionally not paying taxes, for intentionally filing a false return, or for not filing a required return. Georgia 500ez form 2013 Use of private delivery services. Georgia 500ez form 2013   You can use certain private delivery services designated by the IRS to meet the timely mailing as timely filing/paying rule for tax returns and payments. Georgia 500ez form 2013 These private delivery services include only the following. Georgia 500ez form 2013 DHL Express (DHL): DHL Same Day Service. Georgia 500ez form 2013 Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2 Day, FedEx International Priority, and FedEx International First. Georgia 500ez form 2013 United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Georgia 500ez form 2013 M. Georgia 500ez form 2013 , UPS Worldwide Express Plus, and UPS Worldwide Express. Georgia 500ez form 2013   For the IRS mailing address to use if you are using a private delivery service, go to IRS. Georgia 500ez form 2013 gov and enter “private delivery service” in the search box. Georgia 500ez form 2013   The private delivery service can tell you how to get written proof of the mailing date. Georgia 500ez form 2013    The U. Georgia 500ez form 2013 S. Georgia 500ez form 2013 Postal Service advises that private delivery services cannot deliver items to P. Georgia 500ez form 2013 O. Georgia 500ez form 2013 boxes. Georgia 500ez form 2013 You must use the U. Georgia 500ez form 2013 S. Georgia 500ez form 2013 Postal Service to mail any item to an IRS P. Georgia 500ez form 2013 O. Georgia 500ez form 2013 box address. Georgia 500ez form 2013 Prev  Up  Next   Home   More Online Publications
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ARRA and HIRE Act Bond Guidance

IRS Invites Public to Comment on TEDB Allocation Process and Also Announces a 3-Month Extension to Issue Unexpired TEDB Allocations
The IRS seeks public comment on the reallocation of available amounts of volume cap for Tribal Economic Development Bonds in order to facilitate issuance by Indian tribal governments. Additionally, Indian tribal governments with unexpired volume cap allocations may request a three-month optional extension.

The American Recovery and Reinvestment Act of 2009: Information Center
Update on the new economic stimulus legislation.

IRS Releases Guidance on ARRA Bond Provisions
The latest guidance, forms and information on bond provisions enacted by the American Recovery & Reinvestment Act of 2009.

IRS Announces Tribal Economic Development Bonds Allocations
The IRS has announced the allocation, in two tranches, of $2 billion of volume cap to tribal governments under the new TEDBs program.

IRS Releases Guidance on HIRE Bond Provisions
The Service announced that Notice 2010-35 has been released. The Notice provides guidance for the new Federal refundable tax credit subsidy option (direct pay subsidy option) allowed by the enactment of the Hiring Incentives to Restore Employment Act (HIRE Act) on March 18, 2010. The Notice is also intended to quickly enable issuers to begin issuing these bonds for qualified purposes.

The Service Announces the Release of New and Revised Tax Exempt Bond Forms
The IRS announced that new Form 8038-TC and revised Forms 8038-CP, 8038, and 8038-G have been issued.

Application of the Treasury Offset Program to Payments to Issuers of Direct Pay Bonds
Information on the application of the Treasury Offset Program (TOPS) as it relates to subsidy payments made to issuers of direct pay bonds.

Tax Exempt Bonds Compliance Check Questionnaire on Direct Pay Bonds (February 2010)
The Tax Exempt Bonds office of the Tax Exempt and Government Entities division of the IRS conducted a compliance check questionnaire to evaluate the issuance and record retention policies, procedures and practices of issuers of direct pay build America bonds.

TIGTA Audit Report Finds BABs Payment Processing is Timely and Accurate
TIGTA finds initial build America bond subsidy payments were processed accurately and timely.

TIGTA Finds that Compliance Check Questionnaires by TEB were Appropriate
The compliance check questionnaires issued by the TEB office were appropriate for identifying indications of a high risk of potential noncompliance for BABs and were not examinations.

Page Last Reviewed or Updated: 26-Mar-2014

The Georgia 500ez Form 2013

Georgia 500ez form 2013 4. Georgia 500ez form 2013   Sales and Trades of Investment Property Table of Contents IntroductionNominees. Georgia 500ez form 2013 Topics - This chapter discusses: Useful Items - You may want to see: What Is a Sale or Trade?Dividend versus sale or trade. Georgia 500ez form 2013 Worthless Securities Constructive Sales of Appreciated Financial Positions Section 1256 Contracts Marked to Market Basis of Investment PropertyCost Basis Basis Other Than Cost Adjusted Basis Stocks and Bonds How To Figure Gain or LossFair market value. Georgia 500ez form 2013 Debt paid off. Georgia 500ez form 2013 Payment of cash. Georgia 500ez form 2013 Special Rules for Mutual Funds Nontaxable TradesLike-Kind Exchanges Corporate Stocks Exchange of Shares In One Mutual Fund For Shares In Another Mutual Fund Insurance Policies and Annuities U. Georgia 500ez form 2013 S. Georgia 500ez form 2013 Treasury Notes or Bonds Transfers Between Spouses Related Party TransactionsGain on Sale or Trade of Depreciable Property Capital Gains and LossesCapital or Ordinary Gain or Loss Holding Period Nonbusiness Bad Debts Short Sales Wash Sales Options Straddles Sales of Stock to ESOPs or Certain Cooperatives Rollover of Gain From Publicly Traded Securities Gains on Qualified Small Business Stock Exclusion of Gain From DC Zone Assets Reporting Capital Gains and LossesException 1. Georgia 500ez form 2013 Exception 2. Georgia 500ez form 2013 Section 1256 contracts and straddles. Georgia 500ez form 2013 Market discount bonds. Georgia 500ez form 2013 File Form 1099-B or Form 1099-S with the IRS. Georgia 500ez form 2013 Capital Losses Capital Gain Tax Rates Special Rules for Traders in SecuritiesHow To Report Introduction This chapter explains the tax treatment of sales and trades of investment property. Georgia 500ez form 2013 Investment property. Georgia 500ez form 2013   This is property that produces investment income. Georgia 500ez form 2013 Examples include stocks, bonds, and Treasury bills and notes. Georgia 500ez form 2013 Property used in a trade or business is not investment property. Georgia 500ez form 2013 Form 1099-B. Georgia 500ez form 2013   If you sold property such as stocks, bonds, mutual funds, or certain commodities through a broker during the year, you should receive, for each sale, a Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or substitute statement, from the broker. Georgia 500ez form 2013 You should receive the statement by February 15 of the next year. Georgia 500ez form 2013 It will show the gross proceeds from the sale. Georgia 500ez form 2013 The IRS will also get a copy of Form 1099-B from the broker. Georgia 500ez form 2013   Use Form 1099-B (or substitute statement received from your broker) to complete Form 8949. Georgia 500ez form 2013 If you sold a covered security in 2013, your broker will send you a Form 1099-B (or substitute statement) that shows your basis. Georgia 500ez form 2013 This will help you complete Form 8949. Georgia 500ez form 2013 Generally, a covered security is a security you acquired after 2010, with certain exceptions explained in the Instructions for Form 8949. Georgia 500ez form 2013    For more information on Form 8949 and Schedule D (Form 1040), see Reporting Capital Gains and Losses in this chapter. Georgia 500ez form 2013 Also see the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040). Georgia 500ez form 2013 Nominees. Georgia 500ez form 2013   If someone receives gross proceeds as a nominee for you, that person will give you a Form 1099-B, which will show gross proceeds received on your behalf. Georgia 500ez form 2013   If you receive a Form 1099-B that includes gross proceeds belonging to another person, see Nominees , later under Reporting Capital Gains and Losses for more information. Georgia 500ez form 2013 Other property transactions. Georgia 500ez form 2013   Certain transfers of property are discussed in other IRS publications. Georgia 500ez form 2013 These include: Sale of your main home, discussed in Publication 523, Selling Your Home; Installment sales, covered in Publication 537; Various types of transactions involving business property, discussed in Publication 544, Sales and Other Dispositions of Assets; Transfers of property at death, covered in Publication 559; and Disposition of an interest in a passive activity, discussed in Publication 925. Georgia 500ez form 2013 Topics - This chapter discusses: What Is a Sale or Trade? , Basis of Investment Property , Adjusted Basis , How To Figure Gain or Loss , Nontaxable trades , Transfers Between Spouses , Related Party Transactions , Capital Gains and Losses , Reporting Capital Gains and Losses , and Special Rules for Traders in Securities . Georgia 500ez form 2013 Useful Items - You may want to see: Publication 551 Basis of Assets Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 6781 Gains and Losses From Section 1256 Contracts and Straddles 8582 Passive Activity Loss Limitations 8824 Like-Kind Exchanges 8949 Sales and Other Dispositions of Capital Assets See chapter 5, How To Get Tax Help , for information about getting these publications and forms. Georgia 500ez form 2013 What Is a Sale or Trade? This section explains what is a sale or trade. Georgia 500ez form 2013 It also explains certain transactions and events that are treated as sales or trades. Georgia 500ez form 2013 A sale is generally a transfer of property for money or a mortgage, note, or other promise to pay money. Georgia 500ez form 2013 A trade is a transfer of property for other property or services, and may be taxed in the same way as a sale. Georgia 500ez form 2013 Sale and purchase. Georgia 500ez form 2013   Ordinarily, a transaction is not a trade when you voluntarily sell property for cash and immediately buy similar property to replace it. Georgia 500ez form 2013 The sale and purchase are two separate transactions. Georgia 500ez form 2013 But see Like-Kind Exchanges