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How To File An Amended Return

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How To File An Amended Return

How to file an amended return Index A Accelerated death benefits, Accelerated Death Benefits Accounting periods Change in, standard deduction not allowed, Persons not eligible for the standard deduction. How to file an amended return Accrued leave payment Disability retirement and, Accrued leave payment. How to file an amended return Adjusted gross income (AGI), Adjustments to Income Adjustments to income, Adjustments to Income Age Standard deduction for age 65 or older, Higher standard deduction for age (65 or older). How to file an amended return Age 65, Qualified Individual American Association of Retired Persons (AARP), Volunteer Income Tax Assistance and Tax Counseling for the Elderly. How to file an amended return Annuities, Pensions and Annuities Assistance (see Tax help) B Base amount, social security benefits, Base Amount Benefits Accident or health, Other compensation. How to file an amended return Long-term care, Long-Term Care Insurance Contracts No-fault insurance, Other compensation. How to file an amended return Sickness and injury, Sickness and Injury Benefits Social security, Are Any of Your Benefits Taxable? Veterans', Veterans' benefits. How to file an amended return Bequests, Gifts and inheritances. How to file an amended return Blind persons Standard deduction for, Higher standard deduction for blindness. How to file an amended return C Child and dependent care credit, Child and Dependent Care Credit Children Standard deduction for, Standard Deduction for Dependents Chronically ill persons, Chronically ill individual. How to file an amended return Chronically ill, defined, Terminally or chronically ill defined. How to file an amended return Compensation For services, Compensation for Services Loss or disfigurement, Other compensation. How to file an amended return Contributions Foreign employment, Foreign employment contributions. How to file an amended return Pension or annuity, Cost. How to file an amended return Cost, pension or annuity, Cost. How to file an amended return Credit Child and dependent care, Child and Dependent Care Credit Earned income, Earned Income Credit (EIC) The elderly or the disabled, Credit for the Elderly or the Disabled Credit for the elderly or the disabled, Credit for the Elderly or the Disabled D Death benefit, accelerated, Accelerated Death Benefits Decedents, Dependents. How to file an amended return Standard deduction, Decedent's final return. How to file an amended return Deductions Generally, Deductions Insurance premiums, Medical Insurance Premiums Itemized, Itemized Deductions Meals and lodging, Meals and Lodging Medical and dental, Medical and Dental Expenses Standard, Standard Deduction Dependents, Dependents. How to file an amended return Standard deduction for, Standard Deduction for Dependents Disabilities, individuals with Ownership and use test, Exception to use test for individuals with a disability. How to file an amended return Disability Person with, Persons with disabilities. How to file an amended return Physician's statement, Physician's statement. How to file an amended return Total and permanent, Permanent and total disability. How to file an amended return Disability income, Disability Pensions, Other compensation. How to file an amended return , Disability income. How to file an amended return Distributions, retirement plan, Retirement Plan Distributions Drugs (see Medicines) Dual-status taxpayers Standard deduction, Persons not eligible for the standard deduction. How to file an amended return E Early distributions, tax, Tax on Early Distributions Earned income credit, Earned Income Credit (EIC) Elderly or disabled credit, Credit for the Elderly or the Disabled Elderly persons Standard deduction for age 65 or older, Higher standard deduction for age (65 or older). How to file an amended return Employment tax withholding, Reminders Employment taxes, Employment taxes. How to file an amended return Endowment proceeds, Endowment Contract Proceeds Estimated tax, Tax Withholding and Estimated Tax, Estimated Tax, Who Must Make Estimated Tax Payments Excess accumulation, tax on, Tax on Excess Accumulation Exclusion, gain on sale of home, Maximum Amount of Exclusion F Federal Employees Compensation Act (FECA) payments, Federal Employees' Compensation Act (FECA). How to file an amended return Filing requirements Decedents, Dependents. How to file an amended return General requirements, General Requirements Surviving spouse, Surviving spouse. How to file an amended return Final return for decedent Standard deduction, Decedent's final return. How to file an amended return First-time homebuyer credit Recapture, Repaying the first-time homebuyer credit because you sold your home. How to file an amended return Form, Credit for the Elderly or the Disabled, Physician's statement. How to file an amended return 1099-R, Form 1099-R. How to file an amended return , Form 1099-R. How to file an amended return 5329, Form 5329. How to file an amended return 8853, Accelerated Death Benefits Schedule R, Credit for the Elderly or the Disabled, Physician's statement. How to file an amended return W-4P, Withholding. How to file an amended return Free tax