Instructions For Form 8898 (March 2006) (Page 4 of 4) in pdf

sources if the services that produced the

2. You applied for or took a

the United States. Section 937(c) and its

income were performed in the United

homestead tax exemption from state or

regulations require that you give us the

States.

local property taxes.

information. We need it to determine if

you are a bona fide resident of a U.S.

Lines 11 and 12

possession. If you do not provide this

Lines 26 and 27

information or provide false information,

See Permanent home, earlier. If you have

See Pub. 570, chapter 2, for information

you may be subject to penalties. We may

more than one home, your principal

to determine the source of income.

disclose this information to the

permanent home is ordinarily the

Department of Justice for civil and

permanent home you live in most of the

Line 28

criminal litigation, and to cities, states,

time.

For stocks and bonds, indicate the

and the District of Columbia for use in

Line 13

country of origin of the stock company or

administering their tax laws. We may also

debtor, and for U.S. companies or

disclose this information to other

Your immediate family means your

countries under a tax treaty, to federal

debtors, the state or possession of

spouse and minor children.

incorporation or formation. For example, if

and state agencies to enforce federal

you own shares of a U.S. publicly-traded

nontax criminal laws, or to federal law

Line 22

Delaware corporation, the investment is

enforcement and intelligence agencies to

Under state law, a homestead exemption

considered located in the United States

combat terrorism.

may:

(that is, Delaware), even though the

You are not required to provide the

1. Protect the owner of real property

shares of stock are stored in a safe

information requested on a form that is

from a forced sale or seizure of the

deposit box in a foreign country or

subject to the Paperwork Reduction Act

property from creditors (for example, in a

possession.

unless the form displays a valid OMB

bankruptcy proceeding), or

control number. Books or records relating

Line 33

2. Provide a reduction in state or local

to a form or its instructions must be

real property taxes to qualified

retained as long as their contents may

A gain is the amount you realize from a

homeowners.

become material in the administration of

sale or exchange of property that is more

any Internal Revenue law. Generally, tax

than its adjusted basis. See Pub. 544,

In some states, for individuals to avail

Sales and Other Dispositions of Assets,

returns and return information are

themselves of these privileges, state laws

for the definitions of amount realized and

confidential, as required by Code section

require a designation of the homestead

adjusted basis.

6103.

property, the filing or recordation of a

The average time and expense

declaration to make the exemption

Special source rules apply to

required to complete and file this form will

operative, or an application for the

gains from dispositions of certain

vary depending on individual

homestead tax exemption. If either of the

property within 10 years of

CAUTION

circumstances. For the estimated

following apply, answer yes on line 22

becoming a bona fide resident of a U.S.

averages, see the instructions for your

and indicate the state in which such

possession. See Special rules for gains

income tax return.

designation, declaration, recordation,

from dispositions of certain property in

If you have suggestions for making this

application, or property tax exemption

Pub. 570 for more information.

was made.

form simpler, we would be happy to hear

from you. See the instructions for your

1. You made a designation of

Privacy Act and Paperwork Reduction

income tax return.

homestead property or otherwise filed or

Act Notice. We ask for this information

recorded a declaration concerning

to carry out the Internal Revenue laws of

property under a state homestead

exemption law, or

-4-

Instructions For Form 8898 (March 2006) Page 4

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