under Nontaxable Trades, later. Georgia 500ez form 2013 Redemption of stock. Georgia 500ez form 2013   A redemption of stock is treated as a sale or trade and is subject to the capital gain or loss provisions unless the redemption is a dividend or other distribution on stock. Georgia 500ez form 2013 Dividend versus sale or trade. Georgia 500ez form 2013   Whether a redemption is treated as a sale, trade, dividend, or other distribution depends on the circumstances in each case. Georgia 500ez form 2013 Both direct and indirect ownership of stock will be considered. Georgia 500ez form 2013 The redemption is treated as a sale or trade of stock if: The redemption is not essentially equivalent to a dividend — see Dividends and Other Distributions in chapter 1, There is a substantially disproportionate redemption of stock, There is a complete redemption of all the stock of the corporation owned by the shareholder, or The redemption is a distribution in partial liquidation of a corporation. Georgia 500ez form 2013 Redemption or retirement of bonds. Georgia 500ez form 2013   A redemption or retirement of bonds or notes at their maturity generally is treated as a sale or trade. Georgia 500ez form 2013 See Stocks, stock rights, and bonds and Discounted Debt Instruments under Capital or Ordinary Gain or Loss, later. Georgia 500ez form 2013   In addition, a significant modification of a bond is treated as a trade of the original bond for a new bond. Georgia 500ez form 2013 For details, see Regulations section 1. Georgia 500ez form 2013 1001-3. Georgia 500ez form 2013 Surrender of stock. Georgia 500ez form 2013   A surrender of stock by a dominant shareholder who retains ownership of more than half of the corporation's voting shares is treated as a contribution to capital rather than as an immediate loss deductible from taxable income. Georgia 500ez form 2013 The surrendering shareholder must reallocate his or her basis in the surrendered shares to the shares he or she retains. Georgia 500ez form 2013 Trade of investment property for an annuity. Georgia 500ez form 2013   The transfer of investment property to a corporation, trust, fund, foundation, or other organization, in exchange for a fixed annuity contract that will make guaranteed annual payments to you for life, is a taxable trade. Georgia 500ez form 2013 If the present value of the annuity is more than your basis in the property traded, you have a taxable gain in the year of the trade. Georgia 500ez form 2013 Figure the present value of the annuity according to factors used by commercial insurance companies issuing annuities. Georgia 500ez form 2013 Transfer by inheritance. Georgia 500ez form 2013   The transfer of property of a decedent to the executor or administrator of the estate, or to the heirs or beneficiaries, is not a sale or other disposition. Georgia 500ez form 2013 No taxable gain or deductible loss results from the transfer. Georgia 500ez form 2013 Termination of certain rights and obligations. Georgia 500ez form 2013   The cancellation, lapse, expiration, or other termination of a right or obligation (other than a securities futures contract) with respect to property that is a capital asset (or that would be a capital asset if you acquired it) is treated as a sale. Georgia 500ez form 2013 Any gain or loss is treated as a capital gain or loss. Georgia 500ez form 2013   This rule does not apply to the retirement of a debt instrument. Georgia 500ez form 2013 See Redemption or retirement of bonds , earlier. Georgia 500ez form 2013 Worthless Securities Stocks, stock rights, and bonds (other than those held for sale by a securities dealer) that became completely worthless during the tax year are treated as though they were sold on the last day of the tax year. Georgia 500ez form 2013 This affects whether your capital loss is long term or short term. Georgia 500ez form 2013 See Holding Period , later. Georgia 500ez form 2013 Worthless securities also include securities that you abandon after March 12, 2008. Georgia 500ez form 2013 To abandon a security, you must permanently surrender and relinquish all rights in the security and receive no consideration in exchange for it. Georgia 500ez form 2013 All the facts and circumstances determine whether the transaction is properly characterized as an abandonment or other type of transaction, such as an actual sale or exchange, contribution to capital, dividend, or gift. Georgia 500ez form 2013 If you are a cash basis taxpayer and make payments on a negotiable promissory note that you issued for stock that became worthless, you can deduct these payments as losses in the years you actually make the payments. Georgia 500ez form 2013 Do not deduct them in the year the stock became worthless. Georgia 500ez form 2013 How to report loss. Georgia 500ez form 2013   Report worthless securities in Form 8949, Part I or Part II, whichever applies. Georgia 500ez form 2013    Report your worthless securities transactions on Form 8949 with the correct box checked for these transactions. Georgia 500ez form 2013 See Form 8949 and the Instructions for Form 8949. Georgia 500ez form 2013 Filing a claim for refund. Georgia 500ez form 2013   If you do not claim a loss for a worthless security on your original return for the year it becomes worthless, you can file a claim for a credit or refund due to the loss. Georgia 500ez form 2013 You must use Form 1040X, Amended U. Georgia 500ez form 2013 S. Georgia 500ez form 2013 Individual Income Tax Return, to amend your return for the year the security became worthless. Georgia 500ez form 2013 You must file it within 7 years from the date your original return for that year had to be filed, or 2 years from the date you paid the tax, whichever is later. Georgia 500ez form 2013 (Claims not due to worthless securities or bad debts generally must be filed within 3 years from the date a return is filed, or 2 years from the date the tax is paid, whichever is later. Georgia 500ez form 2013 ) For more information about filing a claim, see Publication 556. Georgia 500ez form 2013 Constructive Sales of Appreciated Financial Positions You are treated as having made a constructive sale when you enter into certain transactions involving an appreciated financial position (defined later) in stock, a partnership interest, or certain debt instruments. Georgia 500ez form 2013 You must recognize gain as if the position were disposed of at its fair market value on the date of the constructive sale. Georgia 500ez form 2013 This gives you a new holding period for the position that begins on the date of the constructive sale. Georgia 500ez form 2013 Then, when you close the transaction, you reduce your gain (or increase your loss) by the gain recognized on the constructive sale. Georgia 500ez form 2013 Constructive sale. Georgia 500ez form 2013   You are treated as having made a constructive sale of an appreciated financial position if you: Enter into a short sale of the same or substantially identical property, Enter into an offsetting notional principal contract relating to the same or substantially identical property, Enter into a futures or forward contract to deliver the same or substantially identical property (including a forward contract that provides for cash settlement), or Acquire the same or substantially identical property (if the appreciated financial position is a short sale, an offsetting notional principal contract, or a futures or forward contract). Georgia 500ez form 2013   You are also treated as having made a constructive sale of an appreciated financial position if a person related to you enters into a transaction described above with a view toward avoiding the constructive sale treatment. Georgia 500ez form 2013 For this purpose, a related person is any related party described under Related Party Transactions , later in this chapter. Georgia 500ez form 2013 Exception for nonmarketable securities. Georgia 500ez form 2013   You are not treated as having made a constructive sale solely because you entered into a contract for sale of any stock, debt instrument, or partnership interest that is not a marketable security if it settles within 1 year of the date you enter into it. Georgia 500ez form 2013 Exception for certain closed transactions. Georgia 500ez form 2013   Do not treat a transaction as a constructive sale if all of the following are true. Georgia 500ez form 2013 You closed the transaction on or before the 30th day after the end of your tax year. Georgia 500ez form 2013 You held the appreciated financial position throughout the 60-day period beginning on the date you closed the transaction. Georgia 500ez form 2013 Your risk of loss was not reduced at any time during that 60-day period by holding certain other positions. Georgia 500ez form 2013   If a closed transaction is reestablished in a substantially similar position during the 60-day period beginning on the date the first transaction was closed, this exception still applies if the reestablished position is closed before the 30th day after the end of your tax year in which the first transaction was closed and, after that closing, (2) and (3) above are true. Georgia 500ez form 2013   This exception also applies to successive short sales of an entire appreciated financial position. Georgia 500ez form 2013 For more information, see Revenue Ruling 2003-1 in Internal Revenue Bulletin 2003-3. Georgia 500ez form 2013 This bulletin is available at www. Georgia 500ez form 2013 irs. Georgia 500ez form 2013 gov/pub/irs-irbs/irb03-03. Georgia 500ez form 2013 pdf. Georgia 500ez form 2013 Appreciated financial position. Georgia 500ez form 2013   This is any interest in stock, a partnership interest, or a debt instrument (including a futures or forward contract, a short sale, or an option) if disposing of the interest would result in a gain. Georgia 500ez form 2013 Exceptions. Georgia 500ez form 2013   An appreciated financial position does not include the following. Georgia 500ez form 2013 Any position from which all of the appreciation is accounted for under marked-to-market rules, including section 1256 contracts (described later under Section 1256 Contracts Marked to Market ). Georgia 500ez form 2013 Any position in a debt instrument if: The position unconditionally entitles the holder to receive a specified principal amount, The interest payments (or other similar amounts) with respect to the position are payable at a fixed rate or a variable rate described in Regulations section 1. Georgia 500ez form 2013 860G-1(a)(3), and The position is not convertible, either directly or indirectly, into stock of the issuer (or any related person). Georgia 500ez form 2013 Any hedge with respect to a position described in (2). Georgia 500ez form 2013 Certain trust instruments treated as stock. Georgia 500ez form 2013   For the constructive sale rules, an interest in an actively traded trust is treated as stock unless substantially all of the value of the property held by the trust is debt that qualifies for the exception to the definition of an appreciated financial position (explained in (2) above). Georgia 500ez form 2013 Sale of appreciated financial position. Georgia 500ez form 2013   A transaction treated as a constructive sale of an appreciated financial position is not treated as a constructive sale of any other appreciated financial position, as long as you continue to hold the original position. Georgia 500ez form 2013 However, if you hold another appreciated financial position and dispose of the original position before closing the transaction that resulted in the constructive sale, you are treated as if, at the same time, you constructively sold the other appreciated financial position. Georgia 500ez form 2013 Section 1256 Contracts Marked to Market If you hold a section 1256 contract at the end of the tax year, you generally must treat it as sold at its fair market value on the last business day of the tax year. Georgia 500ez form 2013 Section 1256 Contract A section 1256 contract is any: Regulated futures contract, Foreign currency contract, Nonequity option, Dealer equity option, or Dealer securities futures contract. Georgia 500ez form 2013 Exceptions. Georgia 500ez form 2013   A section 1256 contract does not include: Interest rate swaps, Currency swaps, Basis swaps, Interest rate caps, Interest rate floors, Commodity swaps, Equity swaps, Equity index swaps, Credit default swaps, or Similar agreements. Georgia 500ez form 2013 For more details, including definitions of these terms, see section 1256. Georgia 500ez form 2013 Regulated futures contract. Georgia 500ez form 2013   This is a contract that: Provides that amounts which must be deposited to, or can be withdrawn from, your margin account depend on daily market conditions (a system of marking to market), and Is traded on, or subject to the rules of, a qualified board of exchange. Georgia 500ez form 2013 A qualified board of exchange is a domestic board of trade designated as a contract market by the Commodity Futures Trading Commission, any board of trade or exchange approved by the Secretary of the Treasury, or a national securities exchange registered with the Securities and Exchange Commission. Georgia 500ez form 2013 Foreign currency contract. Georgia 500ez form 2013   This is a contract that: Requires delivery of a foreign currency that has positions traded through regulated futures contracts (or settlement of which depends on the value of that type of foreign currency), Is traded in the interbank market, and Is entered into at arm's length at a price determined by reference to the price in the interbank market. Georgia 500ez form 2013   Bank forward contracts with maturity dates longer than the maturities ordinarily available for regulated futures contracts are considered to meet the definition of a foreign currency contract if the above three conditions are satisfied. Georgia 500ez form 2013   Special rules apply to certain foreign currency transactions. Georgia 500ez form 2013 These transactions may result in ordinary gain or loss treatment. Georgia 500ez form 2013 For details, see Internal Revenue Code section 988 and Regulations sections 1. Georgia 500ez form 2013 988-1(a)(7) and 1. Georgia 500ez form 2013 988-3. Georgia 500ez form 2013 Nonequity option. Georgia 500ez form 2013   This is any listed option (defined later) that is not an equity option. Georgia 500ez form 2013 Nonequity options include debt options, commodity futures options, currency options, and broad-based stock index options. Georgia 500ez form 2013 A broad-based stock index is based on the value of a group of diversified stocks or securities (such as the Standard and Poor's 500 index). Georgia 500ez form 2013 Warrants based on a stock index that are economically, substantially identical in all material respects to options based on a stock index are treated as options based on a stock index. Georgia 500ez form 2013 Cash-settled options. Georgia 500ez form 2013   Cash-settled options based on a stock index and either traded on or subject to the rules of a qualified board of exchange are nonequity options if the Securities and Exchange Commission (SEC) determines that the stock index is broad based. Georgia 500ez form 2013   This rule does not apply to options established before the SEC determines that the stock index is broad based. Georgia 500ez form 2013 Listed option. Georgia 500ez form 2013   This is any option traded on, or subject to the rules of, a qualified board or exchange (as discussed earlier under Regulated futures contract). Georgia 500ez form 2013 A listed option, however, does not include an option that is a right to acquire stock from the issuer. Georgia 500ez form 2013 Dealer equity option. Georgia 500ez form 2013   This is any listed option that, for an options dealer: Is an equity option, Is bought or granted by that dealer in the normal course of the dealer's business activity of dealing in options, and Is listed on the qualified board of exchange where that dealer is registered. Georgia 500ez form 2013   An “options dealer” is any person registered with an appropriate national securities exchange as a market maker or specialist in listed options. Georgia 500ez form 2013 Equity option. Georgia 500ez form 2013   This is any option: To buy or sell stock, or That is valued directly or indirectly by reference to any stock or narrow-based security index. Georgia 500ez form 2013  Equity options include options on a group of stocks only if the group is a narrow-based stock index. Georgia 500ez form 2013 Dealer securities futures contract. Georgia 500ez form 2013   For any dealer in securities futures contracts or options on those contracts, this is a securities futures contract (or option on such a contract) that: Is entered into by the dealer (or, in the case of an option, is purchased or granted by the dealer) in the normal course of the dealer's activity of dealing in this type of contract (or option), and Is traded on a qualified board or exchange (as defined under Regulated futures contract , earlier). Georgia 500ez form 2013 A securities futures contract that is not a dealer securities futures contract is treated as described later under Securities Futures Contracts . Georgia 500ez form 2013 Marked-to-Market Rules A section 1256 contract that you hold at the end of the tax year will generally be treated as sold at its fair market value on the last business day of the tax year, and you must recognize any gain or loss that results. Georgia 500ez form 2013 That gain or loss is taken into account in figuring your gain or loss when you later dispose of the contract, as shown in the example under 60/40 rule, below. Georgia 500ez form 2013 Hedging exception. Georgia 500ez form 2013   The marked-to-market rules do not apply to hedging transactions. Georgia 500ez form 2013 See Hedging Transactions , later. Georgia 500ez form 2013 60/40 rule. Georgia 500ez form 2013   Under the marked-to-market system, 60% of your capital gain or loss will be treated as a long-term capital gain or loss, and 40% will be treated as a short-term capital gain or loss. Georgia 500ez form 2013 This is true regardless of how long you actually held the property. Georgia 500ez form 2013 Example. Georgia 500ez form 2013 On June 22, 2012, you bought a regulated futures contract for $50,000. Georgia 500ez form 2013 On December 31, 2012 (the last business day of your tax year), the fair market value of the contract was $57,000. Georgia 500ez form 2013 You recognized a $7,000 gain on your 2012 tax return, treated as 60% long-term and 40% short-term capital gain. Georgia 500ez form 2013 On February 1, 2013, you sold the contract for $56,000. Georgia 500ez form 2013 Because you recognized a $7,000 gain on your 2012 return, you recognize a $1,000 loss ($57,000 − $56,000) on your 2013 tax return, treated as 60% long-term and 40% short-term capital loss. Georgia 500ez form 2013 Limited partners or entrepreneurs. Georgia 500ez form 2013   The 60/40 rule does not apply to dealer equity options or dealer securities futures contracts that result in capital gain or loss allocable to limited partners or limited entrepreneurs (defined later under Hedging Transactions ). Georgia 500ez form 2013 Instead, these gains or losses are treated as short term. Georgia 500ez form 2013 Terminations and transfers. Georgia 500ez form 2013   The marked-to-market rules also apply if your obligation or rights under section 1256 contracts are terminated or transferred during the tax year. Georgia 500ez form 2013 In this case, use the fair market value of each section 1256 contract at the time of termination or transfer to determine the gain or loss. Georgia 500ez form 2013 Terminations or transfers may result from any offsetting, delivery, exercise, assignment, or lapse of your obligation or rights under section 1256 contracts. Georgia 500ez form 2013 Loss carryback election. Georgia 500ez form 2013   An individual having a net section 1256 contracts loss (defined later), generally can elect to carry this loss back 3 years instead of carrying it over to the next year. Georgia 500ez form 2013 See How To Report , later, for information about reporting this election on your return. Georgia 500ez form 2013   The loss carried back to any year under this election cannot be more than the net section 1256 contracts gain in that year. Georgia 500ez form 2013 In addition, the amount of loss carried back to an earlier tax year cannot increase or produce a net