services, Free help with your tax return. How to file an amended return G Gain on sale of home (see Sale of home) General rule, pension or annuity, Pensions and Annuities Gifts, Gifts and inheritances. How to file an amended return H Help (see Tax help) Home care (see Nursing services) Home improvements, Home Improvements Home, sale of, Sale of Home Hospital services, Hospital Services Household help, Household Help I Income Adjustments, Adjustments to Income Disability, Disability Pensions, Disability income. How to file an amended return Gross, defined, Gross income. How to file an amended return Nontaxable, Taxable and Nontaxable Income Sale of home, Sale of Home Self-employment, Self-employed persons. How to file an amended return Taxable, Taxable and Nontaxable Income Individual retirement arrangement (IRA) Adjustments to income, Individual Retirement Arrangement (IRA) Contributions and Deductions Contributions, Contributions. How to file an amended return Deductible contribution, Deductible contribution. How to file an amended return Distributions, Individual Retirement Arrangements (IRAs) Inheritances, Gifts and inheritances. How to file an amended return Injury benefits, Sickness and Injury Benefits, Cost paid by you. How to file an amended return Insurance Accident and health, Other compensation. How to file an amended return , Medical Insurance Premiums Benefits, long-term care, Long-Term Care Insurance Contracts Benefits, no-fault insurance, Other compensation. How to file an amended return Life insurance proceeds, Life Insurance Proceeds Proceeds paid after death, Life Insurance Proceeds Proceeds paid before death, Accelerated Death Benefits Insurance premiums for retired public safety officers, Insurance Premiums for Retired Public Safety Officers Itemized deductions, Itemized Deductions Married filing separately One spouse has itemized, Persons not eligible for the standard deduction. How to file an amended return L Life insurance proceeds, Life Insurance Proceeds Long-term care, Long-Term Care Chronically ill individuals, Chronically ill individual. How to file an amended return Maintenance and personal care services, Maintenance and personal care services. How to file an amended return Qualified insurance contracts, Qualified long-term care insurance contracts. How to file an amended return Qualified services, Qualified long-term care services. How to file an amended return Long-term care insurance, Long-Term Care Insurance Contracts Loss or disfigurement compensation, Other compensation. How to file an amended return Lump-sum distributions, Lump-sum distributions. How to file an amended return Lump-sum election, social security, Lump-Sum Election M Maintenance and personal care services, Maintenance and personal care services. How to file an amended return Married filing separately Itemized deductions One spouse has itemized so other must as well, Persons not eligible for the standard deduction. How to file an amended return Married taxpayers Age 65 or older spouse Standard deduction, Spouse 65 or older or blind. How to file an amended return Blind spouse Standard deduction, Spouse 65 or older or blind. How to file an amended return Meals and lodging expenses, Meals and Lodging Medical expenses, Medical and Dental Expenses Medicare, Medicare Part A. How to file an amended return , Medicare Part B. How to file an amended return , Medicare Part D. How to file an amended return Benefits, Medicare. How to file an amended return Medicines, Medicines Imported, Imported medicines and drugs. How to file an amended return Military retirement pay, Military Retirement Pay Minimum distributions, Tax on Excess Accumulation Minimum wage, Substantial gainful activity. How to file an amended return Missing children, Reminders Mortgage assistance payments, Mortgage assistance payments. How to file an amended return N Nonperiodic distributions, Nonperiodic Distributions Nonqualified use, Period of nonqualified use. How to file an amended return Nonresident aliens Standard deduction, Persons not eligible for the standard deduction. How to file an amended return Nontaxable income, Payments from a state fund for victims of crime. How to file an amended return Accident or health insurance benefits, Other compensation. How to file an amended return Bequests, Gifts and inheritances. How to file an amended return Generally, Taxable and Nontaxable Income Gifts, Gifts and inheritances. How to file an amended return Inheritances, Gifts and inheritances. How to file an amended return Mortgage assistance payments, Mortgage assistance payments. How to file an amended return No-fault insurance benefits, Other compensation. How to file an amended return Nutrition program for elderly, Nutrition Program for the Elderly. How to file an amended return Public assistance payments, Welfare benefits. How to file an amended return Sickness and injury benefits, Sickness and Injury Benefits Veterans' benefits, Veterans' benefits. How to file an amended return Winter energy use, Payments to reduce cost of winter energy use. How to file an amended return Workers' compensation, Workers' Compensation Nursing home, Nursing home. How to file an amended return Nursing services, Nursing Services Chronically ill individuals, Chronically ill individual. How to file an amended return Nutrition program for