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Filing 1040ez Online Free

Filing 1040ez online free 13. Filing 1040ez online free   Payment of Taxes Table of Contents How To Make Deposits When To Make Deposits Amount of DepositsSafe Harbor Rule Generally, semimonthly deposits of excise taxes are required. Filing 1040ez online free A semimonthly period is the first 15 days of a month (the first semimonthly period) or the 16th through the last day of a month (the second semimonthly period). Filing 1040ez online free However, no deposit is required for the situations listed below; the taxes are payable with Form 720. Filing 1040ez online free The net liability for taxes listed in Part I (Form 720) does not exceed $2,500 for the quarter. Filing 1040ez online free The gas guzzler tax is being paid on a one-time filing. Filing 1040ez online free The liability is for taxes listed in Part II (Form 720), except for the floor stocks tax which generally requires a single deposit. Filing 1040ez online free How To Make Deposits Electronic deposit requirement. Filing 1040ez online free   You must use electronic funds transfer to make excise tax deposits. Filing 1040ez online free Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). Filing 1040ez online free If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. Filing 1040ez online free Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Filing 1040ez online free   EFTPS is a free service provided by the Department of Treasury. Filing 1040ez online free Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Filing 1040ez online free To get more information about EFTPS or to enroll in EFTPS, visit www. Filing 1040ez online free eftps. Filing 1040ez online free gov or call 1-800-555-4477. Filing 1040ez online free Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide to Getting Started. Filing 1040ez online free    Depositing on time. Filing 1040ez online free For EFTPS deposits to be on time, you must initiate the transaction at least 1 day before the date the deposit is due (before 8:00 p. Filing 1040ez online free m. Filing 1040ez online free Eastern time). Filing 1040ez online free You will automatically be enrolled in EFTPS when you apply for an EIN. Filing 1040ez online free You will receive a separate mailing containing instructions for activating your EFTPS enrollment after you receive your EIN. Filing 1040ez online free When To Make Deposits There are two methods for determining deposits: the regular method and the alternative method. Filing 1040ez online free The regular method applies to all taxes in Part I of Form 720 except for communications and air transportation taxes if deposits are based on amounts billed or tickets sold, rather than on amounts actually collected. Filing 1040ez online free See Alternative method below. Filing 1040ez online free If you are depositing more than one tax under a method, combine all the taxes under the method and make one deposit for the semimonthly period. Filing 1040ez online free Regular method. Filing 1040ez online free   The deposit of tax for a semimonthly period is due by the 14th day following that period. Filing 1040ez online free Generally, this is the 29th day of a month for the first semimonthly period and the 14th day of the following month for the second semimonthly period. Filing 1040ez online free If the 14th or the 29th day falls on a Saturday, Sunday, or legal holiday, you must make the deposit by the immediately preceding day that is not a Saturday, Sunday, or legal holiday. Filing 1040ez online free Alternative method (IRS Nos. Filing 1040ez online free 22, 26, 27, and 28). Filing 1040ez online free   Deposits of communications and air transportation taxes may be based on taxes included in amounts billed or tickets sold during a semimonthly period instead of on taxes actually collected during the period. Filing 1040ez online free Under the alternative method, the tax included in amounts billed or tickets sold during a semimonthly period is considered collected during the first 7 days of the second following semimonthly period. Filing 1040ez online free The deposit of tax is due by the 3rd banking day after the 7th day of that period. Filing 1040ez online free   For an example of the alternative method, see the Instructions for Form 720. Filing 1040ez online free To use the alternative method, you must keep a separate account of the tax included in amounts billed or tickets sold during the month and report on Form 720 the tax included in amounts billed or tickets sold and not the amount of tax that is actually collected. Filing 1040ez online free For example, amounts billed in December, January, and February are considered collected during January, February, and March and are reported on Form 720 as the tax for the 1st quarter of the calendar year. Filing 1040ez online free The separate account for each month must reflect: All items of tax included in amounts billed or tickets sold during the month, and Other items of adjustment relating to tax for prior months (within the statute of limitations on credits or refunds). Filing 1040ez online free The separate account for any month cannot include an adjustment resulting from a refusal to pay or inability to collect unless the refusal has been reported to the IRS. Filing 1040ez online free See Uncollected Tax Report in chapter 4. Filing 1040ez online free The net amount of tax that is considered collected during the semimonthly period must be either: The net amount of tax reflected in the separate account for the corresponding semimonthly period of the preceding month, or One-half of the net amount of tax reflected in the separate account for the preceding month. Filing 1040ez online free Special rule for deposits of taxes in September. Filing 1040ez online free   See the Instructions for Form 720 for a special rule on deposits made in September. Filing 1040ez online free Amount of Deposits Deposits for a semimonthly period generally must be at least 95% of the net tax liability for that period unless the safe harbor rule (discussed later) applies. Filing 1040ez online free Generally, you do not have to make a deposit for a period in which you incurred no tax liability. Filing 1040ez online free Net tax liability. Filing 1040ez online free   Your net tax liability is your tax liability for the period minus any claims on Schedule C (Form 720) for the period. Filing 1040ez online free You may figure your net tax liability for a semimonthly period by dividing your net liability incurred during the calendar month by two. Filing 1040ez online free If you use this method, you must use it for all semimonthly periods in the calendar quarter. Filing 1040ez online free Do not reduce your liability by any amounts from Form 720X. Filing 1040ez online free Safe Harbor Rule The safe harbor rule applies separately to deposits under the regular method and the alternative method. Filing 1040ez online free Persons who filed Form 720 for the look-back quarter (the 2nd calendar quarter preceding the current quarter) are considered to meet the semimonthly deposit requirement if the deposit for each semimonthly period in the current quarter is at least 1/6 (16. Filing 1040ez online free 67%) of the net tax liability reported for the look-back quarter. Filing 1040ez online free For the semimonthly period for which the additional deposit is required, the additional deposit must be at least 11/90 12. Filing 1040ez online free 23%), 10/90 (11. Filing 1040ez online free 12%) for non-EFTPS, of the net tax liability reported for the look-back quarter. Filing 1040ez online free Also, the total deposit for that semimonthly period must be at least 1/6 (16. Filing 1040ez online free 67%) of the net tax liability reported for the look-back quarter. Filing 1040ez online free Exceptions. Filing 1040ez online free   The safe harbor rule does not apply to: The 1st and 2nd quarters beginning on or after the effective date of an increase in the rate of tax unless the deposit of taxes for each semimonthly period in the calendar quarter is at least 1/6 (16. Filing 1040ez online free 67%) of the tax liability you would have had for the look-back quarter if the increased rate of tax had been in effect for that look-back quarter, Any quarter if liability includes any tax not in effect throughout the look-back quarter, or For deposits under the alternative method, any quarter if liability includes any tax not in effect throughout the look-back quarter and the month preceding the look-back quarter. Filing 1040ez online free Requirements to be met. Filing 1040ez online free   For the safe harbor rule to apply, you must: Make each deposit timely at an authorized financial institution, and Pay any underpayment for the current quarter by the due date of the return. Filing 1040ez online free    The IRS may withdraw the right to make deposits of tax using the safe harbor rule from any person not complying with these rules. Filing 1040ez online free Tax rate increases. Filing 1040ez online free   You must modify the safe harbor rule if there has been an increase in the rate of tax. Filing 1040ez online free You must figure your tax liability in the look-back quarter as if the increased rate had been in effect. Filing 1040ez online free To qualify for the safe harbor rule, your deposits cannot be less than 1/6 of the refigured tax liability. Filing 1040ez online free Prev  Up  Next   Home   More Online Publications
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Understanding your CP567 Notice

We rejected your application for an Individual Taxpayer Identification Number (ITIN). You may not be eligible for an ITIN. Your documents may be invalid. We may not have received a reply when we asked for more information.

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Effective June 22, 2012, the IRS has made interim changes that affect the Individual Taxpayer Identification Number (ITIN) application process. Some of the information below, including the documentation requirements for individuals seeking an ITIN, has been superseded by these changes. Taxpayers and their representatives should review these changes, which are further explained in these Frequently Asked Questions, before requesting an ITIN.


What you need to do

  • Read your notice to see why we rejected your application.
  • Make sure you don't qualify for a Social Security number (SSN) and you qualify for an ITIN.
  • Make sure your documents are correct.
  • Send us the information we've requested.
  • Send us a new application. Fill it out completely. Answer all the questions. Attach the correct documents. Attach copies of your tax return and paperwork to it.

You may want to...


Answers to Common Questions

What is an ITIN?
It is a number for you to use on federal tax documents.

Who needs an ITIN?
A non-citizen who has to file a federal tax return or a tax reporting document and does not qualify for an SSN needs an ITIN.

What happens to the tax return I sent with the application?
We'll process your return without an ITIN. You'll need to reapply for an ITIN and attach a copy of the return to your application to get a refund.

I sent you documents when I applied for an ITIN. When will you return them?
We will return your documents within 60 days from your notice's date. Call us at the number on your notice if you don't receive your documents by then.

Whom can I talk to about my rejection?
You can call the telephone number on the top right corner of the notice.

Do I need to file a new tax return when I reapply?
No. Just attach a copy of it to the application. Indicate it is a copy. Send the application with your paperwork to the address on the notice.

