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Hrblock Home

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Hrblock Home

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Understanding Your CP547 Notice

We received your Form 2848, 8821, or 706, and we assigned you a Centralized Authorization File (CAF) number.


What you need to do

  • Keep this notice so you know what your CAF number is for all future third party authorization requests and telephone contacts with the IRS on behalf of the taxpayer.

You may want to

  • Keep your CAF number in a safe place for future reference.
  • Notify the IRS if this was assigned without your knowledge.

 

Answers to Common Questions

Q. What is a CAF number?

A. A CAF number is a unique nine-digit identification number that we assign to you the first time you file a third party authorization with the IRS. We send a CP547 notice to you informing you of your assigned number. Use your assigned number on all future authorizations.

Q. What should I do if I don’t remember my CAF number?

A. If you’re a tax professional and can’t remember your CAF number, you can call the Practitioner Priority Services (PPS) at 1-866-860-4259. Once you provide your authenticating information, they can verbally give your CAF to you over the phone. If PPS is unable to authenticate you as the owner of the CAF number, they will mail the number to the CAF address of record.

 

Page Last Reviewed or Updated: 27-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 Hrblock Home

Hrblock home 5. Hrblock home   Personal Use of Dwelling Unit (Including Vacation Home) Table of Contents Dividing Expenses Dwelling Unit Used as a HomeMain home. Hrblock home Shared equity financing agreement. Hrblock home Donation of use of the property. Hrblock home Examples. Hrblock home Days used for repairs and maintenance. Hrblock home Days used as a main home before or after renting. Hrblock home Reporting Income and DeductionsNot used as a home. Hrblock home Used as a home but rented less than 15 days. Hrblock home Used as a home and rented 15 days or more. Hrblock home 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. Hrblock home 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. Hrblock home Only your rental expenses may deducted on Schedule E (Form 1040). Hrblock home Some of your personal expenses may be deductible if you itemize your deductions on Schedule A (Form 1040). Hrblock home You must also determine if the dwelling unit is considered a home. Hrblock home The amount of rental expenses that you can deduct may be limited if the dwelling unit is considered a home. Hrblock home Whether a dwelling unit is considered a home depends on how many days during the year are considered to be days of personal use. Hrblock home 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. Hrblock home Dwelling unit. Hrblock home   A dwelling unit includes a house, apartment, condominium, mobile home, boat, vacation home, or similar property. Hrblock home It also includes all structures or other property belonging to the dwelling unit. Hrblock home A dwelling unit has basic living accommodations, such as sleeping space, a toilet, and cooking facilities. Hrblock home   A dwelling unit does not include property (or part of the property) used solely as a hotel, motel, inn, or similar establishment. Hrblock home 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. Hrblock home Example. Hrblock home You rent a room in your home that is always available for short-term occupancy by paying customers. Hrblock home You do not use the room yourself and you allow only paying customers to use the room. Hrblock home This room is used solely as a hotel, motel, inn, or similar establishment and is not a dwelling unit. Hrblock home 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. Hrblock home When dividing your expenses, follow these rules. Hrblock home 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. Hrblock home (This rule does not apply when determining whether you used the unit as a home. Hrblock home ) Any day that the unit is available for rent but not actually rented is not a day of rental use. Hrblock home Fair rental price. Hrblock home   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. Hrblock home 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. Hrblock home   Ask yourself the following questions when comparing another property with yours. Hrblock home 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. Hrblock home Example. Hrblock home Your beach cottage was available for rent from June 1 through August 31 (92 days). Hrblock home 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. Hrblock home 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. Hrblock home Your family also used the cottage during the last 2 weeks of May (14 days). Hrblock home The cottage was not used at all before May 17 or after August 31. Hrblock home You figure the part of the cottage expenses to treat as rental expenses as follows. Hrblock home The cottage was used for rental a total of 85 days (92 − 7). Hrblock home The days it was available for rent but not rented (7 days) are not days of rental use. Hrblock home The July weekend (2 days) you used it is rental use because you received a fair rental price for the weekend. Hrblock home You used the cottage for personal purposes for 14 days (the last 2 weeks in May). Hrblock home The total use of the cottage was 99 days (14 days personal use + 85 days rental use). Hrblock home Your rental expenses are 85/99 (86%) of the cottage expenses. Hrblock home Note. Hrblock home 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. Hrblock home Therefore, you had 16 days of personal use and 83 days of rental use for this purpose. Hrblock home 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. Hrblock home If you have a net loss, you may not be able to