elderly, Nutrition Program for the Elderly. How to file an amended return O Old-age, survivors, and disability insurance benefits (OASDI), Old-age, survivors, and disability insurance benefits (OASDI). How to file an amended return Other items, Other Items Overall limitation, Overall limitation. How to file an amended return P Payments, estimated tax, Estimated Tax Pensions, Pensions and Annuities Pensions, disability, Disability Pensions Photographs, missing children, Reminders Physician's statement, disability, Physician's statement. How to file an amended return Prepaid insurance premiums, Prepaid insurance premiums. How to file an amended return Preparer, paid, Reminders Preparing your return, Return preparation assistance. How to file an amended return Profit-sharing plan, Retirement and profit-sharing plans. How to file an amended return Public assistance payments, Welfare benefits. How to file an amended return Publications (see Tax help) Q Qualified retirement plan, Tax on Early Distributions R Railroad retirement benefits, Railroad Retirement Benefits, Social Security and Equivalent Railroad Retirement Benefits Repayments Social security benefits, Repayment of Benefits Reporting pension income, How to report. How to file an amended return Residence, sale of, Sale of Home Retirement plans, distributions, Retirement Plan Distributions Returns Decedent, Dependents. How to file an amended return Executors and administrators, Dependents. How to file an amended return Filing requirements, 2013 Filing Requirements Surviving spouse, Surviving spouse. How to file an amended return Reverse mortgages, Reverse Mortgages S Salaries (see Compensation) Sale of Home First-time homebuyer credit, Repaying the first-time homebuyer credit because you sold your home. How to file an amended return Surviving spouse, Reminders Sale of home, Sale of Home Self-employed, Self-employed persons. How to file an amended return Short tax year Change in annual accounting period, Persons not eligible for the standard deduction. How to file an amended return Sickness and injury benefits, Sickness and Injury Benefits Simplified method, Pensions and Annuities Social security benefits, Social Security and Equivalent Railroad Retirement Benefits Standard deduction, Standard Deduction Age 65 or older, Higher standard deduction for age (65 or older). How to file an amended return Blind persons, Higher standard deduction for blindness. How to file an amended return Dependents, Standard Deduction for Dependents Final return of decedent, Decedent's final return. How to file an amended return Married filing separately One spouse has itemized, Persons not eligible for the standard deduction. How to file an amended return Starting date, annuity, Cost. How to file an amended return State fund for victims of crime, Payments from a state fund for victims of crime. How to file an amended return Substantial gainful activity, Substantial gainful activity. How to file an amended return Surrender of Iife insurance, Surrender of policy for cash. How to file an amended return Surviving Spouse, Reminders Surviving spouse, Surviving spouse. How to file an amended return Surviving spouse, insurance, Surviving spouse. How to file an amended return Survivors of retirees, Survivors of retirees. How to file an amended return T Tax Early distributions, Tax on Early Distributions Estimated, Tax Withholding and Estimated Tax, Estimated Tax Excess accumulation, Tax on Excess Accumulation Tax counseling for the elderly (TCE), Volunteer Income Tax Assistance and Tax Counseling for the Elderly. How to file an amended return Tax help, How To Get Tax Help Tax option, 10-year, Lump-sum distributions. How to file an amended return Tax return preparers, Reminders Taxable income, Taxable and Nontaxable Income Taxation of benefits, Are Any of Your Benefits Taxable? Terminally ill, defined, Terminally or chronically ill defined. How to file an amended return Total and permanent disability, defined, Permanent and total disability. How to file an amended return Transportation expenses, Transportation TTY/TDD information, How To Get Tax Help U U. How to file an amended return S. How to file an amended return citizen or resident, U. How to file an amended return S. How to file an amended return citizen or resident alien. How to file an amended return Unemployment compensation, Unemployment compensation. How to file an amended return V Veterans' benefits, Veterans' benefits. How to file an amended return Viatical settlement, Accelerated Death Benefits Victims of crime, Payments from a state fund for victims of crime. How to file an amended return Volunteer income tax assistance (VITA), Volunteer Income Tax Assistance and Tax Counseling for the Elderly. How to file an amended return Volunteer work, Volunteer work. How to file an amended return W Wages (see Compensation) Winter energy use payments, Payments to reduce cost of winter energy use. How to file an amended return Withholding Employment tax, Reminders Pensions and annuities, Withholding. How to file an amended return Workers' compensation, Workers' Compensation Worksheets, social security, Which worksheet to use. How to file an amended return Prev  Up     Home   More Online Publications
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The American Recovery and Reinvestment Act of 2009

