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1040ez Instruction Book

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1040ez Instruction Book

1040ez instruction book 5. 1040ez instruction book   Personal Use of Dwelling Unit (Including Vacation Home) Table of Contents Dividing Expenses Dwelling Unit Used as a HomeMain home. 1040ez instruction book Shared equity financing agreement. 1040ez instruction book Donation of use of the property. 1040ez instruction book Examples. 1040ez instruction book Days used for repairs and maintenance. 1040ez instruction book Days used as a main home before or after renting. 1040ez instruction book Reporting Income and DeductionsNot used as a home. 1040ez instruction book Used as a home but rented less than 15 days. 1040ez instruction book Used as a home and rented 15 days or more. 1040ez instruction book If you have any personal use of a dwelling unit (including a vacation home) that you rent, you must divide your expenses between rental use and personal use. 1040ez instruction book In general, your rental expenses will be no more than your total expenses multiplied by a fraction; the denominator of which is the total number of days the dwelling unit is used and the numerator of which is the total number of days actually rented at a fair rental price. 1040ez instruction book Only your rental expenses may deducted on Schedule E (Form 1040). 1040ez instruction book Some of your personal expenses may be deductible if you itemize your deductions on Schedule A (Form 1040). 1040ez instruction book You must also determine if the dwelling unit is considered a home. 1040ez instruction book The amount of rental expenses that you can deduct may be limited if the dwelling unit is considered a home. 1040ez instruction book Whether a dwelling unit is considered a home depends on how many days during the year are considered to be days of personal use. 1040ez instruction book There is a special rule if you used the dwelling unit as a home and you rented it for less than 15 days during the year. 1040ez instruction book Dwelling unit. 1040ez instruction book   A dwelling unit includes a house, apartment, condominium, mobile home, boat, vacation home, or similar property. 1040ez instruction book It also includes all structures or other property belonging to the dwelling unit. 1040ez instruction book A dwelling unit has basic living accommodations, such as sleeping space, a toilet, and cooking facilities. 1040ez instruction book   A dwelling unit does not include property (or part of the property) used solely as a hotel, motel, inn, or similar establishment. 1040ez instruction book Property is used solely as a hotel, motel, inn, or similar establishment if it is regularly available for occupancy by paying customers and is not used by an owner as a home during the year. 1040ez instruction book Example. 1040ez instruction book You rent a room in your home that is always available for short-term occupancy by paying customers. 1040ez instruction book You do not use the room yourself and you allow only paying customers to use the room. 1040ez instruction book This room is used solely as a hotel, motel, inn, or similar establishment and is not a dwelling unit. 1040ez instruction book Dividing Expenses If you use a dwelling unit for both rental and personal purposes, divide your expenses between the rental use and the personal use based on the number of days used for each purpose. 1040ez instruction book When dividing your expenses, follow these rules. 1040ez instruction book Any day that the unit is rented at a fair rental price is a day of rental use even if you used the unit for personal purposes that day. 1040ez instruction book (This rule does not apply when determining whether you used the unit as a home. 1040ez instruction book ) Any day that the unit is available for rent but not actually rented is not a day of rental use. 1040ez instruction book Fair rental price. 1040ez instruction book   A fair rental price for your property generally is the amount of rent that a person who is not related to you would be willing to pay. 1040ez instruction book The rent you charge is not a fair rental price if it is substantially less than the rents charged for other properties that are similar to your property in your area. 1040ez instruction book   Ask yourself the following questions when comparing another property with yours. 1040ez instruction book Is it used for the same purpose? Is it approximately the same size? Is it in approximately the same condition? Does it have similar furnishings? Is it in a similar location? If any of the answers are no, the properties probably are not similar. 1040ez instruction book Example. 1040ez instruction book Your beach cottage was available for rent from June 1 through August 31 (92 days). 