Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

2011 Amendment Tax Form

Free 2010 TurbotaxTax AdmendmentPreparing Form 1040xIrs Gov ComWww H And R Block ComH&r Block Free State File1040ez Form 2012Amending Tax ReturnOrder 2012 Tax Forms From IrsEz Tax Form 2011Where To File 2012 Federal Income Tax ReturnAmmending A Tax ReturnFile An Amended Tax Return For 2011Form 1040x Amended ReturnE File 1040nrNeed File 2007 TaxesI Need To Find A Place On Line To File Back TaxesIrs Tax Form 1040xFiling An Amended Tax Return For 2013How Do I File My Taxes For 2011Irs GovFree Tax Calculator 2011How To Amend A Prior Year Tax ReturnHow To Amend A Tax Return 2012How To File Amended Tax Return 2012Www Onlinetaxes H&rblock ComHr Block Free Tax2010 Federal Tax Forms InstructionsFreetaxStudents Filing Taxes 2013Income Tax Deductions 2012Where To File Federal Tax Return 2011File An Amended ReturnTurbotax 2012Free State FilingFree E FileEz40Filing 2012 Taxes In 2013File A Free Tax ExtensionState Income Tax Number

2011 Amendment Tax Form

2011 amendment tax form 5. 2011 amendment tax form   Manufacturers Taxes Table of Contents Importer. 2011 amendment tax form Use considered sale. 2011 amendment tax form Lease considered sale. 2011 amendment tax form Bonus goods. 2011 amendment tax form Taxable Event ExemptionsRequirements for Exempt Sales Credits or Refunds Sport Fishing EquipmentRelated person. 2011 amendment tax form Bows, Quivers, Broadheads, and Points Arrow ShaftsExemption for certain wooden arrows. 2011 amendment tax form CoalExported. 2011 amendment tax form Taxable TiresQualifying intercity or local bus. 2011 amendment tax form Qualifying school bus. 2011 amendment tax form Gas Guzzler TaxVehicles not subject to tax. 2011 amendment tax form Imported automobiles. 2011 amendment tax form VaccinesConditions to allowance. 2011 amendment tax form Taxable Medical Devices The following discussion of manufacturers taxes applies to the tax on: Sport fishing equipment; Fishing rods and fishing poles; Electric outboard motors; Fishing tackle boxes; Bows, quivers, broadheads, and points; Arrow shafts; Coal; Taxable tires; Gas guzzler automobiles; and Vaccines. 2011 amendment tax form Manufacturer. 2011 amendment tax form   The term “manufacturer” includes a producer or importer. 2011 amendment tax form A manufacturer is any person who produces a taxable article from new or raw material, or from scrap, salvage, or junk material, by processing or changing the form of an article or by combining or assembling two or more articles. 2011 amendment tax form If you furnish the materials and keep title to those materials and to the finished article, you are considered the manufacturer even though another person actually manufactures the taxable article. 2011 amendment tax form   A manufacturer who sells a taxable article in knockdown (unassembled) condition is liable for the tax. 2011 amendment tax form The person who buys these component parts and assembles a taxable article may also be liable for tax as a further manufacturer depending on the labor, material, and overhead required to assemble the completed article if the article is assembled for business use. 2011 amendment tax form Importer. 2011 amendment tax form   An importer is a person who brings a taxable article into the United States, or withdraws a taxable article from a customs bonded warehouse for sale or use in the United States. 2011 amendment tax form Sale. 2011 amendment tax form   A sale is the transfer of the title to, or the substantial incidents of ownership in, an article to a buyer for consideration that may consist of money, services, or other things. 2011 amendment tax form Use considered sale. 2011 amendment tax form   A manufacturer who uses a taxable article is liable for the tax in the same manner as if it were sold. 2011 amendment tax form Lease considered sale. 2011 amendment tax form   The lease of an article (including any renewal or extension of the lease) by the manufacturer is generally considered a taxable sale. 2011 amendment tax form However, for the gas guzzler tax, only the first lease (excluding any renewal or extension) of the automobile by the manufacturer is considered a sale. 2011 amendment tax form Manufacturers taxes based on sale price. 2011 amendment tax form   The manufacturers taxes imposed on the sale of sport fishing equipment, electric outboard motors, and bows are based on the sale price of the article. 2011 amendment tax form The taxes imposed on coal are based either on the sale price or the weight. 2011 amendment tax form   The price for which an article is sold includes the total consideration paid for the article, whether that consideration is in the form of money, services, or other things. 2011 amendment tax form However, you include certain charges made when a taxable article is sold and you exclude others. 2011 amendment tax form To figure the price on which you base the tax, use the following rules. 2011 amendment tax form Include both the following charges in the price. 2011 amendment tax form Any charge for coverings or containers (regardless of their nature). 2011 amendment tax form Any charge incident to placing the article in a condition packed ready for shipment. 2011 amendment tax form Exclude all the following amounts from the price. 2011 amendment tax form The manufacturers excise tax, whether or not it is stated as a separate charge. 2011 amendment tax form The transportation charges pursuant to the sale. 2011 amendment tax form The cost of transportation of goods to a warehouse before their bona fide sale is not excludable. 2011 amendment tax form Delivery, insurance, installation, retail dealer preparation charges, and other charges you incur in placing the article in the hands of the purchaser under a bona fide sale. 2011 amendment tax form Discounts, rebates, and similar allowances actually granted to the purchaser. 2011 amendment tax form Local advertising charges. 2011 amendment tax form A charge made separately when the article is sold and that qualifies as a charge for “local advertising” may, within certain limits, be excluded from the sale price. 2011 amendment tax form Charges for warranty paid at the purchaser's option. 2011 amendment tax form However, a charge for a warranty of an article that the manufacturer requires the purchaser to pay to obtain the article is included in the sale price on which the tax is figured. 2011 amendment tax form Bonus goods. 2011 amendment tax form   Allocate the sale price if you give free nontaxable goods with the purchase of taxable merchandise. 2011 amendment tax form Figure the tax only on the sale price attributable to the taxable articles. 2011 amendment tax form Example. 2011 amendment tax form A manufacturer sells a quantity of taxable articles and gives the purchaser certain nontaxable articles as a bonus. 2011 amendment tax form The sale price of the shipment is $1,500. 2011 amendment tax form The normal sale price is $2,000: $1,500 for the taxable articles and $500 for the nontaxable articles. 2011 amendment tax form Since the taxable items represent 75% of the normal sale price, the tax is based on 75% of the actual sale price, or $1,125 (75% of $1,500). 2011 amendment tax form The remaining $375 is allocated to the nontaxable articles. 2011 amendment tax form Taxable Event Tax attaches when the title to the article sold passes from the manufacturer to the buyer. 2011 amendment tax form When the title passes depends on the intention of the parties as gathered from the contract of sale. 2011 amendment tax form In the absence of expressed intention, the legal rules of presumption followed in the jurisdiction where the sale occurs determine when title passes. 2011 amendment tax form If the taxable article is used by the manufacturer, the tax attaches at the time use begins. 2011 amendment tax form The manufacturer is liable for the tax. 2011 amendment tax form Partial payments. 2011 amendment tax form   The tax applies to each partial payment received when taxable articles are: Leased, Sold conditionally, Sold on installment with chattel mortgage, or Sold on installment with title to pass in the future. 2011 amendment tax form To figure the tax, multiply the partial payment by the tax rate in effect at the time of the payment. 2011 amendment tax form Exemptions The following sales by the manufacturer are exempt from the manufacturers tax. 2011 amendment tax form Sale of an article to a state or local government for the exclusive use of the state or local government. 2011 amendment tax form This exemption does not apply to the taxes on coal, gas guzzlers, and vaccines. 2011 amendment tax form State is defined in Definitions in chapter 1. 2011 amendment tax form Sale of an article to a nonprofit educational organization for its exclusive use. 2011 amendment tax form This exemption does not apply to the taxes on coal, gas guzzlers, and vaccines. 2011 amendment tax form Nonprofit educational organization is defined under Communications Tax in chapter 4. 2011 amendment tax form Sale of an article to a qualified blood collector organization. 2011 amendment tax form This exemption does not apply to gas guzzlers, recreational equipment, and vaccines. 2011 amendment tax form Qualified blood collector organizations are defined under Communications Tax in chapter 4. 2011 amendment tax form Sale of an article for use by the purchaser as supplies for vessels. 2011 amendment tax form This exemption does not apply to the taxes on coal and vaccines. 2011 amendment tax form Supplies for vessels means ships' stores, sea stores, or legitimate equipment on vessels of war of the United States or any foreign nation, vessels employed in the fisheries or whaling business, or vessels actually engaged in foreign trade. 2011 amendment tax form Sale of an article for use by the purchaser for further manufacture, or for resale by the purchaser to a second purchaser for use by the second purchaser for further manufacture. 2011 amendment tax form This exemption does not apply to the tax on coal and tires. 2011 amendment tax form Use for further manufacture means use in the manufacture or production of an article subject to the manufacturers excise taxes. 2011 amendment tax form If you buy articles tax free and resell or use them other than in the manufacture of another article, you are liable for the tax on their resale or use just as if you had manufactured and sold them. 2011 amendment tax form Sale of an article for export or for resale by the purchaser to a second purchaser for export. 2011 amendment tax form The article may be exported to a foreign country or to a possession of the United States. 2011 amendment tax form A vaccine shipped to a possession of the United States is not considered to be exported. 2011 amendment tax form If an article is sold tax free for export and the manufacturer does not receive proof of export, described later, the manufacturer is liable for the tax. 2011 amendment tax form Sales of articles of native Indian handicraft, such as bows and arrow shafts, manufactured by Indians on reservations, in Indian schools, or under U. 2011 amendment tax form S. 2011 amendment tax form jurisdiction in Alaska. 2011 amendment tax form For tire exemptions, see section 4221(e)(2). 2011 amendment tax form Requirements for Exempt Sales The following requirements must be met for a sale to be exempt from the manufacturers tax. 2011 amendment tax form Registration requirements. 2011 amendment tax form   The manufacturer, first purchaser, and second purchaser in the case of resales must be registered. 2011 amendment tax form See the Form 637 instructions for more information. 2011 amendment tax form Exceptions to registration requirements. 2011 amendment tax form   Registration is not required for: State or local governments, Foreign purchasers of articles sold or resold for export, The United States, or Parties to a sale of supplies for vessels and aircraft. 2011 amendment tax form Certification requirement. 2011 amendment tax form   If the purchaser is required to be registered, the purchaser must give the manufacturer its registration number and certify the exempt purpose for which the article will be used. 2011 amendment tax form The information must be in writing and may be noted on the purchase order or other document furnished by the purchaser to the seller in connection with the sale. 2011 amendment tax form   For a sale to a state or local government, an exemption certificate must be signed by an officer or employee authorized by the state or local government. 2011 amendment tax form See Regulations section 48. 2011 amendment tax form 4221-5(c) for the certificate requirements. 2011 amendment tax form   For sales for use as supplies for vessels and aircraft, if the manufacturer and purchaser are not registered, the owner or agent of the vessel must provide an exemption certificate to the manufacturer before or at the time of sale. 2011 amendment tax form See Regulations section 48. 2011 amendment tax form 4221-4(d) for the certificate requirements. 2011 amendment tax form Proof of export requirement. 2011 amendment tax form   Within 6 months of the date of sale or shipment by the manufacturer, whichever is earlier, the manufacturer must receive proof of exportation. 2011 amendment tax form See Regulations section 48. 2011 amendment tax form 4221-3(d) for evidence that qualifies as proof of exportation. 2011 amendment tax form Proof of resale for further manufacture requirement. 2011 amendment tax form   Within 6 months of the date of sale or shipment by the manufacturer, whichever is earlier, the manufacturer must receive proof that the article has been resold for use in further manufacture. 2011 amendment tax form See Regulations section 48. 2011 amendment tax form 4221-2(c) for evidence that qualifies as proof of resale. 2011 amendment tax form Information to be furnished to purchaser. 2011 amendment tax form   The manufacturer must indicate to the purchaser that the articles normally would be subject to tax and are being sold tax free for an exempt purpose because the purchaser has provided the required certificate. 2011 amendment tax form Credits or Refunds The manufacturer may be eligible to obtain a credit or refund of the manufacturers tax for certain uses, sales, exports, and price readjustments. 2011 amendment tax form The claim must set forth in detail the facts upon which the claim is based. 2011 amendment tax form Uses, sales, and exports. 2011 amendment tax form   A credit or refund (without interest) of the manufacturers taxes may be allowable if a tax-paid article is, by any person: Exported, Used or sold for use as supplies for vessels (except for coal and vaccines), Sold to a state or local government for its exclusive use (except for coal, gas guzzlers, and vaccines), Sold to a nonprofit educational organization for its exclusive use (except for coal, gas guzzlers, and vaccines), Sold to a qualified blood collector organization for its exclusive use (except for gas guzzlers, recreational equipment, and vaccines), or Used for further manufacture of another article subject to the manufacturers taxes (except for coal). 2011 amendment tax form Export. 2011 amendment tax form   If a tax-paid article is exported, the exporter or shipper may claim a credit or refund if the manufacturer waives its right to claim the credit or refund. 