Contractor Name

Award #

Category

Obligated Value

Date of Award

Presidio Networked Solutions, Inc. TIRNO-99-Z-00002, DO 00731, Modification 0045

Tax Provisions

$535,500.00

01/12/2011

Macro International TIRNO-05-Z-00012, DO 0030 HCTC $52,008.00

09/22/2010

Lockheed Martin TIRNO-06-D-00013, DO 0030, Modification 0020

Tax Provisions

$32,269.00

06/23/2010

Lockheed Martin TIRNO-06-D-00013, DO 0030, Modification 0013 Tax Provisions $0.00

04/27/2010

Information Systems Consulting Group TIRNO-06-D-00024, DO 0006, Modification 0002 HCTC $88,707.20

04/12/2010

Lockheed Martin TIRNO-06-D-00013, DO 0030, Modification 0009

Tax Provisions

$27,963.00

12/22/2009

Accenture LLP TIRNO-06-D-00006, DO 0008, Modification 0019 HCTC $13,790,162.00

12/14/2009

Accenture LLP TIRNO-06-D-00006, DO 0008, Modification 0018 HCTC $60,000.00

09/29/2009

AT&T TIRNO-04-Z-00007, DO 0110

Tax Provisions

$520,159.00

09/29/2009

Macro International TIRNO-05-Z-00012, DO 0026, Modification 0002 HCTC $98,312.00

09/15/2009

Accenture LLP TIRNO-06-D-00006, DO 0008, Modification 0013 HCTC $20,000.00

 04/17/2009

Page Last Reviewed or Updated: 03-Feb-2014

The How To File An Amended Return

How to file an amended return 4. How to file an amended return   Special Situations Table of Contents Condominiums CooperativesDepreciation Property Changed to Rental UseBasis of Property Changed to Rental Use Figuring the Depreciation Deduction Renting Part of Property Not Rented for ProfitPostponing decision. How to file an amended return Example—Property Changed to Rental Use This chapter discusses some rental real estate activities that are subject to additional rules. How to file an amended return Condominiums A condominium is most often a dwelling unit in a multi-unit building, but can also take other forms, such as a townhouse or garden apartment. How to file an amended return If you own a condominium, you also own a share of the common elements, such as land, lobbies, elevators, and service areas. How to file an amended return You and the other condominium owners may pay dues or assessments to a special corporation that is organized to take care of the common elements. How to file an amended return Special rules apply if you rent your condominium to others. How to file an amended return You can deduct as rental expenses all the expenses discussed in chapters 1 and 2. How to file an amended return In addition, you can deduct any dues or assessments paid for maintenance of the common elements. How to file an amended return You cannot deduct special assessments you pay to a condominium management corporation for improvements. How to file an amended return However, you may be able to recover your share of the cost of any improvement by taking depreciation. How to file an amended return Cooperatives If you live in a cooperative, you do not own your apartment. How to file an amended return Instead, a corporation owns the apartments and you are a tenant-stockholder in the cooperative housing corporation. How to file an amended return If you rent your apartment to others, you usually can deduct, as a rental expense, all the maintenance fees you pay to the cooperative housing corporation. How to file an amended return In addition to the maintenance fees paid to the cooperative housing corporation, you can deduct your direct payments for repairs, upkeep, and other rental expenses, including interest paid on a loan used to buy your stock in the corporation. How to file an amended return Depreciation You will be depreciating your stock in the corporation rather than the apartment itself. How to file an amended return Figure your depreciation deduction as follows. How to file an amended return Figure the depreciation for all the depreciable real property owned by the corporation. How to file an amended return (Depreciation methods are discussed in chapter 2 of this publication and Publication 946. How to file an amended return ) If you bought your cooperative stock after its first offering, figure the depreciable basis of this property as follows. How to file an amended return Multiply your cost per share by the total number of outstanding shares. How to file an amended return Add to the amount figured in (a) any mortgage debt on the property on the date you bought the stock. How to file an amended return Subtract from the amount figured in (b) any mortgage debt that is not for the depreciable real property, such as the part for the land. How to file an amended return Subtract from the amount figured in (1) any depreciation for space owned by the corporation that can be rented but cannot be lived in by tenant-stockholders. How to file an amended return Divide the number of your shares of stock by the total number of shares outstanding, including any shares held by the corporation. How to file an