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Tax 2010

Free Income Tax PreparationFree 1040ez Tax FormsFederal Income Tax Forms 1040ezHow To Fill Out 1040x Line By LineIrs 1040ez 2011 Form1040 Ez 2013 Tax FormFree E File State TaxesLong Amended Tax ReturnH & R Block FreeH&r Block State Taxes2010 Electronic Tax Filing2011 Tax Preparation SoftwareHow Do I Refile My TaxesFree State Tax PrepAmended Tax Return 20112011 Tax DeductionsTax Software Review2008 Tax ReturnHow To Do State Tax ReturnFile My 2012 Taxes For FreeH & R Block TaxesHow Can I File My 2012 Tax ReturnCt 1040nr PyFree Federal And State Income Tax Filing2010 Tax TablesFile 2010 State Tax ReturnHow To Fill Out A 1040x Tax Amendment FormH & R BlockWhere Can I Get Form 1040xHow Do I File My Taxes From 20121040ez Tax Form 2013Tax Software 1040nrAmending 2010 TaxesFile State Returns For FreeState Tax Forms InstructionsIrs 1040ez FormAmended ReturnsCollege Student Filing TaxesIrs File 1040ezTax Return Form

Tax 2010

Tax 2010 3. Tax 2010   Adjustments to Income Table of Contents Individual Retirement Arrangement (IRA) Contributions and DeductionsContributions to Kay Bailey Hutchison Spousal IRAs. Tax 2010 Deductible contribution. Tax 2010 Nondeductible contribution. Tax 2010 You may be able to subtract amounts from your total income (Form 1040, line 22 or Form 1040A, line 15) or total effectively connected income (Form 1040NR, line 23) to get your adjusted gross income (Form 1040, line 37; Form 1040A, line 21; or Form 1040NR, line 36). Tax 2010 Some adjustments to income follow. Tax 2010 Contributions to your individual retirement arrangement (IRA) (Form 1040, line 32; Form 1040A, line 17; or Form 1040NR, line 32), explained later in this publication. Tax 2010 Certain moving expenses (Form 1040, line 26; or Form 1040NR, line 26) if you changed job locations or started a new job in 2013. Tax 2010 See Publication 521, Moving Expenses, or see Form 3903, Moving Expenses, and its instructions. Tax 2010 Some health insurance costs (Form 1040, line 29 or Form 1040NR, line 29) if you were self-employed and had a net profit for the year, or if you received wages in 2013 from an S corporation in which you were a more-than-2% shareholder. Tax 2010 For more details, see Publication 535, Business Expenses. Tax 2010 Payments to your self-employed SEP, SIMPLE, or qualified plan (Form 1040, line 28 or Form 1040NR, line 28). Tax 2010 For more information, including limits on how much you can deduct, see Publication 560, Retirement Plans for Small Business. Tax 2010 Penalties paid on early withdrawal of savings (Form 1040, line 30 or Form 1040NR, line 30). Tax 2010 Form 1099-INT, Interest Income, or Form 1099-OID, Original Issue Discount, will show the amount of any penalty you were charged. Tax 2010 Alimony payments (Form 1040, line 31a). Tax 2010 For more information, see Publication 504, Divorced or Separated Individuals. Tax 2010 There are other items you can claim as adjustments to income. Tax 2010 These adjustments are discussed in your tax return instructions. Tax 2010 Individual Retirement Arrangement (IRA) Contributions and Deductions This section explains the tax treatment of amounts you pay into traditional IRAs. Tax 2010 A traditional IRA is any IRA that is not a Roth or SIMPLE IRA. Tax 2010 Roth and SIMPLE IRAs are defined earlier in the IRA discussion under Retirement Plan Distributions . Tax 2010 For more detailed information, see Publication 590. Tax 2010 Contributions. Tax 2010   An IRA is a personal savings plan that offers you tax advantages to set aside money for your retirement. Tax 2010 Two advantages of a traditional IRA are: You may be able to deduct some or all of your contributions to it, depending on your circumstances, and Generally, amounts in your IRA, including earnings and gains, are not taxed until distributed. Tax 2010    Although interest earned from your traditional IRA generally is not taxed in the year earned, it is not tax-exempt interest. Tax 2010 Do not report this interest on your tax return as tax-exempt interest. Tax 2010 General limit. Tax 2010   The most that can be contributed for 2013 to your traditional IRA is the smaller of the following amounts. Tax 2010 Your taxable compensation for the year, or $5,500 ($6,500 if you were age 50 or older by the end of 2013). Tax 2010 Contributions to Kay Bailey Hutchison Spousal IRAs. Tax 2010   In the case of a married couple filing a joint return for 2013, up to $5,500 ($6,500 for each spouse age 50 or older by the end of 2013) can be contributed to IRAs on behalf of each spouse, even if one spouse has little or no compensation. Tax 2010 For more information on the general limit and the Kay Bailey Hutchison Spousal IRA limit, see How Much Can Be Contributed? in Publication 590. Tax 2010 Deductible contribution. Tax 2010   Generally, you can deduct the lesser of the contributions to your traditional IRA for the year or the general limit (or Kay Bailey Hutchison Spousal IRA limit, if applicable) just explained. Tax 2010 However, if you or your spouse was covered by an employer retirement plan at any time during the year for which contributions were made, you may not be able to deduct all of the contributions. Tax 2010 Your deduction may be reduced or eliminated, depending on your filing status and the amount of your income. Tax 2010 For more information, see Limit if Covered by Employer Plan in Publication 590. Tax 2010 Nondeductible contribution. Tax 2010   The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. Tax 2010 You must file Form 8606, Nondeductible IRAs, to report nondeductible contributions even if you do not have to file a tax return for the year. Tax 2010    For 2014, the most that can be contributed to your traditional IRA is $5,500 ($6,500 if you are age 50 or older at the end of 2014). Tax 2010 Prev  Up  Next   Home   More Online Publications
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Halloween