1040ez instruction book Except for the first week in August (7 days), when you were unable to find a renter, you rented the cottage at a fair rental price during that time. 1040ez instruction book The person who rented the cottage for July allowed you to use it over the weekend (2 days) without any reduction in or refund of rent. 1040ez instruction book Your family also used the cottage during the last 2 weeks of May (14 days). 1040ez instruction book The cottage was not used at all before May 17 or after August 31. 1040ez instruction book You figure the part of the cottage expenses to treat as rental expenses as follows. 1040ez instruction book The cottage was used for rental a total of 85 days (92 − 7). 1040ez instruction book The days it was available for rent but not rented (7 days) are not days of rental use. 1040ez instruction book The July weekend (2 days) you used it is rental use because you received a fair rental price for the weekend. 1040ez instruction book You used the cottage for personal purposes for 14 days (the last 2 weeks in May). 1040ez instruction book The total use of the cottage was 99 days (14 days personal use + 85 days rental use). 1040ez instruction book Your rental expenses are 85/99 (86%) of the cottage expenses. 1040ez instruction book Note. 1040ez instruction book When determining whether you used the cottage as a home, the July weekend (2 days) you used it is considered personal use even though you received a fair rental price for the weekend. 1040ez instruction book Therefore, you had 16 days of personal use and 83 days of rental use for this purpose. 1040ez instruction book Because you used the cottage for personal purposes more than 14 days and more than 10% of the days of rental use (8 days), you used it as a home. 1040ez instruction book If you have a net loss, you may not be able to deduct all of the rental expenses. 1040ez instruction book See Dwelling Unit Used as a Home, next. 1040ez instruction book Dwelling Unit Used as a Home If you use a dwelling unit for both rental and personal purposes, the tax treatment of the rental expenses you figured earlier under Dividing Expenses and rental income depends on whether you are considered to be using the dwelling unit as a home. 1040ez instruction book You use a dwelling unit as a home during the tax year if you use it for personal purposes more than the greater of: 14 days, or 10% of the total days it is rented to others at a fair rental price. 1040ez instruction book See What is a day of personal use , later. 1040ez instruction book If a dwelling unit is used for personal purposes on a day it is rented at a fair rental price (discussed earlier), do not count that day as a day of rental use in applying (2) above. 1040ez instruction book Instead, count it as a day of personal use in applying both (1) and (2) above. 1040ez instruction book What is a day of personal use?   A day of personal use of a dwelling unit is any day that the unit is used by any of the following persons. 1040ez instruction book You or any other person who owns an interest in it, unless you rent it to another owner as his or her main home under a shared equity financing agreement (defined later). 1040ez instruction book However, see Days used as a main home before or after renting , later. 1040ez instruction book A member of your family or a member of the family of any other person who owns an interest in it, unless the family member uses the dwelling unit as his or her main home and pays a fair rental price. 1040ez instruction book Family includes only your spouse, brothers and sisters, half-brothers and half-sisters, ancestors (parents, grandparents, etc. 1040ez instruction book ), and lineal descendants (children, grandchildren, etc. 1040ez instruction book ). 1040ez instruction book Anyone under an arrangement that lets you use some other dwelling unit. 1040ez instruction book Anyone at less than a fair rental price. 1040ez instruction book Main home. 1040ez instruction book   If the other person or member of the family in (1) or (2) above has more than one home, his or her main home is ordinarily the one he or she lived in most of the time. 1040ez instruction book Shared equity financing agreement. 1040ez instruction book   This is an agreement under which two or more persons acquire undivided interests for more than 50 years in an entire dwelling unit, including the land, and one or more of the co-owners is entitled to occupy the unit as his or her main home upon payment of rent to the other co-owner or owners. 1040ez instruction book Donation of use of the property. 1040ez instruction book   You use a dwelling unit for personal purposes if: You donate the use of the unit to a charitable organization, The organization sells the use of the unit at a fund-raising event, and The “purchaser” uses the unit. 1040ez instruction book Examples. 