2011 amendment tax form In the case of a tax-paid article used to make another taxable article, the subsequent manufacturer may claim the credit or refund. 2011 amendment tax form Price readjustments. 2011 amendment tax form   In addition, a credit or refund (without interest) may be allowable for a tax-paid article for which the price is readjusted by reason of return or repossession of the article or a bona fide discount, rebate, or allowance for taxes based on price. 2011 amendment tax form Conditions to allowance. 2011 amendment tax form   To claim a credit or refund in the case of export; supplies for vessels; or sales to a state or local government, nonprofit educational organization, or qualified blood collector organization; the person who paid the tax must certify on the claim that one of the following applies and that the claimant has the required supporting information. 2011 amendment tax form The claimant sold the article at a tax-excluded price. 2011 amendment tax form The person has repaid, or agreed to repay, the tax to the ultimate vendor of the article. 2011 amendment tax form The person has obtained the written consent of the ultimate vendor to make the claim. 2011 amendment tax form The ultimate vendor generally is the seller making the sale that gives rise to the overpayment of tax. 2011 amendment tax form Claim for further manufacture. 2011 amendment tax form   To claim a credit or refund for further manufacture, the claimant must include a statement that contains the following. 2011 amendment tax form The name and address of the manufacturer and the date of payment. 2011 amendment tax form An identification of the article for which the credit or refund is claimed. 2011 amendment tax form The amount of tax paid on the article and the date on which it was paid. 2011 amendment tax form Information indicating that the article was used as material in the manufacture or production of, or as a component part of, a second article manufactured or produced by the manufacturer, or was sold on or in connection with, or with the sale of a second article manufactured or produced by the manufacturer. 2011 amendment tax form An identification of the second article. 2011 amendment tax form   For claims by the exporter or shipper, the claim must contain the proof of export and a statement signed by the person that paid the tax waiving the right to claim a credit or refund. 2011 amendment tax form The statement must include the amount of tax paid, the date of payment, and the office to which it was paid. 2011 amendment tax form Claim for price readjustment. 2011 amendment tax form   To claim a credit or refund for a price readjustment, the person who paid the tax must include with the claim, a statement that contains the following. 2011 amendment tax form A description of the circumstances that gave rise to the price readjustment. 2011 amendment tax form An identification of the article whose price was readjusted. 2011 amendment tax form The price at which the article was sold. 2011 amendment tax form The amount of tax paid on the article and the date on which it was paid. 2011 amendment tax form The name and address of the purchaser. 2011 amendment tax form The amount repaid to the purchaser or credited to the purchaser's account. 2011 amendment tax form Sport Fishing Equipment A tax of 10% of the sale price is imposed on many articles of sport fishing equipment sold by the manufacturer. 2011 amendment tax form This includes any parts or accessories sold on or in connection with the sale of those articles. 2011 amendment tax form Pay this tax with Form 720. 2011 amendment tax form No tax deposits are required. 2011 amendment tax form Sport fishing equipment includes all the following items. 2011 amendment tax form Fishing rods and poles (and component parts), fishing reels, fly fishing lines, and other fishing lines not over 130 pounds test, fishing spears, spear guns, and spear tips. 2011 amendment tax form Items of terminal tackle, including leaders, artificial lures, artificial baits, artificial flies, fishing hooks, bobbers, sinkers, snaps, drayles, and swivels (but not including natural bait or any item of terminal tackle designed for use and ordinarily used on fishing lines not described in (1)). 2011 amendment tax form The following items of fishing supplies and accessories: fish stringers, creels, bags, baskets, and other containers designed to hold fish, portable bait containers, fishing vests, landing nets, gaff hooks, fishing hook disgorgers, and dressing for fishing lines and artificial flies. 2011 amendment tax form Fishing tip-ups and tilts. 2011 amendment tax form Fishing rod belts, fishing rodholders, fishing harnesses, fish fighting chairs, fishing outriggers, and fishing downriggers. 2011 amendment tax form See Revenue Ruling 88-52 in Cumulative Bulletin 1988-1 for a more complete description of the items of taxable equipment. 2011 amendment tax form Fishing rods and fishing poles. 2011 amendment tax form   The tax on fishing rods and fishing poles (and component parts) is 10% of the sales price not to exceed $10 per article. 2011 amendment tax form The tax is paid by the manufacturer, producer, or importer. 2011 amendment tax form Fishing tackle boxes. 2011 amendment tax form   The tax on fishing tackle boxes is 3% of the sales price. 2011 amendment tax form The tax is paid by the manufacturer, producer, or importer. 2011 amendment tax form Electric outboard boat motors. 2011 amendment tax form   A tax of 3% of the sale price is imposed on the sale by the manufacturer of electric outboard motors. 2011 amendment tax form This includes any parts or accessories sold on or in connection with the sale of those articles. 2011 amendment tax form Certain equipment resale. 2011 amendment tax form   The tax on the sale of sport fishing equipment is imposed a second time under the following circumstances. 2011 amendment tax form If the manufacturer sells a taxable article to any person, the manufacturer is liable for the tax. 2011 amendment tax form If the purchaser or any other person then sells it to a person who is related (discussed next) to the manufacturer, that related person is liable for a second tax on any subsequent sale of the article. 2011 amendment tax form The second tax, however, is not imposed if the constructive sale price rules under section 4216(b) apply to the sale by the manufacturer. 2011 amendment tax form   If the second tax is imposed, a credit for tax previously paid by the manufacturer is available provided the related person can document the tax paid. 2011 amendment tax form The documentation requirement is generally satisfied only through submission of copies of actual records of the person that previously paid the tax. 2011 amendment tax form Related person. 2011 amendment tax form   For the tax on sport fishing equipment, a person is a related person of the manufacturer if that person and the manufacturer have a relationship described in section 465(b)(3)(C). 2011 amendment tax form Bows, Quivers, Broadheads, and Points The tax on bows is 11% (. 2011 amendment tax form 11) of the sales price. 2011 amendment tax form The tax is paid by the manufacturer, producer, or importer. 2011 amendment tax form It applies to bows having a peak draw weight of 30 pounds or more. 2011 amendment tax form The tax is also imposed on the sale of any part or accessory suitable for inclusion in or attachment to a taxable bow and any quiver, broadhead, or point suitable for use with arrows described below. 2011 amendment tax form Pay this tax with Form 720. 2011 amendment tax form No tax deposits are required. 2011 amendment tax form Arrow Shafts The tax on arrow shafts is listed on Form 720. 2011 amendment tax form The tax is paid by the manufacturer, producer, or importer of any arrow shaft (whether sold separately or incorporated as part of a finished or unfinished product) of a type used in the manufacture of any arrow that after its assembly meets either of the following conditions. 2011 amendment tax form It measures 18 inches or more in overall length. 2011 amendment tax form It measures less than 18 inches in overall length but is suitable for use with a taxable bow, described earlier. 2011 amendment tax form Exemption for certain wooden arrows. 2011 amendment tax form   After October 3, 2008, the tax does not apply to any shaft made of all natural wood with no laminations or artificial means of enhancing the spine of such shaft (whether sold separately or incorporated as part of a finished or unfinished product) and used in the manufacture of any arrow that after its assembly meets both of the following conditions. 2011 amendment tax form It measures 5/16 of an inch or less in diameter. 2011 amendment tax form It is not suitable for use with a taxable bow, described earlier. 2011 amendment tax form Pay this tax with Form 720. 2011 amendment tax form No tax deposits are required. 2011 amendment tax form Coal A tax is imposed on the first sale of coal mined in the United States. 2011 amendment tax form The producer of the coal is liable for the tax. 2011 amendment tax form The producer is the person who has vested ownership of the coal under state law immediately after the coal is severed from the ground. 2011 amendment tax form Determine vested ownership without regard to any contractual arrangement for the sale or other disposition of the coal or the payment of any royalties between the producer and third parties. 2011 amendment tax form A producer includes any person who extracts coal from coal waste refuse piles (or from the silt waste product that results from the wet washing of coal). 2011 amendment tax form The tax is not imposed on coal extracted from a riverbed by dredging if it can be shown that the coal has been taxed previously. 2011 amendment tax form Tax rates. 2011 amendment tax form   The tax on underground-mined coal is the lower of: $1. 2011 amendment tax form 10 a ton, or 4. 2011 amendment tax form 4% of the sale price. 2011 amendment tax form   The tax on surface-mined coal is the lower of: 55 cents a ton, or 4. 2011 amendment tax form 4% of the sale price. 2011 amendment tax form   Coal will be taxed at the 4. 2011 amendment tax form 4% rate if the selling price is less than $25 a ton for underground-mined coal and less than $12. 2011 amendment tax form 50 a ton for surface-mined coal. 2011 amendment tax form Apply the tax proportionately if a sale or use includes a portion of a ton. 2011 amendment tax form Example. 2011 amendment tax form If you sell 21,000 pounds (10. 2011 amendment tax form 5 tons) of coal from an underground mine for $525, the price per ton is $50. 2011 amendment tax form The tax is $1. 2011 amendment tax form 10 × 10. 2011 amendment tax form 5 tons ($11. 2011 amendment tax form 55). 2011 amendment tax form Coal production. 2011 amendment tax form   Coal is produced from surface mines if all geological matter (trees, earth, rock) above the coal is removed before the coal is mined. 2011 amendment tax form Treat coal removed by auger and coal reclaimed from coal waste refuse piles as produced from a surface mine. 2011 amendment tax form   Treat coal as produced from an underground mine when the coal is not produced from a surface mine. 2011 amendment tax form In some cases, a single mine may yield coal from both surface mining and underground mining. 2011 amendment tax form Determine if the coal is from a surface mine or an underground mine for each ton of coal produced and not on a mine-by-mine basis. 2011 amendment tax form Determining tonnage or selling price. 2011 amendment tax form   The producer pays the tax on coal at the time of sale or use. 2011 amendment tax form In figuring the selling price for applying the tax, the point of sale is f. 2011 amendment tax form o. 2011 amendment tax form b. 2011 amendment tax form (free on board) mine or f. 2011 amendment tax form o. 2011 amendment tax form b. 2011 amendment tax form cleaning plant if you clean the coal before selling it. 2011 amendment tax form This applies even if you sell the coal for a delivered price. 2011 amendment tax form The f. 2011 amendment tax form o. 2011 amendment tax form b. 2011 amendment tax form mine or f. 2011 amendment tax form o. 2011 amendment tax form b. 2011 amendment tax form cleaning plant is the point at which you figure the number of tons sold for applying the applicable tonnage rate, and the point at which you figure the sale price for applying the 4. 2011 amendment tax form 4% rate. 2011 amendment tax form   The tax applies to the full amount of coal sold. 2011 amendment tax form However, the IRS allows a calculated reduction of the taxable weight of the coal for the weight of the moisture in excess of the coal's inherent moisture content. 2011 amendment tax form Include in the sale price any additional charge for a freeze-conditioning additive in figuring the tax. 2011 amendment tax form   Do not include in the sales price the excise tax imposed on coal. 2011 amendment tax form Coal used by the producer. 2011 amendment tax form   The tax on coal applies if the coal is used by the producer in other than a mining process. 2011 amendment tax form A mining process means the same for this purpose as for percentage depletion. 2011 amendment tax form For example, the tax does not apply if, before selling the coal, you break it, clean it, size it, or apply any other process considered mining under the rules for depletion. 2011 amendment tax form In this case, the tax applies only when you sell the coal. 2011 amendment tax form The tax does not apply to coal used as fuel in the coal drying process since it is considered to be used in a mining process. 2011 amendment tax form However, the tax does apply when you use the coal as fuel or as an ingredient in making coke since the coal is not used in a mining process. 2011 amendment tax form   You must use a constructive sale price to figure the tax under the 4. 2011 amendment tax form 4% rate if you use the coal in other than a mining process. 2011 amendment tax form Base your constructive sale price on sales of a like kind and grade of coal by you or other producers made f. 2011 amendment tax form o. 2011 amendment tax form b. 2011 amendment tax form mine or cleaning plant. 2011 amendment tax form Normally, you use the same constructive price used to figure your percentage depletion deduction. 2011 amendment tax form Blending. 2011 amendment tax form   If you blend surface-mined coal with underground-mined coal during the cleaning process, you must figure the excise tax on the sale of the blended, cleaned coal. 2011 amendment tax form Figure the tax separately for each type of coal in the blend. 2011 amendment tax form Base the tax on the amount of each type in the blend if you can determine the proportion of each type of coal contained in the final blend. 2011 amendment tax form Base the tax on the ratio of each type originally put into the cleaning process if you cannot determine the proportion of each type of coal in the blend. 2011 amendment tax form However, the tax is limited to 4. 2011 amendment tax form 4% of the sale price per ton of the blended coal. 2011 amendment tax form Exemption from tax. 2011 amendment tax form   The tax does not apply to sales of lignite and imported coal. 2011 amendment tax form The only other exemption from the tax on the sale of coal is for coal exported as discussed next. 2011 amendment tax form Exported. 