deduct all of the rental expenses. Hrblock home See Dwelling Unit Used as a Home, next. Hrblock home 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. Hrblock home 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. Hrblock home See What is a day of personal use , later. Hrblock home 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. Hrblock home Instead, count it as a day of personal use in applying both (1) and (2) above. Hrblock home 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. Hrblock home 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). Hrblock home However, see Days used as a main home before or after renting , later. Hrblock home 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. Hrblock home Family includes only your spouse, brothers and sisters, half-brothers and half-sisters, ancestors (parents, grandparents, etc. Hrblock home ), and lineal descendants (children, grandchildren, etc. Hrblock home ). Hrblock home Anyone under an arrangement that lets you use some other dwelling unit. Hrblock home Anyone at less than a fair rental price. Hrblock home Main home. Hrblock home   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. Hrblock home Shared equity financing agreement. Hrblock home   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. Hrblock home Donation of use of the property. Hrblock home   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. Hrblock home Examples. Hrblock home   The following examples show how to determine if you have days of personal use. Hrblock home Example 1. Hrblock home You and your neighbor are co-owners of a condominium at the beach. Hrblock home Last year, you rented the unit to vacationers whenever possible. Hrblock home The unit was not used as a main home by anyone. Hrblock home Your neighbor used the unit for 2 weeks last year; you did not use it at all. Hrblock home 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. Hrblock home Example 2. Hrblock home You and your neighbors are co-owners of a house under a shared equity financing agreement. Hrblock home Your neighbors live in the house and pay you a fair rental price. Hrblock home 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. Hrblock home This is because your neighbors rent the house as their main home under a shared equity financing agreement. Hrblock home Example 3. Hrblock home You own a rental property that you rent to your son. Hrblock home Your son does not own any interest in this property. Hrblock home He uses it as his main home and pays you a fair rental price. Hrblock home 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. Hrblock home Example 4. Hrblock home You rent your beach house to Rosa. Hrblock home Rosa rents her cabin in the mountains to you. Hrblock home You each pay a fair rental price. Hrblock home 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. Hrblock home Example 5. Hrblock home You rent an apartment to your mother at less than a fair rental price. Hrblock home 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. Hrblock home Days used for repairs and maintenance. Hrblock home   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. Hrblock home 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. Hrblock home Example. Hrblock home Corey owns a cabin in the mountains that he rents for most of the year. Hrblock home He spends a week at the cabin with family members. Hrblock home 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. Hrblock home Corey's family members, however, work substantially full time on the cabin each day during the week. Hrblock home The main purpose of being at the cabin that week is to do maintenance work. Hrblock home Therefore, the use of the cabin during the week by Corey and his family will not be considered personal use by Corey. Hrblock home Days used as a main home before or after renting. Hrblock home   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. Hrblock home Do not count them as days of personal use if: You rented or tried to rent the property for 12 or more consecutive months. Hrblock home 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. Hrblock home However, this special rule does not apply when dividing expenses between rental and personal use. Hrblock home See Property Changed to Rental Use in chapter 4. Hrblock home Example 1. Hrblock home 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. Hrblock home You rented your house at a fair rental price from March 15, 2012, to May 14, 2013 (14 months). Hrblock home On June 1, 2013, you moved back into your old house. Hrblock home 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. Hrblock home Therefore, you would use the rules in chapter 1 when figuring your rental income and expenses. Hrblock home Example 2. Hrblock home On January 31, you moved out of the condominium where you had lived for 3 years. Hrblock home You offered it for rent at a fair rental price beginning on February 1. Hrblock home You were unable to rent it until April. Hrblock home On September 15, you sold the condominium. Hrblock home 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. Hrblock home Examples. Hrblock home   The following examples show how to determine whether you used your rental property as a home. Hrblock home Example 1. Hrblock home You converted the basement of your home into an apartment with a bedroom, a bathroom, and a small kitchen. Hrblock home You rented the basement apartment at a fair rental price to college students during the regular school year. Hrblock home You rented to them on a 9-month lease (273 days). Hrblock home You figured 10% of the total days rented to others at a fair rental price is 27 days. Hrblock home During June (30 days), your brothers stayed with you and lived in the basement apartment rent free. Hrblock home Your basement apartment was used as a home because you used it for personal purposes