Do I always need to attach a copy of my tax return to my application?
No. Not if you meet one of five exceptions. Read Publication 1915, Understanding Your IRS Individual Taxpayer Identification Number ITIN to see if you meet an exception.


Tips for next year

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.


Understanding your notice

Reading your notice
Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

Notice CP567, Page 1

Notice CP567, Page 2

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 

Page Last Reviewed or Updated: 14-Mar-2014

The Filing 1040ez Online Free

Filing 1040ez online free Publication 530 - Main Content Table of Contents What You Can and Cannot DeductHardest Hit Fund and Emergency Homeowners' Loan Programs Real Estate Taxes Sales Taxes Home Mortgage Interest Mortgage Insurance Premiums Mortgage Interest CreditFiguring the Credit BasisFiguring Your Basis Adjusted Basis Keeping Records How To Get Tax HelpLow Income Taxpayer Clinics What You Can and Cannot Deduct To deduct expenses of owning a home, you must file Form 1040, U. Filing 1040ez online free S. Filing 1040ez online free Individual Income Tax Return, and itemize your deductions on Schedule A (Form 1040). Filing 1040ez online free If you itemize, you cannot take the standard deduction. Filing 1040ez online free This section explains what expenses you can deduct as a homeowner. Filing 1040ez online free It also points out expenses that you cannot deduct. Filing 1040ez online free There are four primary discussions: real estate taxes, sales taxes, home mortgage interest, and mortgage insurance premiums. Filing 1040ez online free Generally, your real estate taxes, home mortgage interest, and mortgage insurance premiums are included in your house payment. Filing 1040ez online free Your house payment. Filing 1040ez online free   If you took out a mortgage (loan) to finance the purchase of your home, you probably have to make monthly house payments. Filing 1040ez online free Your house payment may include several costs of owning a home. Filing 1040ez online free The only costs you can deduct are real estate taxes actually paid to the taxing authority, interest that qualifies as home mortgage interest, and mortgage insurance premiums. Filing 1040ez online free These are discussed in more detail later. Filing 1040ez online free   Some nondeductible expenses that may be included in your house payment include: Fire or homeowner's insurance premiums, and The amount applied to reduce the principal of the mortgage. Filing 1040ez online free Minister's or military housing allowance. Filing 1040ez online free   If you are a minister or a member of the uniformed services and receive a housing allowance that is not taxable, you still can deduct your real estate taxes and your home mortgage interest. Filing 1040ez online free You do not have to reduce your deductions by your nontaxable allowance. Filing 1040ez online free For more information see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers, and Publication 3, Armed Forces' Tax Guide. Filing 1040ez online free Nondeductible payments. Filing 1040ez online free   You cannot deduct any of the following items. Filing 1040ez online free Insurance (other than mortgage insurance premiums), including fire and comprehensive coverage, and title insurance. Filing 1040ez online free Wages you pay for domestic help. Filing 1040ez online free Depreciation. Filing 1040ez online free The cost of utilities, such as gas, electricity, or water. Filing 1040ez online free Most settlement costs. Filing 1040ez online free See Settlement or closing costs under Cost as Basis, later, for more information. Filing 1040ez online free Forfeited deposits, down payments, or earnest money. Filing 1040ez online free Hardest Hit Fund and Emergency Homeowners' Loan Programs You can use a special method to compute your deduction for mortgage interest and real estate taxes on your main home if you meet the following two conditions. Filing 1040ez online free You received assistance under: A State Housing Finance Agency (State HFA) Hardest Hit Fund program in which program payments could be used to pay mortgage interest, or An Emergency Homeowners' Loan Program administered by the Department of Housing and Urban Development (HUD) or a state. Filing 1040ez online free You meet the rules to deduct all of the mortgage interest on your loan and all of the real estate taxes on your main home. Filing 1040ez online free If you meet these tests, then you can deduct all of the payments you actually made during the year to your mortgage servicer, the State HFA, or HUD on the home mortgage (including the amount shown on box 3 of Form 1098-MA, Mortgage Assistance Payments), but not more than the sum of the amounts shown on Form 1098, Mortgage Interest Statement, in box 1 (mortgage interest received), box 4 (mortgage insurance premiums) and box 5 (real property taxes). Filing 1040ez online free However, you are not required to use this special method to compute your deduction for mortgage interest and real estate taxes on your main home. Filing 1040ez online free Real Estate Taxes Most state and local governments charge an annual tax on the value of real property. Filing 1040ez online free This is called a real estate tax. Filing 1040ez online free You can deduct the tax if it is assessed uniformly at a like rate on all real property throughout the community. Filing 1040ez online free The proceeds must be for general community or governmental purposes and not be a payment for a special privilege granted or service rendered to you. Filing 1040ez online free Deductible Real Estate Taxes You can deduct real estate taxes imposed on you. Filing 1040ez online free You must have paid them either at settlement or closing, or to a taxing authority (either directly or through an escrow account) during the year. Filing 1040ez online free If you own a cooperative apartment, see Special Rules for Cooperatives , later. Filing 1040ez online free Where to deduct real estate taxes. Filing 1040ez online free   Enter the amount of your deductible real estate taxes on Schedule A (Form 1040), line 6. Filing 1040ez online free Real estate taxes paid at settlement or closing. Filing 1040ez online free   Real estate taxes are generally divided so that you and the seller each pay taxes for the part of the property tax year you owned the home. Filing 1040ez online free Your share of these taxes is fully deductible if you itemize your deductions. Filing 1040ez online free Division of real estate taxes. Filing 1040ez online free   For federal income tax purposes, the seller is treated as paying the property taxes up to, but not including, the date of sale. Filing 1040ez online free You (the buyer) are treated as paying the taxes beginning with the date of sale. Filing 1040ez online free This applies regardless of the lien dates under local law. Filing 1040ez online free Generally, this information is included on the settlement statement you get at closing. Filing 1040ez online free   You and the seller each are considered to have paid your own share of the taxes, even if one or the other paid the entire amount. Filing 1040ez online free You each can deduct your own share, if you itemize deductions, for the year the property is sold. Filing 1040ez online free Example. Filing 1040ez online free You bought your home on September 1. Filing 1040ez online free The property tax year (the period to which the tax relates) in your area is the calendar year. Filing 1040ez online free The tax for the year was $730 and was due and paid by the seller on August 15. Filing 1040ez online free You owned your new home during the property tax year for 122 days (September 1 to December 31, including your date of purchase). Filing 1040ez online free You figure your deduction for real estate taxes on your home as follows. Filing 1040ez online free 1. Filing 1040ez online free Enter the total real estate taxes for the real property tax year $730 2. Filing 1040ez online free Enter the number of days in the property tax year that you owned the property 122 3. Filing 1040ez online free Divide line 2 by 365 . Filing 1040ez online free 3342 4. Filing 1040ez online free Multiply line 1 by line 3. Filing 1040ez online free This is your deduction. Filing 1040ez online free Enter it on Schedule A (Form 1040), line 6 $244   You can deduct $244 on your return for the year if you itemize your deductions. Filing 1040ez online free You are considered to have paid this amount and can deduct it on your return even if, under the contract, you did not have to reimburse the seller. Filing 1040ez online free Delinquent taxes. Filing 1040ez online free   Delinquent taxes are unpaid taxes that were imposed on the seller for an earlier tax year. Filing 1040ez online free If you agree to pay delinquent taxes when you buy your home, you cannot deduct them. Filing 1040ez online free You treat them as part of the cost of your home. Filing 1040ez online free See Real estate taxes , later, under Basis. Filing 1040ez online free Escrow accounts. Filing 1040ez online free   Many monthly house payments include an amount placed in escrow (put in the care of a third party) for real estate taxes. Filing 1040ez online free You may not be able to deduct the total you pay into the escrow account. Filing 1040ez online free You can deduct only the real estate taxes that the lender actually paid from escrow to the taxing authority. Filing 1040ez online free Your real estate tax bill will show this amount. Filing 1040ez online free Refund or rebate of real estate taxes. Filing 1040ez online free   If you receive a refund or rebate of real estate taxes this year for amounts you paid this year, you must reduce your real estate tax deduction by the amount refunded to you. Filing 1040ez online free If the refund or rebate was for real estate taxes paid for a prior year, you may have to include some or all of the refund in your income. Filing 1040ez online free For more information, see Recoveries in Publication 525, Taxable and Nontaxable Income. Filing 1040ez online free Items You Cannot Deduct as Real Estate Taxes The following items are not deductible as real estate taxes. Filing 1040ez online free Charges for services. Filing 1040ez online free   An itemized charge for services to specific property or people is not a tax, even if the charge is paid to the taxing authority. Filing 1040ez online free You cannot deduct the charge as a real estate tax if it is: A unit fee for the delivery of a service (such as a $5 fee charged for every 1,000 gallons of water you use), A periodic charge for a residential service (such as a $20 per month or $240 annual fee charged for trash collection), or A flat fee charged for a single service provided by your local government (such as a $30 charge for mowing your lawn because it had grown higher than permitted under a local ordinance). Filing 1040ez online free    You must look at your real estate tax bill to decide if any nondeductible itemized charges, such as those listed above, are included in the bill. Filing 1040ez online free If your taxing authority (or lender) does not furnish you a copy of your real estate tax bill, ask for it. Filing 1040ez online free Contact the taxing authority if you need additional information about a specific charge on your real estate tax bill. Filing 1040ez online free Assessments for local benefits. Filing 1040ez online free   You cannot deduct amounts you pay for local benefits