operating loss for that year. Georgia 500ez form 2013   The loss is carried to the earliest carryback year first, and any unabsorbed loss amount can then be carried to each of the next 2 tax years. Georgia 500ez form 2013 In each carryback year, treat 60% of the carryback amount as a long-term capital loss and 40% as a short-term capital loss from section 1256 contracts. Georgia 500ez form 2013   If only a portion of the net section 1256 contracts loss is absorbed by carrying the loss back, the unabsorbed portion can be carried forward, under the capital loss carryover rules, to the year following the loss. Georgia 500ez form 2013 (See Capital Losses under Reporting Capital Gains and Losses, later. Georgia 500ez form 2013 ) Figure your capital loss carryover as if, for the loss year, you had an additional short-term capital gain of 40% of the amount of net section 1256 contracts loss absorbed in the carryback years and an additional long-term capital gain of 60% of the absorbed loss. Georgia 500ez form 2013 In the carryover year, treat any capital loss carryover from losses on section 1256 contracts as if it were a loss from section 1256 contracts for that year. Georgia 500ez form 2013 Net section 1256 contracts loss. Georgia 500ez form 2013   This loss is the lesser of: The net capital loss for your tax year determined by taking into account only the gains and losses from section 1256 contracts, or The capital loss carryover to the next tax year determined without this election. Georgia 500ez form 2013 Net section 1256 contracts gain. Georgia 500ez form 2013   This gain is the lesser of: The capital gain net income for the carryback year determined by taking into account only gains and losses from section 1256 contracts, or The capital gain net income for that year. Georgia 500ez form 2013  Figure your net section 1256 contracts gain for any carryback year without regard to the net section 1256 contracts loss for the loss year or any later tax year. Georgia 500ez form 2013 Traders in section 1256 contracts. Georgia 500ez form 2013   Gain or loss from the trading of section 1256 contracts is capital gain or loss subject to the marked-to-market rules. Georgia 500ez form 2013 However, this does not apply to contracts held for purposes of hedging property if any loss from the property would be an ordinary loss. Georgia 500ez form 2013 Treatment of underlying property. Georgia 500ez form 2013   The determination of whether an individual's gain or loss from any property is ordinary or capital gain or loss is made without regard to the fact that the individual is actively engaged in dealing in or trading section 1256 contracts related to that property. Georgia 500ez form 2013 How To Report If you disposed of regulated futures or foreign currency contracts in 2013 (or had unrealized profit or loss on these contracts that were open at the end of 2012 or 2013), you should receive Form 1099-B, or substitute statement, from your broker. Georgia 500ez form 2013 Form 6781. Georgia 500ez form 2013   Use Part I of Form 6781 to report your gains and losses from all section 1256 contracts that are open at the end of the year or that were closed out during the year. Georgia 500ez form 2013 This includes the amount shown in box 10 of Form 1099-B. Georgia 500ez form 2013 Then enter the net amount of these gains and losses on Schedule D (Form 1040), line 4 or line 11, as appropriate. Georgia 500ez form 2013 Include a copy of Form 6781 with your income tax return. Georgia 500ez form 2013   If the Form 1099-B you receive includes a straddle or hedging transaction, defined later, it may be necessary to show certain adjustments on Form 6781. Georgia 500ez form 2013 Follow the Form 6781 instructions for completing Part I. Georgia 500ez form 2013 Loss carryback election. Georgia 500ez form 2013   To carry back your loss under the election procedures described earlier, file Form 1040X or Form 1045, Application for Tentative Refund, for the year to which you are carrying the loss with an amended Form 6781 and an amended Schedule D (Form 1040) attached. Georgia 500ez form 2013 Follow the instructions for completing Form 6781 for the loss year to make this election. Georgia 500ez form 2013 Hedging Transactions The marked-to-market rules, described earlier, do not apply to hedging transactions. Georgia 500ez form 2013 A transaction is a hedging transaction if both of the following conditions are met. Georgia 500ez form 2013 You entered into the transaction in the normal course of your trade or business primarily to manage the risk of: Price changes or currency fluctuations on ordinary property you hold (or will hold), or Interest rate or price changes, or currency fluctuations, on your current or future borrowings or ordinary obligations. Georgia 500ez form 2013 You clearly identified the transaction as being a hedging transaction before the close of the day on which you entered into it. Georgia 500ez form 2013 This hedging transaction exception does not apply to transactions entered into by or for any syndicate. Georgia 500ez form 2013 A syndicate is a partnership, S corporation, or other entity (other than a regular corporation) that allocates more than 35% of its losses to limited partners or limited entrepreneurs. Georgia 500ez form 2013 A limited entrepreneur is a person who has an interest in an enterprise (but not as a limited partner) and who does not actively participate in its management. Georgia 500ez form 2013 However, an interest is not considered held by a limited partner or entrepreneur if the interest holder actively participates (or did so for at least 5 full years) in the management of the entity, or is the spouse, child (including a legally adopted child), grandchild, or parent of an individual who actively participates in the management of the entity. Georgia 500ez form 2013 Hedging loss limit. Georgia 500ez form 2013   If you are a limited partner or entrepreneur in a syndicate, the amount of a hedging loss you can claim is limited. Georgia 500ez form 2013 A “hedging loss” is the amount by which the allowable deductions in a tax year that resulted from a hedging transaction (determined without regard to the limit) are more than the income received or accrued during the tax year from this transaction. Georgia 500ez form 2013   Any hedging loss allocated to you for the tax year is limited to your taxable income for that year from the trade or business in which the hedging transaction occurred. Georgia 500ez form 2013 Ignore any hedging transaction items in determining this taxable income. Georgia 500ez form 2013 If you have a hedging loss that is disallowed because of this limit, you can carry it over to the next tax year as a deduction resulting from a hedging transaction. Georgia 500ez form 2013   If the hedging transaction relates to property other than stock or securities, the limit on hedging losses applies if the limited partner or entrepreneur is an individual. Georgia 500ez form 2013   The limit on hedging losses does not apply to any hedging loss to the extent that it is more than all your unrecognized gains from hedging transactions at the end of the tax year that are from the trade or business in which the hedging transaction occurred. Georgia 500ez form 2013 The term “unrecognized gain” has the same meaning as defined under Loss Deferral Rules in Straddles, later. Georgia 500ez form 2013 Sale of property used in a hedge. Georgia 500ez form 2013   Once you identify personal property as being part of a hedging transaction, you must treat gain from its sale or exchange as ordinary income, not capital gain. Georgia 500ez form 2013 Self-Employment Income Gains and losses derived in the ordinary course of a commodity or option dealer's trading in section 1256 contracts and property related to these contracts are included in net earnings from self-employment. Georgia 500ez form 2013 See the Instructions for Schedule SE (Form 1040). Georgia 500ez form 2013 In addition, the rules relating to contributions to self-employment retirement plans apply. Georgia 500ez form 2013 For information on retirement plan contributions, see Publication 560 and Publication 590. Georgia 500ez form 2013 Basis of Investment Property Basis is a way of measuring your investment in property for tax purposes. Georgia 500ez form 2013 You must know the basis of your property to determine whether you have a gain or loss on its sale or other disposition. Georgia 500ez form 2013 Investment property you buy normally has an original basis equal to its cost. Georgia 500ez form 2013 If you get property in some way other than buying it, such as by gift or inheritance, its fair market value may be important in figuring the basis. Georgia 500ez form 2013 Cost Basis The basis of property you buy is usually its cost. Georgia 500ez form 2013 The cost is the amount you pay in cash, debt obligations, or other property or services. Georgia 500ez form 2013 Unstated interest. Georgia 500ez form 2013   If you buy property on a time-payment plan that charges little or no interest, the basis of your property is your stated purchase price, minus the amount considered to be unstated interest. Georgia 500ez form 2013 You generally have unstated interest if your interest rate is less than the applicable federal rate. Georgia 500ez form 2013 For more information, see Unstated Interest and Original Issue Discount (OID) in Publication 537. Georgia 500ez form 2013 Basis Other Than Cost There are times when you must use a basis other than cost. Georgia 500ez form 2013 In these cases, you may need to know the property's fair market value or the adjusted basis of the previous owner. Georgia 500ez form 2013 Fair market value. Georgia 500ez form 2013   This is the price at which the property would change hands between a buyer and a seller, neither being forced to buy or sell and both having reasonable knowledge of all the relevant facts. Georgia 500ez form 2013 Sales of similar property, around the same date, may be helpful in figuring fair market value. Georgia 500ez form 2013 Property Received for Services If you receive investment property for services, you must include the property's fair market value in income. Georgia 500ez form 2013 The amount you include in income then