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Turbotax Amended Return 2011

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Turbotax Amended Return 2011

Turbotax amended return 2011 Publication 969 - Introductory Material Table of Contents What's New Reminders IntroductionOrdering forms and publications. Turbotax amended return 2011 Tax questions. Turbotax amended return 2011 What's New Federal tax benefits for same-sex married couples. Turbotax amended return 2011   For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Turbotax amended return 2011 For more information, see Publication 501. Turbotax amended return 2011 Health flexible spending arrangements (FSAs). Turbotax amended return 2011  The following rules apply to health FSAs for plan years beginning after December 31, 2012. Turbotax amended return 2011 Salary reduction contributions to your health FSA cannot be more than $2,500 a year (indexed for inflation). Turbotax amended return 2011 Your employer may choose to change your cafeteria plan to allow you to carry over up to $500 of unused amounts remaining at the end of the plan year in a health FSA to be paid or reimbursed for qualified medical expenses incurred during the following plan year. Turbotax amended return 2011 For more information, see Balance in an FSA under Flexible Spending Arrangements (FSAs), later. Turbotax amended return 2011 Reminders Future Developments. Turbotax amended return 2011  For the latest information about developments related to Publication 969, such as legislation enacted after it was published, go to www. Turbotax amended return 2011 IRS. Turbotax amended return 2011 gov/pub969. Turbotax amended return 2011 Photographs of missing children. Turbotax amended return 2011  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Turbotax amended return 2011 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Turbotax amended return 2011 You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Turbotax amended return 2011 Introduction Various programs are designed to give individuals tax advantages to offset health care costs. Turbotax amended return 2011 This publication explains the following programs. Turbotax amended return 2011 Health savings accounts (HSAs). Turbotax amended return 2011 Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). Turbotax amended return 2011 Health flexible spending arrangements (FSAs). Turbotax amended return 2011 Health reimbursement arrangements (HRAs). Turbotax amended return 2011 An HSA may receive contributions from an eligible individual or any other person, including an employer or a family member, on behalf of an eligible individual. Turbotax amended return 2011 Contributions, other than employer contributions, are deductible on the eligible individual's return whether or not the individual itemizes deductions. Turbotax amended return 2011 Employer contributions are not included in income. Turbotax amended return 2011 Distributions from an HSA that are used to pay qualified medical expenses are not taxed. Turbotax amended return 2011 An Archer MSA may receive contributions from an eligible individual and his or her employer, but not both in the same year. Turbotax amended return 2011 Contributions by the individual are deductible whether or not the individual itemizes deductions. Turbotax amended return 2011 Employer contributions are not included in income. Turbotax amended return 2011 Distributions from an Archer MSA that are used to pay qualified medical expenses are not taxed. Turbotax amended return 2011 A Medicare Advantage MSA is an Archer MSA designated by Medicare to be used solely to pay the qualified medical expenses of the account holder who is enrolled in Medicare. Turbotax amended return 2011 Contributions can only be made by Medicare. Turbotax amended return 2011 The contributions are not included in your income. Turbotax amended return 2011 Distributions from a Medicare Advantage MSA that are used to pay qualified medical expenses are not taxed. Turbotax amended return 2011 A health FSA may receive contributions from an eligible individual. Turbotax amended return 2011 Employers may also contribute. Turbotax amended return 2011 Contributions are not includible in income. Turbotax amended return 2011 Reimbursements from an FSA that are used to pay qualified medical expenses are not taxed. Turbotax amended return 2011 An HRA must receive contributions from the employer only. Turbotax amended return 2011 Employees may not contribute. Turbotax amended return 2011 Contributions are not includible in income. Turbotax amended return 2011 Reimbursements from an HRA that are used to pay qualified medical expenses are not taxed. Turbotax amended return 2011 Comments and suggestions. Turbotax amended return 2011   We welcome your comments about this publication and your suggestions for future editions. Turbotax amended return 2011   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Turbotax amended return 2011 NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Turbotax amended return 2011 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Turbotax amended return 2011   You can send your comments from www. Turbotax amended return 2011 irs. Turbotax amended return 2011 gov/formspubs. Turbotax amended return 2011 Click on “More Information” and then on “Comment on Tax Forms and Publications. Turbotax amended return 2011 ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Turbotax amended return 2011 Ordering forms and publications. Turbotax amended return 2011   Visit www. Turbotax amended return 2011 irs. Turbotax amended return 2011 gov/formspubs to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Turbotax amended return 2011 Internal Revenue Service 1201 N. Turbotax amended return 2011 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Turbotax amended return 2011   If you have a tax question, check the information available on IRS. Turbotax amended return 2011 gov or call 1-800-829-1040. Turbotax amended return 2011 We cannot answer tax questions sent to either of the above addresses. Turbotax amended return 2011 Prev  Up  Next   Home   More Online Publications
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Identity Protection

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The IRS is committed to working with taxpayers who are the victims of identity theft

The IRS has taken numerous steps to combat identity theft and protect taxpayers. We are continually looking at ways to increase data security and protect taxpayers' identities with assistance from our Identity Protection Specialized Unit. Identity theft cases are among the most complex ones we handle.

We know identity theft is a frustrating process for victims. We take this issue very seriously and continue to expand on our robust screening process in order to stop fraudulent returns and protect innocent taxpayers.

On this page, you will find a wide range of information. Depending upon your personal circumstances, the information found here will cover a variety of scenarios involving identity theft, ranging from contacting us with a case of identity theft to providing tips to help keep your records safe.

  • Victim of identity theft?

Do you have reason to believe you are the victim of identity theft and your tax accounts have been affected?

Have you been informed that someone may be using your Social Security number for employment purposes?

Remember:
The IRS does not initiate contact with taxpayers by email to request personal or financial information.  This includes any type of electronic communication, such as text messages and social media channels.