1040ez instruction book   The following examples show how to determine if you have days of personal use. 1040ez instruction book Example 1. 1040ez instruction book You and your neighbor are co-owners of a condominium at the beach. 1040ez instruction book Last year, you rented the unit to vacationers whenever possible. 1040ez instruction book The unit was not used as a main home by anyone. 1040ez instruction book Your neighbor used the unit for 2 weeks last year; you did not use it at all. 1040ez instruction book Because your neighbor has an interest in the unit, both of you are considered to have used the unit for personal purposes during those 2 weeks. 1040ez instruction book Example 2. 1040ez instruction book You and your neighbors are co-owners of a house under a shared equity financing agreement. 1040ez instruction book Your neighbors live in the house and pay you a fair rental price. 1040ez instruction book Even though your neighbors have an interest in the house, the days your neighbors live there are not counted as days of personal use by you. 1040ez instruction book This is because your neighbors rent the house as their main home under a shared equity financing agreement. 1040ez instruction book Example 3. 1040ez instruction book You own a rental property that you rent to your son. 1040ez instruction book Your son does not own any interest in this property. 1040ez instruction book He uses it as his main home and pays you a fair rental price. 1040ez instruction book Your son's use of the property is not personal use by you because your son is using it as his main home, he owns no interest in the property, and he is paying you a fair rental price. 1040ez instruction book Example 4. 1040ez instruction book You rent your beach house to Rosa. 1040ez instruction book Rosa rents her cabin in the mountains to you. 1040ez instruction book You each pay a fair rental price. 1040ez instruction book You are using your beach house for personal purposes on the days that Rosa uses it because your house is used by Rosa under an arrangement that allows you to use her cabin. 1040ez instruction book Example 5. 1040ez instruction book You rent an apartment to your mother at less than a fair rental price. 1040ez instruction book You are using the apartment for personal purposes on the days that your mother rents it because you rent it for less than a fair rental price. 1040ez instruction book Days used for repairs and maintenance. 1040ez instruction book   Any day that you spend working substantially full time repairing and maintaining (not improving) your property is not counted as a day of personal use. 1040ez instruction book Do not count such a day as a day of personal use even if family members use the property for recreational purposes on the same day. 1040ez instruction book Example. 1040ez instruction book Corey owns a cabin in the mountains that he rents for most of the year. 1040ez instruction book He spends a week at the cabin with family members. 1040ez instruction book Corey works on maintenance of the cabin 3 or 4 hours each day during the week and spends the rest of the time fishing, hiking, and relaxing. 1040ez instruction book Corey's family members, however, work substantially full time on the cabin each day during the week. 1040ez instruction book The main purpose of being at the cabin that week is to do maintenance work. 1040ez instruction book Therefore, the use of the cabin during the week by Corey and his family will not be considered personal use by Corey. 1040ez instruction book Days used as a main home before or after renting. 1040ez instruction book   For purposes of determining whether a dwelling unit was used as a home, you may not have to count days you used the property as your main home before or after renting it or offering it for rent as days of personal use. 1040ez instruction book Do not count them as days of personal use if: You rented or tried to rent the property for 12 or more consecutive months. 1040ez instruction book You rented or tried to rent the property for a period of less than 12 consecutive months and the period ended because you sold or exchanged the property. 1040ez instruction book However, this special rule does not apply when dividing expenses between rental and personal use. 1040ez instruction book See Property Changed to Rental Use in chapter 4. 1040ez instruction book Example 1. 1040ez instruction book On February 29, 2012, you moved out of the house you had lived in for 6 years because you accepted a job in another town. 1040ez instruction book You rented your house at a fair rental price from March 15, 2012, to May 14, 2013 (14 months). 1040ez instruction book On June 1, 2013, you moved back into your old house. 