for 30 days. Hrblock home Rent-free use by your brothers is considered personal use. Hrblock home Your personal use (30 days) is more than the greater of 14 days or 10% of the total days it was rented (27 days). Hrblock home Example 2. Hrblock home 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). Hrblock home Your sister-in-law stayed in the room, rent free, for the last 3 weeks (21 days) in July. Hrblock home You figured 10% of the total days rented to others at a fair rental price is 3 days. Hrblock home The room was used as a home because you used it for personal purposes for 21 days. Hrblock home That is more than the greater of 14 days or 10% of the 27 days it was rented (3 days). Hrblock home Example 3. Hrblock home You own a condominium apartment in a resort area. Hrblock home You rented it at a fair rental price for a total of 170 days during the year. Hrblock home 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. Hrblock home Your family actually used the apartment for 10 of those days. Hrblock home Therefore, the apartment is treated as having been rented for 160 (170 – 10) days. Hrblock home You figured 10% of the total days rented to others at a fair rental price is 16 days. Hrblock home Your family also used the apartment for 7 other days during the year. Hrblock home You used the apartment as a home because you used it for personal purposes for 17 days. Hrblock home That is more than the greater of 14 days or 10% of the 160 days it was rented (16 days). Hrblock home Minimal rental use. Hrblock home   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. Hrblock home See Used as a home but rented less than 15 days, later, for more information. Hrblock home Limit on deductions. Hrblock home   Renting a dwelling unit that is considered a home is not a passive activity. Hrblock home 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. Hrblock home 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. Hrblock home Any expenses carried forward to the next year will be subject to any limits that apply for that year. Hrblock home 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. Hrblock home   To figure your deductible rental expenses for this year and any carryover to next year, use Worksheet 5–1. Hrblock home Reporting Income and Deductions Property not used for personal purposes. Hrblock home   If you do not use a dwelling unit for personal purposes, see chapter 3 for how to report your rental income and expenses. Hrblock home Property used for personal purposes. Hrblock home   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. Hrblock home Not used as a home. Hrblock home   If you use a dwelling unit for personal purposes, but not as a home, report all the rental income in your income. Hrblock home 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 . Hrblock home The expenses for personal use are not deductible as rental expenses. Hrblock home   Your deductible rental expenses can be more than your gross rental income; however, see Limits on Rental Losses in chapter 3. Hrblock home Used as a home but rented less than 15 days. Hrblock home   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). Hrblock home You are not required to report the rental income and rental expenses from this activity. Hrblock home The expenses, including qualified mortgage interest, property taxes, and any qualified casualty loss will be reported as normally allowed on Schedule A (Form 1040). Hrblock home See the Instructions for Schedule A (Form 1040) for more information on deducting these expenses. Hrblock home Used as a home and rented 15 days or more. Hrblock home   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. Hrblock home 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 . Hrblock home The expenses for personal use are not deductible as rental expenses. Hrblock home   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. Hrblock home You do not need to use Worksheet 5-1. Hrblock home   However, if you had a net loss from renting the dwelling unit for the year, your deduction for certain rental expenses is limited. Hrblock home To figure your deductible rental expenses and any carryover to next year, use Worksheet 5–1. Hrblock home Worksheet 5-1. Hrblock home 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. Hrblock home Did you use the dwelling unit as a home this year? (See Dwelling Unit Used as a Home . Hrblock home ) 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. Hrblock home Rental Use Percentage A. Hrblock home Total days available for rent at fair rental price A. Hrblock home       B. Hrblock home Total days available for rent (line A) but not rented B. Hrblock home       C. Hrblock home Total days of rental use. Hrblock home Subtract line B from line A C. Hrblock home       D. Hrblock home Total days of personal use (including days rented at less than fair rental price) D. Hrblock home       E. Hrblock home Total days of rental and personal use. Hrblock home Add lines C and D E. Hrblock home       F. Hrblock home Percentage of expenses allowed for rental. Hrblock home Divide line C by line E     F. Hrblock home . Hrblock home PART II. Hrblock home Allowable Rental Expenses 1. Hrblock home Enter rents received 1. Hrblock home   2a. Hrblock home Enter the rental portion of deductible home mortgage interest and qualified mortgage insurance premiums (see instructions) 2a. Hrblock home       b. Hrblock home Enter the rental portion of real estate taxes b. Hrblock home       c. Hrblock home Enter the rental portion of deductible casualty and theft losses (see instructions) c. Hrblock home       d. Hrblock home Enter direct rental expenses (see instructions) d. Hrblock home       e. Hrblock home Fully deductible rental expenses. Hrblock home Add lines 2a–2d. Hrblock home Enter here and  on the appropriate lines on Schedule E (see instructions) 2e. Hrblock home   