that tend to increase the value of your property. Filing 1040ez online free Local benefits include the construction of streets, sidewalks, or water and sewer systems. Filing 1040ez online free You must add these amounts to the basis of your property. Filing 1040ez online free   You can, however, deduct assessments (or taxes) for local benefits if they are for maintenance, repair, or interest charges related to those benefits. Filing 1040ez online free An example is a charge to repair an existing sidewalk and any interest included in that charge. Filing 1040ez online free   If only a part of the assessment is for maintenance, repair, or interest charges, you must be able to show the amount of that part to claim the deduction. Filing 1040ez online free If you cannot show what part of the assessment is for maintenance, repair, or interest charges, you cannot deduct any of it. Filing 1040ez online free   An assessment for a local benefit may be listed as an item in your real estate tax bill. Filing 1040ez online free If so, use the rules in this section to find how much of it, if any, you can deduct. Filing 1040ez online free Transfer taxes (or stamp taxes). Filing 1040ez online free   You cannot deduct transfer taxes and similar taxes and charges on the sale of a personal home. Filing 1040ez online free If you are the buyer and you pay them, include them in the cost basis of the property. Filing 1040ez online free If you are the seller and you pay them, they are expenses of the sale and reduce the amount realized on the sale. Filing 1040ez online free Homeowners association assessments. Filing 1040ez online free   You cannot deduct these assessments because the homeowners association, rather than a state or local government, imposes them. Filing 1040ez online free Special Rules for Cooperatives If you own a cooperative apartment, some special rules apply to you, though you generally receive the same tax treatment as other homeowners. Filing 1040ez online free As an owner of a cooperative apartment, you own shares of stock in a corporation that owns or leases housing facilities. Filing 1040ez online free You can deduct your share of the corporation's deductible real estate taxes if the cooperative housing corporation meets the following conditions: The corporation has only one class of stock outstanding, Each stockholder, solely because of ownership of the stock, can live in a house, apartment, or house trailer owned or leased by the corporation, No stockholder can receive any distribution out of capital, except on a partial or complete liquidation of the corporation, and At least one of the following: At least 80% of the corporation's gross income for the tax year was paid by the tenant-stockholders. Filing 1040ez online free For this purpose, gross income means all income received during the entire tax year, including any received before the corporation changed to cooperative ownership. Filing 1040ez online free At least 80% of the total square footage of the corporation's property must be available for use by the tenant-stockholders during the entire tax year. Filing 1040ez online free At least 90% of the expenditures paid or incurred by the corporation were used for the acquisition, construction, management, maintenance, or care of the property for the benefit of the tenant-shareholders during the entire tax year. Filing 1040ez online free Tenant-stockholders. Filing 1040ez online free   A tenant-stockholder can be any entity (such as a corporation, trust, estate, partnership, or association) as well as an individual. Filing 1040ez online free The tenant-stockholder does not have to live in any of the cooperative's dwelling units. Filing 1040ez online free The units that the tenant-stockholder has the right to occupy can be rented to others. Filing 1040ez online free Deductible taxes. Filing 1040ez online free   You figure your share of real estate taxes in the following way. Filing 1040ez online free Divide the number of your shares of stock by the total number of shares outstanding, including any shares held by the corporation. Filing 1040ez online free Multiply the corporation's deductible real estate taxes by the number you figured in (1). Filing 1040ez online free This is your share of the real estate taxes. Filing 1040ez online free   Generally, the corporation will tell you your share of its real estate tax. Filing 1040ez online free This is the amount you can deduct if it reasonably reflects the cost of real estate taxes for your dwelling unit. Filing 1040ez online free Refund of real estate taxes. Filing 1040ez online free   If the corporation receives a refund of real estate taxes it paid in an earlier year, it must reduce the amount of real estate taxes paid this year when it allocates the tax expense to you. Filing 1040ez online free Your deduction for real estate taxes the corporation paid this year is reduced by your share of the refund the corporation received. Filing 1040ez online free Sales Taxes Generally, you can elect to deduct state and local general sales taxes instead of state and local income taxes as an itemized deduction on Schedule A (Form 1040). Filing 1040ez online free Deductible sales taxes may include sales taxes paid on your home (including mobile and prefabricated), or home building materials if the tax rate was the same as the general sales tax rate. Filing 1040ez online free For information on figuring your deduction, see the Instructions for Schedule A (Form 1040). Filing 1040ez online free If you elect to deduct the sales taxes paid on your home, or home building materials, you cannot include them as part of your cost basis in the home. Filing 1040ez online free Home Mortgage Interest This section of the publication gives you basic information about home mortgage interest, including information on interest paid at settlement, points, and Form 1098, Mortgage Interest Statement. Filing 1040ez online free Most home buyers take out a mortgage (loan) to buy their home. Filing 1040ez online free They then make monthly payments to either the mortgage holder or someone collecting the payments for the mortgage holder. Filing 1040ez online free Usually, you can deduct the entire part of your payment that is for mortgage interest, if you itemize your deductions on Schedule A (Form 1040). Filing 1040ez online free However, your deduction may be limited if: Your total mortgage balance is more than $1 million ($500,000 if married filing separately), or You took out a mortgage for reasons other than to buy, build, or improve your home. Filing 1040ez online free If either of these situations applies to you, see Publication 936 for more information. Filing 1040ez online free Also see Publication 936 if you later refinance your mortgage or buy a second home. Filing 1040ez online free Refund of home mortgage interest. Filing 1040ez online free   If you receive a refund of home mortgage interest that you deducted in an earlier year and that reduced your tax, you generally must include the refund in income in the year you receive it. Filing 1040ez online free For more information, see Recoveries in Publication 525. Filing 1040ez online free The amount of the refund will usually be shown on the mortgage interest statement you receive from your mortgage lender. Filing 1040ez online free See Mortgage Interest Statement , later. Filing 1040ez online free Deductible Mortgage Interest To be deductible, the interest you pay must be on a loan secured by your main home or a second home. Filing 1040ez online free The loan can be a first or second mortgage, a home improvement loan, or a home equity loan. Filing 1040ez online free Prepaid interest. Filing 1040ez online free   If you pay interest in advance for a period that goes beyond the end of the tax year, you must spread this interest over the tax years to which it applies. Filing 1040ez online free Generally, you can deduct in each year only the interest that qualifies as home mortgage interest for that year. Filing 1040ez online free An exception (discussed later) applies to points. Filing 1040ez online free Late payment charge on mortgage payment. Filing 1040ez online free   You can deduct as home mortgage interest a late payment charge if it was not for a specific service in connection with your mortgage loan. Filing 1040ez online free Mortgage prepayment penalty. Filing 1040ez online free   If you pay off your home mortgage early, you may have to pay a penalty. Filing 1040ez online free You can deduct that penalty as home mortgage interest provided the penalty is not for a specific service performed or cost incurred in connection with your mortgage loan. Filing 1040ez online free Ground rent. Filing 1040ez online free   In some states (such as Maryland), you may buy your home subject to a ground rent. Filing 1040ez online free A ground rent is an obligation you assume to pay a fixed amount per year on the property. Filing 1040ez online free Under this arrangement, you are leasing (rather than buying) the land on which your home is located. Filing 1040ez online free Redeemable ground rents. Filing 1040ez online free   If you make annual or periodic rental payments on a redeemable ground rent, you can deduct the payments as mortgage interest. Filing 1040ez online free The ground rent is a redeemable ground rent only if all of the following are true. Filing 1040ez online free Your lease, including renewal periods, is for more than 15 years. Filing 1040ez online free You can freely assign the lease. Filing 1040ez online free You have a present or future right (under state or local law) to end the lease and buy the lessor's entire interest in the land by paying a specified amount. Filing 1040ez online free The lessor's interest in the land is primarily a security interest to protect the rental payments to which he or she is entitled. Filing 1040ez online free   Payments made to end the lease and buy the lessor's entire interest in the land are not redeemable ground rents. Filing 1040ez online free You cannot deduct them. Filing 1040ez online free Nonredeemable ground rents. Filing 1040ez online free   Payments on a nonredeemable ground rent are not mortgage interest. Filing 1040ez online free You can deduct them as rent only if they are a business expense or if they are for rental property. Filing 1040ez online free Cooperative apartment. Filing 1040ez online free   You can usually treat the interest on a loan you took out to buy stock in a cooperative housing corporation as home mortgage interest if you own a cooperative apartment, and the cooperative housing corporation meets the conditions described earlier under Special Rules for Cooperatives . Filing 1040ez online free In addition, you can treat as home mortgage interest your share of the corporation's deductible mortgage interest. Filing 1040ez online free Figure your share of mortgage interest the same way that is shown for figuring your share of real estate taxes in the Example under Division of real estate taxes, earlier. Filing 1040ez online free For more information on cooperatives, see Special Rule for Tenant-Stockholders in Cooperative Housing Corporations in Publication 936. Filing 1040ez online free Refund of cooperative's mortgage interest. Filing 1040ez online free   You must reduce your mortgage interest deduction by your share of any cash portion of a patronage dividend that the cooperative receives. Filing 1040ez online free The patronage dividend is a partial refund to the cooperative housing corporation of mortgage