Page Last Reviewed or Updated: 13-Mar-2014

The Turbotax Amended Return 2011

Turbotax amended return 2011 8. Turbotax amended return 2011   Business Expenses Table of Contents Introduction Useful Items - You may want to see: Bad DebtsAccrual method. Turbotax amended return 2011 Cash method. Turbotax amended return 2011 Car and Truck ExpensesOffice in the home. Turbotax amended return 2011 Methods for Deducting Car and Truck Expenses Reimbursing Your Employees for Expenses Depreciation Employees' PayFringe benefits. Turbotax amended return 2011 InsuranceHow to figure the deduction. Turbotax amended return 2011 Interest Legal and Professional FeesTax preparation fees. Turbotax amended return 2011 Pension Plans Rent Expense Taxes Travel, Meals, and EntertainmentTransportation. Turbotax amended return 2011 Taxi, commuter bus, and limousine. Turbotax amended return 2011 Baggage and shipping. Turbotax amended return 2011 Car or truck. Turbotax amended return 2011 Meals and lodging. Turbotax amended return 2011 Cleaning. Turbotax amended return 2011 Telephone. Turbotax amended return 2011 Tips. Turbotax amended return 2011 More information. Turbotax amended return 2011 Business Use of Your HomeExceptions to exclusive use. Turbotax amended return 2011 Other Expenses You Can Deduct Expenses You Cannot Deduct Introduction You can deduct the costs of operating your business. Turbotax amended return 2011 These costs are known as business expenses. Turbotax amended return 2011 These are costs you do not have to capitalize or include in the cost of goods sold but can deduct in the current year. Turbotax amended return 2011 To be deductible, a business expense must be both ordinary and necessary. Turbotax amended return 2011 An ordinary expense is one that is common and accepted in your field of business. Turbotax amended return 2011 A necessary expense is one that is helpful and appropriate for your business. Turbotax amended return 2011 An expense does not have to be indispensable to be considered necessary. Turbotax amended return 2011 For more information about the general rules for deducting business expenses, see chapter 1 in Publication 535, Business Expenses. Turbotax amended return 2011 If you have an expense that is partly for business and partly personal, separate the personal part from the business part. Turbotax amended return 2011 The personal part is not deductible. Turbotax amended return 2011 Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses 946 How To Depreciate Property See chapter 12 for information about getting publications and forms. Turbotax amended return 2011 Bad Debts If someone owes you money you cannot collect, you have a bad debt. Turbotax amended return 2011 There are two kinds of bad debts, business bad debts and nonbusiness bad debts. Turbotax amended return 2011 A business bad debt is generally one that comes from operating your trade or business. Turbotax amended return 2011 You may be able to deduct business bad debts as an expense on your business tax return. Turbotax amended return 2011 Business bad debt. Turbotax amended return 2011   A business bad debt is a loss from the worthlessness of a debt that was either of the following. Turbotax amended return 2011 Created or acquired in your business. Turbotax amended return 2011 Closely related to your business when it became partly or totally worthless. Turbotax amended return 2011 A debt is closely related to your business if your primary motive for incurring the debt is a business reason. Turbotax amended return 2011   Business bad debts are mainly the result of credit sales to customers. Turbotax amended return 2011 They can also be the result of loans to suppliers, clients, employees, or distributors. Turbotax amended return 2011 Goods and services customers have not paid for are shown in your books as either accounts receivable or notes receivable. Turbotax amended return 2011 If you are unable to collect any part of these accounts or notes receivable, the uncollectible part is a business bad debt. Turbotax amended return 2011    You can take a bad debt deduction for these accounts and notes receivable only if the amount you were owed was included in your gross income either for the year the deduction is claimed or for a prior year. Turbotax amended return 2011 Accrual method. Turbotax amended return 2011   If you use an accrual method of accounting, you normally report income as you earn it. Turbotax amended return 2011 You can take a bad debt deduction for an uncollectible receivable if you have included the uncollectible amount in income. Turbotax amended return 2011 Cash method. Turbotax amended return 2011   If you use the cash method of accounting, you normally report income when you receive payment. Turbotax amended return 2011 You cannot take a bad debt deduction for amounts owed to you that you have not received and cannot collect if you never included those amounts in income. Turbotax amended return 2011 More information. Turbotax amended return 2011   For more information about business bad debts, see chapter 10 in Publication 535. Turbotax amended return 2011 Nonbusiness bad debts. Turbotax amended return 2011   All other bad debts are nonbusiness bad debts and are deductible as short-term capital losses on Form 8949 and Schedule D (Form 1040). Turbotax amended return 2011 For more information on nonbusiness bad debts, see Publication 550, Investment Income and Expenses. Turbotax amended return 2011 Car and Truck Expenses If you use your car or truck in your business, you may be able to deduct the costs of operating and maintaining your vehicle. Turbotax amended return 2011 You also may be able to deduct other costs of local transportation and traveling away from home overnight on business. Turbotax amended return 2011 You may qualify for a tax credit for qualified plug-in electric vehicles, qualified plug-in electric drive motor vehicles, and alternative motor vehicles you place in service during the year. Turbotax amended return 2011 See Form 8936 and Form 8910 for more information. Turbotax amended return 2011 Local transportation expenses. Turbotax amended return 2011   Local transportation expenses include the ordinary and necessary costs of all the following. Turbotax amended return 2011 Getting from one workplace to another in the course of your business or profession when you are traveling within the city or general area that is your tax home. Turbotax amended return 2011 Tax home is defined later. Turbotax amended return 2011 Visiting clients or customers. Turbotax amended return 2011 Going to a business meeting away from your regular workplace. Turbotax amended return 2011 Getting from your home to a temporary workplace when you have one or more regular places of work. Turbotax amended return 2011 These temporary workplaces can be either within the area of your tax home or outside that area. Turbotax amended return 2011 Local business transportation does not include expenses you have while traveling away from home overnight. Turbotax amended return 2011 Those expenses are deductible as travel expenses and are discussed later under Travel, Meals, and Entertainment. Turbotax amended return 2011 However, if you use your car while traveling away from home overnight, use the rules in this section to figure your car expense deduction. Turbotax amended return 2011   Generally, your tax home is your regular place of business, regardless of where you maintain your family home. Turbotax amended return 2011 It includes the entire city or general area in which your business or work is located. Turbotax amended return 2011 Example. Turbotax amended return 2011 You operate a printing business out of rented office space. Turbotax amended return 2011 You use your van to deliver completed jobs to your customers. Turbotax amended return 2011 You can deduct the cost of round-trip transportation between your customers and your print shop. Turbotax amended return 2011    You