On Halloween—October 31—many American children dress up in funny or scary costumes and go "trick or treating" by knocking on doors in their neighborhood. The neighbors are expected to respond by giving them candy or other small gifts. Children and adults also might celebrate Halloween with costume parties.


Halloween Safety

  • Child Pedestrian Safety on Halloween
    Children are four times more likely to be in fatal pedestrian accidents on Halloween than on any other night of the year.
  • Decorative Contact Lenses – How to Buy Them Safely
    Decorative contact lenses are prescription devices that should only be purchased from authorized distributors. Using over-the-counter lenses could lead to eye damage or even blindness. Learn how to buy and use decorative contact lenses safely.
  • Halloween Food Safety
    Party food safety advice from the manager of the USDA Meat and Poultry Hotline.
  • Halloween Food Safety Tips
    Steps to help your children have a safe Halloween, and tips for Halloween parties, from the U.S. Food and Drug Administration.
  • Halloween Health and Safety Tips
    Tips to help make the festivities fun and safe for trick-or-treaters and party guests.
  • Halloween Safety Tips
    Stay safe this Halloween with safety tips from the U.S. Consumer Product Safety Commission. (PDF)
  • Makeup Safety
    Help keep your fun from leaving you with a rash, swollen eyelids, or other grief.
  • Reduce Halloween Candy Overload
    Do you want to stop children from eating too much candy this Halloween? The U.S. Department of Health and Human Services offers tips—like giving out stickers, toys, or bubbles instead of candy, and trading a toy or extra allowance for your children's candy.
  • Stay Safe and Healthy This Halloween
    Ideas for safe costumes, healthy treats, safe trick-or-treating, and staying active this Halloween, from the Centers for Disease Control and Prevention.

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Halloween Facts and Fun

  • Halloween Around the World
    Festivals commemorating the dead can be found in many cultures. Learn more from the National Endowment for the Humanities.
  • Halloween at the White House
    Photos of White House Halloween festivities from years past.
  • Halloween by the Numbers
    How many millions of pounds of pumpkins are produced each year in the U.S.? And how many pounds of candy does an American eat annually? The U.S. Census Department knows.
  • Halloween Capital of the World
    Did you know that Halloween has a capital? Find out where, from the Library of Congress.