2011 amendment tax form   The tax does not apply to the sale of coal if the coal is in the stream of export when sold by the producer and the coal is actually exported. 2011 amendment tax form   Coal is in the stream of export when sold by the producer if the sale is a step in the exportation of the coal to its ultimate destination in a foreign country. 2011 amendment tax form For example, coal is in the stream of export when: The coal is loaded on an export vessel and title is transferred from the producer to a foreign purchaser, or The producer sells the coal to an export broker in the United States under terms of a contract showing that the coal is to be shipped to a foreign country. 2011 amendment tax form   Proof of export includes any of the following items. 2011 amendment tax form A copy of the export bill of lading issued by the delivering carrier. 2011 amendment tax form A certificate signed by the export carrier's agent or representative showing actual exportation of the coal. 2011 amendment tax form A certificate of landing signed by a customs officer of the foreign country to which the coal is exported. 2011 amendment tax form If the foreign country does not have a customs administrator, a statement of the foreign consignee showing receipt of the coal. 2011 amendment tax form Taxable Tires Taxable tires are divided into three categories for reporting and figuring the tax as described below. 2011 amendment tax form A tax is imposed on taxable tires sold by the manufacturer, producer, or importer at the rate of $. 2011 amendment tax form 0945 ($. 2011 amendment tax form 04725 in the case of a biasply tire or super single tire) for each 10 pounds of the maximum rated load capacity over 3,500 pounds. 2011 amendment tax form The three categories for reporting the tax and the tax rate are listed below. 2011 amendment tax form Taxable tires other than biasply or super single tires at $. 2011 amendment tax form 0945. 2011 amendment tax form Taxable tires, biasply or super single tires (other than super single tires designed for steering) at $. 2011 amendment tax form 04725. 2011 amendment tax form Taxable tires, super single tires designed for steering at $. 2011 amendment tax form 0945. 2011 amendment tax form A taxable tire is any tire of the type used on highway vehicles if wholly or partially made of rubber and if marked according to federal regulations for highway use. 2011 amendment tax form A biasply tire is a pneumatic tire on which the ply cords that extend to the beads are laid at alternate angles substantially less than 90 degrees to the centerline of the tread. 2011 amendment tax form A super single tire is a tire greater than 13 inches in cross section width designed to replace 2 tires in a dual fitment. 2011 amendment tax form Special rule, manufacturer's retail stores. 2011 amendment tax form   The excise tax on taxable tires is imposed at the time the taxable tires are delivered to the manufacturer-owned retail stores, not at the time of sale. 2011 amendment tax form Tires on imported articles. 2011 amendment tax form   The importer of an article equipped with taxable tires is treated as the manufacturer of the tires and is liable for the taxable tire excise tax when the article is sold (except in the case of an automobile bus chassis or body with tires). 2011 amendment tax form Tires exempt from tax. 2011 amendment tax form   The tax on taxable tires does not apply to the following items. 2011 amendment tax form Domestically recapped or retreaded tires if the tires have been sold previously in the United States and were taxable tires at the time of sale. 2011 amendment tax form Tire carcasses not suitable for commercial use. 2011 amendment tax form Tires for use on qualifying intercity, local, and school buses. 2011 amendment tax form For tax-free treatment, the registration requirements discussed earlier under Requirements for Exempt Sales apply. 2011 amendment tax form Tires sold for the exclusive use of the Department of Defense or the Coast Guard. 2011 amendment tax form Tires of a type used exclusively on mobile machinery. 2011 amendment tax form A taxable tire used on mobile machinery is not exempt from tax. 2011 amendment tax form Qualifying intercity or local bus. 2011 amendment tax form   This is any bus used mainly (more than 50%) to transport the general public for a fee and that either operates on a schedule along regular routes or seats at least 20 adults (excluding the driver). 2011 amendment tax form Qualifying school bus. 2011 amendment tax form   This is any bus substantially all the use (85% or more) of which is to transport students and employees of schools. 2011 amendment tax form Credit or refund. 2011 amendment tax form   A credit or refund (without interest) is allowable on tax-paid tires if the tires have been: Exported; Sold to a state or local government for its exclusive use; Sold to a nonprofit educational organization for its exclusive use (as defined under Communications Tax in chapter 4); Sold to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in connection with a vehicle the organization certifies will be primarily used in the collection, storage, or transportation of blood; Used or sold for use as supplies for vessels; or Sold in connection with qualified intercity, local, or school buses. 2011 amendment tax form   Also, a credit or refund (without interest) is allowable on tax-paid tires sold by any person on, or in connection with, any other article that is sold or used in an activity listed above. 2011 amendment tax form   The person who paid the tax is eligible to make the claim. 2011 amendment tax form Gas Guzzler Tax Tax is imposed on the sale by the manufacturer of automobiles of a model type that has a fuel economy standard as measured by the Environmental Protection Agency (EPA) of less than 22. 2011 amendment tax form 5 miles per gallon. 2011 amendment tax form If you import an automobile for personal use, you may be liable for this tax. 2011 amendment tax form Figure the tax on Form 6197, as discussed later. 2011 amendment tax form The tax rate is based on fuel economy rating. 2011 amendment tax form The tax rates for the gas guzzler tax are shown on Form 6197. 2011 amendment tax form A person that lengthens an existing automobile is the manufacturer of an automobile. 2011 amendment tax form Automobiles. 2011 amendment tax form   An automobile (including limousines) means any four-wheeled vehicle that is: Rated at an unloaded gross vehicle weight of 6,000 pounds or less, Propelled by an engine powered by gasoline or diesel fuel, and Intended for use mainly on public streets, roads, and highways. 2011 amendment tax form Vehicles not subject to tax. 2011 amendment tax form   For the gas guzzler tax, the following vehicles are not considered automobiles. 2011 amendment tax form Limousines with a gross unloaded vehicle weight of more than 6,000 pounds. 2011 amendment tax form Vehicles operated exclusively on a rail or rails. 2011 amendment tax form Vehicles sold for use and used primarily: As ambulances or combination ambulance-hearses, For police or other law enforcement purposes by federal, state, or local governments, or For firefighting purposes. 2011 amendment tax form Vehicles treated under 49 U. 2011 amendment tax form S. 2011 amendment tax form C. 2011 amendment tax form 32901 (1978) as non-passenger automobiles. 2011 amendment tax form This includes limousines manufactured primarily to transport more than 10 persons. 2011 amendment tax form   The manufacturer can sell a vehicle described in item (3) tax free only when the sale is made directly to a purchaser for the described emergency use and the manufacturer and purchaser (other than a state or local government) are registered. 2011 amendment tax form   Treat an Indian tribal government as a state only if the police or other law enforcement purposes are an essential tribal government function. 2011 amendment tax form Model type. 2011 amendment tax form   Model type is a particular class of automobile as determined by EPA regulations. 2011 amendment tax form Fuel economy. 2011 amendment tax form   Fuel economy is the average number of miles an automobile travels on a gallon of gasoline (or diesel fuel) rounded to the nearest 0. 2011 amendment tax form 1 mile as figured by the EPA. 2011 amendment tax form Imported automobiles. 2011 amendment tax form   The tax also applies to automobiles that do not have a prototype-based fuel economy rating assigned by the EPA. 2011 amendment tax form An automobile imported into the United States without a certificate of conformity to United States emission standards and that has no assigned fuel economy rating must be either: Converted by installation of emission controls to conform in all material respects to an automobile already certified for sale in the United States, or Modified by installation of emission control components and individually tested to demonstrate emission compliance. 2011 amendment tax form   An imported automobile that has been converted to conform to an automobile already certified for sale in the United States may use the fuel economy rating assigned to that certified automobile. 2011 amendment tax form   A fuel economy rating is not generally available for modified imported automobiles because the EPA does not require a highway fuel economy test on them. 2011 amendment tax form A separate highway fuel economy test would be required to devise a fuel economy rating (otherwise the automobile is presumed to fall within the lowest fuel economy rating category). 2011 amendment tax form   For more information about fuel economy ratings for imported automobiles, see Revenue Ruling 86-20 and Revenue Procedure 86-9 in Cumulative Bulletin 1986-1, and Revenue Procedure 87-10 in Cumulative Bulletin 1987-1. 2011 amendment tax form Exemptions. 2011 amendment tax form   No one is exempt from the gas guzzler tax, including the federal government, state and local governments, qualified blood collector organizations, and nonprofit educational organizations. 2011 amendment tax form However, see Vehicles not subject to tax, earlier. 2011 amendment tax form Form 6197. 2011 amendment tax form   Use Form 6197 to figure your tax liability for each quarter. 2011 amendment tax form Attach Form 6197 to your Form 720 for the quarter. 2011 amendment tax form See the Form 6197 instructions for more information and the one-time filing rules. 2011 amendment tax form Credit or refund. 2011 amendment tax form   If the manufacturer paid the tax on a vehicle that is used or resold for an emergency use (see item (3) under Vehicles not subject to tax), the manufacturer can claim a credit or refund. 2011 amendment tax form For information about how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. 2011 amendment tax form Vaccines Tax is imposed on certain vaccines sold by the manufacturer in the United States. 2011 amendment tax form A taxable vaccine means any of the following vaccines. 2011 amendment tax form Any vaccine containing diphtheria toxoid. 2011 amendment tax form Any vaccine containing tetanus toxoid. 2011 amendment tax form Any vaccine containing pertussis bacteria, extracted or partial cell bacteria, or specific pertussis antigens. 2011 amendment tax form Any vaccine containing polio virus. 2011 amendment tax form Any vaccine against measles. 2011 amendment tax form Any vaccine against mumps. 2011 amendment tax form Any vaccine against rubella. 2011 amendment tax form Any vaccine against hepatitis A. 2011 amendment tax form Any vaccine against hepatitis B. 2011 amendment tax form Any vaccine against chicken pox. 2011 amendment tax form Any vaccine against rotavirus gastroenteritis. 2011 amendment tax form Any HIB vaccine. 2011 amendment tax form Any conjugate vaccine against streptococcus pneumoniae. 2011 amendment tax form Any trivalent vaccine against influenza or any other vaccine against influenza. 2011 amendment tax form Any meningococcal vaccine. 2011 amendment tax form Any vaccine against the human papillomavirus. 2011 amendment tax form The effective date for the tax on any vaccine against influenza, other than trivalent influenza vaccines, is the later of August 1, 2013, or the date the Secretary of Health and Human Services lists a vaccine against seasonal influenza for purposes of compensation for any vaccine-related injury or death through the Vaccine Injury Compensation Trust Fund. 2011 amendment tax form The tax is $. 2011 amendment tax form 75 per dose of each taxable vaccine. 2011 amendment tax form The tax per dose on a vaccine that contains more than one taxable vaccine is $. 2011 amendment tax form 75 times the number of taxable vaccines. 2011 amendment tax form Taxable use. 2011 amendment tax form   Any manufacturer (including a governmental entity) that uses a taxable vaccine before it is sold will be liable for the tax in the same manner as if the vaccine was sold by the manufacturer. 2011 amendment tax form Credit or refund. 2011 amendment tax form   A credit or refund (without interest) is available if the vaccine is: Returned to the person who paid the tax (other than for resale), or Destroyed. 2011 amendment tax form The claim for a credit or refund must be filed within 6 months after the vaccine is returned or destroyed. 2011 amendment tax form Conditions to allowance. 2011 amendment tax form   To claim a credit or refund, the person who paid the tax must have repaid or agreed to repay the tax to the ultimate purchaser of the vaccine or obtained the written consent of such purchaser to allowance of the credit or refund. 2011 amendment tax form Taxable Medical Devices Taxable medical devices. 2011 amendment tax form   The tax on the sale of certain medical devices by the manufacturer, producer, or importer of the device is 2. 2011 amendment tax form 3% (. 2011 amendment tax form 023) of the sales price. 2011 amendment tax form A taxable medical device is a device that is listed as a device with the Food and Drug Administration (FDA) under section 510(j) of the Federal Food, Drug, and Cosmetic Act and 21 CFR part 807, pursuant to FDA requirements. 2011 amendment tax form There are specific exemptions for eyeglasses, contact lenses, and hearing aids. 2011 amendment tax form There is also an exemption for devices that are determined by the Secretary to be of a type that are generally purchased by the general public at retail for individual use (this exemption is known as the retail exemption). 2011 amendment tax form See T. 2011 amendment tax form D. 2011 amendment tax form 9604 for information on how to determine whether a device falls within the retail exemption, and examples of how a taxpayer might evaluate a given device. 2011 amendment tax form More information. 2011 amendment tax form   For more information on the medical device tax, see section 4191, T. 2011 amendment tax form D. 2011 amendment tax form 9604, and Notice 2012-77. 2011 amendment tax form You can find T. 2011 amendment tax form D. 2011 amendment tax form 9604 and Notice 2012-77 on pages 730 and 781, respectively, of I. 2011 amendment tax form R. 2011 amendment tax form B. 2011 amendment tax form 2012-52 at www. 2011 amendment tax form irs. 2011 amendment tax form gov/pub/irs-irbs/irb12-52. 2011 amendment tax form pdf. 2011 amendment tax form Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Contact My Local Office in Idaho