cannot deduct the costs of driving your car or truck between your home and your main or regular workplace. Turbotax amended return 2011 These costs are personal commuting expenses. Turbotax amended return 2011 Office in the home. Turbotax amended return 2011   Your workplace can be your home if you have an office in your home that qualifies as your principal place of business. Turbotax amended return 2011 For more information, see Business Use of Your Home, later. Turbotax amended return 2011 Example. Turbotax amended return 2011 You are a graphics designer. Turbotax amended return 2011 You operate your business out of your home. Turbotax amended return 2011 Your home qualifies as your principal place of business. Turbotax amended return 2011 You occasionally have to drive to your clients to deliver your completed work. Turbotax amended return 2011 You can deduct the cost of the round-trip transportation between your home and your clients. Turbotax amended return 2011 Methods for Deducting Car and Truck Expenses For local transportation or overnight travel by car or truck, you generally can use one of the following methods to figure your expenses. Turbotax amended return 2011 Standard mileage rate. Turbotax amended return 2011 Actual expenses. Turbotax amended return 2011 Standard mileage rate. Turbotax amended return 2011   You may be able to use the standard mileage rate to figure the deductible costs of operating your car, van, pickup, or panel truck for business purposes. Turbotax amended return 2011 For 2013, the standard mileage rate is 56. Turbotax amended return 2011 5 cents per mile. Turbotax amended return 2011    If you choose to use the standard mileage rate for a year, you cannot deduct your actual expenses for that year except for business-related parking fees and tolls. Turbotax amended return 2011 Choosing the standard mileage rate. Turbotax amended return 2011   If you want to use the standard mileage rate for a car or truck you own, you must choose to use it in the first year the car is available for use in your business. Turbotax amended return 2011 In later years, you can choose to use either the standard mileage rate or actual expenses. Turbotax amended return 2011   If you use the standard mileage rate for a car you lease, you must choose to use it for the entire lease period (including renewals). Turbotax amended return 2011 Standard mileage rate not allowed. Turbotax amended return 2011   You cannot use the standard mileage rate if you: Operate five or more cars at the same time, Claimed a depreciation deduction using any method other than straight line, for example, ACRS or MACRS, Claimed a section 179 deduction on the car, Claimed the special depreciation allowance on the car, Claimed actual car expenses for a car you leased, or Are a rural mail carrier who received a qualified reimbursement. Turbotax amended return 2011 Parking fees and tolls. Turbotax amended return 2011   In addition to using the standard mileage rate, you can deduct any business-related parking fees and tolls. Turbotax amended return 2011 (Parking fees you pay to park your car at your place of work are nondeductible commuting expenses. Turbotax amended return 2011 ) Actual expenses. Turbotax amended return 2011   If you do not choose to use the standard mileage rate, you may be able to deduct your actual car or truck expenses. Turbotax amended return 2011    If you qualify to use both methods, figure your deduction both ways to see which gives you a larger deduction. Turbotax amended return 2011   Actual car expenses include the costs of the following items. Turbotax amended return 2011 Depreciation Lease payments Registration Garage rent Licenses Repairs Gas Oil Tires Insurance Parking fees Tolls   If you use your vehicle for both business and personal purposes, you must divide your expenses between business and personal use. Turbotax amended return 2011 You can divide your expenses based on the miles driven for each purpose. Turbotax amended return 2011 Example. Turbotax amended return 2011 You are the sole proprietor of a flower shop. Turbotax amended return 2011 You drove your van 20,000 miles during the year. Turbotax amended return 2011 16,000 miles were for delivering flowers to customers and 4,000 miles were for personal use (including commuting miles). Turbotax amended return 2011 You can claim only 80% (16,000 ÷ 20,000) of the cost of operating your van as a business expense. Turbotax amended return 2011 More information. Turbotax amended return 2011   For more information about the rules for claiming car and truck expenses, see Publication 463. Turbotax amended return 2011 Reimbursing Your Employees for Expenses You generally can deduct the amount you reimburse your employees for car and truck expenses. Turbotax amended return 2011 The reimbursement you deduct and the manner in which you deduct it depend in part on whether you reimburse the expenses under an accountable plan or a nonaccountable plan. Turbotax amended return 2011 For details, see chapter 11 in Publication 535. Turbotax amended return 2011 That chapter explains accountable and nonaccountable plans and tells you whether to report the reimbursement on your employee's Form W-2, Wage and Tax Statement. Turbotax amended return 2011 Depreciation If property you acquire to use in your business is expected to last more than 1 year, you generally cannot deduct the entire cost as a business expense in the year you acquire it. Turbotax amended return 2011 You must spread the cost over more than 1 tax year and deduct part of it each year on Schedule C. Turbotax amended return 2011 This method of deducting the cost of business property is called depreciation. Turbotax amended return 2011 The discussion here is brief. Turbotax amended return 2011 You will find more information about depreciation in Publication 946. Turbotax amended return 2011 What property can be depreciated?   You can depreciate property if it meets all the following requirements. Turbotax amended return 2011 It must be property you own. Turbotax amended return 2011 It must be used in business or held to produce income. Turbotax amended return 2011 You never can depreciate inventory (explained in chapter 2) because it is not held for use in your business. Turbotax amended return 2011 It must have a useful life that extends substantially beyond the year it is placed in service. Turbotax amended return 2011 It must have a determinable useful life, which means that it must be something that wears out, decays, gets used up, becomes obsolete, or loses its value from natural causes. Turbotax amended return 2011 You never can depreciate the cost of land because land does not wear out, become obsolete, or get used up. Turbotax amended return 2011 It must not be excepted property. Turbotax amended return 2011 This includes property placed in service and disposed of in the same year. Turbotax amended return 2011 Repairs. Turbotax amended return 2011    You cannot depreciate repairs and replacements that do not increase the value of your property, make it more useful, or lengthen its useful life. Turbotax amended return 2011 You can deduct these amounts on line 21 of Schedule C or line 2 of Schedule C-EZ. Turbotax amended return 2011 Depreciation method. Turbotax amended return 2011   The method for depreciating most business and investment property placed in service after 1986 is called the Modified Accelerated Cost Recovery System (MACRS). Turbotax amended return 2011 MACRS is discussed in detail in Publication 946. Turbotax amended return 2011 Section 179 deduction. Turbotax amended return 2011   You can elect to deduct a limited amount of the cost of certain depreciable property in the year you place the property in service. Turbotax amended return 2011 This deduction is known as the “section 179 deduction. Turbotax amended return 2011 ” The maximum amount you can elect to deduct during 2013 is generally $500,000 (higher limits apply to