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Filing Federal And State Taxes For Free

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Filing Federal And State Taxes For Free

Filing federal and state taxes for free Part One -   La Declaración de Impuestos sobre los Ingresos Los cuatro capítulos de esta sección presentan información básica sobre el sistema tributario. Filing federal and state taxes for free Le explican los primeros pasos para llenar una declaración de impuestos; por ejemplo, cómo determinar qué estado civil para efectos de la declaración le corresponde, cuántas exenciones puede reclamar y qué formulario presentar. Filing federal and state taxes for free Asimismo, explican los requisitos de mantenimiento de documentación, el sistema de presentación electrónica del IRS e-file, determinadas multas y los dos métodos que se utilizan para pagar impuestos durante el año: la retención del impuesto y el impuesto estimado. Filing federal and state taxes for free Table of Contents 1. Filing federal and state taxes for free   Información para la Presentación de la Declaración de ImpuestosQué Hay de Nuevo Recordatorios Introduction ¿Debo Presentar una Declaración?Individuos/Personas Físicas—En General Dependientes Determinados Hijos Menores de 19 Años de Edad o Estudiantes a Tiempo Completo Trabajadores por Cuenta Propia Extranjeros Quién Debe Presentar una Declaración ¿Qué Formulario Debo Usar?Formulario 1040EZ Formulario 1040A Formulario 1040 ¿Tengo que Presentar la Declaración en Papel? E-file del IRS ¿Cuándo Tengo que Presentar la Declaración?Servicios de entrega privados. Filing federal and state taxes for free Prórrogas del Plazo para Presentar la Declaración de Impuestos ¿Cómo Preparo la Declaración de Impuestos?¿Cuándo Declaro los Ingresos y Gastos? Número de Seguro Social Fondo para la Campaña Electoral Presidencial Cálculos Documentos Adjuntos Designación de un Tercero Firmas Preparador Remunerado Reembolsos Cantidad que Adeuda Donaciones Para Reducir la Deuda Pública Nombre y Dirección ¿Dónde Presento la Declaración? ¿Qué Ocurre Después de Presentar la Declaración?¿Qué Documentos Debo Mantener? ¿Por Qué Debe Mantener los Documentos? Tipo de Documentos que Debe Mantener Documentos Básicos Cuánto Tiempo Debe Mantener los Documentos Información sobre Reembolsos Intereses Sobre Reembolsos Cambio de Dirección ¿Qué Sucede Si Cometí un Error?Declaraciones Enmendadas y Reclamaciones de Reembolso Multas Robo de Identidad 2. Filing federal and state taxes for free   Estado Civil para Efectos de la DeclaraciónQué Hay de Nuevo Introduction Useful Items - You may want to see: Estado CivilPersonas divorciadas. Filing federal and state taxes for free Divorcio y nuevo matrimonio. Filing federal and state taxes for free Matrimonios anulados. Filing federal and state taxes for free Cabeza de familia o viudo que reúne los requisitos con hijo dependiente. Filing federal and state taxes for free Personas consideradas casadas. Filing federal and state taxes for free Matrimonio del mismo sexo. Filing federal and state taxes for free Cónyuge fallecido durante el año. Filing federal and state taxes for free Personas casadas que viven separadas. Filing federal and state taxes for free Soltero Casados que Presentan una Declaración ConjuntaPresentación de una Declaración Conjunta Casados que Presentan la Declaración por SeparadoReglas Especiales Cabeza de FamiliaPersonas Consideradas no Casadas Personas que Mantienen una Vivienda Persona Calificada Viudo que Reúne los Requisitos con Hijo Dependiente 3. Filing federal and state taxes for free   Exenciones Personales y por DependientesQué Hay de Nuevo Introduction Useful Items - You may want to see: ExencionesExenciones Personales Exenciones por Dependientes Hijo Calificado Pariente Calificado Eliminación gradual por fases de la exención Números de Seguro Social para DependientesNacimiento y fallecimiento en el año 2013. Filing federal and state taxes for free Número de identificación personal del contribuyente del Servicio de Impuestos Internos. Filing federal and state taxes for free Números de identificación del contribuyente en proceso de adopción. Filing federal and state taxes for free 4. Filing federal and state taxes for free   Retención de Impuestos e Impuesto EstimadoQué Hay de Nuevo para el Año 2014 Recordatorios Introduction Useful Items - You may want to see: Retención de Impuesto para el Año 2014Sueldos y Salarios Propinas Beneficios Marginales Tributables Compensación por Enfermedad Pensiones y Anualidades Ganancias Provenientes de Juegos de Azar y Apuestas Compensación por Desempleo Pagos del Gobierno Federal Retención Adicional Impuesto Estimado para el Año 2014Quién no Tiene que Pagar el Impuesto Estimado ¿Quién Tiene que Pagar Impuesto Estimado? Cómo Calcular el Impuesto Estimado Cuándo se Debe Pagar el Impuesto Estimado Cómo Determinar Cada Pago Cómo Pagar el Impuesto Estimado Crédito por Impuestos Retenidos e Impuesto Estimado para el Año 2013Retención Impuesto Estimado Multa por Pago Insuficiente de Impuestos para el Año 2013 Prev  Up  Next   Home   More Online Publications
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The Filing Federal And State Taxes For Free