1040ez instruction book The days you used the house as your main home from January 1 to February 29, 2012, and from June 1 to December 31, 2013, are not counted as days of personal use. 1040ez instruction book Therefore, you would use the rules in chapter 1 when figuring your rental income and expenses. 1040ez instruction book Example 2. 1040ez instruction book On January 31, you moved out of the condominium where you had lived for 3 years. 1040ez instruction book You offered it for rent at a fair rental price beginning on February 1. 1040ez instruction book You were unable to rent it until April. 1040ez instruction book On September 15, you sold the condominium. 1040ez instruction book The days you used the condominium as your main home from January 1 to January 31 are not counted as days of personal use when determining whether you used it as a home. 1040ez instruction book Examples. 1040ez instruction book   The following examples show how to determine whether you used your rental property as a home. 1040ez instruction book Example 1. 1040ez instruction book You converted the basement of your home into an apartment with a bedroom, a bathroom, and a small kitchen. 1040ez instruction book You rented the basement apartment at a fair rental price to college students during the regular school year. 1040ez instruction book You rented to them on a 9-month lease (273 days). 1040ez instruction book You figured 10% of the total days rented to others at a fair rental price is 27 days. 1040ez instruction book During June (30 days), your brothers stayed with you and lived in the basement apartment rent free. 1040ez instruction book Your basement apartment was used as a home because you used it for personal purposes for 30 days. 1040ez instruction book Rent-free use by your brothers is considered personal use. 1040ez instruction book Your personal use (30 days) is more than the greater of 14 days or 10% of the total days it was rented (27 days). 1040ez instruction book Example 2. 1040ez instruction book You rented the guest bedroom in your home at a fair rental price during the local college's homecoming, commencement, and football weekends (a total of 27 days). 1040ez instruction book Your sister-in-law stayed in the room, rent free, for the last 3 weeks (21 days) in July. 1040ez instruction book You figured 10% of the total days rented to others at a fair rental price is 3 days. 1040ez instruction book The room was used as a home because you used it for personal purposes for 21 days. 1040ez instruction book That is more than the greater of 14 days or 10% of the 27 days it was rented (3 days). 1040ez instruction book Example 3. 1040ez instruction book You own a condominium apartment in a resort area. 1040ez instruction book You rented it at a fair rental price for a total of 170 days during the year. 1040ez instruction book For 12 of these days, the tenant was not able to use the apartment and allowed you to use it even though you did not refund any of the rent. 1040ez instruction book Your family actually used the apartment for 10 of those days. 1040ez instruction book Therefore, the apartment is treated as having been rented for 160 (170 – 10) days. 1040ez instruction book You figured 10% of the total days rented to others at a fair rental price is 16 days. 1040ez instruction book Your family also used the apartment for 7 other days during the year. 1040ez instruction book You used the apartment as a home because you used it for personal purposes for 17 days. 1040ez instruction book That is more than the greater of 14 days or 10% of the 160 days it was rented (16 days). 1040ez instruction book Minimal rental use. 1040ez instruction book   If you use the dwelling unit as a home and you rent it less than 15 days during the year, that period is not treated as rental activity. 1040ez instruction book See Used as a home but rented less than 15 days, later, for more information. 1040ez instruction book Limit on deductions. 1040ez instruction book   Renting a dwelling unit that is considered a home is not a passive activity. 1040ez instruction book Instead, if your rental expenses are more than your rental income, some or all of the excess expenses cannot be used to offset income from other sources. 1040ez instruction book The excess expenses that cannot be used to offset income from other sources are carried forward to the next year and treated as rental expenses for the same property. 1040ez instruction book Any expenses carried forward to the next year will be subject to any limits that apply for that year. 1040ez instruction book This limitation will apply to expenses carried forward to another year even if you do not use the property as your home for that subsequent year. 1040ez instruction book   To figure your deductible rental expenses for this year and any carryover to next year, use Worksheet 5–1. 