certain property). Turbotax amended return 2011 See IRC 179(e). Turbotax amended return 2011   This limit is generally reduced by the amount by which the cost of the property placed in service during the tax year exceeds $2 million. Turbotax amended return 2011 The total amount of depreciation (including the section 179 deduction) you can take for a passenger automobile you use in your business and first place in service in 2013 is $3,160 ($11,160 if you take the special depreciation allowance for qualified passenger automobiles placed in service in 2013). Turbotax amended return 2011 Special rules apply to trucks and vans. Turbotax amended return 2011 For more information, see Publication 946. Turbotax amended return 2011 It explains what property qualifies for the deduction, what limits apply to the deduction, and when and how to recapture the deduction. Turbotax amended return 2011    Your section 179 election for the cost of any sport utility vehicle (SUV) and certain other vehicles is limited to $25,000. Turbotax amended return 2011 For more information, see the Instructions for Form 4562 or Publication 946. Turbotax amended return 2011 Listed property. Turbotax amended return 2011   You must follow special rules and recordkeeping requirements when depreciating listed property. Turbotax amended return 2011 Listed property is any of the following. Turbotax amended return 2011 Most passenger automobiles. Turbotax amended return 2011 Most other property used for transportation. Turbotax amended return 2011 Any property of a type generally used for entertainment, recreation, or amusement. Turbotax amended return 2011 Certain computers and related peripheral equipment. Turbotax amended return 2011   For more information about listed property, see Publication 946. Turbotax amended return 2011 Form 4562. Turbotax amended return 2011   Use Form 4562, Depreciation and Amortization, if you are claiming any of the following. Turbotax amended return 2011 Depreciation on property placed in service during the current tax year. Turbotax amended return 2011 A section 179 deduction. Turbotax amended return 2011 Depreciation on any listed property (regardless of when it was placed in service). Turbotax amended return 2011    If you have to use Form 4562, you must file Schedule C. Turbotax amended return 2011 You cannot use Schedule C-EZ. Turbotax amended return 2011   Employees' Pay You can generally deduct on Schedule C the pay you give your employees for the services they perform for your business. Turbotax amended return 2011 The pay may be in cash, property, or services. Turbotax amended return 2011 To be deductible, your employees' pay must be an ordinary and necessary expense and you must pay or incur it in the tax year. Turbotax amended return 2011 In addition, the pay must meet both the following tests. Turbotax amended return 2011 The pay must be reasonable. Turbotax amended return 2011 The pay must be for services performed. Turbotax amended return 2011 Chapter 2 in Publication 535 explains and defines these requirements. Turbotax amended return 2011 You cannot deduct your own salary or any personal withdrawals you make from your business. Turbotax amended return 2011 As a sole proprietor, you are not an employee of the business. Turbotax amended return 2011 If you had employees during the year, you must use Schedule C. Turbotax amended return 2011 You cannot use Schedule C-EZ. Turbotax amended return 2011 Kinds of pay. Turbotax amended return 2011   Some of the ways you may provide pay to your employees are listed below. Turbotax amended return 2011 For an explanation of each of these items, see chapter 2 in Publication 535. Turbotax amended return 2011 Awards. Turbotax amended return 2011 Bonuses. Turbotax amended return 2011 Education expenses. Turbotax amended return 2011 Fringe benefits (discussed later). Turbotax amended return 2011 Loans or advances you do not expect the employee to repay if they are for personal services actually performed. Turbotax amended return 2011 Property you transfer to an employee as payment for services. Turbotax amended return 2011 Reimbursements for employee business expenses. Turbotax amended return 2011 Sick pay. Turbotax amended return 2011 Vacation pay. Turbotax amended return 2011 Fringe benefits. Turbotax amended return 2011   A fringe benefit is a form of pay for the performance of services. Turbotax amended return 2011 The following are examples of fringe benefits. Turbotax amended return 2011 Benefits under qualified employee benefit programs. Turbotax amended return 2011 Meals and lodging. Turbotax amended return 2011 The use of a car. Turbotax amended return 2011 Flights on airplanes. Turbotax amended return 2011 Discounts on property or services. Turbotax amended return 2011 Memberships in country clubs or other social clubs. Turbotax amended return 2011 Tickets to entertainment or sporting events. Turbotax amended return 2011   Employee benefit programs include the following. Turbotax amended return 2011 Accident and health plans. Turbotax amended return 2011 Adoption assistance. Turbotax amended return 2011 Cafeteria plans. Turbotax amended return 2011 Dependent care assistance. Turbotax amended return 2011 Educational assistance. Turbotax amended return 2011 Group-term life insurance coverage. Turbotax amended return 2011 Welfare benefit funds. Turbotax amended return 2011   You can generally deduct the cost of fringe benefits you provide on your Schedule C in whatever category the cost falls. Turbotax amended return 2011 For example, if you allow an employee to use a car or other property you lease, deduct the cost of the lease as a rent or lease expense. Turbotax amended return 2011 If you own the property, include your deduction for its cost or other basis as a section 179 deduction or a depreciation deduction. Turbotax amended return 2011    You may be able to exclude all or part of the fringe benefits you provide from your employees' wages. Turbotax amended return 2011 For more information about fringe benefits and the exclusion of benefits, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. Turbotax amended return 2011 Insurance You can generally deduct premiums you pay for the following kinds of insurance related to your business. Turbotax amended return 2011 Fire, theft, flood, or similar insurance. Turbotax amended return 2011 Credit insurance that covers losses from business bad debts. Turbotax amended return 2011 Group hospitalization and medical insurance for employees, including long-term care insurance. Turbotax amended return 2011 Liability insurance. Turbotax amended return 2011 Malpractice insurance that covers your personal liability for professional negligence resulting in injury or damage to patients or clients. Turbotax amended return 2011 Workers' compensation insurance set by state law that covers any claims for bodily injuries or job-related diseases suffered by employees in your business, regardless of fault. Turbotax amended return 2011 Contributions to a state unemployment insurance fund are deductible as taxes if they are considered taxes under state law. Turbotax amended return 2011 Overhead insurance that pays for business overhead expenses you have during long periods of disability caused by your injury or sickness. Turbotax amended return 2011 Car and other vehicle insurance that covers vehicles used in your business for liability, damages, and other losses. Turbotax amended return 2011 If you operate a vehicle partly for personal use, deduct only the part of the insurance premium that applies to the business use of the vehicle. Turbotax amended return 2011 If you use the standard mileage rate to figure your car expenses, you cannot deduct any car insurance premiums. Turbotax amended return 2011 Life insurance covering your employees if you are not directly or indirectly the beneficiary under the contract. Turbotax amended return 2011 Business interruption insurance that pays