amended return Multiply the result of (2) by the percentage you figured in (3). How to file an amended return This is your depreciation on the stock. How to file an amended return Your depreciation deduction for the year cannot be more than the part of your adjusted basis (defined in chapter 2) in the stock of the corporation that is allocable to your rental property. How to file an amended return Payments added to capital account. How to file an amended return   Payments earmarked for a capital asset or improvement, or otherwise charged to the corporation's capital account are added to the basis of your stock in the corporation. How to file an amended return For example, you cannot deduct a payment used to pave a community parking lot, install a new roof, or pay the principal of the corporation's mortgage. How to file an amended return   Treat as a capital cost the amount you were assessed for capital items. How to file an amended return This cannot be more than the amount by which your payments to the corporation exceeded your share of the corporation's mortgage interest and real estate taxes. How to file an amended return   Your share of interest and taxes is the amount the corporation elected to allocate to you, if it reasonably reflects those expenses for your apartment. How to file an amended return Otherwise, figure your share in the following manner. How to file an amended return Divide the number of your shares of stock by the total number of shares outstanding, including any shares held by the corporation. How to file an amended return Multiply the corporation's deductible interest by the number you figured in (1). How to file an amended return This is your share of the interest. How to file an amended return Multiply the corporation's deductible taxes by the number you figured in (1). How to file an amended return This is your share of the taxes. How to file an amended return Property Changed to Rental Use If you change your home or other property (or a part of it) to rental use at any time other than the beginning of your tax year, you must divide yearly expenses, such as taxes and insurance, between rental use and personal use. How to file an amended return You can deduct as rental expenses only the part of the expense that is for the part of the year the property was used or held for rental purposes. How to file an amended return You cannot deduct depreciation or insurance for the part of the year the property was held for personal use. How to file an amended return However, you can include the home mortgage interest, qualified mortgage insurance premiums, and real estate tax expenses for the part of the year the property was held for personal use as an itemized deduction on Schedule A (Form 1040). How to file an amended return Example. How to file an amended return Your tax year is the calendar year. How to file an amended return You moved from your home in May and started renting it out on June 1. How to file an amended return You can deduct as rental expenses seven-twelfths of your yearly expenses, such as taxes and insurance. How to file an amended return Starting with June, you can deduct as rental expenses the amounts you pay for items generally billed monthly, such as utilities. How to file an amended return When figuring depreciation, treat the property as placed in service on June 1. How to file an amended return Basis of Property Changed to Rental Use When you change property you held for personal use to rental use (for example, you rent your former home), the basis for depreciation will be the lesser of fair market value or adjusted basis on the date of conversion. How to file an amended return Fair market value. How to file an amended return   This is the price at which the property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts. How to file an amended return Sales of similar property, on or about the same date, may be helpful in figuring the fair market value of the property. How to file an amended return Figuring the basis. How to file an amended return   The basis for depreciation is the lesser of: The fair market value of the property on the date you changed it to rental use, or Your adjusted basis on the date of the change—that is, your original cost or other basis of the property, plus the cost of permanent additions or improvements since you acquired it, minus deductions for any casualty or theft losses claimed on earlier years' income tax returns and other decreases to basis. How to file an amended return For other increases and decreases to basis, see Adjusted Basis in chapter 2. How to file an amended return Example. How to file an amended return Several years ago you built your home for $140,000 on a lot that cost you $14,000. How to file an amended return Before changing the property to rental use this year, you added $28,000 of permanent improvements to the house and claimed a $3,500 casualty loss deduction for damage to the house. How to file an amended return Part of the improvements qualified for a $500 residential energy credit, which you claimed on your 2010 tax return. How to file an amended return Because land is not depreciable, you can only include the cost of the house when figuring the basis for depreciation. How to file an amended return The adjusted basis of the house at the time of the change in its use was $164,000 ($140,000 + $28,000 − $3,500 − $500). How to file an amended return On the date of the change in use, your property had a fair market value of $168,000, of which $21,000 was for the land and $147,000 was for the house. How to file an amended return The basis for depreciation on the house is the fair market value on the date of the change ($147,000), because it is less than your adjusted basis ($164,000). How to file an amended return Cooperatives If you change your cooperative apartment to rental use, figure your allowable depreciation as explained earlier. How to file an amended return (Depreciation methods are discussed in chapter 2 of this publication and Publication 946. How to file an amended return ) The basis of all the depreciable real property owned by the cooperative housing corporation is the smaller of the following amounts. How to file an amended return The fair market value of the property on the date you change your apartment to rental use. How to file an amended return This is considered to be the same as the corporation's adjusted basis minus straight line depreciation, unless this value is unrealistic. How to file an amended return The corporation's adjusted basis in the property on that date. How to file an amended return Do not subtract depreciation when figuring the corporation's adjusted basis. How to file an amended return If you bought the stock after its first offering, the corporation's adjusted basis in the property is the amount figured in (1) under Depreciation (under Cooperatives, near the beginning of this chapter). How to file an amended return The fair market value of the property is considered to be the same as the corporation's adjusted basis figured in this way minus straight line depreciation, unless the value is unrealistic. How to file an amended return Figuring the Depreciation Deduction To figure the deduction, use the depreciation system in effect when you convert your residence to rental use. How to file an amended return Generally, that will be MACRS for any conversion after 1986. How to file an amended return Treat the property as placed in service on the conversion date. How to file an amended return Example. How to file an amended return Your converted residence (see previous example under Figuring the basis) was available for rent on August 1. How to file an amended return Using Table 2-2d (see chapter 2), the percentage for Year 1 beginning in August is 1. How to file an amended return 364% and the depreciation deduction for Year 1 is $2,005 ($147,000 × . How to file an amended return 01364). How to file an amended return Renting Part of Property If you rent part of your property, you must divide certain expenses between the part of the property used for rental purposes and the part of the property used for personal purposes, as though you actually had two separate pieces of property. How to file an amended return You can deduct the expenses related to the part of the property used for rental purposes, such as home mortgage interest, qualified mortgage insurance premiums, and real estate taxes, as rental expenses on Schedule E (Form 1040). How to file an amended return You can also deduct as rental expenses a portion of other expenses that normally are nondeductible personal expenses, such as expenses for electricity, or painting the outside of the house. How to file an amended return There is no change in the types of expenses deductible for the personal-use part of your property. How to file an amended return Generally, these expenses may be deducted only if you itemize your deductions on Schedule A (Form 1040). How to file an amended return You cannot deduct any part of the cost of the first phone line even if your tenants have unlimited use of it. How to file an amended return You do not have to divide the expenses that belong only to the rental part of your property. How to file an amended return For example, if you paint a room that you rent, or if you pay premiums for liability insurance in connection with renting a room in your home, your entire cost is a rental expense. How to file an amended return If you install a second phone line strictly for your tenant's use, all of the cost of the second line is deductible as a rental expense. How to file an amended return You can deduct depreciation