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Especially for Kids

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History of Halloween

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Halloween Recipes

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The Tax 2010

Tax 2010 5. Tax 2010   Personal Use of Dwelling Unit (Including Vacation Home) Table of Contents Dividing Expenses Dwelling Unit Used as a HomeMain home. Tax 2010 Shared equity financing agreement. Tax 2010 Donation of use of the property. Tax 2010 Examples. Tax 2010 Days used for repairs and maintenance. Tax 2010 Days used as a main home before or after renting. Tax 2010 Reporting Income and DeductionsNot used as a home. Tax 2010 Used as a home but rented less than 15 days. Tax 2010 Used as a home and rented 15 days or more. Tax 2010 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. Tax 2010 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. Tax 2010 Only your rental expenses may deducted on Schedule E (Form 1040). Tax 2010 Some of your personal expenses may be deductible if you itemize your deductions on Schedule A (Form 1040). Tax 2010 You must also determine if the dwelling unit is considered a home. Tax 2010 The amount of rental expenses that you can deduct may be limited if the dwelling unit is considered a home. Tax 2010 Whether a dwelling unit is considered a home depends on how many days during the year are considered to be days of personal use. Tax 2010 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. Tax 2010 Dwelling unit. Tax 2010   A dwelling unit includes a house, apartment, condominium, mobile home, boat, vacation home, or similar property. Tax 2010 It also includes all structures or other property belonging to the dwelling unit. Tax 2010 A dwelling unit has basic living accommodations, such as sleeping space, a toilet, and cooking facilities. Tax 2010   A dwelling unit does not include property (or part of the property) used solely as a hotel, motel, inn, or similar establishment. Tax 2010 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. Tax 2010 Example. Tax 2010 You rent a room in your home that is always available for short-term occupancy by paying customers. Tax 2010 You do not use the room yourself and you allow only paying customers to use the room. Tax 2010 This room is used solely as a hotel, motel, inn, or similar establishment and is not a dwelling unit. Tax 2010 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. Tax 2010 When dividing your expenses, follow these rules. Tax 2010 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. Tax 2010 (This rule does not apply when determining whether you used the unit as a home. Tax 2010 ) Any day that the unit is available for rent but not actually rented is not a day of rental use. Tax 2010 Fair rental price. Tax 2010   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. Tax 2010 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. Tax 2010   Ask yourself the following questions when comparing another property with yours. Tax 2010 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. Tax 2010 Example. Tax 2010 Your beach cottage was available for rent from June 1 through August 31 (92 days). Tax 2010 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. Tax 2010 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. Tax 2010 Your family also used the cottage during the last 2 weeks of May (14 days). Tax 2010 The cottage was not used at all before May 17 or after August 31. Tax 2010 You figure the part of the cottage expenses to treat as rental expenses as follows. Tax 2010 The cottage was used for rental a total of 85 days (92 − 7). Tax 2010 The days it was available for rent but not rented (7 days) are not days of rental use. Tax 2010 The July weekend (2 days) you used it is rental use because you received a fair rental price for the weekend. Tax 2010 You used the cottage for personal purposes for 14 days (the last 2 weeks in May). Tax 2010 The total use of the cottage was 99 days (14 days personal use + 85 days rental use). Tax 2010 Your rental expenses are 85/99 (86%) of the cottage expenses. Tax 2010 Note. Tax 2010 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. Tax 2010 Therefore, you had 16 days of personal use and 83 days of rental use for this purpose. Tax 2010 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. Tax 2010 If you have a net loss, you may not be able to deduct all of the rental expenses. Tax 2010 See Dwelling Unit Used as a Home, next. Tax 2010 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. Tax 2010 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. Tax 2010 See What is a day of personal use , later. Tax 2010 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. Tax 2010 Instead, count it as a day of personal use in applying both (1) and (2) above. Tax 2010 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. Tax 2010 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). Tax 2010 However, see Days used as a main home before or after renting , later. Tax 2010 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. Tax 2010 Family includes only your spouse, brothers and sisters, half-brothers and half-sisters, ancestors (parents, grandparents, etc. Tax 2010 ), and lineal