Filing federal and state taxes for free 4. Filing federal and state taxes for free   Special Situations Table of Contents Condominiums CooperativesDepreciation Property Changed to Rental UseBasis of Property Changed to Rental Use Figuring the Depreciation Deduction Renting Part of Property Not Rented for ProfitPostponing decision. Filing federal and state taxes for free Example—Property Changed to Rental Use This chapter discusses some rental real estate activities that are subject to additional rules. Filing federal and state taxes for free Condominiums A condominium is most often a dwelling unit in a multi-unit building, but can also take other forms, such as a townhouse or garden apartment. Filing federal and state taxes for free If you own a condominium, you also own a share of the common elements, such as land, lobbies, elevators, and service areas. Filing federal and state taxes for free You and the other condominium owners may pay dues or assessments to a special corporation that is organized to take care of the common elements. Filing federal and state taxes for free Special rules apply if you rent your condominium to others. Filing federal and state taxes for free You can deduct as rental expenses all the expenses discussed in chapters 1 and 2. Filing federal and state taxes for free In addition, you can deduct any dues or assessments paid for maintenance of the common elements. Filing federal and state taxes for free You cannot deduct special assessments you pay to a condominium management corporation for improvements. Filing federal and state taxes for free However, you may be able to recover your share of the cost of any improvement by taking depreciation. Filing federal and state taxes for free Cooperatives If you live in a cooperative, you do not own your apartment. Filing federal and state taxes for free Instead, a corporation owns the apartments and you are a tenant-stockholder in the cooperative housing corporation. Filing federal and state taxes for free If you rent your apartment to others, you usually can deduct, as a rental expense, all the maintenance fees you pay to the cooperative housing corporation. Filing federal and state taxes for free In addition to the maintenance fees paid to the cooperative housing corporation, you can deduct your direct payments for repairs, upkeep, and other rental expenses, including interest paid on a loan used to buy your stock in the corporation. Filing federal and state taxes for free Depreciation You will be depreciating your stock in the corporation rather than the apartment itself. Filing federal and state taxes for free Figure your depreciation deduction as follows. Filing federal and state taxes for free Figure the depreciation for all the depreciable real property owned by the corporation. Filing federal and state taxes for free (Depreciation methods are discussed in chapter 2 of this publication and Publication 946. Filing federal and state taxes for free ) If you bought your cooperative stock after its first offering, figure the depreciable basis of this property as follows. Filing federal and state taxes for free Multiply your cost per share by the total number of outstanding shares. Filing federal and state taxes for free Add to the amount figured in (a) any mortgage debt on the property on the date you bought the stock. Filing federal and state taxes for free Subtract from the amount figured in (b) any mortgage debt that is not for the depreciable real property, such as the part for the land. Filing federal and state taxes for free Subtract from the amount figured in (1) any depreciation for space owned by the corporation that can be rented but cannot be lived in by tenant-stockholders. Filing federal and state taxes for free Divide the number of your shares of stock by the total number of shares outstanding, including any shares held by the corporation. Filing federal and state taxes for free Multiply the result of (2) by the percentage you figured in (3). Filing federal and state taxes for free This is your depreciation on the stock. Filing federal and state taxes for free Your depreciation deduction for the year cannot be more than the part of your adjusted basis (defined in chapter 2) in the stock of the corporation that is allocable to your rental property. Filing federal and state taxes for free Payments added to capital account. Filing federal and state taxes for free   Payments earmarked for a capital asset or improvement, or otherwise charged to the corporation's capital account are added to the basis of your stock in the corporation. Filing federal and state taxes for free For example, you cannot deduct a payment used to pave a community parking lot, install a new roof, or pay the principal of the corporation's mortgage. Filing federal and state taxes for free   Treat as a capital cost the amount you were assessed for capital items. Filing federal and state taxes for free This cannot be more than the amount by which your payments to the corporation exceeded your share of the corporation's mortgage interest and real estate taxes. Filing federal and state taxes for free   Your share of interest and taxes is the amount the corporation elected to allocate to you, if it reasonably reflects those expenses for your apartment. Filing federal and state taxes for free Otherwise, figure your share in the following manner. Filing federal and state taxes for free Divide the number of your shares of stock by the total number of shares outstanding, including any shares held by the corporation. Filing federal and state taxes for free Multiply the corporation's deductible interest by the number you figured in (1). Filing federal and state taxes for free This is your share of the interest. Filing federal and state taxes for free Multiply the corporation's deductible taxes by the number you figured in (1). Filing federal and state taxes for free This is your share of the taxes. Filing federal and state taxes for free Property Changed to Rental Use If you change your home or other property (or a part of it) to rental use at any time other than the beginning of your tax year, you must divide yearly expenses, such as taxes and insurance, between rental use and personal use. Filing federal and state taxes for free You can deduct as rental expenses only the part of the expense that is for the part of the year the property