on the part of the house used for rental purposes as well as on the furniture and equipment you use for rental purposes. How to file an amended return How to divide expenses. How to file an amended return   If an expense is for both rental use and personal use, such as mortgage interest or heat for the entire house, you must divide the expense between rental use and personal use. How to file an amended return You can use any reasonable method for dividing the expense. How to file an amended return It may be reasonable to divide the cost of some items (for example, water) based on the number of people using them. How to file an amended return The two most common methods for dividing an expense are (1) the number of rooms in your home, and (2) the square footage of your home. How to file an amended return Example. How to file an amended return You rent a room in your house. How to file an amended return The room is 12 × 15 feet, or 180 square feet. How to file an amended return Your entire house has 1,800 square feet of floor space. How to file an amended return You can deduct as a rental expense 10% of any expense that must be divided between rental use and personal use. How to file an amended return If your heating bill for the year for the entire house was $600, $60 ($600 × . How to file an amended return 10) is a rental expense. How to file an amended return The balance, $540, is a personal expense that you cannot deduct. How to file an amended return Duplex. How to file an amended return   A common situation is the duplex where you live in one unit and rent out the other. How to file an amended return Certain expenses apply to the entire property, such as mortgage interest and real estate taxes, and must be split to determine rental and personal expenses. How to file an amended return Example. How to file an amended return You own a duplex and live in one half, renting the other half. How to file an amended return Both units are approximately the same size. How to file an amended return Last year, you paid a total of $10,000 mortgage interest and $2,000 real estate taxes for the entire property. How to file an amended return You can deduct $5,000 mortgage interest and $1,000 real estate taxes on Schedule E (Form 1040), and if you itemize your deductions, you can deduct the other $5,000 mortgage interest and $1,000 real estate taxes on Schedule A (Form 1040). How to file an amended return Not Rented for Profit If you do not rent your property to make a profit, you can deduct your rental expenses only up to the amount of your rental income. How to file an amended return You cannot deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year. How to file an amended return Where to report. How to file an amended return   Report your not-for-profit rental income on Form 1040 or 1040NR, line 21. How to file an amended return For example, if you are filing Form 1040, you can include your mortgage interest and any qualified mortgage insurance premiums (if you use the property as your main home or second home), real estate taxes, and casualty losses on the appropriate lines of Schedule A (Form 1040) if you itemize your deductions. How to file an amended return   If you itemize your deductions, claim your other rental expenses, subject to the rules explained in chapter 1 of Publication 535, as miscellaneous itemized deductions on Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9. How to file an amended return You can deduct these expenses only if they, together with certain other miscellaneous itemized deductions, total more than 2% of your adjusted gross income. How to file an amended return Presumption of profit. How to file an amended return   If your rental income is more than your rental expenses for at least 3 years out of a period of 5 consecutive years, you are presumed to be renting your property to make a profit. How to file an amended return Postponing decision. How to file an amended return   If you are starting your rental activity and do not have 3 years showing a profit, you can elect to have the presumption made after you have the 5 years of experience required by the test. How to file an amended return You may choose to postpone the decision of whether the rental is for profit by filing Form 5213. How to file an amended return You must file Form 5213 within 3 years after the due date of your return (determined without extensions) for the year in which you first carried on the activity or, if earlier, within 60 days after receiving written notice from the Internal Revenue Service proposing to disallow deductions attributable to the activity. How to file an amended return More information. How to file an amended return   For more information about the rules for an activity not engaged in for profit, see Not-for-Profit Activities in chapter 1 of