becomes your basis in the property. Georgia 500ez form 2013 If the services were performed for a price that was agreed to beforehand, this price will be accepted as the fair market value of the property if there is no evidence to the contrary. Georgia 500ez form 2013 Restricted property. Georgia 500ez form 2013   If you receive, as payment for services, property that is subject to certain restrictions, your basis in the property generally is its fair market value when it becomes substantially vested. Georgia 500ez form 2013 Property becomes substantially vested when it is transferable or is no longer subject to substantial risk of forfeiture, whichever happens first. Georgia 500ez form 2013 See Restricted Property in Publication 525 for more information. Georgia 500ez form 2013 Bargain purchases. Georgia 500ez form 2013   If you buy investment property at less than fair market value, as payment for services, you must include the difference in income. Georgia 500ez form 2013 Your basis in the property is the price you pay plus the amount you include in income. Georgia 500ez form 2013 Property Received in Taxable Trades If you received investment property in trade for other property, the basis of the new property is its fair market value at the time of the trade unless you received the property in a nontaxable trade. Georgia 500ez form 2013 Example. Georgia 500ez form 2013 You trade A Company stock for B Company stock having a fair market value of $1,200. Georgia 500ez form 2013 If the adjusted basis of the A Company stock is less than $1,200, you have a taxable gain on the trade. Georgia 500ez form 2013 If the adjusted basis of the A Company stock is more than $1,200, you have a deductible loss on the trade. Georgia 500ez form 2013 The basis of your B Company stock is $1,200. Georgia 500ez form 2013 If you later sell the B Company stock for $1,300, you will have a gain of $100. Georgia 500ez form 2013 Property Received in Nontaxable Trades If you have a nontaxable trade, you do not recognize gain or loss until you dispose of the property you received in the trade. Georgia 500ez form 2013 See Nontaxable Trades , later. Georgia 500ez form 2013 The basis of property you received in a nontaxable or partly nontaxable trade is generally the same as the adjusted basis of the property you gave up. Georgia 500ez form 2013 Increase this amount by any cash you paid, additional costs you had, and any gain recognized. Georgia 500ez form 2013 Reduce this amount by any cash or unlike property you received, any loss recognized, and any liability of yours that was assumed or treated as assumed. Georgia 500ez form 2013 Property Received From Your Spouse If property is transferred to you from your spouse (or former spouse, if the transfer is incident to your divorce), your basis is the same as your spouse's or former spouse's adjusted basis just before the transfer. Georgia 500ez form 2013 See Transfers Between Spouses , later. Georgia 500ez form 2013 Recordkeeping. Georgia 500ez form 2013 The transferor must give you the records necessary to determine the adjusted basis and holding period of the property as of the date of the transfer. Georgia 500ez form 2013 Property Received as a Gift To figure your basis in property that you received as a gift, you must know its adjusted basis to the donor just before it was given to you, its fair market value at the time it was given to you, the amount of any gift tax paid on it, and the date it was given to you. Georgia 500ez form 2013 Fair market value less than donor's adjusted basis. Georgia 500ez form 2013   If the fair market value of the property at the time of the gift was less than the donor's adjusted basis just before the gift, your basis for gain on its sale or other disposition is the same as the donor's adjusted basis plus or minus any required adjustments to basis during the period you hold the property. Georgia 500ez form 2013 Your basis for loss is its fair market value at the time of the gift plus or minus any required adjustments to basis during the period you hold the property. Georgia 500ez form 2013 No gain or loss. Georgia 500ez form 2013   If you use the basis for figuring a gain and the result is a loss, and then use the basis for figuring a loss and the result is a gain, you will have neither a gain nor a loss. Georgia 500ez form 2013 Example. Georgia 500ez form 2013 You receive a gift of investment property having an adjusted basis of $10,000 at the time of the gift. Georgia 500ez form 2013 The fair market value at the time of the gift is $9,000. Georgia 500ez form 2013 You later sell the property for $9,500. Georgia 500ez form 2013 You have neither gain nor loss. Georgia 500ez form 2013 Your basis for figuring gain is $10,000, and $9,500 minus $10,000 results in a $500 loss. Georgia 500ez form 2013 Your basis for figuring loss is $9,000, and $9,500 minus $9,000 results in a $500 gain. Georgia 500ez form 2013 Fair market value equal to or more than donor's adjusted basis. Georgia 500ez form 2013   If the fair market value of the property at the time of the gift was equal to or more than the donor's adjusted basis just before the gift, your basis for gain or loss on its sale or other disposition is the donor's adjusted basis plus or minus any required adjustments to basis during the period you hold the property. Georgia 500ez form 2013 Also, you may be allowed to add to the donor's adjusted basis all or part of any gift tax paid, depending on the date of the gift. Georgia 500ez form 2013 Gift received before 1977. Georgia 500ez form 2013   If you received property as a gift before 1977, your basis in the property is the donor's adjusted basis increased by the total gift tax paid on the gift. Georgia 500ez form 2013 However, your basis cannot be more than the fair market value of the gift at the time it was given to you. Georgia 500ez form 2013 Example 1. Georgia 500ez form 2013 You were given XYZ Company stock in 1976. Georgia 500ez form 2013 At the time of the gift, the stock had a fair market value of $21,000. Georgia 500ez form 2013 The donor's adjusted basis was $20,000. Georgia 500ez form 2013 The donor paid a gift tax of $500 on the gift. Georgia 500ez form 2013 Your basis for gain or loss is $20,500, the donor's adjusted basis plus the amount of gift tax paid. Georgia 500ez form 2013 Example 2. Georgia 500ez form 2013 The facts are the same as in Example 1 except that the gift tax paid was $1,500. Georgia 500ez form 2013 Your basis is $21,000, the donor's adjusted basis plus the gift tax paid, but limited to the fair market value of the stock at the time of the gift. Georgia 500ez form 2013 Gift received after 1976. Georgia 500ez form 2013   If you received property as a gift after 1976, your basis is the donor's adjusted basis increased by the part of the gift tax paid that was for the net increase in value of the gift. Georgia 500ez form 2013 You figure this part by multiplying the gift tax paid on the gift by a fraction. Georgia 500ez form 2013 The numerator (top part) is the net increase in value of the gift and the denominator (bottom part) is the amount of the gift. Georgia 500ez form 2013   The net increase in value of the gift is the fair market value of the gift minus the donor's adjusted basis. Georgia 500ez form 2013 The amount of the gift is its value for gift tax purposes after reduction by any annual exclusion and marital or charitable deduction that applies to the gift. Georgia 500ez form 2013 Example. Georgia 500ez form 2013 In 2013, you received a gift of property from your mother. Georgia 500ez form 2013 At the time of the gift, the property had a fair market value of $101,000 and an adjusted basis to her of $40,000. Georgia 500ez form 2013 The amount of the gift for gift tax purposes was $87,000 ($101,000 minus the $14,000 annual exclusion), and your mother paid a gift tax of $21,000. Georgia 500ez form 2013 You figure your basis in the following way: Fair market value $101,000 Minus: Adjusted basis 40,000 Net increase in value of gift $61,000 Gift tax paid $21,000 Multiplied by . Georgia 500ez form 2013 701 ($61,000 ÷ $87,000) . Georgia 500ez form 2013 701 Gift tax due to net increase in value $14,721 Plus: Adjusted basis of property to  your mother 40,000 Your basis in the property $54,721 Part sale, part gift. Georgia 500ez form 2013   If you get property in a transfer that is partly a sale and partly a gift, your basis is the larger of the amount you paid for the property or the transferor's adjusted basis in the property at the time of the transfer. Georgia 500ez form 2013 Add to that amount the amount of any gift tax paid on the gift, as described in the preceding discussion. Georgia 500ez form 2013 For figuring loss, your basis is limited to the property's fair market value at the time of the transfer. Georgia 500ez form 2013 Gift tax information. Georgia 500ez form 2013   For information on gift tax, see Publication 950, Introduction to Estate and Gift Taxes. Georgia 500ez form 2013 For information on figuring the amount of gift tax to add to your basis, see Property Received as a Gift in Publication 551. Georgia 500ez form 2013 Property Received as Inheritance Before or after 2010. Georgia 500ez form 2013   If you inherited property from a decedent who died before or after 2010, or who died in 2010 and the executor of the decedent's estate elected not to file Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent, your basis in that property generally is its fair market value (its appraised value on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return) on: The date of the decedent's death, or The later alternate valuation date if the estate qualifies for, and elects to use, alternate valuation. Georgia 500ez form 2013 If no Form 706 was filed, use the appraised value on the date of death for state inheritance or transmission taxes. Georgia 500ez form 2013 For stocks and bonds, if no Form 706 was filed and there are no state inheritance or transmission taxes, see the Form 706 instructions for figuring the fair market value of the stocks and bonds on the date of the decedent's death. Georgia 500ez form 2013 Appreciated property you gave the decedent. Georgia 500ez form 2013   Your basis in certain appreciated property