Face-to-Face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City  Street Address  Days/Hours of Service  Telephone* 
Boise  550 W. Fort St.
Boise, ID 83724 

Monday-Friday - 8:30 a.m.- 4:30 p.m.

 

Services Provided

(208) 387-2847 
Idaho Falls  1820 E. 17th St.
Idaho Falls, ID 83404 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 
(Closed for lunch 12:00 noon-1:00 p.m.) 

 

Services Provided

(208) 523-8041 
Pocatello  275 S. 5th Ave.
Pocatello, ID 83201 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:00 noon-1:00 p.m.)

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(208) 236-6795 

* Note: The phone numbers in the chart above are not toll free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call 208-363-8900 in the Boise area or 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
550 W. Fort Street, MS 6610BOI
Boise, ID 83724

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The 2011 Amendment Tax Form

2011 amendment tax form Publication 587 - Main Content Table of Contents Qualifying for a DeductionExclusive Use Regular Use Trade or Business Use Principal Place of Business Place To Meet Patients, Clients, or Customers Separate Structure Figuring the DeductionUsing Actual Expenses Using the Simplified Method Daycare Facility Standard meal and snack rates. 2011 amendment tax form Sale or Exchange of Your HomeGain on Sale Depreciation Basis Adjustment Reporting the Sale More Information Business Furniture and EquipmentListed Property Property Bought for Business Use Personal Property Converted to Business Use Recordkeeping Where To DeductSelf-Employed Persons Employees Partners How To Get Tax HelpLow Income Taxpayer Clinics Worksheet To Figure the Deduction for Business Use of Your HomeInstructions for the Worksheet Worksheets To Figure the Deduction for Business Use of Your Home (Simplified Method) Instructions for the Simplified Method Worksheet Instructions for the Daycare Facility Worksheet Instructions for the Area Adjustment Worksheet Qualifying for a Deduction Generally, you cannot deduct items related to your home, such as mortgage interest, real estate taxes, utilities, maintenance, rent, depreciation, or property insurance, as business expenses. 2011 amendment tax form However, you may be able to deduct expenses related to the business use of part of your home if you meet specific requirements. 2011 amendment tax form Even then, the deductible amount of these types of expenses may be limited. 2011 amendment tax form Use this section and Figure A, later, to decide if you can deduct expenses for the business use of your home. 2011 amendment tax form To qualify to deduct expenses for business use of your home, you must use part of your home: Exclusively and regularly as your principal place of business (defined later), Exclusively and regularly as a place where you meet or deal with patients, clients, or customers in the normal course of your trade or business, In the case of a separate structure which is not attached to your home, in connection with your trade or business, On a regular basis for certain storage use (see Storage of inventory or product samples , later), For rental use (see Publication 527), or As a daycare facility (see Daycare Facility , later). 2011 amendment tax form Additional tests for employee use. 2011 amendment tax form   If you are an employee and you use a part of your home for business, you may qualify for a deduction for its business use. 2011 amendment tax form You must meet the tests discussed earlier plus: Your business use must be for the convenience of your employer, and You must not rent any part of your home to your employer and use the rented portion to perform services as an employee for that employer. 2011 amendment tax form If the use of the home office is merely appropriate and helpful, you cannot deduct expenses for the business use of your home. 2011 amendment tax form Exclusive Use To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. 2011 amendment tax form The area used for business can be a room or other separately identifiable space. 2011 amendment tax form The space does not need to be marked off by a permanent partition. 2011 amendment tax form 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. 2011 amendment tax form Example. 2011 amendment tax form You are an attorney and use a den in your home to write legal briefs and prepare clients' tax returns. 2011 amendment tax form Your family also uses the den for recreation. 2011 amendment tax form The den is not used exclusively in your trade or business, so you cannot claim a deduction for the business use of the den. 2011 amendment tax form Exceptions to Exclusive Use You do not have to meet the exclusive use test if either of the following applies. 2011 amendment tax form You use part of your home for the storage of inventory or product samples (discussed next). 2011 amendment tax form You use part of your home as a daycare facility, discussed later under Daycare Facility . 2011 amendment tax form Note. 2011 amendment tax form With the exception of these two uses, any portion of the home used for business purposes must meet the exclusive use test. 2011 amendment tax form Storage of inventory or product samples. 2011 amendment tax form    If you use part of your home for storage of inventory or product samples, you can deduct expenses for the business use of your home without meeting the exclusive use test. 2011 amendment tax form However, you must meet all the following tests. 2011 amendment tax form You sell products at wholesale or retail as your trade or business. 2011 amendment tax form You keep the inventory or product samples in your home for use in your trade or business. 2011 amendment tax form Your home is the only fixed location of your trade or business. 2011 amendment tax form You use the storage space on a regular basis. 2011 amendment tax form The space you use is a separately identifiable space suitable for storage. 2011 amendment tax form Example. 2011 amendment tax form Your home is the only fixed location of your business of selling mechanics' tools at retail. 2011 amendment tax form You regularly use half of your basement for storage of inventory and product samples. 2011 amendment tax form You sometimes use the area for personal purposes. 2011 amendment tax form The expenses for the storage space are deductible even though you do not use this part of your basement exclusively for business. 2011 amendment tax form Regular Use To qualify under the regular use test, you must use a specific area of your home for business on a regular basis. 2011 amendment tax form Incidental or occasional business use is not regular use. 2011 amendment tax form You must consider all facts and circumstances in determining whether your use is on a regular basis. 2011 amendment tax form Trade or Business Use To qualify under the trade-or-business-use test, you must use part of your home in connection with a trade or business. 2011 amendment tax form If you use your home for a profit-seeking activity that is not a trade or business, you cannot take a deduction for its business use. 2011 amendment tax form Example. 2011 amendment tax form You use part of your home exclusively and regularly to read financial periodicals and reports, clip bond coupons, and carry out similar activities related to your own investments. 2011 amendment tax form You do not make investments as a broker or dealer. 2011 amendment tax form So, your activities are not part of a trade or business and you cannot take a deduction for the business use of your home. 2011 amendment tax form Principal Place of Business You can have more than one business location, including your home, for a single trade or business. 2011 amendment tax form 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 trade or business. 2011 amendment tax form To determine whether your home is your principal place of business, you must consider: The relative importance of the activities performed at each place where you conduct business, and The amount of time spent at each place where you conduct business. 2011 amendment tax form Your home office will qualify as your principal place of business if you meet the following requirements. 2011 amendment tax form You use it exclusively and regularly for administrative or management activities of your trade or business. 2011 amendment tax form You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. 2011 amendment tax form If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. 2011 amendment tax form However, see the later discussions under Place To Meet Patients, Clients, or Customers and Separate Structure for other ways to qualify to deduct home office expenses. 2011 amendment tax form Administrative or management activities. 2011 amendment tax form   There are many activities that are administrative or managerial in nature. 2011 amendment tax form The following are a few examples. 2011 amendment tax form Billing customers, clients, or patients. 2011 amendment tax form Keeping books and records. 2011 amendment tax form Ordering supplies. 2011 amendment tax form Setting up appointments. 2011 amendment tax form Forwarding orders or writing reports. 2011 amendment tax form Administrative or management activities performed at other locations. 2011 amendment tax form   The following activities performed by you or others will not disqualify your home office from being your principal place of business. 2011 amendment tax form You have others conduct your administrative or management activities at locations other than your home. 2011 amendment tax form (For example, another company does your billing from its place of business. 2011 amendment tax form ) You conduct administrative or management activities at places that are not fixed locations of your business, such as in a car or a hotel room. 2011 amendment tax form You occasionally conduct minimal administrative or management activities at a fixed location outside your home. 2011 amendment tax form You conduct substantial nonadministrative or nonmanagement business activities at a fixed location outside your home. 2011 amendment tax form (For example, you meet with or provide services to customers, clients, or patients at a fixed location of the business outside your home. 2011 amendment tax form ) You have suitable space to conduct administrative or management activities outside your home, but choose to use your home office for those activities instead. 2011 amendment tax form Please click here for the text description of the image. 2011 amendment tax form Can you deduct business use of the home expenses? Example 1. 2011 amendment tax form John is a self-employed plumber. 2011 amendment tax form Most of John's time is spent at customers' homes and offices installing and repairing plumbing. 2011 amendment tax form He has a small office in his home that he uses exclusively and regularly for the administrative or management activities of his business, such as phoning customers, ordering supplies, and keeping his books. 2011 amendment tax form John writes up estimates and records of work completed at his customers' premises. 2011 amendment tax form He does not conduct any substantial administrative or management activities at any fixed location other than his home office. 2011 amendment tax form John does not do his own billing. 2011 amendment tax form He uses a local bookkeeping service to bill his customers. 2011 amendment tax form John's home office qualifies as his principal place of business for deducting expenses for its use. 2011 amendment tax form He uses the home office for the administrative or managerial activities of his plumbing business and he has no other fixed location where he conducts these administrative or managerial activities. 2011 amendment tax form His choice to have his billing done by another company does not disqualify his home office from being his principal place of business. 2011 amendment tax form He meets all the qualifications, including principal place of business, so he can deduct expenses (subject to certain limitations, explained later) for the business use of his home. 2011 amendment tax form Example 2. 2011 amendment tax form Pamela is a self-employed sales representative for several different product lines. 2011 amendment tax form She has an office in her home that she uses exclusively and regularly to set up appointments and write up orders and other reports for the companies whose products she sells. 2011 amendment tax form She occasionally writes up orders and sets up appointments from her hotel room when she is away on business overnight. 2011 amendment tax form Pamela's business is selling products to customers at various locations throughout her territory. 2011 amendment tax form To make these sales, she regularly visits customers to explain the available products and take orders. 2011 amendment tax form Pamela's home office qualifies as her principal place of business for deducting expenses for its use. 2011 amendment tax form She conducts administrative or management activities there and she has no other fixed location where she conducts substantial administrative or management activities. 2011 amendment tax form The fact that she conducts some administrative or management activities in her hotel room (not a fixed location) does not disqualify her home office from being her principal place of business. 2011 amendment tax form She meets all the qualifications, including principal place of business, so she can deduct expenses (subject to certain limitations, explained later) for the business use of her home. 2011 amendment tax form Example 3. 2011 amendment tax form Paul is a self-employed anesthesiologist. 2011 amendment tax form He spends the majority of his time administering anesthesia and postoperative care in three local hospitals. 2011 amendment tax form One of the hospitals provides him with a small shared office where he could conduct administrative or management activities. 2011 amendment tax form Paul very rarely uses the office the hospital provides. 2011 amendment tax form He uses a room in his home that he has converted to an office. 2011 amendment tax form He uses this room exclusively and regularly to conduct all the following activities. 2011 amendment tax form Contacting patients, surgeons, and hospitals regarding scheduling. 2011 amendment tax form Preparing for treatments and presentations. 2011 amendment tax form Maintaining billing records and patient logs. 2011 amendment tax form Satisfying continuing medical education requirements. 2011 amendment tax form Reading medical journals and books. 2011 amendment tax form Paul's home office qualifies as his principal place of business for deducting expenses for its use. 2011 amendment tax form He conducts administrative or management activities for his business as an anesthesiologist there and he has no other fixed location where he conducts substantial administrative or management activities for this business. 2011 amendment tax form His choice to use his home office instead of the one provided by the hospital does not disqualify his home office from being his principal place of business. 2011 amendment tax form His performance of substantial nonadministrative or nonmanagement activities at fixed locations outside his home also does not disqualify his home office from being his principal place of business. 2011 amendment tax form He meets all the qualifications, including principal place of business, so he can deduct expenses (subject to certain limitations, explained later) for the business use of his home. 2011 amendment tax form Example 4. 2011 amendment tax form Kathleen is employed as a teacher. 2011 amendment tax form She is required to teach and meet with students at the school and to grade papers and tests. 2011 amendment tax form The school provides her with a small office where she can work on her lesson plans, grade papers and tests, and meet with parents and students. 