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2012 1040 Form

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2012 1040 Form

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The 2012 1040 Form

2012 1040 form 5. 2012 1040 form   Personal Use of Dwelling Unit (Including Vacation Home) Table of Contents Dividing Expenses Dwelling Unit Used as a HomeMain home. 2012 1040 form Shared equity financing agreement. 2012 1040 form Donation of use of the property. 2012 1040 form Examples. 2012 1040 form Days used for repairs and maintenance. 2012 1040 form Days used as a main home before or after renting. 2012 1040 form Reporting Income and DeductionsNot used as a home. 2012 1040 form Used as a home but rented less than 15 days. 2012 1040 form Used as a home and rented 15 days or more. 2012 1040 form If you have any personal use of a dwelling unit (including a vacation home) that you rent, you must divide your expenses between rental use and personal use. 2012 1040 form In general, your rental expenses will be no more than your total expenses multiplied by a fraction; the denominator of which is the total number of days the dwelling unit is used and the numerator of which is the total number of days actually rented at a fair rental price. 2012 1040 form Only your rental expenses may deducted on Schedule E (Form 1040). 2012 1040 form Some of your personal expenses may be deductible if you itemize your deductions on Schedule A (Form 1040). 2012 1040 form You must also determine if the dwelling unit is considered a home. 2012 1040 form The amount of rental expenses that you can deduct may be limited if the dwelling unit is considered a home. 2012 1040 form Whether a dwelling unit is considered a home depends on how many days during the year are considered to be days of personal use. 2012 1040 form There is a special rule if you used the dwelling unit as a home and you rented it for less than 15 days during the year. 2012 1040 form Dwelling unit. 2012 1040 form   A dwelling unit includes a house, apartment, condominium, mobile home, boat, vacation home, or similar property. 2012 1040 form It also includes all structures or other property belonging to the dwelling unit. 2012 1040 form A dwelling unit has basic living accommodations, such as sleeping space, a toilet, and cooking facilities. 2012 1040 form   A dwelling unit does not include property (or part of the property) used solely as a hotel, motel, inn, or similar establishment. 2012 1040 form Property is used solely as a hotel, motel, inn, or similar establishment if it is regularly available for occupancy by paying customers and is not used by an owner as a home during the year. 2012 1040 form Example. 2012 1040 form You rent a room in your home that is always available for short-term occupancy by paying customers. 2012 1040 form You do not use the room yourself and you allow only paying customers to use the room. 2012 1040 form This room is used solely as a hotel, motel, inn, or similar establishment and is not a dwelling unit. 2012 1040 form Dividing Expenses If you use a dwelling unit for both rental and personal purposes, divide your expenses between the rental use and the personal use based on the number of days used for each purpose. 2012 1040 form When dividing your expenses, follow these rules. 2012 1040 form Any day that the unit is rented at a fair rental price is a day of rental use even if you used the unit for personal purposes that day. 2012 1040 form (This rule does not apply when determining whether you used the unit as a home. 2012 1040 form ) Any day that the unit is available for rent but not actually rented is not a day of rental use. 2012 1040 form Fair rental price. 2012 1040 form   A fair rental price for your property generally is the amount of rent that a person who is not related to you would be willing to pay. 2012 1040 form The rent you charge is not a fair rental price if it is substantially less than the rents charged for other properties that are similar to your property in your area. 2012 1040 form   Ask yourself the following questions when comparing another property with yours. 2012 1040 form Is it used for the same purpose? Is it approximately the same size? Is it in approximately the same condition? Does it have similar furnishings? Is it in a similar location? If any of the answers are no, the properties probably are not similar. 2012 1040 form Example. 2012 1040 form Your beach cottage was available for rent from June 1 through August 31 (92 days). 2012 1040 form Except for the first week in August (7 days), when you were unable to find a renter, you rented the cottage at a fair rental price during that time. 2012 1040 form The person who rented the cottage for July allowed you to use it over the weekend (2 days) without any reduction in or refund of rent. 2012 1040 form Your family also used the cottage during the last 2 weeks of May (14 days). 2012 1040 form The cottage was not used at all before May 17 or after August 31. 