descendants (children, grandchildren, etc. Tax 2010 ). Tax 2010 Anyone under an arrangement that lets you use some other dwelling unit. Tax 2010 Anyone at less than a fair rental price. Tax 2010 Main home. Tax 2010   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. Tax 2010 Shared equity financing agreement. Tax 2010   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. Tax 2010 Donation of use of the property. Tax 2010   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. Tax 2010 Examples. Tax 2010   The following examples show how to determine if you have days of personal use. Tax 2010 Example 1. Tax 2010 You and your neighbor are co-owners of a condominium at the beach. Tax 2010 Last year, you rented the unit to vacationers whenever possible. Tax 2010 The unit was not used as a main home by anyone. Tax 2010 Your neighbor used the unit for 2 weeks last year; you did not use it at all. Tax 2010 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. Tax 2010 Example 2. Tax 2010 You and your neighbors are co-owners of a house under a shared equity financing agreement. Tax 2010 Your neighbors live in the house and pay you a fair rental price. Tax 2010 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. Tax 2010 This is because your neighbors rent the house as their main home under a shared equity financing agreement. Tax 2010 Example 3. Tax 2010 You own a rental property that you rent to your son. Tax 2010 Your son does not own any interest in this property. Tax 2010 He uses it as his main home and pays you a fair rental price. Tax 2010 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. Tax 2010 Example 4. Tax 2010 You rent your beach house to Rosa. Tax 2010 Rosa rents her cabin in the mountains to you. Tax 2010 You each pay a fair rental price. Tax 2010 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. Tax 2010 Example 5. Tax 2010 You rent an apartment to your mother at less than a fair rental price. Tax 2010 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. Tax 2010 Days used for repairs and maintenance. Tax 2010   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. Tax 2010 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. Tax 2010 Example. Tax 2010 Corey owns a cabin in the mountains that he rents for most of the year. Tax 2010 He spends a week at the cabin with family members. Tax 2010 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. Tax 2010 Corey's family members, however, work substantially full time on the cabin each day during the week. Tax 2010 The main purpose of being at the cabin that week is to do maintenance work. Tax 2010 Therefore, the use of the cabin during the week by Corey and his family will not be considered personal use by Corey. Tax 2010 Days used as a main home before or after renting. Tax 2010   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. Tax 2010 Do not count them as days of personal use if: You rented or tried to rent the property for 12 or more consecutive months. Tax 2010 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. Tax 2010 However, this special rule does not apply when dividing expenses between rental and personal use. Tax 2010 See Property Changed to Rental Use in chapter 4. Tax 2010 Example 1. Tax 2010 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. Tax 2010 You rented your house at a fair rental price from March 15, 2012, to May 14, 2013 (14 months). Tax 2010 On June 1, 2013, you moved back into your old house. Tax 2010 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. Tax 2010 Therefore, you would use the rules in chapter 1 when figuring your rental income and expenses. Tax 2010 Example 2. Tax 2010 On January 31, you moved out of the condominium where you had lived for 3 years. Tax 2010 You offered it for rent at a fair rental price beginning on February 1. Tax 2010 You were unable to rent it until April. Tax 2010 On September 15, you sold the condominium. Tax 2010 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. Tax 2010 Examples. Tax 2010   The following examples show how to determine whether you used your rental property as a home. Tax 2010 Example 1. Tax 2010 You converted the basement of your home into an apartment with a bedroom, a bathroom, and a small kitchen. Tax 2010 You rented the basement apartment at a fair rental price to college students during the regular school year. Tax 2010 You rented to them on a 9-month lease (273 days). Tax 2010 You figured 10% of the total days rented to others at a fair rental price is 27 days. Tax 2010 During June (30 days), your brothers stayed with you and lived in the basement apartment rent free. Tax 2010 Your basement apartment was used as a home because you used it for personal purposes for 30 days. Tax 2010 Rent-free use by your brothers is considered personal use. Tax 2010 Your personal use (30 days) is more than the greater of 14 days or 10% of the total days it was rented (27 days). Tax 2010 Example 2. Tax 2010 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). Tax 2010 Your sister-in-law stayed in the room, rent free, for the last 3 weeks (21 days) in July. Tax 2010 You figured 10% of the total days rented to others at a fair rental price is 3 days. Tax 2010 The room was used as a home because you used it for personal purposes