2011 amendment tax form The school does not require her to work at home. 2011 amendment tax form Kathleen prefers to use the office she has set up in her home and does not use the one provided by the school. 2011 amendment tax form She uses this home office exclusively and regularly for the administrative duties of her teaching job. 2011 amendment tax form Kathleen must meet the convenience-of-the-employer test, even if her home qualifies as her principal place of business for deducting expenses for its use. 2011 amendment tax form Her employer provides her with an office and does not require her to work at home, so she does not meet the convenience-of-the-employer test and cannot claim a deduction for the business use of her home. 2011 amendment tax form More Than One Trade or Business The same home office can be the principal place of business for two or more separate business activities. 2011 amendment tax form Whether your home office is the principal place of business for more than one business activity must be determined separately for each of your trade or business activities. 2011 amendment tax form You must use the home office exclusively and regularly for one or more of the following purposes. 2011 amendment tax form As the principal place of business for one or more of your trades or businesses. 2011 amendment tax form As a place to meet or deal with patients, clients, or customers in the normal course of one or more of your trades or businesses. 2011 amendment tax form If your home office is a separate structure, in connection with one or more of your trades or businesses. 2011 amendment tax form You can use your home office for more than one business activity, but you cannot use it for any nonbusiness (i. 2011 amendment tax form e. 2011 amendment tax form , personal) activities. 2011 amendment tax form If you are an employee, any use of the home office in connection with your employment must be for the convenience of your employer. 2011 amendment tax form See Rental to employer , later, if you rent part of your home to your employer. 2011 amendment tax form Example. 2011 amendment tax form Tracy White is employed as a teacher. 2011 amendment tax form Her principal place of work is the school, which provides her office space to do her school work. 2011 amendment tax form She also has a mail order jewelry business. 2011 amendment tax form All her work in the jewelry business is done in her home office and the office is used exclusively for that business. 2011 amendment tax form If she meets all the other tests, she can deduct expenses for the business use of her home for the jewelry business. 2011 amendment tax form If Tracy also uses the office for work related to her teaching, she must meet the exclusive use test for both businesses to qualify for the deduction. 2011 amendment tax form As an employee, Tracy must also meet the convenience-of-the-employer test to qualify for the deduction. 2011 amendment tax form She does not meet this test for her work as a teacher, so she cannot claim a deduction for the business use of her home for either activity. 2011 amendment tax form Place To Meet Patients, Clients, or Customers If you meet or deal with patients, clients, or customers in your home in the normal course of your business, even though you also carry on business at another location, you can deduct your expenses for the part of your home used exclusively and regularly for business if you meet both the following tests. 2011 amendment tax form You physically meet with patients, clients, or customers on your premises. 2011 amendment tax form Their use of your home is substantial and integral to the conduct of your business. 2011 amendment tax form Doctors, dentists, attorneys, and other professionals who maintain offices in their homes generally will meet this requirement. 2011 amendment tax form Using your home for occasional meetings and telephone calls will not qualify you to deduct expenses for the business use of your home. 2011 amendment tax form The part of your home you use exclusively and regularly to meet patients, clients, or customers does not have to be your principal place of business. 2011 amendment tax form Example. 2011 amendment tax form June Quill, a self-employed attorney, works 3 days a week in her city office. 2011 amendment tax form She works 2 days a week in her home office used only for business. 2011 amendment tax form She regularly meets clients there. 2011 amendment tax form Her home office qualifies for a business deduction because she meets clients there in the normal course of her business. 2011 amendment tax form Separate Structure You can deduct expenses for a separate free-standing structure, such as a studio, workshop, garage, or barn, if you use it exclusively and regularly for your business. 2011 amendment tax form The structure does not have to be your principal place of business or a place where you meet patients, clients, or customers. 2011 amendment tax form Example. 2011 amendment tax form John Berry operates a floral shop in town. 2011 amendment tax form He grows the plants for his shop in a greenhouse behind his home. 2011 amendment tax form He uses the greenhouse exclusively and regularly in his business, so he can deduct the expenses for its use, subject to certain limitations, explained later. 2011 amendment tax form Figuring the Deduction After you determine that you meet the tests under Qualifying for a Deduction , you can begin to figure how much you can deduct. 2011 amendment tax form When figuring the amount you can deduct for the business use of your home, you will use either your actual expenses or a simplified method. 2011 amendment tax form Electing to use the simplified method. 2011 amendment tax form   The simplified method is an alternative to the calculation, allocation, and substantiation of actual expenses. 2011 amendment tax form You choose whether or not to figure your deduction using the simplified method each taxable year. 2011 amendment tax form See Using the Simplified Method , later. 2011 amendment tax form Rental to employer. 2011 amendment tax form   If you rent part of your home to your employer and you use the rented part in performing services for your employer as an employee, your deduction for the business use of your home is limited. 2011 amendment tax form You can deduct mortgage interest, qualified mortgage insurance premiums, real estate taxes, and personal casualty losses for the rented part, subject to any limitations. 2011 amendment tax form However, you cannot deduct otherwise allowable trade or business expenses, business casualty losses, or depreciation related to the use of your home (or use the simplified method as an alternative to deducting these actual expenses) in performing services for your employer. 2011 amendment tax form Using Actual Expenses If you do not or cannot elect to use the simplified method for a home, you will figure your deduction for that home using your actual expenses. 2011 amendment tax form You will also need to figure the percentage of your home used for business and the limit on the deduction. 2011 amendment tax form If you are an employee or a partner, or you use your home in your farming business and you file Schedule F (Form 1040), you can use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication, to help you figure your deduction. 2011 amendment tax form If you use your home in a trade or business and you file Schedule C (Form 1040), you will use Form 8829 to figure your deduction. 2011 amendment tax form Part-year use. 2011 amendment tax form   You cannot deduct expenses for the business use of your home incurred during any part of the year you did not use your home for business purposes. 2011 amendment tax form For example, if you begin using part of your home for business on July 1, and you meet all the tests from that date until the end of the year, consider only your expenses for the last half of the year in figuring your allowable deduction. 2011 amendment tax form Expenses related to tax-exempt income. 2011 amendment tax form   Generally, you cannot deduct expenses that are related to tax-exempt allowances. 2011 amendment tax form However, if you receive a tax-exempt parsonage allowance or a tax-exempt military allowance, your expenses for mortgage interest and real estate taxes are deductible under the normal rules. 2011 amendment tax form No deduction is allowed for other expenses related to the tax-exempt allowance. 2011 amendment tax form   If your housing is provided free of charge and the value of the housing is tax exempt, you cannot deduct the rental value of any portion of the housing. 2011 amendment tax form Actual Expenses You must divide the expenses of operating your home between personal and business use. 2011 amendment tax form The part of a home operating expense you can use to figure your deduction depends on both of the following. 2011 amendment tax form Whether the expense is direct, indirect, or unrelated. 2011 amendment tax form The percentage of your home used for business. 2011 amendment tax form Table 1, next, describes the types of expenses you may have and the extent to which they are deductible. 2011 amendment tax form Table 1. 2011 amendment tax form Types of Expenses  Expense  Description  Deductibility Direct Expenses only for  the business part  of your home. 2011 amendment tax form Deductible in full. 2011 amendment tax form *   Examples:  Painting or repairs  only in the area  used for business. 2011 amendment tax form Exception: May be only partially  deductible in a daycare facility. 2011 amendment tax form See Daycare Facility , later. 2011 amendment tax form Indirect Expenses for  keeping up and running your  entire home. 2011 amendment tax form Deductible based on the percentage of your home used for business. 2011 amendment tax form *   Examples:  Insurance, utilities, and  general repairs. 2011 amendment tax form   Unrelated Expenses only for  the parts of your  home not used  for business. 2011 amendment tax form Not deductible. 2011 amendment tax form   Examples:  Lawn care or painting  a room not used  for business. 2011 amendment tax form   *Subject to the deduction limit, discussed later. 2011 amendment tax form Form 8829 and the Worksheet To Figure the Deduction for Business Use of Your Home have separate columns for direct and indirect expenses. 2011 amendment tax form Certain expenses are deductible whether or not you use your home for business. 2011 amendment tax form If you qualify to deduct business use of the home expenses, use the business percentage of these expenses to figure your total business use of the home deduction. 2011 amendment tax form These expenses include the following. 2011 amendment tax form Real estate taxes. 2011 amendment tax form Qualified mortgage insurance premiums. 2011 amendment tax form Deductible mortgage interest. 2011 amendment tax form Casualty losses. 2011 amendment tax form Other expenses are deductible only if you use your home for business. 2011 amendment tax form You can use the business percentage of these expenses to figure your total business use of the home deduction. 2011 amendment tax form These expenses generally include (but are not limited to) the following. 2011 amendment tax form Depreciation (covered under Depreciating Your Home , later). 2011 amendment tax form Insurance. 2011 amendment tax form Rent paid for the use of property you do not own but use in your trade or business. 2011 amendment tax form Repairs. 2011 amendment tax form Security system. 2011 amendment tax form Utilities and services. 2011 amendment tax form Real estate taxes. 2011 amendment tax form   To figure the business part of your real estate taxes, multiply the real estate taxes paid by the percentage of your home used for business. 2011 amendment tax form   For more information on the deduction for real estate taxes, see Publication 530, Tax Information for Homeowners. 2011 amendment tax form Deductible mortgage interest. 2011 amendment tax form   To figure the business part of your deductible mortgage interest, multiply this interest by the percentage of your home used for business. 2011 amendment tax form You can include interest on a second mortgage in this computation. 2011 amendment tax form If your total mortgage debt is more than $1,000,000 or your home equity debt is more than $100,000, your deduction may be limited. 2011 amendment tax form For more information on what interest is deductible, see Publication 936, Home Mortgage Interest Deduction. 2011 amendment tax form Qualified mortgage insurance premiums. 2011 amendment tax form   To figure the business part of your qualified mortgage insurance premiums, multiply the premiums by the percentage of your home used for business. 2011 amendment tax form You can include premiums for insurance on a second mortgage in this computation. 2011 amendment tax form If your adjusted gross income is more than $100,000 ($50,000 if your filing status is married filing separately), your deduction may be limited. 2011 amendment tax form For more information, see Publication 936, and Line 13 in the Instructions for Schedule A (Form 1040). 2011 amendment tax form Casualty losses. 2011 amendment tax form    If you have a casualty loss on your home that you use for business, treat the casualty loss as a direct expense, an indirect expense, or an unrelated expense, depending on the property affected. 2011 amendment tax form A direct expense is the loss on the portion of the property you use only in your business. 2011 amendment tax form Use the entire loss to figure the business use of the home deduction. 2011 amendment tax form An indirect expense is the loss on property you use for both business and personal purposes. 2011 amendment tax form Use only the business portion to figure the deduction. 2011 amendment tax form An unrelated expense is the loss on property you do not use in your business. 2011 amendment tax form Do not use any of the loss to figure the deduction. 2011 amendment tax form Example. 2011 amendment tax form You meet the rules to take a deduction for an office in your home that is 10% of the total area of your house. 2011 amendment tax form A storm damages your roof. 2011 amendment tax form This is an indirect expense as the roof is part of the whole house and is considered to be used both for business and personal purposes. 2011 amendment tax form You would complete Form 4684, Casualties and Thefts, to report your loss. 2011 amendment tax form You complete both section A (Personal Use Property) and section B (Business and Income-Producing Property) as your home is used both for business and personal purposes. 2011 amendment tax form Since you use 90% of your home for personal purposes, use 90% of the cost or adjusted basis of your home, insurance or other reimbursement, and fair market value, both before and after the storm, to figure the amounts to enter on lines 2, 3, 5, and 6 of Form 4684. 2011 amendment tax form Since you use 10% of your home for business purposes, use 10% of the cost or adjusted basis of your home, insurance or other reimbursement, and fair market value, both before and after the storm, to figure the amounts to enter on lines 20, 21, 23, and 24 of Form 4684. 2011 amendment tax form Forms and worksheets to use. 2011 amendment tax form   If you are filing Schedule C (Form 1040), get Form 8829 and follow the instructions for casualty losses. 2011 amendment tax form If you are an employee or a partner, or you file Schedule F (Form 1040), use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication. 2011 amendment tax form You will also need to get Form 4684. 2011 amendment tax form More information. 2011 amendment tax form   For more information on casualty losses, see Publication 547, Casualties, Disasters, and Thefts. 2011 amendment tax form Insurance. 