2012 1040 form You figure the part of the cottage expenses to treat as rental expenses as follows. 2012 1040 form The cottage was used for rental a total of 85 days (92 − 7). 2012 1040 form The days it was available for rent but not rented (7 days) are not days of rental use. 2012 1040 form The July weekend (2 days) you used it is rental use because you received a fair rental price for the weekend. 2012 1040 form You used the cottage for personal purposes for 14 days (the last 2 weeks in May). 2012 1040 form The total use of the cottage was 99 days (14 days personal use + 85 days rental use). 2012 1040 form Your rental expenses are 85/99 (86%) of the cottage expenses. 2012 1040 form Note. 2012 1040 form When determining whether you used the cottage as a home, the July weekend (2 days) you used it is considered personal use even though you received a fair rental price for the weekend. 2012 1040 form Therefore, you had 16 days of personal use and 83 days of rental use for this purpose. 2012 1040 form Because you used the cottage for personal purposes more than 14 days and more than 10% of the days of rental use (8 days), you used it as a home. 2012 1040 form If you have a net loss, you may not be able to deduct all of the rental expenses. 2012 1040 form See Dwelling Unit Used as a Home, next. 2012 1040 form Dwelling Unit Used as a Home If you use a dwelling unit for both rental and personal purposes, the tax treatment of the rental expenses you figured earlier under Dividing Expenses and rental income depends on whether you are considered to be using the dwelling unit as a home. 2012 1040 form You use a dwelling unit as a home during the tax year if you use it for personal purposes more than the greater of: 14 days, or 10% of the total days it is rented to others at a fair rental price. 2012 1040 form See What is a day of personal use , later. 2012 1040 form If a dwelling unit is used for personal purposes on a day it is rented at a fair rental price (discussed earlier), do not count that day as a day of rental use in applying (2) above. 2012 1040 form Instead, count it as a day of personal use in applying both (1) and (2) above. 2012 1040 form What is a day of personal use?   A day of personal use of a dwelling unit is any day that the unit is used by any of the following persons. 2012 1040 form You or any other person who owns an interest in it, unless you rent it to another owner as his or her main home under a shared equity financing agreement (defined later). 2012 1040 form However, see Days used as a main home before or after renting , later. 2012 1040 form A member of your family or a member of the family of any other person who owns an interest in it, unless the family member uses the dwelling unit as his or her main home and pays a fair rental price. 2012 1040 form Family includes only your spouse, brothers and sisters, half-brothers and half-sisters, ancestors (parents, grandparents, etc. 2012 1040 form ), and lineal descendants (children, grandchildren, etc. 2012 1040 form ). 2012 1040 form Anyone under an arrangement that lets you use some other dwelling unit. 2012 1040 form Anyone at less than a fair rental price. 2012 1040 form Main home. 2012 1040 form   If the other person or member of the family in (1) or (2) above has more than one home, his or her main home is ordinarily the one he or she lived in most of the time. 2012 1040 form Shared equity financing agreement. 2012 1040 form   This is an agreement under which two or more persons acquire undivided interests for more than 50 years in an entire dwelling unit, including the land, and one or more of the co-owners is entitled to occupy the unit as his or her main home upon payment of rent to the other co-owner or owners. 2012 1040 form Donation of use of the property. 2012 1040 form   You use a dwelling unit for personal purposes if: You donate the use of the unit to a charitable organization, The organization sells the use of the unit at a fund-raising event, and The “purchaser” uses the unit. 2012 1040 form Examples. 2012 1040 form   The following examples show how to determine if you have days of personal use. 2012 1040 form Example 1. 2012 1040 form You and your neighbor are co-owners of a condominium at the beach. 2012 1040 form Last year, you rented the unit to vacationers whenever possible. 2012 1040 form The unit was not used as a main home by anyone. 2012 1040 form Your neighbor used the unit for 2 weeks last year; you did not use it at all. 2012 1040 form Because your neighbor has an interest in the unit, both of you are considered to have used the unit for personal purposes during those 2 weeks. 2012 1040 form Example 2. 2012 1040 form You and your neighbors are co-owners of a house under a shared equity financing agreement. 2012 1040 form Your neighbors live in the house and pay you a fair rental price. 