interest it paid in a prior year. Filing 1040ez online free   If you receive a Form 1098 from the cooperative housing corporation, the form should show only the amount you can deduct. Filing 1040ez online free Mortgage Interest Paid at Settlement One item that normally appears on a settlement or closing statement is home mortgage interest. Filing 1040ez online free You can deduct the interest that you pay at settlement if you itemize your deductions on Schedule A (Form 1040). Filing 1040ez online free This amount should be included in the mortgage interest statement provided by your lender. Filing 1040ez online free See the discussion under Mortgage Interest Statement , later. Filing 1040ez online free Also, if you pay interest in advance, see Prepaid interest , earlier, and Points , next. Filing 1040ez online free Points The term “points” is used to describe certain charges paid, or treated as paid, by a borrower to obtain a home mortgage. Filing 1040ez online free Points also may be called loan origination fees, maximum loan charges, loan discount, or discount points. Filing 1040ez online free A borrower is treated as paying any points that a home seller pays for the borrower's mortgage. Filing 1040ez online free See Points paid by the seller , later. Filing 1040ez online free General rule. Filing 1040ez online free   You cannot deduct the full amount of points in the year paid. Filing 1040ez online free They are prepaid interest, so you generally must deduct them over the life (term) of the mortgage. Filing 1040ez online free Exception. Filing 1040ez online free   You can deduct the full amount of points in the year paid if you meet all the following tests. Filing 1040ez online free Your loan is secured by your main home. Filing 1040ez online free (Generally, your main home is the one you live in most of the time. Filing 1040ez online free ) Paying points is an established business practice in the area where the loan was made. Filing 1040ez online free The points paid were not more than the points generally charged in that area. Filing 1040ez online free You use the cash method of accounting. Filing 1040ez online free This means you report income in the year you receive it and deduct expenses in the year you pay them. Filing 1040ez online free Most individuals use this method. Filing 1040ez online free The points were not paid in place of amounts that ordinarily are stated separately on the settlement statement, such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes. Filing 1040ez online free The funds you provided at or before closing, plus any points the seller paid, were at least as much as the points charged. Filing 1040ez online free The funds you provided are not required to have been applied to the points. Filing 1040ez online free They can include a down payment, an escrow deposit, earnest money, and other funds you paid at or before closing for any purpose. Filing 1040ez online free You cannot have borrowed these funds. Filing 1040ez online free You use your loan to buy or build your main home. Filing 1040ez online free The points were computed as a percentage of the principal amount of the mortgage. Filing 1040ez online free The amount is clearly shown on the settlement statement (such as the Uniform Settlement Statement, Form HUD-1) as points charged for the mortgage. Filing 1040ez online free The points may be shown as paid from either your funds or the seller's. Filing 1040ez online free Note. Filing 1040ez online free If you meet all of the tests listed above and you itemize your deductions in the year you get the loan, you can either deduct the full amount of points in the year paid or deduct them over the life of the loan, beginning in the year you get the loan. Filing 1040ez online free If you do not itemize your deductions in the year you get the loan, you can spread the points over the life of the loan and deduct the appropriate amount in each future year, if any, when you do itemize your deductions. Filing 1040ez online free Home improvement loan. Filing 1040ez online free   You can also fully deduct in the year paid points paid on a loan to improve your main home, if you meet the first six tests listed earlier. Filing 1040ez online free Refinanced loan. Filing 1040ez online free   If you use part of the refinanced mortgage proceeds to improve your main home and you meet the first six tests listed earlier, you can fully deduct the part of the points related to the improvement in the year you paid them with your own funds. Filing 1040ez online free You can deduct the rest of the points over the life of the loan. Filing 1040ez online free Points not fully deductible in year paid. Filing 1040ez online free    If you do not qualify under the exception to deduct the full amount of points in the year paid (or choose not to do so), see Points in Publication 936 for the rules on when and how much you can deduct. Filing 1040ez online free Figure A. Filing 1040ez online free   You can use Figure A, next, as a quick guide to see whether your points are fully deductible in the year paid. Filing 1040ez online free    Please click here for the text description of the image. Filing 1040ez online free Figure A. Filing 1040ez online free Are my points fully deductible this year? Amounts charged for services. Filing 1040ez online free   Amounts charged by the lender for specific services connected to the loan are not interest. Filing 1040ez online free Examples of these charges are: Appraisal fees, Notary fees, and Preparation costs for the mortgage note or deed of trust. Filing 1040ez online free You cannot deduct these amounts as points either in the year paid or over the life of the mortgage. Filing 1040ez online free For information about the tax treatment of these amounts and other settlement fees and closing costs, see Basis , later. Filing 1040ez online free Points paid by the seller. Filing 1040ez online free   The term “points” includes loan placement fees that the seller pays to the lender to arrange financing for the buyer. Filing 1040ez online free Treatment by seller. Filing 1040ez online free   The seller cannot deduct these fees as interest. Filing 1040ez online free However, they are a selling expense that reduces the seller's amount realized. Filing 1040ez online free See Publication 523 for more information. Filing 1040ez online free Treatment by buyer. Filing 1040ez online free   The buyer treats seller-paid points as if he or she had paid them. Filing 1040ez online free If all the tests listed earlier under Exception are met, the buyer can deduct the points in the year paid. Filing 1040ez online free If any of those tests are not met, the buyer must deduct the points over the life of the loan. Filing 1040ez online free   The buyer must also reduce the basis of the home by the amount of the seller-paid points. Filing 1040ez online free For more information about the basis of your home, see Basis , later. Filing 1040ez online free Funds provided are less than points. Filing 1040ez online free   If you meet all the tests listed earlier under Exception except that the funds you provided were less than the points charged to you (test 6), you can deduct the points in the year paid up to the amount of funds you provided. Filing 1040ez online free In addition, you can deduct any points paid by the seller. Filing 1040ez online free Example 1. Filing 1040ez online free When you took out a $100,000 mortgage loan to buy your home in December, you were charged one point ($1,000). Filing 1040ez online free You meet all the tests for deducting points in the year paid (see Exception , earlier), except the only funds you provided were a $750 down payment. Filing 1040ez online free Of the $1,000 you were charged for points, you can deduct $750 in the year paid. Filing 1040ez online free You spread the remaining $250 over the life of the mortgage. Filing 1040ez online free Example 2. Filing 1040ez online free The facts are the same as in Example 1 , except that the person who sold you your home also paid one point ($1,000) to help you get your mortgage. Filing 1040ez online free In the year paid, you can deduct $1,750 ($750 of the amount you were charged plus the $1,000 paid by the seller). Filing 1040ez online free You spread the remaining $250 over the life of the mortgage. Filing 1040ez online free You must reduce the basis of your home by the $1,000 paid by the seller. Filing 1040ez online free Excess points. Filing 1040ez online free   If you meet all the tests under Exception , earlier, except that the points paid were more than are generally charged in your area (test 3), you can deduct in the year paid only the points that are generally charged. Filing 1040ez online free You must spread any additional points over the life of the mortgage. Filing 1040ez online free Mortgage ending early. Filing 1040ez online free   If you spread your deduction for points over the life of the mortgage, you can deduct any remaining balance in the year the mortgage ends. Filing 1040ez online free A mortgage may end early due to a prepayment, refinancing, foreclosure, or similar event. Filing 1040ez online free Example. Filing 1040ez online free Dan paid $3,000 in points in 2006 that he had to spread out over the 15-year life of the mortgage. Filing 1040ez online free He had deducted $1,400 of these points through 2012. Filing 1040ez online free Dan prepaid his mortgage in full in 2013. Filing 1040ez online free He can deduct the remaining $1,600 of points in 2013. Filing 1040ez online free Exception. Filing 1040ez online free   If you refinance the mortgage with the same lender, you cannot deduct any remaining points for the year. Filing 1040ez online free Instead, deduct them over the term of the new loan. Filing 1040ez online free Form 1098. Filing 1040ez online free   The mortgage interest statement you receive should show not only the total interest paid during the year, but also your deductible points paid during the year. Filing 1040ez online free See Mortgage Interest Statement , later. Filing 1040ez online free Where To Deduct Home Mortgage Interest Enter on Schedule A (Form 1040), line 10, the home mortgage interest and points reported to you on Form 1098 (discussed next). Filing 1040ez online free If you did not receive a Form 1098, enter your deductible interest on line 11, and any deductible points on line 12. Filing 1040ez online free See Table 1 below for a summary of where to deduct home mortgage interest and real estate taxes. Filing 1040ez online free If you paid home mortgage interest to the person from whom you bought your home, show that person's name, address, and social security number (SSN) or employer identification number (EIN) on the dotted lines next to line 11. Filing 1040ez online free The seller must give you this number and you must give the seller your SSN. Filing 1040ez online free Form W-9, Request for Taxpayer Identification Number and Certification, can be used for this purpose. Filing 1040ez online free Failure to meet either of these requirements may result in a $50 penalty for each failure. Filing 1040ez online free Table 1. Filing 1040ez online free Where To Deduct Interest and Taxes Paid on Your Home See the text for information on what expenses are eligible. Filing 1040ez online free IF you are eligible to deduct . Filing 1040ez online free . Filing 1040ez online free . Filing 1040ez online free THEN report the amount  on Schedule A (Form 1040) . Filing 1040ez online free . Filing 1040ez online free . Filing 1040ez online free real estate taxes line 6. Filing 1040ez online free home mortgage interest and points reported on Form 1098 line 10. Filing 1040ez online free home mortgage interest not reported on  Form 1098 line 11. Filing 1040ez online free points not reported on Form 1098 line 12. Filing 1040ez online free qualified mortgage insurance premiums line 13. Filing 1040ez online free Mortgage Interest Statement If you paid $600 or more of mortgage interest (including certain points and mortgage insurance premiums) during the year on any one mortgage to a mortgage holder in the course of that holder's trade or business, you should receive a Form 1098 or similar statement from the mortgage holder. Filing 1040ez online free The statement will show the total interest paid on your mortgage during the year. Filing 1040ez online free If you bought a main home during the year, it also will show the deductible points you paid and any points you can deduct that were paid by the person who sold you your home. Filing 1040ez online free See Points , earlier. Filing 1040ez online free The interest you paid at settlement should be included on the statement. Filing 1040ez online free If it is not, add the interest from the settlement sheet that qualifies as home mortgage interest to the total shown on Form 1098 or similar statement. Filing 1040ez online free Put the total on Schedule A (Form 1040), line 10, and attach a statement to your return explaining the difference. Filing 1040ez online free Write “See attached” to the right of line 10. Filing 1040ez online free A mortgage holder can be a financial institution, a governmental unit, or a cooperative housing corporation. Filing 1040ez online free If a statement comes from a cooperative housing corporation, it generally will show your share of interest. Filing 1040ez online free Your mortgage interest statement for 2013 should be provided or sent to you by January 31, 2014. Filing 1040ez online free If it is mailed, you should allow adequate time to receive it before contacting the mortgage holder. Filing 1040ez online free A copy of this form will be sent to the IRS also. Filing 1040ez online free Example. Filing 1040ez online free You bought a new home on May 3. Filing 1040ez online free You paid no points on the purchase. Filing 1040ez online free During the year, you made mortgage payments which included $4,480 deductible interest on your new home. Filing 1040ez online free The settlement sheet for the purchase of the home included interest of $620 for 29 days in May. Filing 1040ez online free The mortgage statement you receive from the lender includes total interest of $5,100 ($4,480 + $620). Filing 1040ez online free You can deduct the $5,100 if you itemize your deductions. Filing 1040ez online free Refund of overpaid interest. Filing 1040ez online free   If you receive a refund of mortgage interest you overpaid in a prior year, you generally will receive a Form 1098 showing the refund in box 3. Filing 1040ez online free Generally, you must include the refund in income in the year you receive it. Filing 1040ez online free See Refund of home mortgage interest , earlier, under Home Mortgage Interest. Filing 1040ez online free More than one borrower. Filing 1040ez online free   If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Filing 1040ez online free Show how much of the interest each of you paid, and give the name and address of the person who received the form. Filing 1040ez online free Deduct your share of the interest on Schedule A (Form 1040), line 11, and write “See attached” to the right of that line. Filing 1040ez online free Mortgage Insurance Premiums You may be able to take an itemized deduction on Schedule A (Form 1040), line 13, for premiums you pay or accrue during 2013 for qualified mortgage insurance in connection with home acquisition debt on your qualified home. Filing 1040ez online free Mortgage insurance premiums you paid or accrued on any mortgage insurance contract issued before January 1, 2007, are not deductible as an itemized deduction. Filing 1040ez online free Qualified Mortgage Insurance Qualified mortgage insurance is mortgage insurance provided by the Veterans Administration, the Federal Housing Administration, or the Rural Housing Administration, and private mortgage insurance (as defined in section 2 of the Homeowners Protection Act of 1998 as in effect on December 20, 2006). Filing 1040ez online free Prepaid mortgage insurance premiums. Filing 1040ez online free   If you paid premiums that are allocable to periods after 2013, you must allocate them over the shorter of: The stated term of the mortgage, or 84 months, beginning with the month the insurance was obtained. Filing 1040ez online free The premiums are treated as paid in the year to which they were allocated. Filing 1040ez online free If the mortgage is satisfied before its term, no deduction is allowed for the unamortized balance. Filing 1040ez online free See Publication 936 for details. Filing 1040ez online free Exception for certain mortgage insurance. Filing 1040ez online free   The allocation rules, explained above, do not apply to qualified mortgage insurance provided by the Department of Veterans Affairs or Rural Housing Service. Filing 1040ez online free Home Acquisition Debt Home acquisition debt is a mortgage you took out after October 13, 1987, to buy, build, or substantially improve a qualified home. Filing 1040ez online free It also must be secured by that home. Filing 1040ez online free If the amount of your mortgage is more than the cost of the home plus the cost of any substantial improvements, only the debt that is not more than the cost of the home plus improvements qualifies as home acquisition debt. Filing 1040ez online free Home acquisition debt limit. Filing 1040ez online free   The total amount you can treat as home acquisition debt at any time on your home cannot be more than $1 million ($500,000 if married filing separately). Filing 1040ez online free Discharges of qualified principal residence indebtedness. Filing 1040ez online free   You can exclude from gross income any discharges of qualified principal residence indebtedness made after 2006 and before 2014. Filing 1040ez online free You must reduce the basis of your principal residence (but not below zero) by the amount you exclude. Filing 1040ez online free Principal residence. Filing 1040ez online free   Your principal residence is the home where you ordinarily live most of the time. Filing 1040ez online free You can have only one principal residence at any one time. Filing 1040ez online free Qualified principal residence indebtedness. Filing 1040ez online free   This is a mortgage that you took out to buy, build, or substantially improve your principal residence and that is secured by that residence. Filing 1040ez online free If the amount of your original mortgage is more than the cost of your principal residence plus the cost of substantial improvements, qualified principal residence indebtedness cannot be more than the cost of your principal residence plus improvements. Filing 1040ez online free   Any debt secured by your principal residence that you use to refinance qualified principal residence indebtedness is qualified principal residence indebtedness up to the amount of your old mortgage principal just before the refinancing. Filing 1040ez online free Additional debt incurred to substantially improve your principal residence is also qualified principal residence indebtedness. Filing 1040ez online free Amount you can exclude. Filing 1040ez online free   You can only exclude debt discharged after 2006 and before 2014. Filing 1040ez online free The most you can exclude is $2 million ($1 million if married filing separately). Filing 1040ez online free You cannot exclude any amount that was discharged because of services performed for the lender or on account of any other factor not directly related either to a decline in the value of your residence or to your financial condition. Filing 1040ez online free Ordering rule. Filing 1040ez online free   If only a part of a loan is qualified principal residence indebtedness, you can exclude only the amount of the discharge that is more than the amount of the loan (immediately before the discharge) that is not qualified principal residence indebtedness. Filing 1040ez online free Qualified Home This means your main home or your second home. Filing 1040ez online free A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities. Filing 1040ez online free Main home. Filing 1040ez online free   You can have only one main home at any one time. Filing 1040ez online free This is the home where you ordinarily live most of the time. Filing 1040ez online free Second home and other special situations. Filing 1040ez online free   If you have a second home, use part of your home for other than residential living (such as a home office), rent out part of your home, or are having your home constructed, see Qualified Home in Publication 936. Filing 1040ez online free Limit on Deduction If your adjusted gross income (AGI) on Form 1040, line 38, is more than $100,000 ($50,000 if your filing status is married filing separately), the amount of your mortgage insurance premiums that are deductible is reduced and may be eliminated. Filing 1040ez online free See Line 13 in the instructions for Schedule A (Form 1040) and complete the Mortgage Insurance Premiums Deduction Worksheet to figure the amount you can deduct. Filing 1040ez online free If your AGI is more than $109,000 ($54,500 if married filing separately), you cannot deduct your mortgage insurance premiums. Filing 1040ez online free Form 1098. Filing 1040ez online free   The amount of mortgage insurance premiums you paid during 2013 should be reported in box 4. Filing 1040ez online free See Form 1098, Mortgage Interest Statement in Publication 936. Filing 1040ez online free Mortgage Interest Credit The mortgage interest credit is intended to help lower-income individuals afford home ownership. Filing 1040ez online free If you qualify, you can claim the credit on Form 8396 each year for part of the home mortgage interest you pay. Filing 1040ez online free Who qualifies. Filing 1040ez online free   You may be eligible for the credit if you were issued a qualified Mortgage Credit Certificate (MCC) from your state or local government. Filing 1040ez online free Generally, an MCC is issued only in connection with a new mortgage for the purchase of your main home. Filing 1040ez online free The MCC will show the certificate credit rate you will use to figure your credit. Filing 1040ez online free It also will show the certified indebtedness amount. Filing 1040ez online free Only the interest on that amount qualifies for the credit. Filing 1040ez online free See Figuring the Credit , later. Filing 1040ez online free You must contact the appropriate government agency about getting an MCC before you get a mortgage and buy your home. Filing 1040ez online free Contact your state or local housing finance agency for information about the availability of MCCs in your area. Filing 1040ez online free How to claim the credit. Filing 1040ez online free   To claim the credit, complete Form 8396 and attach it to your Form 1040 or Form 1040NR, U. Filing 1040ez online free S. Filing 1040ez online free Nonresident Alien Income Tax Return. Filing 1040ez online free Include the credit in your total for Form 1040, line 53, or Form 1040NR, line 50; be sure to check box