3. Hrblock home Subtract line 2e from line 1. Hrblock home If zero or less, enter -0- 3. Hrblock home   4a. Hrblock home Enter the rental portion of expenses directly related to operating or maintaining  the dwelling unit (such as repairs, insurance, and utilities) 4a. Hrblock home       b. Hrblock home Enter the rental portion of excess mortgage interest and qualified mortgage insurance premiums (see instructions) b. Hrblock home       c. Hrblock home Carryover of operating expenses from 2012 worksheet c. Hrblock home       d. Hrblock home Add lines 4a–4c d. Hrblock home       e. Hrblock home Allowable expenses. Hrblock home Enter the smaller of line 3 or line 4d (see instructions) 4e. Hrblock home   5. Hrblock home Subtract line 4e from line 3. Hrblock home If zero or less, enter -0- 5. Hrblock home   6a. Hrblock home Enter the rental portion of excess casualty and theft losses (see instructions) 6a. Hrblock home       b. Hrblock home Enter the rental portion of depreciation of the dwelling unit b. Hrblock home       c. Hrblock home Carryover of excess casualty losses and depreciation from 2012 worksheet c. Hrblock home       d. Hrblock home Add lines 6a–6c d. Hrblock home       e. Hrblock home Allowable excess casualty and theft losses and depreciation. Hrblock home Enter the smaller of  line 5 or line 6d (see instructions) 6e. Hrblock home   PART III. Hrblock home Carryover of Unallowed Expenses to Next Year 7a. Hrblock home Operating expenses to be carried over to next year. Hrblock home Subtract line 4e from line 4d 7a. Hrblock home   b. Hrblock home Excess casualty and theft losses and depreciation to be carried over to next year. Hrblock home  Subtract line 6e from line 6d b. Hrblock home   Worksheet 5-1 Instructions. Hrblock home Worksheet for Figuring Rental Deductions for a Dwelling Unit Used as a Home Caution. Hrblock home 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. Hrblock home Line 2a. Hrblock home Figure the mortgage interest on the dwelling unit that you could deduct on Schedule A as if you had not rented the unit. Hrblock home Do not include interest on a loan that did not benefit the dwelling unit. Hrblock home 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. Hrblock home Include interest on a loan used to buy, build, or improve the dwelling unit, or to refinance such a loan. Hrblock home Include the rental portion of this interest in the total you enter on line 2a of the worksheet. Hrblock home   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. Hrblock home See the Schedule A instructions. Hrblock home However, figure your adjusted gross income (Form 1040, line 38) without your rental income and expenses from the dwelling unit. Hrblock home See Line 4b to deduct the part of the qualified mortgage insurance premiums not allowed because of the adjusted gross income limit. Hrblock home Include the rental portion of the amount from Schedule A, line 13, in the total you enter on line 2a of the worksheet. Hrblock home   Note. Hrblock home Do not file this Schedule A or use it to figure the amount to deduct on line 13 of that schedule. Hrblock home Instead, figure the personal portion on a separate Schedule A. Hrblock home 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. Hrblock home           Line 2c. Hrblock home 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. Hrblock home To do this, complete Section A of Form 4684, Casualties and Thefts, treating the losses as personal losses. Hrblock home If any of the loss is due to a federally declared disaster, see the Instructions for Form 4684. Hrblock home On Form 4684, line 17, enter 10% of your adjusted gross income figured without your rental income and expenses from the dwelling unit. Hrblock home Enter the rental portion of the result from Form 4684, line 18, on line 2c of this worksheet. Hrblock home   Note. Hrblock home Do not file this Form 4684 or use it to figure your personal losses on Schedule A. Hrblock home Instead, figure the personal portion on a separate Form 4684. Hrblock home           Line 2d. Hrblock home Enter the total of your rental expenses that are directly related only to the rental activity. Hrblock home These include interest on loans used for rental activities other than to buy, build, or improve the dwelling unit. Hrblock home Also include rental agency fees, advertising, office supplies, and depreciation on office equipment used in your rental activity. Hrblock home           Line 2e. Hrblock home 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. Hrblock home Enter the amounts on lines 2a, 2b, 2c, and 2d on the appropriate lines of Schedule E. Hrblock home           Line 4b. Hrblock home 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. Hrblock home 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. Hrblock home Do not include interest on a loan that did not benefit the dwelling unit  (as explained in the line 2a instructions). Hrblock home           Line 4e. Hrblock home 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. Hrblock home *           Line 6a. Hrblock home To find the rental portion of excess casualty and theft losses, use the Form 4684 you prepared for line 2c of this worksheet. Hrblock home   A. Hrblock home Enter the amount from Form 4684, line 10       B. Hrblock home Enter the rental portion of line A       C. Hrblock home Enter the amount from line 2c of this worksheet       D. Hrblock home Subtract line C from line B. Hrblock home Enter the result here and on line 6a of this worksheet               Line 6e. Hrblock home 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. Hrblock home * *Allocating the limited deduction. Hrblock home 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. Hrblock home Enter the amount you allocate to each expense on the appropriate line of Schedule E, Part I. Hrblock home Prev  Up  Next   Home   More Online Publications