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Publication 530 - Introductory Material


Future Developments

For the latest information about developments related to Pub. 530, such as legislation enacted after it was published, go to www.irs.gov/pub530.

What's New

Basis of property acquired from decedent. Section 2004 of Public Law 114-41 has two major requirements.

  1. An executor of an estate (or other person) who files an estate tax return after July 31, 2015, must provide Form 8971 with attached Schedules A to the IRS and a copy of the beneficiary's Schedule A to that beneficiary who receives or is to receive property from the estate. The statement must show the final estate tax value of the property. An executor (or other person) who files an estate tax return only to make an election regarding the generation-skipping transfer tax or portability of the deceased spousal unused exclusion (DSUE) may not be required to provide statements.

  2. If the property increases the estate tax liability, you must use a basis consistent with the estate tax value of the property to determine your initial basis in that property. Calculate a basis consistent with the final estate tax value by starting with the reported value and then making any allowed adjustments.

Notice 2016-27, 2016-15 I.R.B. 576 available at www.irs.gov/irb/2016-15_IRB/ar09.html, delayed the due date for providing the Schedule A in (1) above until June 30, 2016. For the latest information about developments related to Form 8971 and Schedule A, go to www.irs.gov/form8971.

Reminders

Residential energy credits. You may be able to take a credit if you made energy saving improvements to your home located in the United States in 2016. See Form 5695, Residential Energy Credits, for more information.

Home Affordable Modification Program (HAMP).  If you benefit from Pay-for-Performance Success Payments, the payments are not taxable under HAMP.

Hardest Hit Fund and Emergency Homeowners' Loan Programs. If you are a homeowner who received assistance under a State Housing Finance Agency Hardest Hit Fund program or an Emergency Homeowners' Loan Program, you may be able to deduct all of the payments you made on your mortgage during the year. For details, see Hardest Hit Fund and Emergency Homeowners' Loan Programs under What You Can and Cannot Deduct, later.

Mortgage debt forgiveness. You can exclude from gross income any discharges of qualified principal residence indebtedness made after 2006 and before 2017. You must reduce the basis of your principal residence (but not below zero) by the amount you exclude. See Discharges of qualified principal residence indebtedness, later, and Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), for more information.

Repayment of first-time homebuyer credit. Generally, you must repay any credit you claimed for a home you bought if:

  • You bought the home in 2008, or

  • The home you bought was destroyed, condemned, or sold under threat of condemnation in 2014 and that event occurred during the 36–month period that began on the date you bought the home.

See Form 5405 and its instructions for details and for exceptions to the repayment rule.

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 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.

Introduction

This publication provides tax information for homeowners. Your home may be a house, condominium, cooperative apartment, mobile home, houseboat, or house trailer that contains sleeping space and toilet and cooking facilities.

The following topics are explained.

  • How you treat items such as settlement and closing costs, real estate taxes, sales taxes, home mortgage interest, and repairs.

  • What you can and cannot deduct on your tax return.

  • The tax credit you can claim if you received a mortgage credit certificate when you bought your home.

  • Why you should keep track of adjustments to the basis of your home. (Your home's basis generally is what it cost; adjustments include the cost of any improvements you might make.)

  • What records you should keep as proof of the basis and adjusted basis.

Comments and suggestions.    We welcome your comments about this publication and your suggestions for future editions.

  You can send us comments from irs.gov/formspubs. Click on “More Information” and then on “Give us feedback.

  Or you can write to:

Internal Revenue Service 
Tax Forms and Publications 
1111 Constitution Ave. NW, IR-6526 
Washington, DC 20224

  We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.

  Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products.

Ordering forms and publications.    Visit irs.gov/formspubs to download forms and publications. Otherwise, you can go to irs.gov/orderforms to order current and prior-year forms and instructions. Your order should arrive within 10 business days.

Tax questions.   If you have a tax question not answered by this publication, check IRS.gov and How To Get Tax Help at the end of this publication.

Useful Items - You may want to see:

Publication

  • 523 Selling Your Home

  • 527 Residential Rental Property

  • 547 Casualties, Disasters, and Thefts

  • 551 Basis of Assets

  • 555 Community Property

  • 587 Business Use of Your Home

  • 936 Home Mortgage Interest Deduction

Form (and Instructions)

  • 5405 Repayment of the First-Time Homebuyer Credit

  • 5695 Residential Energy Credits

  • 8396 Mortgage Interest Credit

See How To Get Tax Help , near the end of this publication, for information about getting publications and forms.


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