that you inherited is the decedent's adjusted basis in the property immediately before death rather than its fair market value. Georgia 500ez form 2013 This applies to appreciated property that you or your spouse gave the decedent as a gift during the 1-year period ending on the date of death. Georgia 500ez form 2013 Appreciated property is any property whose fair market value on the day you gave it to the decedent was more than its adjusted basis. Georgia 500ez form 2013 More information. Georgia 500ez form 2013   See Publication 551 for more information on the basis of inherited property, including community property, property held by a surviving tenant in a joint tenancy or tenancy by the entirety, a qualified joint interest, and a farm or closely held business. Georgia 500ez form 2013 Inherited in 2010 and executor elected to file Form 8939. Georgia 500ez form 2013   If you inherited property from a decedent who died in 2010 and the executor made the election to file Form 8939, see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, to figure your basis. Georgia 500ez form 2013 Adjusted Basis Before you can figure any gain or loss on a sale, exchange, or other disposition of property or figure allowable depreciation, depletion, or amortization, you usually must make certain adjustments (increases and decreases) to the basis of the property. Georgia 500ez form 2013 The result of these adjustments to the basis is the adjusted basis. Georgia 500ez form 2013 Adjustments to the basis of stocks and bonds are explained in the following discussion. Georgia 500ez form 2013 For information about other adjustments to basis, see Publication 551. Georgia 500ez form 2013 Stocks and Bonds The basis of stocks or bonds you own generally is the purchase price plus the costs of purchase, such as commissions and recording or transfer fees. Georgia 500ez form 2013 If you acquired stock or bonds other than by purchase, your basis is usually determined by fair market value or the previous owner's adjusted basis as discussed earlier under Basis Other Than Cost . Georgia 500ez form 2013 The basis of stock must be adjusted for certain events that occur after purchase. Georgia 500ez form 2013 For example, if you receive more stock from nontaxable stock dividends or stock splits, you must reduce the basis of your original stock. Georgia 500ez form 2013 You must also reduce your basis when you receive nondividend distributions (discussed in chapter 1). Georgia 500ez form 2013 These distributions, up to the amount of your basis, are a nontaxable return of capital. Georgia 500ez form 2013 The IRS partners with companies that offer Form 8949 and Schedule D (Form 1040) software that can import trades from many brokerage firms and accounting software to help you keep track of your adjusted basis in securities. Georgia 500ez form 2013 To find out more, go to www. Georgia 500ez form 2013 irs. Georgia 500ez form 2013 gov/Filing/Filing-Options. Georgia 500ez form 2013 Identifying stock or bonds sold. Georgia 500ez form 2013   If you can adequately identify the shares of stock or the bonds you sold, their basis is the cost or other basis of the particular shares of stock or bonds. Georgia 500ez form 2013 Adequate identification. Georgia 500ez form 2013   You will make an adequate identification if you show that certificates representing shares of stock from a lot that you bought on a certain date or for a certain price were delivered to your broker or other agent. Georgia 500ez form 2013 Broker holds stock. Georgia 500ez form 2013   If you have left the stock certificates with your broker or other agent, you will make an adequate identification if you: Tell your broker or other agent the particular stock to be sold or transferred at the time of the sale or transfer, and Receive a written confirmation of this from your broker or other agent within a reasonable time. Georgia 500ez form 2013  Stock identified this way is the stock sold or transferred even if stock certificates from a different lot are delivered to the broker or other agent. Georgia 500ez form 2013 Single stock certificate. Georgia 500ez form 2013   If you bought stock in different lots at different times and you hold a single stock certificate for this stock, you will make an adequate identification if you: Tell your broker or other agent the particular stock to be sold or transferred when you deliver the certificate to your broker or other agent, and Receive a written confirmation of this from your broker or other agent within a reasonable time. Georgia 500ez form 2013   If you sell part of the stock represented by a single certificate directly to the buyer instead of through a broker, you will make an adequate identification if you keep a written record of the particular stock that you intend to sell. Georgia 500ez form 2013 Bonds. Georgia 500ez form 2013   These methods of identification also apply to bonds sold or transferred. Georgia 500ez form 2013 Identification not possible. Georgia 500ez form 2013   If you buy and sell securities at various times in varying quantities and you cannot adequately identify the shares you sell, the basis of the securities you sell is the basis of the securities you acquired first. Georgia 500ez form 2013 Except for certain mutual fund shares, discussed later, you cannot use the average price per share to figure gain or loss on the sale of the shares. Georgia 500ez form 2013 Example. Georgia 500ez form 2013 You bought 100 shares of stock of XYZ Corporation in 1998 for $10 a share. Georgia 500ez form 2013 In January 1999 you bought another 200 shares for $11 a share. Georgia 500ez form 2013 In July 1999 you gave your son 50 shares. Georgia 500ez form 2013 In December 2001 you bought 100 shares for $9 a share. Georgia 500ez form 2013 In April 2013 you sold 130 shares. Georgia 500ez form 2013 You cannot identify the shares you disposed of, so you must use the stock you acquired first to figure the basis. Georgia 500ez form 2013 The shares of stock you gave your son had a basis of $500 (50 × $10). Georgia 500ez form 2013 You figure the basis of the 130 shares of stock you sold in 2013 as follows: 50 shares (50 × $10) balance of stock bought in 1998 $ 500 80 shares (80 × $11) stock bought in January 1999 880 Total basis of stock sold in 2013 $1,380 Shares in a mutual fund or REIT. Georgia 500ez form 2013    The basis of shares in a mutual fund (or other regulated investment company) or a real estate investment trust (REIT) is generally figured in the same way as the basis of other stock and usually includes any commissions or load charges paid for the purchase. Georgia 500ez form 2013 Example. Georgia 500ez form 2013 You bought 100 shares of Fund A for $10 a share. Georgia 500ez form 2013 You paid a $50 commission to the broker for the purchase. Georgia 500ez form 2013 Your cost basis for each share is $10. Georgia 500ez form 2013 50 ($1,050 ÷ 100). Georgia 500ez form 2013 Commissions and load charges. Georgia 500ez form 2013   The fees and charges you pay to acquire or redeem shares of a mutual fund are not deductible. Georgia 500ez form 2013 You can usually add acquisition fees and charges to your cost of the shares and thereby increase your basis. Georgia 500ez form 2013 A fee paid to redeem the shares is usually a reduction in the redemption price (sales price). Georgia 500ez form 2013   You cannot add your entire acquisition fee or load charge to the cost of the mutual fund shares acquired if all of the following conditions apply. Georgia 500ez form 2013 You get a reinvestment right because of the purchase of the shares or the payment of the fee or charge. Georgia 500ez form 2013 You dispose of the shares within 90 days of the purchase date. Georgia 500ez form 2013 You acquire new shares in the same mutual fund or another mutual fund, for which the fee or charge is reduced or waived because of the reinvestment right you got when you acquired the original shares. Georgia 500ez form 2013   The amount of the original fee or charge in excess of the reduction in (3) is added to the cost of the original shares. Georgia 500ez form 2013 The rest of the original fee or charge is added to the cost basis of the new shares (unless all three conditions above also apply to the purchase of the new shares). Georgia 500ez form 2013 Choosing average basis for mutual fund shares. Georgia 500ez form 2013   You can choose to use the average basis of mutual fund shares if you acquired the identical shares at various times and prices, or you acquired the shares after 2010 in connection with a dividend reinvestment plan, and left them on deposit in an account kept by a custodian or agent. Georgia 500ez form 2013 The methods you can use to figure average basis are explained later. Georgia 500ez form 2013 Undistributed capital gains. Georgia 500ez form 2013   If you had to include in your income any undistributed capital gains of the mutual fund or REIT, increase your basis in the stock by the difference between the amount you included and the amount of tax paid for you by the fund or REIT. Georgia 500ez form 2013 See Undistributed capital gains of mutual funds and REITs under Capital Gain Distributions in chapter 1. Georgia 500ez form 2013 Reinvestment right. Georgia 500ez form 2013   This is the right to acquire mutual fund shares in the same or another mutual fund without paying a fee or load charge, or by paying a reduced fee or load charge. Georgia 500ez form 2013      The original cost basis of mutual fund shares you acquire by reinvesting your distributions is the amount of the distributions used to purchase each full or fractional share. Georgia 500ez form 2013 This rule applies even if the distribution is an exempt-interest dividend that you do not report as income. Georgia 500ez form 2013 Table 4-1. Georgia 500ez form 2013 This is a worksheet you can use to keep track of the adjusted basis of your mutual fund shares. Georgia 500ez form 2013 Enter the cost per share when you acquire new shares and any adjustments to their basis when the adjustment occurs. Georgia 500ez form 2013 This worksheet will help you figure the adjusted basis when you sell or redeem shares. Georgia 500ez form 2013 Table 4-1. Georgia 500ez form 2013 Mutual Fund Record Mutual Fund