for lost profits if your business is shut down due to a fire or other cause. Turbotax amended return 2011 Nondeductible premiums. Turbotax amended return 2011   You cannot deduct premiums on the following kinds of insurance. Turbotax amended return 2011 Self-insurance reserve funds. Turbotax amended return 2011 You cannot deduct amounts credited to a reserve set up for self-insurance. Turbotax amended return 2011 This applies even if you cannot get business insurance coverage for certain business risks. Turbotax amended return 2011 However, your actual losses may be deductible. Turbotax amended return 2011 For more information, see Publication 547, Casualties, Disasters, and Thefts. Turbotax amended return 2011 Loss of earnings. Turbotax amended return 2011 You cannot deduct premiums for a policy that pays for your lost earnings due to sickness or disability. Turbotax amended return 2011 However, see item (8) in the previous list. Turbotax amended return 2011 Certain life insurance and annuities. Turbotax amended return 2011 For contracts issued before June 9, 1997, you cannot deduct the premiums on a life insurance policy covering you, an employee, or any person with a financial interest in your business if you are directly or indirectly a beneficiary of the policy. Turbotax amended return 2011 You are included among possible beneficiaries of the policy if the policy owner is obligated to repay a loan from you using the proceeds of the policy. Turbotax amended return 2011 A person has a financial interest in your business if the person is an owner or part owner of the business or has lent money to the business. Turbotax amended return 2011 For contracts issued after June 8, 1997, you generally cannot deduct the premiums on any life insurance policy, endowment contract, or annuity contract if you are directly or indirectly a beneficiary. Turbotax amended return 2011 The disallowance applies without regard to whom the policy covers. Turbotax amended return 2011 Insurance to secure a loan. Turbotax amended return 2011 If you take out a policy on your life or on the life of another person with a financial interest in your business to get or protect a business loan, you cannot deduct the premiums as a business expense. Turbotax amended return 2011 Nor can you deduct the premiums as interest on business loans or as an expense of financing loans. Turbotax amended return 2011 In the event of death, the proceeds of the policy are not taxed as income even if they are used to liquidate the debt. Turbotax amended return 2011 Self-employed health insurance deduction. Turbotax amended return 2011   You may be able to deduct the amount you paid for medical and dental insurance and qualified long-term care insurance for you and your family. Turbotax amended return 2011 How to figure the deduction. Turbotax amended return 2011   Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. Turbotax amended return 2011 However, if any of the following apply, you must use the worksheet in chapter 6 of Publication 535. Turbotax amended return 2011 You have more than one source of income subject to self-employment tax. Turbotax amended return 2011 You file Form 2555 or Form 2555-EZ (relating to foreign earned income). Turbotax amended return 2011 You are using amounts paid for qualified long-term care insurance to figure the deduction. Turbotax amended return 2011 Prepayment. Turbotax amended return 2011   You cannot deduct expenses in advance, even if you pay them in advance. Turbotax amended return 2011 This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. Turbotax amended return 2011 Example. Turbotax amended return 2011 In 2013, you signed a 3-year insurance contract. Turbotax amended return 2011 Even though you paid the premiums for 2013, 2014, and 2015 when you signed the contract, you can only deduct the premium for 2013 on your 2013 tax return. Turbotax amended return 2011 You can deduct in 2014 and 2015 the premium allocable to those years. Turbotax amended return 2011 More information. Turbotax amended return 2011   For more information about deducting insurance, see chapter 6 in Publication 535. Turbotax amended return 2011 Interest You can generally deduct as a business expense all interest you pay or accrue during the tax year on debts related to your business. Turbotax amended return 2011 Interest relates to your business if you use the proceeds of the loan for a business expense. Turbotax amended return 2011 It does not matter what type of property secures the loan. Turbotax amended return 2011 You can deduct interest on a debt only if you meet all of the following requirements. Turbotax amended return 2011 You are legally liable for that debt. Turbotax amended return 2011 Both you and the lender intend that the debt be repaid. Turbotax amended return 2011 You and the lender have a true debtor-creditor relationship. Turbotax amended return 2011 You cannot deduct on Schedule C or C-EZ the interest you paid on personal loans. Turbotax amended return 2011 If a loan is part business and part personal, you must divide the interest between the personal part and the business part. Turbotax amended return 2011 Example. Turbotax amended return 2011 In 2013, you paid $600 interest on a car loan. Turbotax amended return 2011 During 2013, you used the car 60% for business and 40% for personal purposes. Turbotax amended return 2011 You are claiming actual expenses on the car. Turbotax amended return 2011 You can only deduct $360 (60% × $600) for 2013 on Schedule C or C-EZ. Turbotax amended return 2011 The remaining interest of $240 is a nondeductible personal expense. Turbotax amended return 2011 More information. Turbotax amended return 2011   For more information about deducting interest, see chapter 4 in Publication 535. Turbotax amended return 2011 That chapter explains the following items. Turbotax amended return 2011 Interest you can deduct. Turbotax amended return 2011 Interest you cannot deduct. Turbotax amended return 2011 How to allocate interest between personal and business use. Turbotax amended return 2011 When to deduct interest. Turbotax amended return 2011 The rules for a below-market interest rate loan. Turbotax amended return 2011 (This is generally a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. Turbotax amended return 2011 ) Legal and Professional Fees Legal and professional fees, such as fees charged by accountants, that are ordinary and necessary expenses directly related to operating your business are deductible on Schedule C or C-EZ. Turbotax amended return 2011 However, you usually cannot deduct legal fees you pay to acquire business assets. Turbotax amended return 2011 Add them to the basis of the property. Turbotax amended return 2011 If the fees include payments for work of a personal nature (such as making a will), you can take a business deduction only for the part of the fee related to your business. Turbotax amended return 2011 The personal part of legal fees for producing or collecting taxable income, doing or keeping your job, or for tax advice may be deductible on Schedule A (Form 1040) if you itemize deductions. Turbotax amended return 2011 For more information, see Publication 529, Miscellaneous Deductions. Turbotax amended return 2011 Tax preparation fees. Turbotax amended return 2011   You can deduct on Schedule C or C-EZ the cost of preparing that part of your tax return relating to your business as a sole proprietor or statutory employee. Turbotax amended return 2011 You can deduct the remaining cost on Schedule A (Form 1040) if you itemize your deductions. Turbotax amended return 2011   You can also deduct on Schedule C or C-EZ the amount you pay or incur in resolving asserted tax deficiencies for your business as a sole proprietor or statutory employee. Turbotax amended return 2011 Pension Plans You can set up and maintain the following small business retirement plans for yourself and your employees. Turbotax amended return 2011 