2012 1040 form Even though your neighbors have an interest in the house, the days your neighbors live there are not counted as days of personal use by you. 2012 1040 form This is because your neighbors rent the house as their main home under a shared equity financing agreement. 2012 1040 form Example 3. 2012 1040 form You own a rental property that you rent to your son. 2012 1040 form Your son does not own any interest in this property. 2012 1040 form He uses it as his main home and pays you a fair rental price. 2012 1040 form Your son's use of the property is not personal use by you because your son is using it as his main home, he owns no interest in the property, and he is paying you a fair rental price. 2012 1040 form Example 4. 2012 1040 form You rent your beach house to Rosa. 2012 1040 form Rosa rents her cabin in the mountains to you. 2012 1040 form You each pay a fair rental price. 2012 1040 form You are using your beach house for personal purposes on the days that Rosa uses it because your house is used by Rosa under an arrangement that allows you to use her cabin. 2012 1040 form Example 5. 2012 1040 form You rent an apartment to your mother at less than a fair rental price. 2012 1040 form You are using the apartment for personal purposes on the days that your mother rents it because you rent it for less than a fair rental price. 2012 1040 form Days used for repairs and maintenance. 2012 1040 form   Any day that you spend working substantially full time repairing and maintaining (not improving) your property is not counted as a day of personal use. 2012 1040 form Do not count such a day as a day of personal use even if family members use the property for recreational purposes on the same day. 2012 1040 form Example. 2012 1040 form Corey owns a cabin in the mountains that he rents for most of the year. 2012 1040 form He spends a week at the cabin with family members. 2012 1040 form Corey works on maintenance of the cabin 3 or 4 hours each day during the week and spends the rest of the time fishing, hiking, and relaxing. 2012 1040 form Corey's family members, however, work substantially full time on the cabin each day during the week. 2012 1040 form The main purpose of being at the cabin that week is to do maintenance work. 2012 1040 form Therefore, the use of the cabin during the week by Corey and his family will not be considered personal use by Corey. 2012 1040 form Days used as a main home before or after renting. 2012 1040 form   For purposes of determining whether a dwelling unit was used as a home, you may not have to count days you used the property as your main home before or after renting it or offering it for rent as days of personal use. 2012 1040 form Do not count them as days of personal use if: You rented or tried to rent the property for 12 or more consecutive months. 2012 1040 form You rented or tried to rent the property for a period of less than 12 consecutive months and the period ended because you sold or exchanged the property. 2012 1040 form However, this special rule does not apply when dividing expenses between rental and personal use. 2012 1040 form See Property Changed to Rental Use in chapter 4. 2012 1040 form Example 1. 2012 1040 form On February 29, 2012, you moved out of the house you had lived in for 6 years because you accepted a job in another town. 2012 1040 form You rented your house at a fair rental price from March 15, 2012, to May 14, 2013 (14 months). 2012 1040 form On June 1, 2013, you moved back into your old house. 2012 1040 form The days you used the house as your main home from January 1 to February 29, 2012, and from June 1 to December 31, 2013, are not counted as days of personal use. 2012 1040 form Therefore, you would use the rules in chapter 1 when figuring your rental income and expenses. 2012 1040 form Example 2. 2012 1040 form On January 31, you moved out of the condominium where you had lived for 3 years. 2012 1040 form You offered it for rent at a fair rental price beginning on February 1. 2012 1040 form You were unable to rent it until April. 2012 1040 form On September 15, you sold the condominium. 2012 1040 form The days you used the condominium as your main home from January 1 to January 31 are not counted as days of personal use when determining whether you used it as a home. 2012 1040 form Examples. 2012 1040 form   The following examples show how to determine whether you used your rental property as a home. 2012 1040 form Example 1. 2012 1040 form You converted the basement of your home into an apartment with a bedroom, a bathroom, and a small kitchen. 2012 1040 form You rented the basement apartment at a fair rental price to college students during the regular school year. 2012 1040 form You rented to them on a 9-month lease (273 days). 2012 1040 form You figured 10% of the total days rented to others at a fair rental price is 27 days. 2012 1040 form During June (30 days), your brothers stayed with you and lived in the basement apartment rent free. 2012 1040 form Your basement apartment was used as a home because you used it for personal purposes for 30 days. 2012 1040 form Rent-free use by your brothers is considered personal use. 2012 1040 form Your personal use (30 days) is more than the greater of 14 days or 10% of the total days it was rented (27 days). 