Acquired1 Adjustment to Basis Per Share Adjusted2 Basis Per Share Sold or redeemed Date Number of Shares Cost Per Share Date Number of Shares                                                                                                                                                                                                                                                                         1 Include share received from reinvestment of distributions. Georgia 500ez form 2013 2 Cost plus or minus adjustments. Georgia 500ez form 2013 Automatic investment service. Georgia 500ez form 2013   If you participate in an automatic investment service, your basis for each share of stock, including fractional shares, bought by the bank or other agent is the purchase price plus a share of the broker's commission. Georgia 500ez form 2013 Dividend reinvestment plans. Georgia 500ez form 2013   If you participate in a dividend reinvestment plan and receive stock from the corporation at a discount, your basis is the full fair market value of the stock on the dividend payment date. Georgia 500ez form 2013 You must include the amount of the discount in your income. Georgia 500ez form 2013 Public utilities. Georgia 500ez form 2013   If, before 1986, you excluded from income the value of stock you had received under a qualified public utility reinvestment plan, your basis in that stock is zero. Georgia 500ez form 2013 Stock dividends. Georgia 500ez form 2013   Stock dividends are distributions made by a corporation of its own stock. Georgia 500ez form 2013 Generally, stock dividends are not taxable to you. Georgia 500ez form 2013 However, see Distributions of Stock and Stock Rights under Dividends and Other Distributions in chapter 1 for some exceptions. Georgia 500ez form 2013 If the stock dividends are not taxable, you must divide your basis for the old stock between the old and new stock. Georgia 500ez form 2013 New and old stock identical. Georgia 500ez form 2013   If the new stock you received as a nontaxable dividend is identical to the old stock on which the dividend was declared, divide the adjusted basis of the old stock by the number of shares of old and new stock. Georgia 500ez form 2013 The result is your basis for each share of stock. Georgia 500ez form 2013 Example 1. Georgia 500ez form 2013 You owned one share of common stock that you bought for $45. Georgia 500ez form 2013 The corporation distributed two new shares of common stock for each share held. Georgia 500ez form 2013 You then had three shares of common stock. Georgia 500ez form 2013 Your basis in each share is $15 ($45 ÷ 3). Georgia 500ez form 2013 Example 2. Georgia 500ez form 2013 You owned two shares of common stock. Georgia 500ez form 2013 You bought one for $30 and the other for $45. Georgia 500ez form 2013 The corporation distributed two new shares of common stock for each share held. Georgia 500ez form 2013 You had six shares after the distribution—three with a basis of $10 each ($30 ÷ 3) and three with a basis of $15 each ($45 ÷ 3). Georgia 500ez form 2013 New and old stock not identical. Georgia 500ez form 2013   If the new stock you received as a nontaxable dividend is not identical to the old stock on which it was declared, the basis of the new stock is calculated differently. Georgia 500ez form 2013 Divide the adjusted basis of the old stock between the old and the new stock in the ratio of the fair market value of each lot of stock to the total fair market value of both lots on the date of distribution of the new stock. Georgia 500ez form 2013 Example. Georgia 500ez form 2013 You bought a share of common stock for $100. Georgia 500ez form 2013 Later, the corporation distributed a share of preferred stock for each share of common stock held. Georgia 500ez form 2013 At the date of distribution, your common stock had a fair market value of $150 and the preferred stock had a fair market value of $50. Georgia 500ez form 2013 You figure the basis of the old and new stock by dividing your $100 basis between them. Georgia 500ez form 2013 The basis of your common stock is $75 (($150 ÷ $200) × $100), and the basis of the new preferred stock is $25 (($50 ÷ $200) × $100). Georgia 500ez form 2013 Stock bought at various times. Georgia 500ez form 2013   Figure the basis of stock dividends received on stock you bought at various times and at different prices by allocating to each lot of stock the share of the stock dividends due to it. Georgia 500ez form 2013 Taxable stock dividends. Georgia 500ez form 2013   If your stock dividend is taxable when you receive it, the basis of your new stock is its fair market value on the date of distribution. Georgia 500ez form 2013 The basis of your old stock does not change. Georgia 500ez form 2013 Stock splits. Georgia 500ez form 2013   Figure the basis of stock splits in the same way as stock dividends if identical stock is distributed on the stock held. Georgia 500ez form 2013 Stock rights. Georgia 500ez form 2013   A stock right is a right to acquire a corporation's stock. Georgia 500ez form 2013 It may be exercised, it may be sold if it has a market value, or it may expire. Georgia 500ez form 2013 Stock rights are rarely taxable when you receive them. Georgia 500ez form 2013 See Distributions of Stock and Stock Rights under Dividends and Other Distributions in chapter 1. Georgia 500ez form 2013 Taxable stock rights. Georgia 500ez form 2013   If you receive stock rights that are taxable, the basis of the rights is their fair market value at the time of distribution. Georgia 500ez form 2013 The basis of the old stock does not change. Georgia 500ez form 2013 Nontaxable stock rights. Georgia 500ez form 2013   If you receive nontaxable stock rights and allow them to expire, they have no basis. Georgia 500ez form 2013   If you exercise or sell the nontaxable stock rights and if, at the time of distribution, the stock rights had a fair market value of 15% or more of the fair market value of the old stock, you must divide the adjusted basis of the old stock between the old stock and the stock rights. Georgia 500ez form 2013 Use a ratio of the fair market value of each to the total fair market value of both at the time of distribution. Georgia 500ez form 2013   If the fair market value of the stock rights was less than 15%, their basis is zero. Georgia 500ez form 2013 However, you can choose to divide the basis of the old stock between the old stock and the stock rights. Georgia 500ez form 2013 To make the choice, attach a statement to your return for the year in which you received the rights, stating that you choose to divide the basis of the stock. Georgia 500ez form 2013 Basis of new stock. Georgia 500ez form 2013   If you exercise the stock rights, the basis of the new stock is its cost plus the basis of the stock rights exercised. Georgia 500ez form 2013 Example. Georgia 500ez form 2013 You own 100 shares of ABC Company stock, which cost you $22 per share. Georgia 500ez form 2013 The ABC Company gave you 10 nontaxable stock rights that would allow you to buy 10 more shares at $26 per share. Georgia 500ez form 2013 At the time the stock rights were distributed, the stock had a market value of $30, not including the stock rights. Georgia 500ez form 2013 Each stock right had a market value of $3. Georgia 500ez form 2013 The market value of the stock rights was less than 15% of the market value of the stock, but you chose to divide the basis of your stock between the stock and the rights. Georgia 500ez form 2013 You figure the basis of the rights and the basis of the old stock as follows: 100 shares × $22 = $2,200, basis of old stock   100 shares × $30 = $3,000, market value of old stock   10 rights × $3 = $30, market value of rights   ($3,000 ÷ $3,030) × $2,200 = $2,178. Georgia 500ez form 2013 22, new basis of old stock   ($30 ÷ $3,030) × $2,200 = $21. Georgia 500ez form 2013 78, basis of rights   If you sell the rights, the basis for figuring gain or loss is $2. Georgia 500ez form 2013 18 ($21. Georgia 500ez form 2013 78 ÷ 10) per right. Georgia 500ez form 2013 If you exercise the rights, the basis of the stock you acquire is the price you pay ($26) plus the basis of the right exercised ($2. Georgia 500ez form 2013 18), or $28. Georgia 500ez form 2013 18 per share. Georgia 500ez form 2013 The remaining basis of the old stock is $21. Georgia 500ez form 2013 78 per share. Georgia 500ez form 2013 Investment property received in liquidation. Georgia 500ez form 2013   In general, if you receive investment property as a distribution in partial or complete liquidation of a corporation and if you recognize gain or loss when you acquire the property, your basis in the property is its fair market value at the time of the distribution. Georgia 500ez form 2013 S corporation stock. Georgia 500ez form 2013   You must increase your basis in stock of an S corporation by your pro rata share of the following items. Georgia 500ez form 2013 All income items of the S corporation, including tax-exempt income, that are separately stated and passed through to you as a shareholder. Georgia 500ez form 2013 The nonseparately stated income of the S corporation. Georgia 500ez form 2013 The amount of the deduction for depletion (other than oil and gas depletion) that is more than the basis of the property being depleted. Georgia 500ez form 2013   You must decrease your basis in stock of an S corporation by your pro rata share of the following items. Georgia 500ez form 2013 Distributions by the S corporation that were not included in your income. Georgia 500ez form 2013 All loss and deduction items of the S corporation that are separately stated and passed through to you. Georgia 500ez form 2013 Any nonseparately stated loss of the S corporation. Georgia 500ez form 2013 Any expense of the S corporation that is not deductible in figuring its taxable income and not properly chargeable to a capital account. Georgia 500ez form 2013 The amount of your deduction for depletion of oil and gas wells to the extent the deduction is not more than your share of the adjusted basis of the wells. Georgia 500ez form 2013 However, your basis in the stock cannot be reduced below zero. Georgia 500ez form 2013 Specialized small business investment company