Instructions For Form 8898 (Page 4 of 4) in pdf

for Aliens. In that discussion, substitute

received as compensation for personal

considered located in the United States

the name of the possession for “United

services actually rendered, including

(that is, Delaware), even though the

States” and “U.S.” wherever they

the fair market value of all earnings

shares of stock are stored in a safe

appear. Also disregard the discussion

paid in any medium other than cash.

deposit box in a foreign country or

in that chapter about a Closer

Professional fees include all fees

possession.

Connection to a Foreign Country.

received by an individual engaged in a

Line 32

professional occupation (such as doctor

or lawyer) in the performance of

A gain is the amount you realize from a

Specific Instructions

professional activities. See chapter 2 of

sale or exchange of property that is

Pub. 570 for information to determine if

more than its adjusted basis. See Pub.

Unless otherwise specified, answers to

you have any earned income from U.S.

544, Sales and Other Dispositions of

questions seeking information for a tax

sources.

Assets, for the definitions of amount

year generally refer to the tax year in

realized and adjusted basis.

Lines 12 and 13

which you became (or ceased to be) a

bona fide resident.

Special source rules apply to

See Permanent home, earlier. If you

gains from dispositions of

Name and social security number

have more than one home, your

certain property within 10 years

(SSN). If you file a joint return, enter

CAUTION

principal permanent home is ordinarily

of becoming a bona fide resident of a

only the name and SSN of the spouse

the permanent home you live in most of

U.S. possession. See Special Rules for

whose information is being reported on

the time.

Gains From Dispositions of Certain

Form 8898. If both you and your

Property in Pub. 570 for more

Line 14

spouse are required to file Form 8898,

information.

file a separate Form 8898 for each of

Your immediate family means your

you.

Privacy Act and Paperwork

spouse and minor children.

Reduction Act Notice. We ask for

Line 1

Line 22

this information to carry out the Internal

Check line 1, box a or b, whichever

Revenue laws of the United States.

Under state law, a homestead

applies, and enter the tax year you take

Section 937(c) and its regulations

exemption may:

the position that you became or ceased

require that you give us the information.

1. Protect the owner of real property

to be a bona fide resident of a U.S.

We need it to determine if you are a

from a forced sale or seizure of the

possession.

bona fide resident of a U.S.

property from creditors (for example, in

Example. Mr. Grey, a U.S. citizen,

possession. If you do not provide this

a bankruptcy proceeding), or

moved from New York to the U.S.

information or provide false information,

2. Provide a reduction in state or

you may be subject to penalties. We

Virgin Islands on March 1, 2011. To

local real property taxes to qualified

take the position that he became a

may disclose this information to the

homeowners.

Department of Justice for civil and

bona fide resident of the U.S. Virgin

Islands in 2011, Mr. Grey checks box a

criminal litigation, and to cities, states,

In some states, for individuals to

on line 1 and enters ‘‘2011’’ on the line

the District of Columbia, and U.S.

avail themselves of these privileges,

commonwealths and possessions for

provided.

state laws require a designation of the

use in administering their tax laws. We

homestead property, the filing or

Line 2

may also disclose this information to

recordation of a declaration to make the

other countries under a tax treaty, to

If you are not a U.S. citizen, you are

exemption operative, or an application

federal and state agencies to enforce

either a nonresident alien or resident

for the homestead tax exemption. If

federal nontax criminal laws, or to

alien of the United States. You are

either of the following apply, answer

federal law enforcement and

considered a resident alien of the

“Yes” on line 22 and indicate the state

intelligence agencies to combat

United States for U.S. tax purposes if

in which such designation, declaration,

terrorism.

you meet either the green card test or

recordation, application, or property tax

You are not required to provide the

the substantial presence test for the

exemption was made.

information requested on a form that is

calendar year (January 1 through

1. You made a designation of

subject to the Paperwork Reduction Act

December 31). If you do not meet

homestead property or otherwise filed

unless the form displays a valid OMB

either of those tests, you are

or recorded a declaration concerning

control number. Books or records

considered a nonresident alien. For

property under a state homestead

relating to a form or its instructions

more information about these tests, see

exemption law, or

must be retained as long as their

Pub. 519.

2. You applied for or took a

contents may become material in the

homestead tax exemption from state or

Line 4

administration of any Internal Revenue

local property taxes.

law. Generally, tax returns and return

If you checked line 1, box a, enter on

information are confidential, as required

line 4a the exact date (month/day/year)

Lines 26 and 27

by Code section 6103.

you moved to a possession to establish

The average time and expense

See chapter 2 of Pub. 570 for

bona fide residence. If you checked line

required to complete and file this form

information to determine the source of

1, box b, enter on line 4b the exact date

will vary depending on individual

income.

(month/day/year) you moved from the

circumstances. For the estimated

possession to end bona fide residence.

Line 28

averages, see the instructions for your

Example. Mr. Grey, a U.S. citizen,

income tax return.

moved from New York to the U.S.

For stocks and bonds, indicate the

If you have suggestions for making

Virgin Islands on March 1, 2011. Mr.

country of origin of the stock company

this form simpler, we would be happy to

Grey would enter “March 1, 2011” on

or debtor, and for U.S. companies or

hear from you. See the instructions for

line 4a.

debtors, the state or possession of

your income tax return.

incorporation or formation.

Line 8

For example, if you own shares of a

U.S. publicly-traded Delaware

Earned income is wages, salaries,

corporation, the investment is

professional fees, and other amounts

-4-

Instructions for Form 8898 (12-2011)

Instructions For Form 8898 Page 4

Related Articles

Related forms

Related Categories