c and write “Form 8396” on that line. Filing 1040ez online free Reducing your home mortgage interest deduction. Filing 1040ez online free   If you itemize your deductions on Schedule A (Form 1040), you must reduce your home mortgage interest deduction by the amount of the mortgage interest credit shown on Form 8396, line 3. Filing 1040ez online free You must do this even if part of that amount is to be carried forward to 2014. Filing 1040ez online free Selling your home. Filing 1040ez online free   If you purchase a home after 1990 using an MCC, and you sell that home within 9 years, you may have to recapture (repay) all or part of the benefit you received from the MCC program. Filing 1040ez online free For additional information, see Recapturing (Paying Back) a Federal Mortgage Subsidy, in Publication 523. Filing 1040ez online free Figuring the Credit Figure your credit on Form 8396. Filing 1040ez online free Mortgage not more than certified indebtedness. Filing 1040ez online free   If your mortgage loan amount is equal to (or smaller than) the certified indebtedness amount shown on your MCC, enter on Form 8396, line 1, all the interest you paid on your mortgage during the year. Filing 1040ez online free Mortgage more than certified indebtedness. Filing 1040ez online free   If your mortgage loan amount is larger than the certified indebtedness amount shown on your MCC, you can figure the credit on only part of the interest you paid. Filing 1040ez online free To find the amount to enter on line 1, multiply the total interest you paid during the year on your mortgage by the following fraction. Filing 1040ez online free Certified indebtedness amount on your MCC Original amount of your mortgage   The fraction will not change as long as you are entitled to take the mortgage interest credit. Filing 1040ez online free Example. Filing 1040ez online free Emily bought a home this year. Filing 1040ez online free Her mortgage loan is $125,000. Filing 1040ez online free The certified indebtedness amount on her MCC is $100,000. Filing 1040ez online free She paid $7,500 interest this year. Filing 1040ez online free Emily figures the interest to enter on Form 8396, line 1, as follows:   $100,000 = 80% (. Filing 1040ez online free 80)       $125,000       $7,500 x . Filing 1040ez online free 80 = $6,000   Emily enters $6,000 on Form 8396, line 1. Filing 1040ez online free In each later year, she will figure her credit using only 80% of the interest she pays for that year. Filing 1040ez online free Limits Two limits may apply to your credit. Filing 1040ez online free A limit based on the credit rate, and A limit based on your tax. Filing 1040ez online free Limit based on credit rate. Filing 1040ez online free   If the certificate credit rate is higher than 20%, the credit you are allowed cannot be more than $2,000. Filing 1040ez online free Limit based on tax. Filing 1040ez online free   After applying the limit based on the credit rate, your credit generally cannot be more than your tax liability. Filing 1040ez online free See the Credit Limit Worksheet in the Form 8396 instructions to calculate the limit based on tax. Filing 1040ez online free Dividing the Credit If two or more persons (other than a married couple filing a joint return) hold an interest in the home to which the MCC relates, the credit must be divided based on the interest held by each person. Filing 1040ez online free Example. Filing 1040ez online free John and his brother, George, were issued an MCC. Filing 1040ez online free They used it to get a mortgage on their main home. Filing 1040ez online free John has a 60% ownership interest in the home, and George has a 40% ownership interest in the home. Filing 1040ez online free John paid $5,400 mortgage interest this year and George paid $3,600. Filing 1040ez online free The MCC shows a credit rate of 25% and a certified indebtedness amount of $130,000. Filing 1040ez online free The loan amount (mortgage) on their home is $120,000. Filing 1040ez online free The credit is limited to $2,000 because the credit rate is more than 20%. Filing 1040ez online free John figures the credit by multiplying the mortgage interest he paid this year ($5,400) by the certificate credit rate (25%) for a total of $1,350. Filing 1040ez online free His credit is limited to $1,200 ($2,000 × 60%). Filing 1040ez online free George figures the credit by multiplying the mortgage interest he paid this year ($3,600) by the certificate credit rate (25%) for a total of $900. Filing 1040ez online free His credit is limited to $800 ($2,000 × 40%). Filing 1040ez online free Carryforward If your allowable credit is reduced because of the limit based on your tax, you can carry forward the unused portion of the credit to the next 3 years or until used, whichever comes first. Filing 1040ez online free Example. Filing 1040ez online free You receive a mortgage credit certificate from State X. Filing 1040ez online free This year, your regular tax liability is $1,100, you owe no alternative minimum tax, and your mortgage interest credit is $1,700. Filing 1040ez online free You claim no other credits. Filing 1040ez online free Your unused mortgage interest credit for this year is $600 ($1,700 − $1,100). Filing 1040ez online free You can carry forward this amount to the next 3 years or until used, whichever comes first. Filing 1040ez online free Credit rate more than 20%. Filing 1040ez online free   If you are subject to the $2,000 limit because your certificate credit rate is more than 20%, you cannot carry forward any amount more than $2,000 (or your share of the $2,000 if you must divide the credit). Filing 1040ez online free Example. Filing 1040ez online free In the earlier example under Dividing the Credit , John and George used the entire $2,000 credit. Filing 1040ez online free The excess   John $1,350 − $1,200 = $150     George $900 − $800 = $100   $150 for John ($1,350 − $1,200) and $100 for George ($900 − $800) cannot be carried forward to future years, despite the respective tax liabilities for John and George. Filing 1040ez online free Refinancing If you refinance your original mortgage loan on which you had been given an MCC, you must get a new MCC to be able to claim the credit on the new loan. Filing 1040ez online free The amount of credit you can claim on the new loan may change. Filing 1040ez online free Table 2 below summarizes how to figure your credit if you refinance your original mortgage loan. Filing 1040ez online free Table 2. Filing 1040ez online free Effect of Refinancing on Your Credit IF you get a new (reissued) MCC and the amount of your new mortgage is . Filing 1040ez online free . Filing 1040ez online free . Filing 1040ez online free THEN the interest you claim on Form 8396, line 1, is* . Filing 1040ez online free . Filing 1040ez online free . Filing 1040ez online free smaller than or equal to the certified indebtedness amount on the new MCC all the interest paid during the year on your new mortgage. Filing 1040ez online free larger than the certified indebtedness amount on the new MCC interest paid during the year on your new mortgage multiplied by the following fraction. Filing 1040ez online free         certified indebtedness  amount on your new MCC       original amount of your  mortgage   *The credit using the new MCC cannot be more than the credit using the old MCC. Filing 1040ez online free  See New MCC cannot increase your credit above. Filing 1040ez online free An issuer may reissue an MCC after you refinance your mortgage. Filing 1040ez online free If you did not get a new MCC, you may want to contact the state or local housing finance agency that issued your original MCC for information about whether you can get a reissued MCC. Filing 1040ez online free Year of refinancing. Filing 1040ez online free   In the year of refinancing, add the applicable amount of interest paid on the old mortgage and the applicable amount of interest paid on the new mortgage, and enter the total on Form 8396, line 1. Filing 1040ez online free   If your new MCC has a credit rate different from the rate on the old MCC, you must attach a statement to Form 8396. Filing 1040ez online free The statement must show the calculation for lines 1, 2, and 3 for the part of the year when the old MCC was in effect. Filing 1040ez online free It must show a separate calculation for the part of the year when the new MCC was in effect. Filing 1040ez online free Combine the amounts from both calculations for line 3, enter the total on line 3 of the form, and write “See attached” on the dotted line next to line 2. Filing 1040ez online free New MCC cannot increase your credit. Filing 1040ez online free   The credit that you claim with your new MCC cannot be more than the credit that you could have claimed with your old MCC. Filing 1040ez online free   In most cases, the agency that issues your new MCC will make sure that it does not increase your credit. Filing 1040ez online free However, if either your old loan or your new loan has a variable (adjustable) interest rate, you will need to check this yourself. Filing 1040ez online free In that case, you will need to know the amount of the credit you could have claimed using the old MCC. Filing 1040ez online free   There are two methods for figuring the credit you could have claimed. Filing 1040ez online free Under one method, you figure the actual credit that would have been allowed. Filing 1040ez online free This means you use the credit rate on the old MCC and the interest you would have paid on the old loan. Filing 1040ez online free   If your old loan was a variable rate mortgage, you can use another method to determine the credit that you could have claimed. Filing 1040ez online free Under this method, you figure the credit using a payment schedule of a hypothetical self-amortizing mortgage with level payments projected to the final maturity date of the old mortgage. Filing 1040ez online free The interest rate of the hypothetical mortgage is the annual percentage rate (APR) of the new mortgage for purposes of the Federal Truth in Lending Act. Filing 1040ez online free The principal of the hypothetical mortgage is the remaining outstanding balance of the certified mortgage indebtedness shown on the old MCC. Filing 1040ez online free    You must choose one method and use it consistently beginning with the first tax year for which you claim the credit based on the new MCC. Filing 1040ez online free    As part of your tax records, you should keep your old MCC and the schedule of payments for your old mortgage. Filing 1040ez online free Basis Basis is your starting point for figuring a gain or loss if you later sell your home, or for figuring depreciation if you later use part of your home for business purposes or for rent. Filing 1040ez online free While you own your home, you may add certain items to your basis. Filing 1040ez online free You may subtract certain other items from your basis. Filing 1040ez online free These items are called adjustments to basis and are explained later under Adjusted Basis . Filing 1040ez online free It is important that you understand these terms when you first acquire your home because you must keep track of your basis and adjusted basis during the period you own your home. Filing 1040ez online free You also must keep records of the events that affect basis or adjusted basis. Filing 1040ez online free See Keeping Records , below. Filing 1040ez online free Figuring Your Basis How you figure your basis depends