2011 amendment tax form   You can deduct the cost of insurance that covers the business part of your home. 2011 amendment tax form However, if your insurance premium gives you coverage for a period that extends past the end of your tax year, you can deduct only the business percentage of the part of the premium that gives you coverage for your tax year. 2011 amendment tax form You can deduct the business percentage of the part that applies to the following year in that year. 2011 amendment tax form Rent. 2011 amendment tax form   If you rent the home you occupy and meet the requirements for business use of the home, you can deduct part of the rent you pay. 2011 amendment tax form To figure your deduction, multiply your rent payments by the percentage of your home used for business. 2011 amendment tax form   If you own your home, you cannot deduct the fair rental value of your home. 2011 amendment tax form However, see Depreciating Your Home , later. 2011 amendment tax form Repairs. 2011 amendment tax form   The cost of repairs that relate to your business, including labor (other than your own labor), is a deductible expense. 2011 amendment tax form For example, a furnace repair benefits the entire home. 2011 amendment tax form If you use 10% of your home for business, you can deduct 10% of the cost of the furnace repair. 2011 amendment tax form   Repairs keep your home in good working order over its useful life. 2011 amendment tax form Examples of common repairs are patching walls and floors, painting, wallpapering, repairing roofs and gutters, and mending leaks. 2011 amendment tax form However, repairs are sometimes treated as a permanent improvement and are not deductible. 2011 amendment tax form See Permanent improvements , later, under Depreciating Your Home. 2011 amendment tax form Security system. 2011 amendment tax form   If you install a security system that protects all the doors and windows in your home, you can deduct the business part of the expenses you incur to maintain and monitor the system. 2011 amendment tax form You also can take a depreciation deduction for the part of the cost of the security system relating to the business use of your home. 2011 amendment tax form Utilities and services. 2011 amendment tax form   Expenses for utilities and services, such as electricity, gas, trash removal, and cleaning services, are primarily personal expenses. 2011 amendment tax form However, if you use part of your home for business, you can deduct the business part of these expenses. 2011 amendment tax form Generally, the business percentage for utilities is the same as the percentage of your home used for business. 2011 amendment tax form Telephone. 2011 amendment tax form   The basic local telephone service charge, including taxes, for the first telephone line into your home (i. 2011 amendment tax form e. 2011 amendment tax form , landline) is a nondeductible personal expense. 2011 amendment tax form However, charges for business long-distance phone calls on that line, as well as the cost of a second line into your home used exclusively for business, are deductible business expenses. 2011 amendment tax form Do not include these expenses as a cost of using your home for business. 2011 amendment tax form Deduct these charges separately on the appropriate form or schedule. 2011 amendment tax form For example, if you file Schedule C (Form 1040), deduct these expenses on line 25, Utilities (instead of line 30, Expenses for business use of your home). 2011 amendment tax form Depreciating Your Home If you own your home and qualify to deduct expenses for its business use, you can claim a deduction for depreciation. 2011 amendment tax form Depreciation is an allowance for the wear and tear on the part of your home used for business. 2011 amendment tax form You cannot depreciate the cost or value of the land. 2011 amendment tax form You recover its cost when you sell or otherwise dispose of the property. 2011 amendment tax form Before you figure your depreciation deduction, you need to know the following information. 2011 amendment tax form The month and year you started using your home for business. 2011 amendment tax form The adjusted basis and fair market value of your home (excluding land) at the time you began using it for business. 2011 amendment tax form The cost of any improvements before and after you began using the property for business. 2011 amendment tax form The percentage of your home used for business. 2011 amendment tax form See Business Percentage , later. 2011 amendment tax form Adjusted basis defined. 2011 amendment tax form   The adjusted basis of your home is generally its cost, plus the cost of any permanent improvements you made to it, minus any casualty losses or depreciation deducted in earlier tax years. 2011 amendment tax form For a discussion of adjusted basis, see Publication 551. 2011 amendment tax form Permanent improvements. 2011 amendment tax form   A permanent improvement increases the value of property, adds to its life, or gives it a new or different use. 2011 amendment tax form Examples of improvements are replacing electric wiring or plumbing, adding a new roof or addition, paneling, or remodeling. 2011 amendment tax form    You must carefully distinguish between repairs and improvements. 2011 amendment tax form See Repairs , earlier, under Actual Expenses. 2011 amendment tax form You also must keep accurate records of these expenses. 2011 amendment tax form These records will help you decide whether an expense is a deductible or a capital (added to the basis) expense. 2011 amendment tax form However, if you make repairs as part of an extensive remodeling or restoration of your home, the entire job is an improvement. 2011 amendment tax form Example. 2011 amendment tax form You buy an older home and fix up two rooms as a beauty salon. 2011 amendment tax form You patch the plaster on the ceilings and walls, paint, repair the floor, install an outside door, and install new wiring, plumbing, and other equipment. 2011 amendment tax form Normally, the patching, painting, and floor work are repairs and the other expenses are permanent improvements. 2011 amendment tax form However, because the work gives your property a new use, the entire remodeling job is a permanent improvement and its cost is added to the basis of the property. 2011 amendment tax form You cannot deduct any portion of it as a repair expense. 2011 amendment tax form Adjusting for depreciation deducted in earlier years. 2011 amendment tax form   Decrease the basis of your property by the depreciation you deducted, or could have deducted, on your tax returns under the method of depreciation you properly selected. 2011 amendment tax form If you deducted less depreciation than you could have under the method you selected, decrease the basis by the amount you could have deducted under that method. 2011 amendment tax form If you did not deduct any depreciation, decrease the basis by the amount you could have deducted. 2011 amendment tax form   If you deducted more depreciation than you should have, decrease your basis by the amount you should have deducted, plus the part of the excess depreciation you deducted that actually decreased your tax liability for any year. 2011 amendment tax form   If you deducted the incorrect amount of depreciation, see Publication 946. 2011 amendment tax form Fair market value defined. 2011 amendment tax form   The fair market value of your home is the price at which the property would change hands between a buyer and a seller, neither having to buy or sell, and both having reasonable knowledge of all necessary facts. 2011 amendment tax form Sales of similar property, on or about the date you begin using your home for business, may be helpful in determining the property's fair market value. 2011 amendment tax form Figuring the depreciation deduction for the current year. 2011 amendment tax form   If you began using your home for business before 2013, continue to use the same depreciation method you used in past tax years. 2011 amendment tax form   If you began using your home for business for the first time in 2013, depreciate the business part as nonresidential real property under the modified accelerated cost recovery system (MACRS). 2011 amendment tax form Under MACRS, nonresidential real property is depreciated using the straight line method over 39 years. 2011 amendment tax form For more information on MACRS and other methods of depreciation, see Publication 946. 2011 amendment tax form   To figure the depreciation deduction, you must first figure the part of the cost of your home that can be depreciated (depreciable basis). 2011 amendment tax form The depreciable basis is figured by multiplying the percentage of your home used for business by the smaller of the following. 2011 amendment tax form The adjusted basis of your home (excluding land) on the date you began using your home for business. 2011 amendment tax form The fair market value of your home (excluding land) on the date you began using your home for business. 2011 amendment tax form Depreciation table. 2011 amendment tax form   If 2013 was the first year you used your home for business, you can figure your 2013 depreciation for the business part of your home by using the appropriate percentage from the following table. 2011 amendment tax form Table 2. 2011 amendment tax form MACRS Percentage Table for 39-Year Nonresidential Real Property Month First Used for Business Percentage To Use 1 2. 2011 amendment tax form 461% 2 2. 2011 amendment tax form 247% 3 2. 2011 amendment tax form 033% 4 1. 2011 amendment tax form 819% 5 1. 2011 amendment tax form 605% 6 1. 2011 amendment tax form 391% 7 1. 2011 amendment tax form 177% 8 0. 2011 amendment tax form 963% 9 0. 2011 amendment tax form 749% 10 0. 2011 amendment tax form 535% 11 0. 2011 amendment tax form 321% 12 0. 2011 amendment tax form 107%   Multiply the depreciable basis of the business part of your home by the percentage from the table for the first month you use your home for business. 2011 amendment tax form See Publication 946 for the percentages for the remaining tax years of the recovery period. 2011 amendment tax form Example. 2011 amendment tax form In May, George Miller began to use one room in his home exclusively and regularly to meet clients. 2011 amendment tax form This room is 8% of the square footage of his home. 2011 amendment tax form He bought the home in 2003 for $125,000. 2011 amendment tax form He determined from his property tax records that his adjusted basis in the house (exclusive of land) is $115,000. 2011 amendment tax form In May, the house had a fair market value of $165,000. 2011 amendment tax form He multiplies his adjusted basis of $115,000 (which is less than the fair market value) by 8%. 2011 amendment tax form The result is $9,200, his depreciable basis for the business part of the house. 2011 amendment tax form George files his return based on the calendar year. 2011 amendment tax form May is the 5th month of his tax year. 2011 amendment tax form He multiplies his depreciable basis of $9,200 by 1. 2011 amendment tax form 605% (. 2011 amendment tax form 01605), the percentage from the table for the 5th month. 2011 amendment tax form His depreciation deduction is $147. 2011 amendment tax form 66. 2011 amendment tax form Depreciating permanent improvements. 2011 amendment tax form   Add the costs of permanent improvements made before you began using your home for business to the basis of your property. 2011 amendment tax form Depreciate these costs as part of the cost of your home as explained earlier. 2011 amendment tax form The costs of improvements made after you begin using your home for business (that affect the business part of your home, such as a new roof) are depreciated separately. 2011 amendment tax form Multiply the cost of the improvement by the business-use percentage and depreciate the result over the recovery period that would apply to your home if you began using it for business at the same time as the improvement. 2011 amendment tax form For improvements made this year, the recovery period is 39 years. 2011 amendment tax form For the percentage to use for the first year, see Table 2, earlier. 2011 amendment tax form For more information on recovery periods, see Publication 946. 2011 amendment tax form Business Percentage To find the business percentage, compare the size of the part of your home that you use for business to your whole house. 2011 amendment tax form Use the resulting percentage to figure the business part of the expenses for operating your entire home. 2011 amendment tax form You can use any reasonable method to determine the business percentage. 2011 amendment tax form The following are two commonly used methods for figuring the percentage. 2011 amendment tax form Divide the area (length multiplied by the width) used for business by the total area of your home. 2011 amendment tax form If the rooms in your home are all about the same size, you can divide the number of rooms used for business by the total number of rooms in your home. 2011 amendment tax form Example 1. 2011 amendment tax form Your office is 240 square feet (12 feet × 20 feet). 2011 amendment tax form Your home is 1,200 square feet. 2011 amendment tax form Your office is 20% (240 ÷ 1,200) of the total area of your home. 2011 amendment tax form Your business percentage is 20%. 2011 amendment tax form Example 2. 2011 amendment tax form You use one room in your home for business. 2011 amendment tax form Your home has 10 rooms, all about equal size. 2011 amendment tax form Your office is 10% (1 ÷ 10) of the total area of your home. 2011 amendment tax form Your business percentage is 10%. 2011 amendment tax form Use lines 1-7 of Form 8829, or lines 1-3 on the Worksheet To Figure the Deduction for Business Use of Your Home (near the end of this publication) to figure your business percentage. 2011 amendment tax form Deduction Limit 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. 2011 amendment tax form If your gross income from the business use of your home is less than your total business expenses, your deduction for certain expenses for the business use of your home is limited. 2011 amendment tax form Your deduction of otherwise nondeductible expenses, such as insurance, utilities, and depreciation of your home (with depreciation of your home taken last), that are allocable to the business, is limited to the gross income from the business use of your home minus the sum of the following. 2011 amendment tax form 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)). 2011 amendment tax form These expenses are discussed in detail under Actual Expenses , earlier. 2011 amendment tax form 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. 2011 amendment tax form If you are self-employed, do not include in (2) above your deduction for one-half of your self-employment tax. 2011 amendment tax form Carryover of unallowed expenses. 2011 amendment tax form   If your deductions are greater than the current year's limit, you can carry over the excess to the next year in which you use actual expenses. 2011 amendment tax form They are subject to the deduction limit for that year, whether or not you live in the same home during that year. 2011 amendment tax form Figuring the deduction limit and carryover. 2011 amendment tax form   If you are an employee or a partner, or you file Schedule F (Form 1040), use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication. 2011 amendment tax form If you file Schedule C (Form 1040), figure your deduction limit and carryover on Form 8829. 2011 amendment tax form Example. 2011 amendment tax form You meet the requirements for deducting expenses for the business use of your home. 2011 amendment tax form You use 20% of your home for business. 