stock or partnership interest. Georgia 500ez form 2013   If you bought this stock or interest as replacement property for publicly traded securities you sold at a gain, you must reduce the basis of the stock or interest by the amount of any postponed gain on that sale. Georgia 500ez form 2013 See Rollover of Gain From Publicly Traded Securities , later. Georgia 500ez form 2013 Qualified small business stock. Georgia 500ez form 2013   If you bought this stock as replacement property for other qualified small business stock you sold at a gain, you must reduce the basis of this replacement stock by the amount of any postponed gain on the earlier sale. Georgia 500ez form 2013 See Gains on Qualified Small Business Stock , later. Georgia 500ez form 2013 Short sales. Georgia 500ez form 2013   If you cannot deduct payments you make to a lender in lieu of dividends on stock used in a short sale, the amount you pay to the lender is a capital expense, and you must add it to the basis of the stock used to close the short sale. Georgia 500ez form 2013   See Payments in lieu of dividends , later, for information about deducting payments in lieu of dividends. Georgia 500ez form 2013 Premiums on bonds. Georgia 500ez form 2013   If you buy a bond at a premium, the premium is treated as part of your basis in the bond. Georgia 500ez form 2013 If you choose to amortize the premium paid on a taxable bond, you must reduce the basis of the bond by the amortized part of the premium each year over the life of the bond. Georgia 500ez form 2013   Although you cannot deduct the premium on a tax-exempt bond, you must amortize it to determine your adjusted basis in the bond. Georgia 500ez form 2013 You must reduce the basis of the bond by the premium you amortized for the period you held the bond. Georgia 500ez form 2013   See Bond Premium Amortization in chapter 3 for more information. Georgia 500ez form 2013 Market discount on bonds. Georgia 500ez form 2013   If you include market discount on a bond in income currently, increase the basis of your bond by the amount of market discount you include in your income. Georgia 500ez form 2013 See Market Discount Bonds in chapter 1 for more information. Georgia 500ez form 2013 Bonds purchased at par value. Georgia 500ez form 2013   A bond purchased at par value (face amount) has no premium or discount. Georgia 500ez form 2013 When you sell or otherwise dispose of the bond, you figure the gain or loss by comparing the bond proceeds to the purchase price of the bond. Georgia 500ez form 2013 Example. Georgia 500ez form 2013 You purchased a bond several years ago for its par value of $10,000. Georgia 500ez form 2013 You sold the bond this year for $10,100. Georgia 500ez form 2013 You have a gain of $100. Georgia 500ez form 2013 However, if you had sold the bond for $9,900, you would have a loss of $100. Georgia 500ez form 2013 Acquisition discount on short-term obligations. Georgia 500ez form 2013   If you include acquisition discount on a short-term obligation in your income currently, increase the basis of the obligation by the amount of acquisition discount you include in your income. Georgia 500ez form 2013 See Discount on Short-Term Obligations in chapter 1 for more information. Georgia 500ez form 2013 Original issue discount (OID) on debt instruments. Georgia 500ez form 2013   Increase the basis of a debt instrument by the OID you include in your income. Georgia 500ez form 2013 See Original Issue Discount (OID) in chapter 1. Georgia 500ez form 2013 Discounted tax-exempt obligations. Georgia 500ez form 2013   OID on tax-exempt obligations is generally not taxable. Georgia 500ez form 2013 However, when you dispose of a tax-exempt obligation issued after September 3, 1982, that you acquired after March 1, 1984, you must accrue OID on the obligation to determine its adjusted basis. Georgia 500ez form 2013 The accrued OID is added to the basis of the obligation to determine your gain or loss. Georgia 500ez form 2013   For information on determining OID on a long-term obligation, see Debt Instruments Issued After July 1, 1982, and Before 1985 or Debt Instruments Issued After 1984, whichever applies, in Publication 1212 under Figuring OID on Long-Term Debt Instruments. Georgia 500ez form 2013   If the tax-exempt obligation has a maturity of 1 year or less, accrue OID under the rules for acquisition discount on short-term obligations. Georgia 500ez form 2013 See Discount on Short-Term Obligations in chapter 1. Georgia 500ez form 2013 Stripped tax-exempt obligation. Georgia 500ez form 2013   If you acquired a stripped tax-exempt bond or coupon after October 22, 1986, you must accrue OID on it to determine its adjusted basis when you dispose of it. Georgia 500ez form 2013 For stripped tax-exempt bonds or coupons acquired after June 10, 1987, part of this OID may be taxable. Georgia 500ez form 2013 You accrue the OID on these obligations in the manner described in chapter 1 under Stripped Bonds and Coupons . Georgia 500ez form 2013   Increase your basis in the stripped tax-exempt bond or coupon by the taxable and nontaxable accrued OID. Georgia 500ez form 2013 Also increase your basis by the interest that accrued (but was not paid and was not previously reflected in your basis) before the date you sold the bond or coupon. Georgia 500ez form 2013 In addition, for bonds acquired after June 10, 1987, add to your basis any accrued market discount not previously reflected in basis. Georgia 500ez form 2013 How To Figure Gain or Loss You figure gain or loss on a sale or trade of property by comparing the amount you realize with the adjusted basis of the property. Georgia 500ez form 2013 Gain. Georgia 500ez form 2013   If the amount you realize from a sale or trade is more than the adjusted basis of the property you transfer, the difference is a gain. Georgia 500ez form 2013 Loss. Georgia 500ez form 2013   If the adjusted basis of the property you transfer is more than the amount you realize, the difference is a loss. Georgia 500ez form 2013 Amount realized. Georgia 500ez form 2013   The amount you realize from a sale or trade of property is everything you receive for the property minus your expenses of sale (such as redemption fees, sales commissions, sales charges, or exit fees). Georgia 500ez form 2013 Amount realized includes the money you receive plus the fair market value of any property or services you receive. Georgia 500ez form 2013   If you finance the buyer's purchase of your property and the debt instrument does not provide for adequate stated interest, the unstated interest that you must report as ordinary income will reduce the amount realized from the sale. Georgia 500ez form 2013 For more information, see Publication 537. Georgia 500ez form 2013   If a buyer of property issues a debt instrument to the seller of the property, the amount realized is determined by reference to the issue price of the debt instrument, which may or may not be the fair market value of the debt instrument. Georgia 500ez form 2013 See Regulations section 1. Georgia 500ez form 2013 1001-1(g). Georgia 500ez form 2013 However, if the debt instrument was previously issued by a third party (one not part of the sale transaction), the fair market value of the debt instrument is used to determine the amount realized. Georgia 500ez form 2013 Fair market value. Georgia 500ez form 2013   Fair market value is the price at which property would change hands between a buyer and a seller, neither being forced to buy or sell and both having reasonable knowledge of all the relevant facts. Georgia 500ez form 2013 Example. Georgia 500ez form 2013 You trade A Company stock with an adjusted basis of $7,000 for B Company stock with a fair market value of $10,000, which is your amount realized. Georgia 500ez form 2013 Your gain is $3,000 ($10,000 – $7,000). Georgia 500ez form 2013 If you also receive a note for $6,000 that has an issue price of $6,000, your gain is $9,000 ($10,000 + $6,000 – $7,000). Georgia 500ez form 2013 Debt paid off. Georgia 500ez form 2013   A debt against the property, or against you, that is paid off as a part of the transaction or that is assumed by the buyer must be included in the amount realized. Georgia 500ez form 2013 This is true even if neither you nor the buyer is personally liable for the debt. Georgia 500ez form 2013 For example, if you sell or trade property that is subject to a nonrecourse loan, the amount you realize generally includes the full amount of the note assumed by the buyer even if the amount of the note is more than the fair market value of the property. Georgia 500ez form 2013 Example. Georgia 500ez form 2013 You sell stock that you had pledged as security for a bank loan of $8,000. Georgia 500ez form 2013 Your basis in the stock is $6,000. Georgia 500ez form 2013 The buyer pays off your bank loan and pays you $20,000 in cash. Georgia 500ez form 2013 The amount realized is $28,000 ($20,000 + $8,000). Georgia 500ez form 2013 Your gain is $22,000 ($28,000 – $6,000). Georgia 500ez form 2013 Payment of cash. Georgia 500ez form 2013   If you trade property and cash for other property, the amount you realize is the fair market value of the property you receive. Georgia 500ez form 2013 Determine your gain or loss by subtracting the cash you pay and the adjusted basis of the property you trade in from the amount you realize. Georgia 500ez form 2013 If the result is a positive number, it is a gain. Georgia 500ez form 2013 If the result is a negative number, it is a loss. Georgia 500ez form 2013 No gain or loss. Georgia 500ez form 2013   You may have to use a basis for figuring gain that is different from the basis used for figuring loss. Georgia 500ez form 2013 In this case, you may have neither a gain nor a loss. Georgia 500ez form 2013 See No gain or loss in the discussion on the basis of property you received as a gift under Basis Other Than Cost, earlier. Georgia 500ez form 2013 Special Rules for Mutual Funds To figure your gain or loss when you dispose of mutual fund shares, you need to determine which shares were sold and the basis of those shares. Georgia 500ez form 2013 If your shares in a mutual fund were acquired all on the same day and for the same price, figuring their basis is not difficu