on how you acquire your home. Filing 1040ez online free If you buy or build your home, your cost is your basis. Filing 1040ez online free If you receive your home as a gift, your basis is usually the same as the adjusted basis of the person who gave you the property. Filing 1040ez online free If you inherit your home from a decedent, different rules apply depending on the date of the decedent's death. Filing 1040ez online free Each of these topics is discussed later. Filing 1040ez online free Property transferred from a spouse. Filing 1040ez online free   If your home is transferred to you from your spouse, or from your former spouse as a result of a divorce, your basis is the same as your spouse's (or former spouse's) adjusted basis just before the transfer. Filing 1040ez online free Publication 504, Divorced or Separated Individuals, fully discusses transfers between spouses. Filing 1040ez online free Cost as Basis The cost of your home, whether you purchased it or constructed it, is the amount you paid for it, including any debt you assumed. Filing 1040ez online free The cost of your home includes most settlement or closing costs you paid when you bought the home. Filing 1040ez online free If you built your home, your cost includes most closing costs paid when you bought the land or settled on your mortgage. Filing 1040ez online free See Settlement or closing costs , later. Filing 1040ez online free If you elect to deduct the sales taxes on the purchase or construction of your home as an itemized deduction on Schedule A (Form 1040), you cannot include the sales taxes as part of your cost basis in the home. Filing 1040ez online free Purchase. Filing 1040ez online free   The basis of a home you bought is the amount you paid for it. Filing 1040ez online free This usually includes your down payment and any debt you assumed. Filing 1040ez online free The basis of a cooperative apartment is the amount you paid for your shares in the corporation that owns or controls the property. Filing 1040ez online free This amount includes any purchase commissions or other costs of acquiring the shares. Filing 1040ez online free Construction. Filing 1040ez online free   If you contracted to have your home built on land that you own, your basis in the home is your basis in the land plus the amount you paid to have the home built. Filing 1040ez online free This includes the cost of labor and materials, the amount you paid the contractor, any architect's fees, building permit charges, utility meter and connection charges, and legal fees that are directly connected with building your home. Filing 1040ez online free If you built all or part of your home yourself, your basis is the total amount it cost you to build it. Filing 1040ez online free You cannot include in basis the value of your own labor or any other labor for which you did not pay. Filing 1040ez online free Real estate taxes. Filing 1040ez online free   Real estate taxes are usually divided so that you and the seller each pay taxes for the part of the property tax year that each owned the home. Filing 1040ez online free See the earlier discussion of Real estate taxes paid at settlement or closing , under Real Estate Taxes, earlier, to figure the real estate taxes you paid or are considered to have paid. Filing 1040ez online free   If you pay any part of the seller's share of the real estate taxes (the taxes up to the date of sale), and the seller did not reimburse you, add those taxes to your basis in the home. Filing 1040ez online free You cannot deduct them as taxes paid. Filing 1040ez online free   If the seller paid any of your share of the real estate taxes (the taxes beginning with the date of sale), you can still deduct those taxes. Filing 1040ez online free Do not include those taxes in your basis. Filing 1040ez online free If you did not reimburse the seller, you must reduce your basis by the amount of those taxes. Filing 1040ez online free Example 1. Filing 1040ez online free You bought your home on September 1. Filing 1040ez online free The property tax year in your area is the calendar year, and the tax is due on August 15. Filing 1040ez online free The real estate taxes on the home you bought were $1,275 for the year and had been paid by the seller on August 15. Filing 1040ez online free You did not reimburse the seller for your share of the real estate taxes from September 1 through December 31. Filing 1040ez online free You must reduce the basis of your home by the $426 [(122 ÷ 365) × $1,275] the seller paid for you. Filing 1040ez online free You can deduct your $426 share of real estate taxes on your return for the year you purchased your home. Filing 1040ez online free Example 2. Filing 1040ez online free You bought your home on May 3, 2013. Filing 1040ez online free The property tax year in your area is the calendar year. Filing 1040ez online free The taxes for the previous year are assessed on January 2 and are due on May 31 and November 30. Filing 1040ez online free Under state law, the taxes become a lien on May 31. Filing 1040ez online free You agreed to pay all taxes due after the date of sale. Filing 1040ez online free The taxes due in 2013 for 2012 were $1,375. Filing 1040ez online free The taxes due in 2014 for 2013 will be $1,425. Filing 1040ez online free You cannot deduct any of the taxes paid in 2013 because they relate to the 2012 property tax year and you did not own the home until 2013. Filing 1040ez online free Instead, you add the $1,375 to the cost (basis) of your home. Filing 1040ez online free You owned the home in 2013 for 243 days (May 3 to December 31), so you can take a tax deduction on your 2014 return of $949 [(243 ÷ 365) × $1,425] paid in 2014 for 2013. Filing 1040ez online free You add the remaining $476 ($1,425 − $949) of taxes paid in 2014 to the cost (basis) of your home. Filing 1040ez online free Settlement or closing costs. Filing 1040ez online free   If you bought your home, you probably paid settlement or closing costs in addition to the contract price. Filing 1040ez online free These costs are divided between you and the seller according to the sales contract, local custom, or understanding of the parties. Filing 1040ez online free If you built your home, you probably paid these costs when you bought the land or settled on your mortgage. Filing 1040ez online free   The only settlement or closing costs you can deduct are home mortgage interest and certain real estate taxes. Filing 1040ez online free You deduct them in the year you buy your home if you itemize your deductions. Filing 1040ez online free You can add certain other settlement or closing costs to the basis of your home. Filing 1040ez online free Items added to basis. Filing 1040ez online free   You can include in your basis the settlement fees and closing costs you paid for buying your home. Filing 1040ez online free A fee is for buying the home if you would have had to pay it even if you paid cash for the home. Filing 1040ez online free   The following are some of the settlement fees and closing costs that you can include in the original basis of your home. Filing 1040ez online free Abstract fees (abstract of title fees). Filing 1040ez online free Charges for installing utility services. Filing 1040ez online free Legal fees (including fees for the title search and preparation of the sales contract and deed). Filing 1040ez online free Recording fees. Filing 1040ez online free Surveys. Filing 1040ez online free Transfer or stamp taxes. Filing 1040ez online free Owner's title insurance. Filing 1040ez online free Any amount the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, cost for improvements or repairs, and sales commissions. Filing 1040ez online free   If the seller actually paid for any item for which you are liable and for which you can take a deduction (such as your share of the real estate taxes for the year of sale), you must reduce your basis by that amount unless you are charged for it in the settlement. Filing 1040ez online free Items not added to basis and not deductible. Filing 1040ez online free   Here are some settlement and closing costs that you cannot deduct or add to your basis. Filing 1040ez online free Fire insurance premiums. Filing 1040ez online free Charges for using utilities or other services related to occupancy of the home before closing. Filing 1040ez online free Rent for occupying the home before closing. Filing 1040ez online free Charges connected with getting or refinancing a mortgage loan, such as: Loan assumption fees, Cost of a credit report, and Fee for an appraisal required by a lender. Filing 1040ez online free Points paid by seller. Filing 1040ez online free   If you bought your home after April 3, 1994, you must reduce your basis by any points paid for your mortgage by the person who sold you your home. Filing 1040ez online free   If you bought your home after 1990 but before April 4, 1994, you must reduce your basis by seller-paid points only if you deducted them. Filing 1040ez online free See Points , earlier, for the rules on deducting points. Filing 1040ez online free Gift To figure the basis of property you receive as a gift, you must know its adjusted basis (defined later) to the donor just before it was given to you, its fair market value (FMV) at the time it was given to you, and any gift tax paid on it. Filing 1040ez online free Fair market value. Filing 1040ez online free   Fair market value (FMV) is the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and who both have a reasonable knowledge of all the necessary facts. Filing 1040ez online free Donor's adjusted basis is more than FMV. Filing 1040ez online free   If someone gave you your home and the donor's adjusted basis, when it was given to you, was more than the FMV, your basis at the time of receipt is the same as the donor's adjusted basis. Filing 1040ez online free Disposition basis. Filing 1040ez online free   If the donor's adjusted basis at the time of the gift is more than the FMV, your basis (plus or minus any required adjustments, see Adjusted Basis , later) when you dispose of the property will depend on whether you have a gain or a loss. Filing 1040ez online free Your basis for figuring a gain is the same as the donor's adjusted basis. Filing 1040ez online free Your basis for figuring a loss is the FMV when you received the gift. Filing 1040ez online free If you use the donor's adjusted basis to figure a gain and it results in a loss, then you must use the FMV (at the time of the gift) to refigure the loss. Filing 1040ez online free However, if using the FMV results in a gain, then you neither have a gain nor a loss. Filing 1040ez online free Example 1. Filing 1040ez online free Andrew received a house as a gift from Ishmael (the donor). Filing 1040ez online free At the time of the gift, the home had an FMV of $80,000. Filing 1040ez online free Ishmael's adjusted basis was $100,000. Filing 1040ez online free After he received the house, no events occurred to increase or decrease the basis. Filing 1040ez online free If Andrew sells the house for $120,000, he will have a $20,000 gain because he must use the donor's adjusted basis ($100,000) at the time of the gift as his basis to figure the gain. Filing 1040ez online free Example 2. Filing 1040ez online free Same facts as Example 1 , except this time Andrew sells the house for $70,000. Filing 1040ez online free He will have a loss of $10,000 because he must use the FMV ($80,000) at the time of the gift as his basis to