SEP (Simplified Employee Pension) plans. Turbotax amended return 2011 SIMPLE (Savings Incentive Match Plan for Employees) plans. Turbotax amended return 2011 Qualified plans (including Keogh or H. Turbotax amended return 2011 R. Turbotax amended return 2011 10 plans). Turbotax amended return 2011 SEP, SIMPLE, and qualified plans offer you and your employees a tax favored way to save for retirement. Turbotax amended return 2011 You can deduct contributions you make to the plan for your employees on line 19 of Schedule C. Turbotax amended return 2011 If you are a sole proprietor, you can deduct contributions you make to the plan for yourself on line 28 of Form 1040. Turbotax amended return 2011 You can also deduct trustees' fees if contributions to the plan do not cover them. Turbotax amended return 2011 Earnings on the contributions are generally tax free until you or your employees receive distributions from the plan. Turbotax amended return 2011 You may also be able to claim a tax credit of 50% of the first $1,000 of qualified startup costs if you begin a new qualified defined benefit or defined contribution plan (including a 401(k) plan), SIMPLE plan, or simplified employee pension. Turbotax amended return 2011 Under certain plans, employees can have you contribute limited amounts of their before-tax pay to a plan. Turbotax amended return 2011 These amounts (and earnings on them) are generally tax free until your employees receive distributions from the plan. Turbotax amended return 2011 For more information on retirement plans for small business, see Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans). Turbotax amended return 2011 Publication 590, Individual Retirement Arrangements (IRAs), discusses other tax favored ways to save for retirement. Turbotax amended return 2011 Rent Expense Rent is any amount you pay for the use of property you do not own. Turbotax amended return 2011 In general, you can deduct rent as a business expense only if the rent is for property you use in your business. Turbotax amended return 2011 If you have or will receive equity in or title to the property, you cannot deduct the rent. Turbotax amended return 2011 Unreasonable rent. Turbotax amended return 2011   You cannot take a rental deduction for unreasonable rents. Turbotax amended return 2011 Ordinarily, the issue of reasonableness arises only if you and the lessor are related. Turbotax amended return 2011 Rent paid to a related person is reasonable if it is the same amount you would pay to a stranger for use of the same property. Turbotax amended return 2011 Rent is not unreasonable just because it is figured as a percentage of gross receipts. Turbotax amended return 2011   Related persons include members of your immediate family, including only brothers and sisters (either whole or half), your spouse, ancestors, and lineal descendants. Turbotax amended return 2011 For a list of the other related persons, see section 267 of the Internal Revenue Code. Turbotax amended return 2011 Rent on your home. Turbotax amended return 2011   If you rent your home and use part of it as your place of business, you may be able to deduct the rent you pay for that part. Turbotax amended return 2011 You must meet the requirements for business use of your home. Turbotax amended return 2011 For more information, see Business Use of Your Home , later. Turbotax amended return 2011 Rent paid in advance. Turbotax amended return 2011   Generally, rent paid in your business is deductible in the year paid or accrued. Turbotax amended return 2011 If you pay rent in advance, you can deduct only the amount that applies to your use of the rented property during the tax year. Turbotax amended return 2011 You can deduct the rest of your payment only over the period to which it applies. Turbotax amended return 2011 More information. Turbotax amended return 2011   For more information about rent, see chapter 3 in Publication 535. Turbotax amended return 2011 Taxes You can deduct on Schedule C or C-EZ various federal, state, local, and foreign taxes directly attributable to your business. Turbotax amended return 2011 Income taxes. Turbotax amended return 2011   You can deduct on Schedule C or C-EZ a state tax on gross income (as distinguished from net income) directly attributable to your business. Turbotax amended return 2011 You can deduct other state and local income taxes on Schedule A (Form 1040) if you itemize your deductions. Turbotax amended return 2011 Do not deduct federal income tax. Turbotax amended return 2011 Employment taxes. Turbotax amended return 2011   You can deduct the social security, Medicare, and federal unemployment (FUTA) taxes you paid out of your own funds as an employer. Turbotax amended return 2011 Employment taxes are discussed briefly in chapter 1. Turbotax amended return 2011 You can also deduct payments you made as an employer to a state unemployment compensation fund or to a state disability benefit fund. Turbotax amended return 2011 Deduct these payments as taxes. Turbotax amended return 2011 Self-employment tax. Turbotax amended return 2011   You can deduct one-half of your self-employment tax on line 27 of Form 1040. Turbotax amended return 2011 Self-employment tax is discussed in chapters 1 and 10. Turbotax amended return 2011 Personal property tax. Turbotax amended return 2011   You can deduct on Schedule C or C-EZ any tax imposed by a state or local government on personal property used in your business. Turbotax amended return 2011   You can also deduct registration fees for the right to use property within a state or local area. Turbotax amended return 2011 Example. Turbotax amended return 2011 May and Julius Winter drove their car 7,000 business miles out of a total of 10,000 miles. Turbotax amended return 2011 They had to pay $25 for their annual state license tags and $20 for their city registration sticker. Turbotax amended return 2011 They also paid $235 in city personal property tax on the car, for a total of $280. Turbotax amended return 2011 They are claiming their actual car expenses. Turbotax amended return 2011 Because they used the car 70% for business, they can deduct 70% of the $280, or $196, as a business expense. Turbotax amended return 2011 Real estate taxes. Turbotax amended return 2011   You can deduct on Schedule C or C-EZ the real estate taxes you pay on your business property. Turbotax amended return 2011 Deductible real estate taxes are any state, local, or foreign taxes on real estate levied for the general public welfare. Turbotax amended return 2011 The taxing authority must base the taxes on the assessed value of the real estate and charge them uniformly against all property under its jurisdiction. Turbotax amended return 2011   For more information about real estate taxes, see chapter 5 in Publication 535. Turbotax amended return 2011 That chapter explains special rules for deducting the following items. Turbotax amended return 2011 Taxes for local benefits, such as those for sidewalks, streets, water mains, and sewer lines. Turbotax amended return 2011 Real estate taxes when you buy or sell property during the year. Turbotax amended return 2011 Real estate taxes if you use an accrual method of accounting and choose to accrue real estate tax related to a definite period ratably over that period. Turbotax amended return 2011 Sales tax. Turbotax amended return 2011   Treat any sales tax you pay on a service or on the purchase or use of property as part of the cost of the service or property. Turbotax amended return 2011 If the service or the cost or use of the property is a deductible business expense, you can deduct the tax as part of that service or cost. Turbotax amended return 2011 If the property is merchandise bought for resale, the sales tax is part of the cost of the merchandise. Turbotax amended return 2011 If the property is depreciable, add the sales tax to the basis for depreciation. Turbotax amended return 2011 For information