2011 amendment tax form In 2013, your business expenses and the expenses for the business use of your home are deducted from your gross income in the following order. 2011 amendment tax form    Gross income from business $6,000 Minus:   Deductible mortgage interest and real estate taxes (20%) 3,000 Business expenses not related to the use of your home (100%) (business phone, supplies, and depreciation on equipment) 2,000 Deduction limit $1,000 Minus other expenses allocable to business use of home:   Maintenance, insurance, and utilities (20%) 800 Depreciation allowed (20% = $1,600 allowable, but subject to balance of deduction limit) 200 Other expenses up to the deduction limit $1,000 Depreciation carryover to 2014 ($1,600 − $200) (subject to deduction limit in 2014) $1,400   You can deduct all of the business part of your deductible mortgage interest and real estate taxes ($3,000). 2011 amendment tax form You also can deduct all of your business expenses not related to the use of your home ($2,000). 2011 amendment tax form Additionally, you can deduct all of the business part of your expenses for maintenance, insurance, and utilities, because the total ($800) is less than the $1,000 deduction limit. 2011 amendment tax form Your deduction for depreciation for the business use of your home is limited to $200 ($1,000 minus $800) because of the deduction limit. 2011 amendment tax form You can carry over the $1,400 balance and add it to your depreciation for 2014, subject to your deduction limit in 2014. 2011 amendment tax form More than one place of business. 2011 amendment tax form   If part of the gross income from your trade or business is from the business use of part of your home and part is from a place other than your home, you must determine the part of your gross income from the business use of your home before you figure the deduction limit. 2011 amendment tax form In making this determination, consider the time you spend at each location, the business investment in each location, and any other relevant facts and circumstances. 2011 amendment tax form If your home office qualifies as your principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. 2011 amendment tax form For more information on transportation costs, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. 2011 amendment tax form Using the Simplified Method The simplified method is an alternative to the calculation, allocation, and substantiation of actual expenses. 2011 amendment tax form In most cases, you will figure your deduction by multiplying $5, the prescribed rate, by the area of your home used for a qualified business use. 2011 amendment tax form The area you use to figure your deduction is limited to 300 square feet. 2011 amendment tax form See Simplified Amount , later, for information about figuring the amount of the deduction. 2011 amendment tax form For more information about the simplified method, see Revenue Procedure 2013-13, 2013-06 I. 2011 amendment tax form R. 2011 amendment tax form B. 2011 amendment tax form 478, available at www. 2011 amendment tax form irs. 2011 amendment tax form gov/irb/2013-06_IRB/ar09. 2011 amendment tax form html. 2011 amendment tax form Actual expenses and depreciation of your home. 2011 amendment tax form   If you elect to use the simplified method, you cannot deduct any actual expenses for the business except for business expenses that are not related to the use of the home. 2011 amendment tax form You also cannot deduct any depreciation (including any additional first-year depreciation) or section 179 expense for the portion of the home that is used for a qualified business use. 2011 amendment tax form The depreciation deduction allowable for that portion of the home is deemed to be zero for a year you use the simplified method. 2011 amendment tax form If you figure your deduction for business use of the home using actual expenses in a subsequent year, you will have to use the appropriate optional depreciation table for MACRS to figure your depreciation. 2011 amendment tax form More information. 2011 amendment tax form   For more information about claiming depreciation in a subsequent year, see Revenue Procedure 2013-13, 2013-06 I. 2011 amendment tax form R. 2011 amendment tax form B. 2011 amendment tax form 478, available at www. 2011 amendment tax form irs. 2011 amendment tax form gov/irb/2013-06_IRB/ar09. 2011 amendment tax form html. 2011 amendment tax form See Publication 946 for the optional depreciation tables Although you cannot deduct any depreciation or section 179 expense for the portion of your home used for a qualified business use, you may still claim depreciation or the section 179 expense deduction on other assets used in the business (for example, furniture and equipment). 2011 amendment tax form Expenses deductible without regard to business use. 2011 amendment tax form   When using the simplified method, treat as personal expenses those business expenses related to the use of the home that are deductible without regard to whether there is a qualified business use of the home. 2011 amendment tax form These expenses include mortgage interest, real estate taxes, and casualty losses, subject to any limitations. 2011 amendment tax form See Where To Deduct , later. 2011 amendment tax form If you also rent part of your home, you must still allocate these expenses between rental use and personal use (for this purpose, personal use includes business use reported using the simplified method). 2011 amendment tax form No deduction of carryover of actual expenses. 2011 amendment tax form   If you used actual expenses to figure your deduction for business use of the home in a prior year and your deduction was limited, you cannot deduct the disallowed amount carried over from the prior year during a year you figure your deduction using the simplified method. 2011 amendment tax form Instead, you will continue to carry over the disallowed amount to the next year that you use actual expenses to figure your deduction. 2011 amendment tax form Electing the Simplified Method You choose whether or not to figure your deduction using the simplified method each taxable year. 2011 amendment tax form Make the election for a home by using the simplified method to figure the deduction for the qualified business use of that home on a timely filed, original federal income tax return. 2011 amendment tax form An election for a taxable year, once made, is irrevocable. 2011 amendment tax form A change from using the simplified method in one year to actual expenses in a succeeding taxable year, or vice-versa, is not a change in method of accounting and does not require the consent of the Commissioner. 2011 amendment tax form Shared use. 2011 amendment tax form   If you share your home with someone else who also uses the home in a business that qualifies for this deduction, each of you make your own election. 2011 amendment tax form More than one qualified business use. 2011 amendment tax form   If you conduct more than one business that qualifies for this deduction in your home, your election to use the simplified method applies to all your qualified business uses of that home. 2011 amendment tax form More than one home. 2011 amendment tax form   If you used more than one home during the year (for example, you moved during the year), you can elect to use the simplified method for only one of the homes. 2011 amendment tax form You must figure the deduction for any other home using actual expenses. 2011 amendment tax form Simplified Amount Your deduction for the qualified business use of a home is the sum of each amount you figure for a separate qualified business use of your home. 2011 amendment tax form To figure your deduction for the business use of a home using the simplified method, you will need to know the following information for each qualified business use of the home. 2011 amendment tax form The allowable area of your home used in conducting the business. 2011 amendment tax form If you did not conduct the business for the entire year in the home or the area changed during the year, you will need to know the allowable area you used and the number of days you conducted the business for each month. 2011 amendment tax form The gross income from the business use of your home. 2011 amendment tax form The amount of the business expenses that are not related to the use of your home. 2011 amendment tax form If the qualified business use is for a daycare facility that uses space in your home on a regular (but not exclusive) basis, you will also need to know the percentage of time that part of your home is used for daycare. 2011 amendment tax form To figure the amount you can deduct for qualified business use of your home using the simplified method, follow these 3 steps. 2011 amendment tax form Multiply the allowable area by $5 (or less than $5 if the qualified business use is for a daycare that uses space in your home on a regular, but not exclusive, basis). 2011 amendment tax form See Allowable area and Space used regularly for daycare , later. 2011 amendment tax form Subtract the expenses from the business that are not related to the use of the home from the gross income related to the business use of the home. 2011 amendment tax form If these expenses are greater than the gross income from the business use of the home, then you cannot take a deduction for this business use of the home. 2011 amendment tax form See Gross income limitation , later. 2011 amendment tax form Take the smaller of the amounts from (1) and (2). 2011 amendment tax form This is the amount you can deduct for this qualified business use of your home using the simplified method. 2011 amendment tax form If you are an employee or a partner, or you use your home in your farming business and file Schedule F (Form 1040), you can use the Simplified Method Worksheet, near the end of this publication, to help you figure your deduction. 2011 amendment tax form If you use your home in a trade or business and you file Schedule C (Form 1040), you will use the Simplified Method Worksheet in your Instructions for Schedule C to figure your deduction. 2011 amendment tax form Allowable area. 2011 amendment tax form   In most cases, the allowable area is the smaller of the actual area (in square feet) of your home used in conducting the business and 300 square feet. 2011 amendment tax form Your allowable area may be smaller if you conducted the business as a qualified joint venture with your spouse, the area used by the business was shared with another qualified business use, you used the home for the business for only part of the year, or the area used by the business changed during the year. 2011 amendment tax form You can use the Area Adjustment Worksheet (for simplified method), near the end of this publication, to help you figure your allowable area for a qualified business use. 2011 amendment tax form Area used by a qualified joint venture. 2011 amendment tax form   If the qualified business use of the home is also a qualified joint venture, you and your spouse will figure the deduction for the business use separately. 2011 amendment tax form Split the actual area used in conducting business between you and your spouse in the same manner you split your other tax attributes. 2011 amendment tax form Then, each spouse will figure the allowable area separately. 2011 amendment tax form For more information about qualified joint ventures, see Qualified Joint Venture in the Instructions for Schedule C. 2011 amendment tax form Shared use. 2011 amendment tax form   If you share your home with someone else who uses the home to conduct business that also qualifies for this deduction, you may not include the same square feet to figure your deduction as the other person. 2011 amendment tax form You must allocate the shared space between you and the other person in a reasonable manner. 2011 amendment tax form Example. 2011 amendment tax form Kristin and Lindsey are roommates. 2011 amendment tax form Kristin uses 300 square feet of their home for a qualified business use. 2011 amendment tax form Lindsey uses 200 square feet of their home for a separate qualified business use. 2011 amendment tax form The qualified business uses share 100 square feet. 2011 amendment tax form In addition to the portion that they do not share, Kristin and Lindsey can both claim 50 of the 100 square feet or divide the 100 square feet between them in any reasonable manner. 2011 amendment tax form If divided evenly, Kristin could claim 250 square feet using the simplified method and Lindsey could claim 150 square feet. 2011 amendment tax form More than one qualified business use. 2011 amendment tax form   If you conduct more than one business qualifying for the deduction, you are limited to a maximum of 300 square feet for all of the businesses. 2011 amendment tax form Allocate the actual square footage used (up to the maximum of 300 square feet) among your qualified business uses in a reasonable manner. 2011 amendment tax form However, do not allocate more square feet to a qualified business use than you actually use for that business. 2011 amendment tax form Rental use. 2011 amendment tax form   The simplified method does not apply to rental use. 2011 amendment tax form A rental use that qualifies for the deduction must be figured using actual expenses. 2011 amendment tax form If the rental use and a qualified business use share the same area, you will have to allocate the actual area used between the two uses. 2011 amendment tax form You cannot use the same area to figure a deduction for the qualified business use as you are using to figure the deduction for the rental use. 2011 amendment tax form Part-year use or area changes. 2011 amendment tax form   If your qualified business use was for a portion of the taxable year (for example, a seasonal business or a business that begins during the taxable year) or you changed the square footage of your qualified business use, your deduction is limited to the average monthly allowable square footage. 2011 amendment tax form You calculate the average monthly allowable square footage by adding the amount of allowable square feet you used in each month and dividing the sum by 12. 2011 amendment tax form When determining the average monthly allowable square footage, you cannot take more than 300 square feet into account for any one month. 2011 amendment tax form Additionally, if your qualified business use was less than 15 days in a month, you must use -0- for that month. 2011 amendment tax form Example 1. 2011 amendment tax form Andy files his federal income tax return on a calendar year basis. 2011 amendment tax form On July 20, he began using 420 square feet of his home for a qualified business use. 2011 amendment tax form He continued to use the 420 square feet until the end of the year. 2011 amendment tax form His average monthly allowable square footage is 125 square feet, which is figured using 300 square feet for each month August through December divided by the number of months in the taxable year ((0 + 0 + 0 + 0 + 0 + 0 + 0 + 300 + 300 + 300 + 300 + 300)/12). 2011 amendment tax form Example 2. 2011 amendment tax form Amy files her federal income tax return on a calendar year basis. 2011 amendment tax form On April 20, she began using 100 square feet of her home for a qualified business use. 2011 amendment tax form On August 5, she expanded the area of her qualified use to 330 square feet. 2011 amendment tax form Amy continued to use the 330 square feet until the end of the year. 2011 amendment tax form Her average monthly allowable square footage is 150 square feet, which is figured using 100 square feet for May through July and 300 square feet for August through December divided by the number of months in the taxable year ((0 + 0 + 0 + 0 + 100 + 100 +100 + 300 + 300 + 300 + 300 + 300)/12). 2011 amendment tax form Gross income limitation. 