figure the loss. Filing 1040ez online free Example 3. Filing 1040ez online free Same facts as Example 1 , except this time Andrew sells the house for $90,000. Filing 1040ez online free Initially, he figures the gain using Ishmael's adjusted basis ($100,000), which results in a loss of $10,000. Filing 1040ez online free Since it is a loss, Andrew must now recalculate the loss using the FMV ($80,000), which results in a gain of $10,000. Filing 1040ez online free So in this situation, Andrew will neither have a gain nor a loss. Filing 1040ez online free Donor's adjusted basis equal to or less than the FMV. Filing 1040ez online free   If someone gave you your home after 1976 and the donor's adjusted basis, when it was given to you, was equal to or less than the FMV, your basis at the time of receipt is the same as the donor's adjusted basis, plus the part of any federal gift tax paid that is due to the net increase in value of the home. Filing 1040ez online free Part of federal gift tax due to net increase in value. Filing 1040ez online free   Figure the part of the federal gift tax paid that is due to the net increase in value of the home by multiplying the total federal gift tax paid by a fraction. Filing 1040ez online free The numerator (top part) of the fraction is the net increase in the value of the home, and the denominator (bottom part) is the value of the home for gift tax purposes after reduction for any annual exclusion and marital or charitable deduction that applies to the gift. Filing 1040ez online free The net increase in the value of the home is its FMV minus the adjusted basis of the donor. Filing 1040ez online free Publication 551 gives more information, including examples, on figuring your basis when you receive property as a gift. Filing 1040ez online free Inheritance Your basis in a home you inherited is generally the fair market value of the home on the date of the decedent's death or on the alternative valuation date if the personal representative for the estate chooses to use alternative valuation. Filing 1040ez online free If an estate tax return was filed, your basis is generally the value of the home listed on the estate tax return. Filing 1040ez online free If an estate tax return was not filed, your basis is the appraised value of the home at the decedent's date of death for state inheritance or transmission taxes. Filing 1040ez online free Publication 551 and Publication 559, Survivors, Executors, and Administrators, have more information on the basis of inherited property. Filing 1040ez online free If you inherited your home from someone who died in 2010, and the executor of the decedent's estate made the election to file Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent, refer to the information provided by the executor or see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010. Filing 1040ez online free Adjusted Basis While you own your home, various events may take place that can change the original basis of your home. Filing 1040ez online free These events can increase or decrease your original basis. Filing 1040ez online free The result is called adjusted basis. Filing 1040ez online free See Table 3, on this page, for a list of some of the items that can adjust your basis. Filing 1040ez online free Table 3. Filing 1040ez online free Adjusted Basis This table lists examples of some items that generally will increase or decrease your basis in your home. Filing 1040ez online free It is not intended to be all-inclusive. Filing 1040ez online free Increases to Basis Decreases to Basis Improvements: Putting an addition on your home Replacing an entire roof Paving your driveway Installing central air conditioning Rewiring your home Assessments for local improvements (see Assessments for local benefits , under What You Can and Cannot Deduct, earlier) Amounts spent to restore damaged property Insurance or other reimbursement for casualty losses Deductible casualty loss not covered by insurance Payments received for easement or right-of-way granted Depreciation allowed or allowable if home is used for business or rental purposes Value of subsidy for energy conservation measure excluded from income Improvements. Filing 1040ez online free   An improvement materially adds to the value of your home, considerably prolongs its useful life, or adapts it to new uses. Filing 1040ez online free You must add the cost of any improvements to the basis of your home. Filing 1040ez online free You cannot deduct these costs. Filing 1040ez online free   Improvements include putting a recreation room in your unfinished basement, adding another bathroom or bedroom, putting up a fence, putting in new plumbing or wiring, installing a new roof, and paving your driveway. Filing 1040ez online free Amount added to basis. Filing 1040ez online free   The amount you add to your basis for improvements is your actual cost. Filing 1040ez online free This includes all costs for material and labor, except your own labor, and all expenses related to the improvement. Filing 1040ez online free For example, if you had your lot surveyed to put up a fence, the cost of the survey is a part of the cost of the fence. Filing 1040ez online free   You also must add to your basis state and local assessments for improvements such as streets and sidewalks if they increase the value of the property. Filing 1040ez online free These assessments are discussed earlier under Real Estate Taxes . Filing 1040ez online free Improvements no longer part of home. Filing 1040ez online free    Your home's adjusted basis does not include the cost of any improvements that are replaced and are no longer part of the home. Filing 1040ez online free Example. Filing 1040ez online free You put wall-to-wall carpeting in your home 15 years ago. Filing 1040ez online free Later, you replaced that carpeting with new wall-to-wall carpeting. Filing 1040ez online free The cost of the old carpeting you replaced is no longer part of your home's adjusted basis. Filing 1040ez online free Repairs versus improvements. Filing 1040ez online free   A repair keeps your home in an ordinary, efficient operating condition. Filing 1040ez online free It does not add to the value of your home or prolong its life. Filing 1040ez online free Repairs include repainting your home inside or outside, fixing your gutters or floors, fixing leaks or plastering, and replacing broken window panes. Filing 1040ez online free You cannot deduct repair costs and generally cannot add them to the basis of your home. Filing 1040ez online free   However, repairs that are done as part of an extensive remodeling or restoration of your home are considered improvements. Filing 1040ez online free You add them to the basis of your home. Filing 1040ez online free Records to keep. Filing 1040ez online free   You can use Table 4 (at the end of the publication) as a guide to help you keep track of improvements to your home. Filing 1040ez online free Also see Keeping Records , below. Filing 1040ez online free Energy conservation subsidy. Filing 1040ez online free   If a public utility gives you (directly or indirectly) a subsidy for the purchase or installation of an energy conservation measure for your home, do not include the value of that subsidy in your income. Filing 1040ez online free You must reduce the basis of your home by that value. Filing 1040ez online free   An energy conservation measure is an installation or modification primarily designed to reduce consumption of electricity or natural gas or to improve the management of energy demand. Filing 1040ez online free Keeping Records Keeping full and accurate records is vital to properly report your income and expenses, to support your deductions and credits, and to know the basis or adjusted basis of your home. Filing 1040ez online free These records include your purchase contract and settlement papers if you bought the property, or other objective evidence if you acquired it by gift, inheritance, or similar means. Filing 1040ez online free You should keep any receipts, canceled checks, and similar evidence for improvements or other additions to the basis. Filing 1040ez online free In addition, you should keep track of any decreases to the basis such as those listed in Table 3, earlier. Filing 1040ez online free How to keep records. Filing 1040ez online free   How you keep records is up to you, but they must be clear and accurate and must be available to the IRS. Filing 1040ez online free How long to keep records. Filing 1040ez online free   You must keep your records for as long as they are important for meeting any provision of the federal tax law. Filing 1040ez online free   Keep records that support an item of income, a deduction, or a credit appearing on a return until the period of limitations for the return runs out. Filing 1040ez online free (A period of limitations is the period of time after which no legal action can be brought. Filing 1040ez online free ) For assessment of tax you owe, this is generally 3 years from the date you filed the return. Filing 1040ez online free For filing a claim for credit or refund, this is generally 3 years from the date you filed the original return, or 2 years from the date you paid the tax, whichever is later. Filing 1040ez online free Returns filed before the due date are treated as filed on the due date. Filing 1040ez online free   You may need to keep records relating to the basis of property (discussed earlier) for longer than the period of limitations. Filing 1040ez online free Keep those records as long as they are important in figuring the basis of the original or replacement property. Filing 1040ez online free Generally, this means for as long as you own the property and, after you dispose of it, for the period of limitations that applies to you. Filing 1040ez online free Table 4. Filing 1040ez online free Record of Home Improvements Keep this for your records. Filing 1040ez online free Also, keep receipts or other proof of improvements. Filing 1040ez online free Remove from this record any improvements that are no longer part of your main home. Filing 1040ez online free For example, if you put wall-to-wall carpeting in your home and later replace it with new wall-to-wall carpeting, remove the cost of the first carpeting. Filing 1040ez online free (a) Type of Improvement (b) Date (c) Amount   (a) Type of Improvement (b) Date (c) Amount Additions:       Heating & Air  Conditioning:     Bedroom       Heating system     Bathroom       Central air conditioning     Deck       Furnace     Garage       Duct work     Porch       Central humidifier     Patio       Filtration system     Storage shed       Other     Fireplace       Electrical:     Other           Lawn & Grounds:       Lighting fixtures           Wiring upgrades     Landscaping       Other     Driveway       Plumbing:     Walkway           Fences       Water heater     Retaining wall       Soft water system     Sprinkler system       Filtration system     Swimming pool       Other     Exterior lighting       Insulation:     Other           Communications:       Attic           Walls     Satellite dish       Floors     Intercom       Pipes and duct work     Security system       Other     Other             Miscellaneous:       Interior  Improvements:     Storm windows and doors       Built-in appliances     Roof       Kitchen modernization     Central vacuum       Bathroom modernization     Other       Flooring             Wall-to-wall carpeting             Other     How To