on the basis of property, see Publication 551, Basis of Assets. Turbotax amended return 2011    Do not deduct state and local sales taxes imposed on the buyer that you must collect and pay over to the state or local government. Turbotax amended return 2011 Do not include these taxes in gross receipts or sales. Turbotax amended return 2011 Excise taxes. Turbotax amended return 2011   You can deduct on Schedule C or C-EZ all excise taxes that are ordinary and necessary expenses of carrying on your business. Turbotax amended return 2011 Excise taxes are discussed briefly in chapter 1. Turbotax amended return 2011 Fuel taxes. Turbotax amended return 2011   Taxes on gasoline, diesel fuel, and other motor fuels you use in your business are usually included as part of the cost of the fuel. Turbotax amended return 2011 Do not deduct these taxes as a separate item. Turbotax amended return 2011   You may be entitled to a credit or refund for federal excise tax you paid on fuels used for certain purposes. Turbotax amended return 2011 For more information, see Publication 510, Excise Taxes. Turbotax amended return 2011 Travel, Meals, and Entertainment This section briefly explains the kinds of travel and entertainment expenses you can deduct on Schedule C or C-EZ. Turbotax amended return 2011 Table 8-1. Turbotax amended return 2011 When Are Entertainment Expenses Deductible? (Note. Turbotax amended return 2011 The following is a summary of the rules for deducting entertainment expenses. Turbotax amended return 2011 For more details about these rules, see Publication 463. Turbotax amended return 2011 ) General rule You can deduct ordinary and necessary expenses to entertain a client, customer, or employee if the expenses meet the directly-related test or the associated test. Turbotax amended return 2011 Definitions Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation, and includes meals provided to a customer or client. Turbotax amended return 2011 An ordinary expense is one that is common and accepted in your field of business, trade, or profession. Turbotax amended return 2011 A necessary expense is one that is helpful and appropriate, although not necessarily required, for your business. Turbotax amended return 2011 Tests to be met Directly-related test Entertainment took place in a clear business setting, or Main purpose of entertainment was the active conduct of business, and You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit. Turbotax amended return 2011   Associated test Entertainment is associated with your trade or business, and Entertainment directly precedes or follows a substantial business discussion. Turbotax amended return 2011 Other rules You cannot deduct the cost of your meal as an entertainment expense if you are claiming the meal as a travel expense. Turbotax amended return 2011 You cannot deduct expenses that are lavish or extravagant under the circumstances. Turbotax amended return 2011 You generally can deduct only 50% of your unreimbursed entertainment expenses. Turbotax amended return 2011 Travel expenses. Turbotax amended return 2011   These are the ordinary and necessary expenses of traveling away from home for your business. Turbotax amended return 2011 You are traveling away from home if both the following conditions are met. Turbotax amended return 2011 Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work. Turbotax amended return 2011 You need to get sleep or rest to meet the demands of your work while away from home. Turbotax amended return 2011 Generally, your tax home is your regular place of business, regardless of where you maintain your family home. Turbotax amended return 2011 It includes the entire city or general area in which your business is located. Turbotax amended return 2011 See Publication 463 for more information. Turbotax amended return 2011   The following is a brief discussion of the expenses you can deduct. Turbotax amended return 2011 Transportation. Turbotax amended return 2011   You can deduct the cost of travel by airplane, train, bus, or car between your home and your business destination. Turbotax amended return 2011 Taxi, commuter bus, and limousine. Turbotax amended return 2011   You can deduct fares for these and other types of transportation between the airport or station and your hotel, or between the hotel and your work location away from home. Turbotax amended return 2011 Baggage and shipping. Turbotax amended return 2011   You can deduct the cost of sending baggage and sample or display material between your regular and temporary work locations. Turbotax amended return 2011 Car or truck. Turbotax amended return 2011   You can deduct the costs of operating and maintaining your vehicle when traveling away from home on business. Turbotax amended return 2011 You can deduct actual expenses or the standard mileage rate (discussed earlier under Car and Truck Expenses), as well as business-related tolls and parking. Turbotax amended return 2011 If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. Turbotax amended return 2011 Meals and lodging. Turbotax amended return 2011   You can deduct the cost of meals and lodging if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. Turbotax amended return 2011 In most cases, you can deduct only 50% of your meal expenses. Turbotax amended return 2011 Cleaning. Turbotax amended return 2011   You can deduct the costs of dry cleaning and laundry while on your business trip. Turbotax amended return 2011 Telephone. Turbotax amended return 2011   You can deduct the cost of business calls while on your business trip, including business communication by fax machine or other communication devices. Turbotax amended return 2011 Tips. Turbotax amended return 2011   You can deduct the tips you pay for any expense in this list. Turbotax amended return 2011 More information. Turbotax amended return 2011   For more information about travel expenses, see Publication 463. Turbotax amended return 2011 Entertainment expenses. Turbotax amended return 2011   You may be able to deduct business-related entertainment expenses for entertaining a client, customer, or employee. Turbotax amended return 2011 In most cases, you can deduct only 50% of these expenses. Turbotax amended return 2011   The following are examples of entertainment expenses. Turbotax amended return 2011 Entertaining guests at nightclubs, athletic clubs, theaters, or sporting events. Turbotax amended return 2011 Providing meals, a hotel suite, or a car to business customers or their families. Turbotax amended return 2011 To be deductible, the expenses must meet the rules listed in Table 8-1. Turbotax amended return 2011 For details about these rules, see Publication 463. Turbotax amended return 2011 Reimbursing your employees for expenses. Turbotax amended return 2011   You generally can deduct the amount you reimburse your employees for travel and entertainment expenses. Turbotax amended return 2011 The reimbursement you deduct and the manner in which you deduct it depend in part on whether you reimburse the expenses under an accountable plan or a nonaccountable plan. Turbotax amended return 2011 For details, see chapter 11 in Publication 535. Turbotax amended return 2011 That chapter explains accountable and nonaccountable plans and tells you whether to report the reimbursement on your employee's Form W-2, Wage and Tax Statement. Turbotax amended return 2011 Business Use of Your Home To deduct expenses related to the part of your home used for business, you must meet specific requirements. Turbotax amended return 2011 Even then, your deduction may be limited. Turbotax amended return 2011 To qualify to claim expenses for business use of your home, you must meet the following tests. Turbotax amended return 2011 Your use of the business part of your home must be: Exclusive (however, see Exceptions to exclusive use , later), Regular, For your business, and The business part of your home must be one of the