for 21 days. Tax 2010 That is more than the greater of 14 days or 10% of the 27 days it was rented (3 days). Tax 2010 Example 3. Tax 2010 You own a condominium apartment in a resort area. Tax 2010 You rented it at a fair rental price for a total of 170 days during the year. Tax 2010 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. Tax 2010 Your family actually used the apartment for 10 of those days. Tax 2010 Therefore, the apartment is treated as having been rented for 160 (170 – 10) days. Tax 2010 You figured 10% of the total days rented to others at a fair rental price is 16 days. Tax 2010 Your family also used the apartment for 7 other days during the year. Tax 2010 You used the apartment as a home because you used it for personal purposes for 17 days. Tax 2010 That is more than the greater of 14 days or 10% of the 160 days it was rented (16 days). Tax 2010 Minimal rental use. Tax 2010   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. Tax 2010 See Used as a home but rented less than 15 days, later, for more information. Tax 2010 Limit on deductions. Tax 2010   Renting a dwelling unit that is considered a home is not a passive activity. Tax 2010 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. Tax 2010 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. Tax 2010 Any expenses carried forward to the next year will be subject to any limits that apply for that year. Tax 2010 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. Tax 2010   To figure your deductible rental expenses for this year and any carryover to next year, use Worksheet 5–1. Tax 2010 Reporting Income and Deductions Property not used for personal purposes. Tax 2010   If you do not use a dwelling unit for personal purposes, see chapter 3 for how to report your rental income and expenses. Tax 2010 Property used for personal purposes. Tax 2010   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. Tax 2010 Not used as a home. Tax 2010   If you use a dwelling unit for personal purposes, but not as a home, report all the rental income in your income. Tax 2010 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 . Tax 2010 The expenses for personal use are not deductible as rental expenses. Tax 2010   Your deductible rental expenses can be more than your gross rental income; however, see Limits on Rental Losses in chapter 3. Tax 2010 Used as a home but rented less than 15 days. Tax 2010   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). Tax 2010 You are not required to report the rental income and rental expenses from this activity. Tax 2010 The expenses, including qualified mortgage interest, property taxes, and any qualified casualty loss will be reported as normally allowed on Schedule A (Form 1040). Tax 2010 See the Instructions for Schedule A (Form 1040) for more information on deducting these expenses. Tax 2010 Used as a home and rented 15 days or more. Tax 2010   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. Tax 2010 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 . Tax 2010 The expenses for personal use are not deductible as rental expenses. Tax 2010   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. Tax 2010 You do not need to use Worksheet 5-1. Tax 2010   However, if you had a net loss from renting the dwelling unit for the year, your deduction for certain rental expenses is limited. Tax 2010 To figure your deductible rental expenses and any carryover to next year, use Worksheet 5–1. Tax 2010 Worksheet 5-1. Tax 2010 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. Tax 2010 Did you use the dwelling unit as a home this year? (See Dwelling Unit Used as a Home . Tax 2010 ) 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. Tax 2010 Rental Use Percentage A. Tax 2010 Total days available for rent at fair rental price A. Tax 2010       B. Tax 2010 Total days available for rent (line A) but not rented B. Tax 2010       C. Tax 2010 Total days of rental use. Tax 2010 Subtract line B from line A C. Tax 2010       D. Tax 2010 Total days of personal use (including days rented at less than fair rental price) D. Tax 2010       E. Tax 2010 Total days of rental and personal use. Tax 2010 Add lines C and D E. Tax 2010       F. Tax 2010 Percentage of expenses allowed for rental. Tax 2010 Divide line C by line E     F. Tax 2010 . Tax 2010 PART II. Tax 2010 Allowable Rental Expenses 1. Tax 2010 Enter rents received 1. Tax 2010   2a. Tax 2010 Enter the rental portion of deductible home mortgage interest and qualified mortgage insurance premiums (see instructions) 2a. Tax 2010       b. Tax 2010 Enter the rental portion of real estate taxes b. Tax 2010       c. Tax 2010 Enter the rental portion of deductible casualty and theft losses (see instructions) c. Tax 2010       d. Tax 2010 Enter direct rental expenses (see instructions) d. Tax 2010       e. Tax 2010 Fully deductible rental expenses. Tax 2010 Add lines 2a–2d. Tax 2010 Enter here and  on the appropriate lines on Schedule E (see instructions) 2e. Tax 2010   3. Tax 2010 Subtract line 2e from line 1. Tax 2010 If zero or less, enter -0- 3. Tax 2010   4a. Tax 2010 Enter the rental portion of expenses directly related to operating or maintaining  the dwelling unit (such as repairs, insurance, and utilities) 4a. Tax 2010       b. Tax 