1040ez instruction book Reporting Income and Deductions Property not used for personal purposes. 1040ez instruction book   If you do not use a dwelling unit for personal purposes, see chapter 3 for how to report your rental income and expenses. 1040ez instruction book Property used for personal purposes. 1040ez instruction book   If you do use a dwelling unit for personal purposes, then how you report your rental income and expenses depends on whether you used the dwelling unit as a home. 1040ez instruction book Not used as a home. 1040ez instruction book   If you use a dwelling unit for personal purposes, but not as a home, report all the rental income in your income. 1040ez instruction book Since you used the dwelling unit for personal purposes, you must divide your expenses between the rental use and the personal use as described earlier in this chapter under Dividing Expenses . 1040ez instruction book The expenses for personal use are not deductible as rental expenses. 1040ez instruction book   Your deductible rental expenses can be more than your gross rental income; however, see Limits on Rental Losses in chapter 3. 1040ez instruction book Used as a home but rented less than 15 days. 1040ez instruction book   If you use a dwelling unit as a home and you rent it less than 15 days during the year, its primary function is not considered to be rental and it should not be reported on Schedule E (Form 1040). 1040ez instruction book You are not required to report the rental income and rental expenses from this activity. 1040ez instruction book The expenses, including qualified mortgage interest, property taxes, and any qualified casualty loss will be reported as normally allowed on Schedule A (Form 1040). 1040ez instruction book See the Instructions for Schedule A (Form 1040) for more information on deducting these expenses. 1040ez instruction book Used as a home and rented 15 days or more. 1040ez instruction book   If you use a dwelling unit as a home and rent it 15 days or more during the year, include all your rental income in your income. 1040ez instruction book Since you used the dwelling unit for personal purposes, you must divide your expenses between the rental use and the personal use as described earlier in this chapter under Dividing Expenses . 1040ez instruction book The expenses for personal use are not deductible as rental expenses. 1040ez instruction book   If you had a net profit from renting the dwelling unit for the year (that is, if your rental income is more than the total of your rental expenses, including depreciation), deduct all of your rental expenses. 1040ez instruction book You do not need to use Worksheet 5-1. 1040ez instruction book   However, if you had a net loss from renting the dwelling unit for the year, your deduction for certain rental expenses is limited. 1040ez instruction book To figure your deductible rental expenses and any carryover to next year, use Worksheet 5–1. 1040ez instruction book Worksheet 5-1. 1040ez instruction book Worksheet for Figuring Rental Deductions for a Dwelling Unit Used as a Home Use this worksheet only if you answer “yes” to all of the following questions. 1040ez instruction book Did you use the dwelling unit as a home this year? (See Dwelling Unit Used as a Home . 1040ez instruction book ) Did you rent the dwelling unit at a fair rental price 15 days or more this year? Is the total of your rental expenses and depreciation more than your rental income? PART I. 1040ez instruction book Rental Use Percentage A. 1040ez instruction book Total days available for rent at fair rental price A. 1040ez instruction book       B. 1040ez instruction book Total days available for rent (line A) but not rented B. 1040ez instruction book       C. 1040ez instruction book Total days of rental use. 1040ez instruction book Subtract line B from line A C. 1040ez instruction book       D. 1040ez instruction book Total days of personal use (including days rented at less than fair rental price) D. 1040ez instruction book       E. 1040ez instruction book Total days of rental and personal use. 1040ez instruction book Add lines C and D E. 1040ez instruction book       F. 1040ez instruction book Percentage of expenses allowed for rental. 1040ez instruction book Divide line C by line E     F. 1040ez instruction book . 1040ez instruction book PART II. 1040ez instruction book Allowable Rental Expenses 1. 1040ez instruction book Enter rents received 1. 