J.K. Lasser's Your Income Tax 2015: For Preparing Your 2014 Tax Return

Part 2Reporting Your Income

In this part, you will learn what income is taxable, what income is tax free, and how to report income on your tax return.

Pay special attention to—

• Form W-2, which shows your taxable wages and provides other important information on fringe benefits received (Chapter 2).
• Tax-free fringe benefit plans available from your employer (Chapter 3).
• Reporting rules for interest and dividend income (Chapter 4).
• Reporting gains and losses from sales of property (Chapter 5).
• Rules for tax-free exchanges of like-kind property (Chapter 6).
• Planning for retirement distributions. Lump-sum distributions from employer plans may qualify for special averaging or tax-free rollover (Chapter 7).
• IRA contributions and distributions. Penalties for distributions before age 59½ and after age 70½ may be avoided by advance planning (Chapter 8).
• Restrictions on rental losses where a rented residence is used personally by you or by family members during the year (Chapter 9).
• Passive activity restrictions. Losses from rentals or passive business operations are generally not allowed, but certain real estate professionals are exempt from the loss restrictions, and for others, a special rental loss allowance of up to $25,000 may be available (Chapter 10).
• Reporting refunds of state and local taxes. A refund of previously deducted taxes is generally taxable unless you had no benefit from the deduction (Chapter 11).
• Cancellation of debts. When your creditor cancels debts you owe, you ...