2010 Enter the rental portion of excess mortgage interest and qualified mortgage insurance premiums (see instructions) b. Tax 2010       c. Tax 2010 Carryover of operating expenses from 2012 worksheet c. Tax 2010       d. Tax 2010 Add lines 4a–4c d. Tax 2010       e. Tax 2010 Allowable expenses. Tax 2010 Enter the smaller of line 3 or line 4d (see instructions) 4e. Tax 2010   5. Tax 2010 Subtract line 4e from line 3. Tax 2010 If zero or less, enter -0- 5. Tax 2010   6a. Tax 2010 Enter the rental portion of excess casualty and theft losses (see instructions) 6a. Tax 2010       b. Tax 2010 Enter the rental portion of depreciation of the dwelling unit b. Tax 2010       c. Tax 2010 Carryover of excess casualty losses and depreciation from 2012 worksheet c. Tax 2010       d. Tax 2010 Add lines 6a–6c d. Tax 2010       e. Tax 2010 Allowable excess casualty and theft losses and depreciation. Tax 2010 Enter the smaller of  line 5 or line 6d (see instructions) 6e. Tax 2010   PART III. Tax 2010 Carryover of Unallowed Expenses to Next Year 7a. Tax 2010 Operating expenses to be carried over to next year. Tax 2010 Subtract line 4e from line 4d 7a. Tax 2010   b. Tax 2010 Excess casualty and theft losses and depreciation to be carried over to next year. Tax 2010  Subtract line 6e from line 6d b. Tax 2010   Worksheet 5-1 Instructions. Tax 2010 Worksheet for Figuring Rental Deductions for a Dwelling Unit Used as a Home Caution. Tax 2010 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. Tax 2010 Line 2a. Tax 2010 Figure the mortgage interest on the dwelling unit that you could deduct on Schedule A as if you had not rented the unit. Tax 2010 Do not include interest on a loan that did not benefit the dwelling unit. Tax 2010 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. Tax 2010 Include interest on a loan used to buy, build, or improve the dwelling unit, or to refinance such a loan. Tax 2010 Include the rental portion of this interest in the total you enter on line 2a of the worksheet. Tax 2010   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. Tax 2010 See the Schedule A instructions. Tax 2010 However, figure your adjusted gross income (Form 1040, line 38) without your rental income and expenses from the dwelling unit. Tax 2010 See Line 4b to deduct the part of the qualified mortgage insurance premiums not allowed because of the adjusted gross income limit. Tax 2010 Include the rental portion of the amount from Schedule A, line 13, in the total you enter on line 2a of the worksheet. Tax 2010   Note. Tax 2010 Do not file this Schedule A or use it to figure the amount to deduct on line 13 of that schedule. Tax 2010 Instead, figure the personal portion on a separate Schedule A. Tax 2010 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. Tax 2010           Line 2c. Tax 2010 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. Tax 2010 To do this, complete Section A of Form 4684, Casualties and Thefts, treating the losses as personal losses. Tax 2010 If any of the loss is due to a federally declared disaster, see the Instructions for Form 4684. Tax 2010 On Form 4684, line 17, enter 10% of your adjusted gross income figured without your rental income and expenses from the dwelling unit. Tax 2010 Enter the rental portion of the result from Form 4684, line 18, on line 2c of this worksheet. Tax 2010   Note. Tax 2010 Do not file this Form 4684 or use it to figure your personal losses on Schedule A. Tax 2010 Instead, figure the personal portion on a separate Form 4684. Tax 2010           Line 2d. Tax 2010 Enter the total of your rental expenses that are directly related only to the rental activity. Tax 2010 These include interest on loans used for rental activities other than to buy, build, or improve the dwelling unit. Tax 2010 Also include rental agency fees, advertising, office supplies, and depreciation on office equipment used in your rental activity. Tax 2010           Line 2e. Tax 2010 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. Tax 2010 Enter the amounts on lines 2a, 2b, 2c, and 2d on the appropriate lines of Schedule E. Tax 2010           Line 4b. Tax 2010 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. Tax 2010 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. Tax 2010 Do not include interest on a loan that did not benefit the dwelling unit  (as explained in the line 2a instructions). Tax 2010           Line 4e. Tax 2010 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. Tax 2010 *           Line 6a. Tax 2010 To find the rental portion of excess casualty and theft losses, use the Form 4684 you prepared for line 2c of this worksheet. Tax 2010   A. Tax 2010 Enter the amount from Form 4684, line 10       B. Tax 2010 Enter the rental portion of line A       C. Tax 2010 Enter the amount from line 2c of this worksheet       D. Tax 2010 Subtract line C from line B. Tax 2010 Enter the result here and on line 6a of this worksheet               Line 6e. Tax 2010 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. Tax 2010 * *Allocating the limited deduction. Tax 2010 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. Tax 2010 Enter the amount you allocate to each expense on the appropriate line of Schedule E, Part I. Tax 2010 Prev  Up  Next   Home   More Online Publications