2012 1040 form Example 2. 2012 1040 form You rented the guest bedroom in your home at a fair rental price during the local college's homecoming, commencement, and football weekends (a total of 27 days). 2012 1040 form Your sister-in-law stayed in the room, rent free, for the last 3 weeks (21 days) in July. 2012 1040 form You figured 10% of the total days rented to others at a fair rental price is 3 days. 2012 1040 form The room was used as a home because you used it for personal purposes for 21 days. 2012 1040 form That is more than the greater of 14 days or 10% of the 27 days it was rented (3 days). 2012 1040 form Example 3. 2012 1040 form You own a condominium apartment in a resort area. 2012 1040 form You rented it at a fair rental price for a total of 170 days during the year. 2012 1040 form For 12 of these days, the tenant was not able to use the apartment and allowed you to use it even though you did not refund any of the rent. 2012 1040 form Your family actually used the apartment for 10 of those days. 2012 1040 form Therefore, the apartment is treated as having been rented for 160 (170 – 10) days. 2012 1040 form You figured 10% of the total days rented to others at a fair rental price is 16 days. 2012 1040 form Your family also used the apartment for 7 other days during the year. 2012 1040 form You used the apartment as a home because you used it for personal purposes for 17 days. 2012 1040 form That is more than the greater of 14 days or 10% of the 160 days it was rented (16 days). 2012 1040 form Minimal rental use. 2012 1040 form   If you use the dwelling unit as a home and you rent it less than 15 days during the year, that period is not treated as rental activity. 2012 1040 form See Used as a home but rented less than 15 days, later, for more information. 2012 1040 form Limit on deductions. 2012 1040 form   Renting a dwelling unit that is considered a home is not a passive activity. 2012 1040 form Instead, if your rental expenses are more than your rental income, some or all of the excess expenses cannot be used to offset income from other sources. 2012 1040 form The excess expenses that cannot be used to offset income from other sources are carried forward to the next year and treated as rental expenses for the same property. 2012 1040 form Any expenses carried forward to the next year will be subject to any limits that apply for that year. 2012 1040 form This limitation will apply to expenses carried forward to another year even if you do not use the property as your home for that subsequent year. 2012 1040 form   To figure your deductible rental expenses for this year and any carryover to next year, use Worksheet 5–1. 2012 1040 form Reporting Income and Deductions Property not used for personal purposes. 2012 1040 form   If you do not use a dwelling unit for personal purposes, see chapter 3 for how to report your rental income and expenses. 2012 1040 form Property used for personal purposes. 2012 1040 form   If you do use a dwelling unit for personal purposes, then how you report your rental income and expenses depends on whether you used the dwelling unit as a home. 2012 1040 form Not used as a home. 2012 1040 form   If you use a dwelling unit for personal purposes, but not as a home, report all the rental income in your income. 2012 1040 form Since you used the dwelling unit for personal purposes, you must divide your expenses between the rental use and the personal use as described earlier in this chapter under Dividing Expenses . 2012 1040 form The expenses for personal use are not deductible as rental expenses. 2012 1040 form   Your deductible rental expenses can be more than your gross rental income; however, see Limits on Rental Losses in chapter 3. 2012 1040 form Used as a home but rented less than 15 days. 2012 1040 form   If you use a dwelling unit as a home and you rent it less than 15 days during the year, its primary function is not considered to be rental and it should not be reported on Schedule E (Form 1040). 2012 1040 form You are not required to report the rental income and rental expenses from this activity. 2012 1040 form The expenses, including qualified mortgage interest, property taxes, and any qualified casualty loss will be reported as normally allowed on Schedule A (Form 1040). 2012 1040 form See the Instructions for Schedule A (Form 1040) for more information on deducting these expenses. 2012 1040 form Used as a home and rented 15 days or more. 2012 1040 form   If you use a dwelling unit as a home and rent it 15 days or more during the year, include all your rental income in your income. 2012 1040 form Since you used the dwelling unit for personal purposes, you must divide your expenses between the rental use and the personal use as described earlier in this chapter under Dividing Expenses . 