following: Your principal place of business (defined later), A place where you meet or deal with patients, clients, or customers in the normal course of your business, or A separate structure (not attached to your home) you use in connection with your business. Turbotax amended return 2011 Exclusive use. Turbotax amended return 2011   To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. Turbotax amended return 2011 The area used for business can be a room or other separately identifiable space. Turbotax amended return 2011 The space does not need to be marked off by a permanent partition. Turbotax amended return 2011   You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. Turbotax amended return 2011 Example. Turbotax amended return 2011 You are an attorney and use a den in your home to write legal briefs and prepare clients' tax returns. Turbotax amended return 2011 Your family also uses the den for recreation. Turbotax amended return 2011 The den is not used exclusively in your profession, so you cannot claim a business deduction for its use. Turbotax amended return 2011 Exceptions to exclusive use. Turbotax amended return 2011   You do not have to meet the exclusive use test if you use part of your home in either of the following ways. Turbotax amended return 2011 For the storage of inventory or product samples. Turbotax amended return 2011 As a daycare facility. Turbotax amended return 2011 For an explanation of these exceptions, see Publication 587, Business Use of Your Home (Including Use by Daycare Providers). Turbotax amended return 2011 Regular use. Turbotax amended return 2011   To qualify under the regular use test, you must use a specific area of your home for business on a continuing basis. Turbotax amended return 2011 You do not meet the test if your business use of the area is only occasional or incidental, even if you do not use that area for any other purpose. Turbotax amended return 2011 Principal place of business. Turbotax amended return 2011   You can have more than one business location, including your home, for a single trade or business. Turbotax amended return 2011 To qualify to deduct the expenses for the business use of your home under the principal place of business test, your home must be your principal place of business for that business. Turbotax amended return 2011 To determine your principal place of business, you must consider all the facts and circumstances. Turbotax amended return 2011   Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements. Turbotax amended return 2011 You use it exclusively and regularly for administrative or management activities of your business. Turbotax amended return 2011 You have no other fixed location where you conduct substantial administrative or management activities of your business. Turbotax amended return 2011   Alternatively, if you use your home exclusively and regularly for your business, but your home office does not qualify as your principal place of business based on the previous rules, you determine your principal place of business based on the following factors. Turbotax amended return 2011 The relative importance of the activities performed at each location. Turbotax amended return 2011 If the relative importance factor does not determine your principal place of business, you can also consider the time spent at each location. Turbotax amended return 2011   If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. Turbotax amended return 2011 However, for other ways to qualify to deduct home office expenses, see Publication 587. Turbotax amended return 2011 Deduction limit. Turbotax amended return 2011   If your gross income from the business use of your home equals or exceeds your total business expenses (including depreciation), you can deduct all your business expenses related to the use of your home. Turbotax amended return 2011 If your gross income from the business use is less than your total business expenses, your deduction for certain expenses for the business use of your home is limited. Turbotax amended return 2011   Your deduction of otherwise nondeductible expenses, such as insurance, utilities, and depreciation (with depreciation taken last), allocable to the business is limited to the gross income from the business use of your home minus the sum of the following. Turbotax amended return 2011 The business part of expenses you could deduct even if you did not use your home for business (such as mortgage interest, real estate taxes, and casualty and theft losses that are allowable as itemized deductions on Schedule A (Form 1040)). Turbotax amended return 2011 The business expenses that relate to the business activity in the home (for example, business phone, supplies, and depreciation on equipment), but not to the use of the home itself. Turbotax amended return 2011 Do not include in (2) above your deduction for one-half of your self-employment tax. Turbotax amended return 2011   Use Form 8829, Expenses for Business Use of Your Home, to figure your deduction. Turbotax amended return 2011 New simplified method. Turbotax amended return 2011    The IRS now provides a simplified method to determine your expenses for business use of your home. Turbotax amended return 2011 The simplified method is an alternative to calculating and substantiating actual expenses. Turbotax amended return 2011 In most cases, you will figure your deduction by multiplying $5 by the area of your home used for a qualified business use. Turbotax amended return 2011 The area you use to figure your deduction is limited to 300 square feet. Turbotax amended return 2011 For more information, see the Instructions for Schedule C. Turbotax amended return 2011 More information. Turbotax amended return 2011   For more information on deducting expenses for the business use of your home, see Publication 587. Turbotax amended return 2011 Other Expenses You Can Deduct You may also be able to deduct the following expenses. Turbotax amended return 2011 See Publication 535 to find out whether you can deduct them. Turbotax amended return 2011 Advertising. Turbotax amended return 2011 Bank fees. Turbotax amended return 2011 Donations to business organizations. Turbotax amended return 2011 Education expenses. Turbotax amended return 2011 Energy efficient commercial buildings deduction expenses. Turbotax amended return 2011 Impairment-related expenses. Turbotax amended return 2011 Interview expense allowances. Turbotax amended return 2011 Licenses and regulatory fees. Turbotax amended return 2011 Moving machinery. Turbotax amended return 2011 Outplacement services. Turbotax amended return 2011 Penalties and fines you pay for late performance or nonperformance of a contract. Turbotax amended return 2011 Repairs that keep your property in a normal efficient operating condition. Turbotax amended return 2011 Repayments of income. Turbotax amended return 2011 Subscriptions to trade or professional publications. Turbotax amended return 2011 Supplies and materials. Turbotax amended return 2011 Utilities. Turbotax amended return 2011 Expenses You Cannot Deduct You usually cannot deduct the following as business expenses. Turbotax amended return 2011 For more information, see Publication 535. Turbotax amended return 2011 Bribes and kickbacks. Turbotax amended return 2011 Charitable contributions. Turbotax amended return 2011 Demolition expenses or losses. Turbotax amended return 2011 Dues to business, social, athletic, luncheon, sporting, airline, and hotel clubs. Turbotax amended return 2011 Lobbying expenses. Turbotax amended return 2011 Penalties and fines you pay to a governmental agency or instrumentality because you broke the law. Turbotax amended return 2011 Personal, living, and family expenses. Turbotax amended return 2011 Political contributions. Turbotax amended return 2011 Repairs that add to the value of your property or significantly increase its life. 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