1040ez instruction book   2a. 1040ez instruction book Enter the rental portion of deductible home mortgage interest and qualified mortgage insurance premiums (see instructions) 2a. 1040ez instruction book       b. 1040ez instruction book Enter the rental portion of real estate taxes b. 1040ez instruction book       c. 1040ez instruction book Enter the rental portion of deductible casualty and theft losses (see instructions) c. 1040ez instruction book       d. 1040ez instruction book Enter direct rental expenses (see instructions) d. 1040ez instruction book       e. 1040ez instruction book Fully deductible rental expenses. 1040ez instruction book Add lines 2a–2d. 1040ez instruction book Enter here and  on the appropriate lines on Schedule E (see instructions) 2e. 1040ez instruction book   3. 1040ez instruction book Subtract line 2e from line 1. 1040ez instruction book If zero or less, enter -0- 3. 1040ez instruction book   4a. 1040ez instruction book Enter the rental portion of expenses directly related to operating or maintaining  the dwelling unit (such as repairs, insurance, and utilities) 4a. 1040ez instruction book       b. 1040ez instruction book Enter the rental portion of excess mortgage interest and qualified mortgage insurance premiums (see instructions) b. 1040ez instruction book       c. 1040ez instruction book Carryover of operating expenses from 2012 worksheet c. 1040ez instruction book       d. 1040ez instruction book Add lines 4a–4c d. 1040ez instruction book       e. 1040ez instruction book Allowable expenses. 1040ez instruction book Enter the smaller of line 3 or line 4d (see instructions) 4e. 1040ez instruction book   5. 1040ez instruction book Subtract line 4e from line 3. 1040ez instruction book If zero or less, enter -0- 5. 1040ez instruction book   6a. 1040ez instruction book Enter the rental portion of excess casualty and theft losses (see instructions) 6a. 1040ez instruction book       b. 1040ez instruction book Enter the rental portion of depreciation of the dwelling unit b. 1040ez instruction book       c. 1040ez instruction book Carryover of excess casualty losses and depreciation from 2012 worksheet c. 1040ez instruction book       d. 1040ez instruction book Add lines 6a–6c d. 1040ez instruction book       e. 1040ez instruction book Allowable excess casualty and theft losses and depreciation. 1040ez instruction book Enter the smaller of  line 5 or line 6d (see instructions) 6e. 1040ez instruction book   PART III. 1040ez instruction book Carryover of Unallowed Expenses to Next Year 7a. 1040ez instruction book Operating expenses to be carried over to next year. 1040ez instruction book Subtract line 4e from line 4d 7a. 1040ez instruction book   b. 1040ez instruction book Excess casualty and theft losses and depreciation to be carried over to next year. 1040ez instruction book  Subtract line 6e from line 6d b. 1040ez instruction book   Worksheet 5-1 Instructions. 1040ez instruction book Worksheet for Figuring Rental Deductions for a Dwelling Unit Used as a Home Caution. 1040ez instruction book Use the percentage determined in Part I, line F, to figure the rental portions to enter on lines 2a–2c, 4a–4b, and 6a–6b of  Part II. 1040ez instruction book Line 2a. 1040ez instruction book Figure the mortgage interest on the dwelling unit that you could deduct on Schedule A as if you had not rented the unit. 1040ez instruction book Do not include interest on a loan that did not benefit the dwelling unit. 1040ez instruction book For example, do not include interest on a home equity loan used to pay off credit cards or other personal loans, buy a car, or pay college tuition. 1040ez instruction book Include interest on a loan used to buy, build, or improve the dwelling unit, or to refinance such a loan. 1040ez instruction book Include the rental portion of this interest in the total you enter on line 2a of the worksheet. 1040ez instruction book   Figure the qualified mortgage insurance premiums on the dwelling unit that you could deduct on line 13 of Schedule A as if you had not rented the unit. 1040ez instruction book See the Schedule A instructions. 1040ez instruction book However, figure your adjusted gross income (Form 1040, line 38) without your rental income and expenses from the dwelling unit. 1040ez instruction book See Line 4b to deduct the part of the qualified mortgage insurance premiums not allowed because of the adjusted gross income limit. 1040ez instruction book Include the rental portion of the amount from Schedule A, line 13, in the total you enter on line 2a of the worksheet. 1040ez instruction book   Note. 1040ez instruction book Do not file this Schedule A or use it to figure the amount to deduct on line 13 of that schedule. 1040ez instruction book Instead, figure the personal portion on a separate Schedule A. 1040ez instruction book If you have deducted mortgage interest or qualified mortgage insurance premiums on the dwelling unit on other forms, such as Schedule C or F, remember to reduce your Schedule A deduction by that amount. 