2012 1040 form The expenses for personal use are not deductible as rental expenses. 2012 1040 form   If you had a net profit from renting the dwelling unit for the year (that is, if your rental income is more than the total of your rental expenses, including depreciation), deduct all of your rental expenses. 2012 1040 form You do not need to use Worksheet 5-1. 2012 1040 form   However, if you had a net loss from renting the dwelling unit for the year, your deduction for certain rental expenses is limited. 2012 1040 form To figure your deductible rental expenses and any carryover to next year, use Worksheet 5–1. 2012 1040 form Worksheet 5-1. 2012 1040 form Worksheet for Figuring Rental Deductions for a Dwelling Unit Used as a Home Use this worksheet only if you answer “yes” to all of the following questions. 2012 1040 form Did you use the dwelling unit as a home this year? (See Dwelling Unit Used as a Home . 2012 1040 form ) Did you rent the dwelling unit at a fair rental price 15 days or more this year? Is the total of your rental expenses and depreciation more than your rental income? PART I. 2012 1040 form Rental Use Percentage A. 2012 1040 form Total days available for rent at fair rental price A. 2012 1040 form       B. 2012 1040 form Total days available for rent (line A) but not rented B. 2012 1040 form       C. 2012 1040 form Total days of rental use. 2012 1040 form Subtract line B from line A C. 2012 1040 form       D. 2012 1040 form Total days of personal use (including days rented at less than fair rental price) D. 2012 1040 form       E. 2012 1040 form Total days of rental and personal use. 2012 1040 form Add lines C and D E. 2012 1040 form       F. 2012 1040 form Percentage of expenses allowed for rental. 2012 1040 form Divide line C by line E     F. 2012 1040 form . 2012 1040 form PART II. 2012 1040 form Allowable Rental Expenses 1. 2012 1040 form Enter rents received 1. 2012 1040 form   2a. 2012 1040 form Enter the rental portion of deductible home mortgage interest and qualified mortgage insurance premiums (see instructions) 2a. 2012 1040 form       b. 2012 1040 form Enter the rental portion of real estate taxes b. 2012 1040 form       c. 2012 1040 form Enter the rental portion of deductible casualty and theft losses (see instructions) c. 2012 1040 form       d. 2012 1040 form Enter direct rental expenses (see instructions) d. 2012 1040 form       e. 2012 1040 form Fully deductible rental expenses. 2012 1040 form Add lines 2a–2d. 2012 1040 form Enter here and  on the appropriate lines on Schedule E (see instructions) 2e. 2012 1040 form   3. 2012 1040 form Subtract line 2e from line 1. 2012 1040 form If zero or less, enter -0- 3. 2012 1040 form   4a. 2012 1040 form Enter the rental portion of expenses directly related to operating or maintaining  the dwelling unit (such as repairs, insurance, and utilities) 4a. 2012 1040 form       b. 2012 1040 form Enter the rental portion of excess mortgage interest and qualified mortgage insurance premiums (see instructions) b. 2012 1040 form       c. 2012 1040 form Carryover of operating expenses from 2012 worksheet c. 2012 1040 form       d. 2012 1040 form Add lines 4a–4c d. 2012 1040 form       e. 2012 1040 form Allowable expenses. 2012 1040 form Enter the smaller of line 3 or line 4d (see instructions) 4e. 2012 1040 form   5. 2012 1040 form Subtract line 4e from line 3. 2012 1040 form If zero or less, enter -0- 5. 2012 1040 form   6a. 2012 1040 form Enter the rental portion of excess casualty and theft losses (see instructions) 6a. 2012 1040 form       b. 2012 1040 form Enter the rental portion of depreciation of the dwelling unit b. 2012 1040 form       c. 2012 1040 form Carryover of excess casualty losses and depreciation from 2012 worksheet c. 2012 1040 form       d. 2012 1040 form Add lines 6a–6c d. 2012 1040 form       e. 2012 1040 form Allowable excess casualty and theft losses and depreciation. 2012 1040 form Enter the smaller of  line 5 or line 6d (see instructions) 6e. 2012 1040 form   PART III. 2012 1040 form Carryover of Unallowed Expenses to Next Year 7a. 2012 1040 form Operating expenses to be carried over to next year. 2012 1040 form Subtract line 4e from line 4d 7a. 2012 1040 form   b. 2012 1040 form Excess casualty and theft losses and depreciation to be carried over to next year. 2012 1040 form  Subtract line 6e from line 6d b. 2012 1040 form   Worksheet 5-1 Instructions. 2012 1040 form Worksheet for Figuring Rental Deductions for a Dwelling Unit Used as a Home Caution. 2012 1040 form Use the percentage determined in Part I, line F, to figure the rental portions to enter on lines 2a–2c, 4a–4b, and 6a–6b of  Part II. 2012 1040 form Line 2a. 2012 1040 form Figure the mortgage interest on the dwelling unit that you could deduct on Schedule A as if you had not rented the unit. 2012 1040 form Do not include interest on a loan that did not benefit the dwelling unit. 2012 1040 form For example, do not include interest on a home equity loan used to pay off credit cards or other personal loans, buy a car, or pay college tuition. 