Publication 535. How to file an amended return Example—Property Changed to Rental Use In January, Eileen Johnson bought a condominium apartment to live in. How to file an amended return Instead of selling the house she had been living in, she decided to change it to rental property. How to file an amended return Eileen selected a tenant and started renting the house on February 1. How to file an amended return Eileen charges $750 a month for rent and collects it herself. How to file an amended return Eileen also received a $750 security deposit from her tenant. How to file an amended return Because she plans to return it to her tenant at the end of the lease, she does not include it in her income. How to file an amended return Her rental expenses for the year are as follows. How to file an amended return   Mortgage interest $1,800     Fire insurance (1-year policy) 100     Miscellaneous repairs (after renting) 297     Real estate taxes imposed and paid 1,200   Eileen must divide the real estate taxes, mortgage interest, and fire insurance between the personal use of the property and the rental use of the property. How to file an amended return She can deduct eleven-twelfths of these expenses as rental expenses. How to file an amended return She can include the balance of the allowable taxes and mortgage interest on Schedule A (Form 1040) if she itemizes. How to file an amended return She cannot deduct the balance of the fire insurance because it is a personal expense. How to file an amended return Eileen bought this house in 1984 for $35,000. How to file an amended return Her property tax was based on assessed values of $10,000 for the land and $25,000 for the house. How to file an amended return Before changing it to rental property, Eileen added several improvements to the house. How to file an amended return She figures her adjusted basis as follows:   Improvements Cost     House $25,000     Remodeled kitchen 4,200     Recreation room 5,800     New roof 1,600     Patio and deck 2,400     Adjusted basis $39,000   On February 1, when Eileen changed her house to rental property, the property had a fair market value of $152,000. How to file an amended return Of this amount, $35,000 was for the land and $117,000 was for the house. How to file an amended return Because Eileen's adjusted basis is less than the fair market value on the date of the change, Eileen uses $39,000 as her basis for depreciation. How to file an amended return As specified for residential rental property, Eileen must use the straight line method of depreciation over the GDS or ADS recovery period. How to file an amended return She chooses the GDS recovery period of 27. How to file an amended return 5 years. How to file an amended return She uses Table 2-2d to find her depreciation percentage. How to file an amended return Since she placed the property in service in February, the percentage is 3. How to file an amended return 182%. How to file an amended return On April 1, Eileen bought a new dishwasher for the rental property at a cost of $425. How to file an amended return The dishwasher is personal property used in a rental real estate activity, which has a 5-year recovery period. How to file an amended return She uses Table 2-2a to find the percentage for Year 1 under “Half-year convention” (20%) to figure her depreciation deduction. How to file an amended return On May 1, Eileen paid $4,000 to have a furnace installed in the house. How to file an amended return The furnace is residential rental property. How to file an amended return Because she placed the property in service in May, the percentage from Table 2-2d is 2. How to file an amended return 273%. How to file an amended return Eileen figures her net rental income or loss for the house as follows: Total rental income received  ($750 × 11) $8,250 Minus: Expenses     Mortgage interest ($1,800 × 11/12) $1,650   Fire insurance ($100 × 11/12) 92   Miscellaneous repairs 297   Real estate taxes ($1,200 × 11/12) 1,100   Total expenses 3,139 Balance $5,111 Minus: Depreciation     House ($39,000 × . How to file an amended return 03182) $1,241   Dishwasher ($425 × . How to file an amended return 20) 85   Furnace ($4,000 × . How to file an amended return 02273) 91   Total depreciation 1,417 Net rental income for house   $3,694       Eileen uses Schedule E, Part I, to report her rental income and expenses. How to file an amended return She enters her income, expenses, and depreciation for the house in the column for Property A. How to file an amended return Since all property was placed in service this year, Eileen must use Form 4562 to figure the depreciation. How to file an amended return See the Instructions for Form 4562 for more information on preparing the form. How to file an amended return Prev  Up  Next   Home   More Online Publications