2011 amendment tax form   Your deduction for business use of the home is limited to an amount equal to the gross income derived from the qualified business use of the home reduced by the business deductions that are unrelated to the use of your home. 2011 amendment tax form If the business deductions that are unrelated to the use of your home are greater than the gross income derived from the qualified business use of your home, then you cannot take a deduction for this qualified business use of your home. 2011 amendment tax form Business expenses not related to use of the home. 2011 amendment tax form   These expenses relate to the business activity in the home, but not to the use of the home itself. 2011 amendment tax form You can still deduct business expenses that are unrelated to the use of the home. 2011 amendment tax form See Where To Deduct , later. 2011 amendment tax form Examples of business expenses that are unrelated to the use of the home are advertising, wages, supplies, dues, and depreciation for equipment. 2011 amendment tax form Space used regularly for daycare. 2011 amendment tax form   If you do not use the area of your home exclusively for daycare, you must reduce the prescribed rate (maximum $5 per square foot) before figuring your deduction. 2011 amendment tax form The reduced rate will equal the prescribed rate times a fraction. 2011 amendment tax form The numerator of the fraction is the number of hours that the space was used during the year for daycare and the denominator is the total number of hours during the year that the space was available for all uses. 2011 amendment tax form You can use the Daycare Facility Worksheet (for simplified method), near the end of this publication, to help you figure the reduced rate. 2011 amendment tax form    If you used at least 300 square feet for daycare regularly and exclusively during the year, then you do not need to reduce the prescribed rate or complete the Daycare Facility Worksheet. 2011 amendment tax form Daycare Facility If you use space in your home on a regular basis for providing daycare, you may be able to claim a deduction for that part of your home even if you use the same space for nonbusiness purposes. 2011 amendment tax form To qualify for this exception to the exclusive use rule, you must meet both of the following requirements. 2011 amendment tax form You must be in the trade or business of providing daycare for children, persons age 65 or older, or persons who are physically or mentally unable to care for themselves. 2011 amendment tax form You must have applied for, been granted, or be exempt from having, a license, certification, registration, or approval as a daycare center or as a family or group daycare home under state law. 2011 amendment tax form You do not meet this requirement if your application was rejected or your license or other authorization was revoked. 2011 amendment tax form Figuring the deduction. 2011 amendment tax form   If you elect to use the simplified method for your home, figure your deduction as described earlier in Using the Simplified Method under Figuring the Deduction. 2011 amendment tax form    If you are figuring your deduction using actual expenses and you regularly use part of your home for daycare, figure what part is used for daycare, as explained in Business Percentage , earlier, under Figuring the Deduction. 2011 amendment tax form If you also use that part exclusively for daycare, deduct all the allocable expenses, subject to the deduction limit, as explained earlier. 2011 amendment tax form   If the use of part of your home as a daycare facility is regular, but not exclusive, you must figure the percentage of time that part of your home is used for daycare. 2011 amendment tax form A room that is available for use throughout each business day and that you regularly use in your business is considered to be used for daycare throughout each business day. 2011 amendment tax form You do not have to keep records to show the specific hours the area was used for business. 2011 amendment tax form You can use the area occasionally for personal reasons. 2011 amendment tax form However, a room you use only occasionally for business does not qualify for the deduction. 2011 amendment tax form To find the percentage of time you actually use your home for business, compare the total time used for business to the total time that part of your home can be used for all purposes. 2011 amendment tax form You can compare the hours of business use in a week with the number of hours in a week (168). 2011 amendment tax form Or you can compare the hours of business use for the year with the number of hours in the year (8,760 in 2013). 2011 amendment tax form If you started or stopped using your home for daycare in 2013, you must prorate the number of hours based on the number of days the home was available for daycare. 2011 amendment tax form Example 1. 2011 amendment tax form Mary Lake used her basement to operate a daycare business for children. 2011 amendment tax form She figures the business percentage of the basement as follows. 2011 amendment tax form Square footage of the basement Square footage of her home = 1,600 3,200 = 50%           She used the basement for daycare an average of 12 hours a day, 5 days a week, for 50 weeks a year. 2011 amendment tax form During the other 12 hours a day, the family could use the basement. 2011 amendment tax form She figures the percentage of time the basement was used for daycare as follows. 2011 amendment tax form Number of hours used for daycare (12 x 5 x 50) Total number of hours in the year (24 x 365) = 3,000 8,760 = 34. 2011 amendment tax form 25%           Mary can deduct 34. 2011 amendment tax form 25% of any direct expenses for the basement. 2011 amendment tax form However, because her indirect expenses are for the entire house, she can deduct only 17. 2011 amendment tax form 13% of the indirect expenses. 2011 amendment tax form She figures the percentage for her indirect expenses as follows. 2011 amendment tax form Business percentage of the basement 50% Multiplied by: Percentage of time used for daycare × 34. 2011 amendment tax form 25% Percentage for indirect expenses 17. 2011 amendment tax form 13% Mary completes Form 8829, Part I, figuring the percentage of her home used for business, including the percentage of time the basement was used. 2011 amendment tax form In Part II, Mary figures her deductible expenses. 2011 amendment tax form She uses the following information to complete Part II. 2011 amendment tax form Gross income from her daycare business $50,000 Expenses not related to the business use of the home $25,000 Tentative profit $25,000 Rent $8,400 Utilities $850 Painting the basement $500 Mary enters her tentative profit, $25,000, on line 8. 2011 amendment tax form (This figure is the same as the amount on line 29 of her Schedule C (Form 1040). 2011 amendment tax form ) The expenses she paid for rent and utilities relate to her entire home. 2011 amendment tax form Therefore, she enters the amount paid for rent on line 18, column (b), and the amount paid for utilities on line 20, column (b). 2011 amendment tax form She shows the total of these expenses on line 22, column (b). 2011 amendment tax form For line 23, she multiplies the amount on line 22, column (b) by the percentage on line 7 and enters the result, $1,585. 2011 amendment tax form Mary paid $500 to have the basement painted. 2011 amendment tax form The painting is a direct expense. 2011 amendment tax form However, because she did not use the basement exclusively for daycare, she must multiply $500 by the percentage of time the basement was used for daycare (34. 2011 amendment tax form 25% – line 6). 2011 amendment tax form She enters $171 (34. 2011 amendment tax form 25% × $500) on line 19, column (a). 2011 amendment tax form She adds line 22, column (a), and line 23 and enters $1,756 ($171 + $1,585) on line 25. 2011 amendment tax form This is less than her deduction limit (line 15), so she can deduct the entire amount. 2011 amendment tax form She follows the instructions to complete the rest of Part II and enters $1,756 on lines 33 and 35. 2011 amendment tax form She then carries the $1,756 to line 30 of her Schedule C (Form 1040). 2011 amendment tax form Example 2. 2011 amendment tax form Assume the same facts as in Example 1 except that Mary also has another room that was available each business day for children to take naps in. 2011 amendment tax form Although she did not keep a record of the number of hours the room was actually used for naps, it was used for part of each business day. 2011 amendment tax form Since the room was available for business use during regular operating hours each business day and was used regularly in the business, it is considered used for daycare throughout each business day. 2011 amendment tax form The basement and room are 60% of the total area of her home. 2011 amendment tax form In figuring her expenses, 34. 2011 amendment tax form 25% of any direct expenses for the basement and room are deductible. 2011 amendment tax form In addition, 20. 2011 amendment tax form 55% (34. 2011 amendment tax form 25% × 60%) of her indirect expenses are deductible. 2011 amendment tax form Example 3. 2011 amendment tax form Assume the same facts as in Example 1 except that Mary stopped using her home for a daycare facility on June 24, 2013. 2011 amendment tax form She used the basement for daycare an average of 12 hours a day, 5 days a week, but for only 25 weeks of the year. 2011 amendment tax form During the other 12 hours a day, the family could still use the basement. 2011 amendment tax form She figures the percentage of time the basement was used for business as follows. 2011 amendment tax form Number of hours used for daycare (12 x 5 x 25) Total number of hours during period used (24 x 175) = 1,500 4,200 = 35. 2011 amendment tax form 71%           Mary can deduct 35. 2011 amendment tax form 71% of any direct expenses for the basement. 2011 amendment tax form However, because her indirect expenses are for the entire house, she can deduct only 17. 2011 amendment tax form 86% of the indirect expenses. 2011 amendment tax form She figures the percentage for her indirect expenses as follows. 2011 amendment tax form Business percentage of the basement 50% Multiplied by: Percentage of time used for daycare × 35. 2011 amendment tax form 71% Percentage for indirect expenses 17. 2011 amendment tax form 86% Meals. 2011 amendment tax form   If you provide food for your daycare recipients, do not include the expense as a cost of using your home for business. 2011 amendment tax form Claim it as a separate deduction on your Schedule C (Form 1040). 2011 amendment tax form You can never deduct the cost of food consumed by you or your family. 2011 amendment tax form You can deduct as a business expense 100% of the actual cost of food consumed by your daycare recipients (see Standard meal and snack rates , later, for an optional method for eligible children) and generally only 50% of the cost of food consumed by your employees. 2011 amendment tax form However, you can deduct 100% of the cost of food consumed by your employees if its value can be excluded from their wages as a de minimis fringe benefit. 2011 amendment tax form For more information on meals that meet these requirements, see Meals in chapter 2 of Publication 15-B, Employer's Tax Guide to Fringe Benefits. 2011 amendment tax form   If you deduct the actual cost of food for your daycare business, keep a separate record (with receipts) of your family's food costs. 2011 amendment tax form   Reimbursements you receive from a sponsor under the Child and Adult Care Food Program of the Department of Agriculture are taxable only to the extent they exceed your expenses for food for eligible children. 2011 amendment tax form If your reimbursements are more than your expenses for food, show the difference as income in Part I of Schedule C (Form 1040). 2011 amendment tax form If your food expenses are greater than the reimbursements, show the difference as an expense in Part V of Schedule C (Form 1040). 2011 amendment tax form Do not include payments or expenses for your own children if they are eligible for the program. 2011 amendment tax form Follow this procedure even if you receive a Form 1099-MISC, Miscellaneous Income, reporting a payment from the sponsor. 2011 amendment tax form Standard meal and snack rates. 2011 amendment tax form   If you qualify as a family daycare provider, you can use the standard meal and snack rates, instead of actual costs, to compute the deductible cost of meals and snacks provided to eligible children. 2011 amendment tax form For these purposes: A family daycare provider is a person engaged in the business of providing family daycare. 2011 amendment tax form Family daycare is childcare provided to eligible children in the home of the family daycare provider. 2011 amendment tax form The care must be non-medical, not involve a transfer of legal custody, and generally last less than 24 hours each day. 2011 amendment tax form Eligible children are minor children receiving family daycare in the home of the family daycare provider. 2011 amendment tax form Eligible children do not include children who are full-time or part-time residents in the home where the childcare is provided or children whose parents or guardians are residents of the same home. 2011 amendment tax form Eligible children do not include children who receive daycare services for personal reasons of the provider. 2011 amendment tax form For example, if a provider provides daycare services for a relative as a favor to that relative, that child is not an eligible child. 2011 amendment tax form   You can compute the deductible cost of each meal and snack you actually purchased and served to an eligible child during the time period you provided family daycare using the standard meal and snack rates shown in Table 3, later. 2011 amendment tax form You can use the standard meal and snack rates for a maximum of one breakfast, one lunch, one dinner, and three snacks per eligible child per day. 2011 amendment tax form If you receive reimbursement for a particular meal or snack, you can deduct only the portion of the applicable standard meal or snack rate that is more than the amount of the reimbursement. 2011 amendment tax form   You can use either the standard meal and snack rates or actual costs to calculate the deductible cost of food provided to eligible children in the family daycare for any particular tax year. 2011 amendment tax form If you choose to use the standard meal and snack rates for a particular tax year, you must use the rates for all your deductible food costs for eligible children during that tax year. 2011 amendment tax form However, if you use the standard meal and snack rates in any tax year, you can use actual costs to compute the deductible cost of food in any other tax year. 2011 amendment tax form   If you use the standard meal and snack rates, you must maintain records to substantiate the computation of the total amount deducted for the cost of food provided to eligible children. 2011 amendment tax form The records kept should include the name of each child, dates and hours of attendance in the daycare, and the type and quantity of meals and snacks served. 2011 amendment tax form This information can be recorded in a log similar to the one shown in Exhibit A, near the end of this publication. 2011 amendment tax form   The standard meal and snack rates include beverages, but do not include non-food supplies used for food preparation, service, or storage, such as containers, paper products, or utensils. 2011 amendment tax form These expenses can be claimed as a separate deduction on your Schedule C (Form 1040). 2011 amendment tax form     Table 3. 2011 amendment tax form Standard Meal and Snack Rates1 Location of Family Daycare Provider Breakfast Lunch Dinner Snack States other than Alaska an