1040ez instruction book           Line 2c. 1040ez instruction book Figure the casualty and theft losses related to the dwelling unit that you could deduct on Schedule A as if you had not rented the dwelling unit. 1040ez instruction book To do this, complete Section A of Form 4684, Casualties and Thefts, treating the losses as personal losses. 1040ez instruction book If any of the loss is due to a federally declared disaster, see the Instructions for Form 4684. 1040ez instruction book On Form 4684, line 17, enter 10% of your adjusted gross income figured without your rental income and expenses from the dwelling unit. 1040ez instruction book Enter the rental portion of the result from Form 4684, line 18, on line 2c of this worksheet. 1040ez instruction book   Note. 1040ez instruction book Do not file this Form 4684 or use it to figure your personal losses on Schedule A. 1040ez instruction book Instead, figure the personal portion on a separate Form 4684. 1040ez instruction book           Line 2d. 1040ez instruction book Enter the total of your rental expenses that are directly related only to the rental activity. 1040ez instruction book These include interest on loans used for rental activities other than to buy, build, or improve the dwelling unit. 1040ez instruction book Also include rental agency fees, advertising, office supplies, and depreciation on office equipment used in your rental activity. 1040ez instruction book           Line 2e. 1040ez instruction book You can deduct the amounts on lines 2a, 2b, 2c, and 2d as rental expenses on Schedule E even if your rental expenses are more than your rental income. 1040ez instruction book Enter the amounts on lines 2a, 2b, 2c, and 2d on the appropriate lines of Schedule E. 1040ez instruction book           Line 4b. 1040ez instruction book On line 2a, you entered the rental portion of the mortgage interest or qualified mortgage insurance premiums you could deduct on Schedule A if you had not rented the dwelling unit. 1040ez instruction book If you had additional mortgage interest and qualified mortgage insurance premiums that would not be deductible on Schedule A because of limits imposed on them, enter on line 4b of this worksheet the rental portion of those excess amounts. 1040ez instruction book Do not include interest on a loan that did not benefit the dwelling unit  (as explained in the line 2a instructions). 1040ez instruction book           Line 4e. 1040ez instruction book You can deduct the amounts on lines 4a, 4b, and 4c as rental expenses on Schedule E only to the extent they are not more than the amount on line 4e. 1040ez instruction book *           Line 6a. 1040ez instruction book To find the rental portion of excess casualty and theft losses, use the Form 4684 you prepared for line 2c of this worksheet. 1040ez instruction book   A. 1040ez instruction book Enter the amount from Form 4684, line 10       B. 1040ez instruction book Enter the rental portion of line A       C. 1040ez instruction book Enter the amount from line 2c of this worksheet       D. 1040ez instruction book Subtract line C from line B. 1040ez instruction book Enter the result here and on line 6a of this worksheet               Line 6e. 1040ez instruction book You can deduct the amounts on lines 6a, 6b, and 6c as rental expenses on Schedule E only to the extent they are not more than the amount on line 6e. 1040ez instruction book * *Allocating the limited deduction. 1040ez instruction book If you cannot deduct all of the amount on line 4d or 6d this year, you can allocate the allowable deduction in any way you wish among the expenses included on line 4d or 6d. 1040ez instruction book Enter the amount you allocate to each expense on the appropriate line of Schedule E, Part I. 1040ez instruction book Prev  Up  Next   Home   More Online Publications
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Understanding Your CP141I Notice

You are receiving this notice because you did not respond to a previous request for missing or incomplete information on your return.


What you need to do

  • Send the incomplete/missing information described in the “About your return” section on the notice.
  • Include the contact voucher at the end of the notice.
  • Send the amount due to avoid interest charges.

You may want to

  • If the reason your return was incomplete was beyond your control, send us a signed explanation with any supporting documentation.

Answers to Common Questions

Q. What if I disagree with the penalty?

A. Send a written statement with any supporting documentation to the address on the notice.

 

Page Last Reviewed or Updated: 21-Jan-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The 1040ez Instruction Book

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