2012 1040 form Include interest on a loan used to buy, build, or improve the dwelling unit, or to refinance such a loan. 2012 1040 form Include the rental portion of this interest in the total you enter on line 2a of the worksheet. 2012 1040 form   Figure the qualified mortgage insurance premiums on the dwelling unit that you could deduct on line 13 of Schedule A as if you had not rented the unit. 2012 1040 form See the Schedule A instructions. 2012 1040 form However, figure your adjusted gross income (Form 1040, line 38) without your rental income and expenses from the dwelling unit. 2012 1040 form See Line 4b to deduct the part of the qualified mortgage insurance premiums not allowed because of the adjusted gross income limit. 2012 1040 form Include the rental portion of the amount from Schedule A, line 13, in the total you enter on line 2a of the worksheet. 2012 1040 form   Note. 2012 1040 form Do not file this Schedule A or use it to figure the amount to deduct on line 13 of that schedule. 2012 1040 form Instead, figure the personal portion on a separate Schedule A. 2012 1040 form If you have deducted mortgage interest or qualified mortgage insurance premiums on the dwelling unit on other forms, such as Schedule C or F, remember to reduce your Schedule A deduction by that amount. 2012 1040 form           Line 2c. 2012 1040 form Figure the casualty and theft losses related to the dwelling unit that you could deduct on Schedule A as if you had not rented the dwelling unit. 2012 1040 form To do this, complete Section A of Form 4684, Casualties and Thefts, treating the losses as personal losses. 2012 1040 form If any of the loss is due to a federally declared disaster, see the Instructions for Form 4684. 2012 1040 form On Form 4684, line 17, enter 10% of your adjusted gross income figured without your rental income and expenses from the dwelling unit. 2012 1040 form Enter the rental portion of the result from Form 4684, line 18, on line 2c of this worksheet. 2012 1040 form   Note. 2012 1040 form Do not file this Form 4684 or use it to figure your personal losses on Schedule A. 2012 1040 form Instead, figure the personal portion on a separate Form 4684. 2012 1040 form           Line 2d. 2012 1040 form Enter the total of your rental expenses that are directly related only to the rental activity. 2012 1040 form These include interest on loans used for rental activities other than to buy, build, or improve the dwelling unit. 2012 1040 form Also include rental agency fees, advertising, office supplies, and depreciation on office equipment used in your rental activity. 2012 1040 form           Line 2e. 2012 1040 form You can deduct the amounts on lines 2a, 2b, 2c, and 2d as rental expenses on Schedule E even if your rental expenses are more than your rental income. 2012 1040 form Enter the amounts on lines 2a, 2b, 2c, and 2d on the appropriate lines of Schedule E. 2012 1040 form           Line 4b. 2012 1040 form On line 2a, you entered the rental portion of the mortgage interest or qualified mortgage insurance premiums you could deduct on Schedule A if you had not rented the dwelling unit. 2012 1040 form If you had additional mortgage interest and qualified mortgage insurance premiums that would not be deductible on Schedule A because of limits imposed on them, enter on line 4b of this worksheet the rental portion of those excess amounts. 2012 1040 form Do not include interest on a loan that did not benefit the dwelling unit  (as explained in the line 2a instructions). 2012 1040 form           Line 4e. 2012 1040 form You can deduct the amounts on lines 4a, 4b, and 4c as rental expenses on Schedule E only to the extent they are not more than the amount on line 4e. 2012 1040 form *           Line 6a. 2012 1040 form To find the rental portion of excess casualty and theft losses, use the Form 4684 you prepared for line 2c of this worksheet. 2012 1040 form   A. 2012 1040 form Enter the amount from Form 4684, line 10       B. 2012 1040 form Enter the rental portion of line A       C. 2012 1040 form Enter the amount from line 2c of this worksheet       D. 2012 1040 form Subtract line C from line B. 2012 1040 form Enter the result here and on line 6a of this worksheet               Line 6e. 2012 1040 form You can deduct the amounts on lines 6a, 6b, and 6c as rental expenses on Schedule E only to the extent they are not more than the amount on line 6e. 2012 1040 form * *Allocating the limited deduction. 2012 1040 form If you cannot deduct all of the amount on line 4d or 6d this year, you can allocate the allowable deduction in any way you wish among the expenses included on line 4d or 6d. 2012 1040 form Enter the amount you allocate to each expense on the appropriate line of Schedule E, Part I. 2012 1040 form Prev  Up  Next   Home   More Online Publications