was used or held for rental purposes. Filing federal and state taxes for free You cannot deduct depreciation or insurance for the part of the year the property was held for personal use. Filing federal and state taxes for free However, you can include the home mortgage interest, qualified mortgage insurance premiums, and real estate tax expenses for the part of the year the property was held for personal use as an itemized deduction on Schedule A (Form 1040). Filing federal and state taxes for free Example. Filing federal and state taxes for free Your tax year is the calendar year. Filing federal and state taxes for free You moved from your home in May and started renting it out on June 1. Filing federal and state taxes for free You can deduct as rental expenses seven-twelfths of your yearly expenses, such as taxes and insurance. Filing federal and state taxes for free Starting with June, you can deduct as rental expenses the amounts you pay for items generally billed monthly, such as utilities. Filing federal and state taxes for free When figuring depreciation, treat the property as placed in service on June 1. Filing federal and state taxes for free Basis of Property Changed to Rental Use When you change property you held for personal use to rental use (for example, you rent your former home), the basis for depreciation will be the lesser of fair market value or adjusted basis on the date of conversion. Filing federal and state taxes for free Fair market value. Filing federal and state taxes for free   This is the price at which the property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts. Filing federal and state taxes for free Sales of similar property, on or about the same date, may be helpful in figuring the fair market value of the property. Filing federal and state taxes for free Figuring the basis. Filing federal and state taxes for free   The basis for depreciation is the lesser of: The fair market value of the property on the date you changed it to rental use, or Your adjusted basis on the date of the change—that is, your original cost or other basis of the property, plus the cost of permanent additions or improvements since you acquired it, minus deductions for any casualty or theft losses claimed on earlier years' income tax returns and other decreases to basis. Filing federal and state taxes for free For other increases and decreases to basis, see Adjusted Basis in chapter 2. Filing federal and state taxes for free Example. Filing federal and state taxes for free Several years ago you built your home for $140,000 on a lot that cost you $14,000. Filing federal and state taxes for free Before changing the property to rental use this year, you added $28,000 of permanent improvements to the house and claimed a $3,500 casualty loss deduction for damage to the house. Filing federal and state taxes for free Part of the improvements qualified for a $500 residential energy credit, which you claimed on your 2010 tax return. Filing federal and state taxes for free Because land is not depreciable, you can only include the cost of the house when figuring the basis for depreciation. Filing federal and state taxes for free The adjusted basis of the house at the time of the change in its use was $164,000 ($140,000 + $28,000 − $3,500 − $500). Filing federal and state taxes for free On the date of the change in use, your property had a fair market value of $168,000, of which $21,000 was for the land and $147,000 was for the house. Filing federal and state taxes for free The basis for depreciation on the house is the fair market value on the date of the change ($147,000), because it is less than your adjusted basis ($164,000). Filing federal and state taxes for free Cooperatives If you change your cooperative apartment to rental use, figure your allowable depreciation as explained earlier. Filing federal and state taxes for free (Depreciation methods are discussed in chapter 2 of this publication and Publication 946. Filing federal and state taxes for free ) The basis of all the depreciable real property owned by the cooperative housing corporation is the smaller of the following amounts. Filing federal and state taxes for free The fair market value of the property on the date you change your apartment to rental use. Filing federal and state taxes for free This is considered to be the same as the corporation's adjusted basis minus straight line depreciation, unless this value is unrealistic. Filing federal and state taxes for free The corporation's adjusted basis in the property on that date. Filing federal and state taxes for free Do not subtract depreciation when figuring the corporation's adjusted basis. Filing federal and state taxes for free If you bought the stock after its first offering, the corporation's adjusted basis in the property is the amount figured in (1) under Depreciation (under Cooperatives, near the beginning of this chapter). Filing federal and state taxes for free The fair market value of the property is considered to be the same as the corporation's adjusted basis figured in this way minus straight line depreciation, unless the value is unrealistic. Filing federal and state taxes for free Figuring the Depreciation Deduction To figure the deduction, use the depreciation system in effect when you convert your residence to rental use. Filing federal and state taxes for free Generally, that will be MACRS for any conversion after 1986. Filing federal and state taxes for free Treat the property as placed in service on the conversion date. Filing federal and state taxes for free Example. Filing federal and state taxes for free Your converted residence (see previous example under Figuring the basis) was available for rent on August 1. Filing federal and state taxes for free Using Table 2-2d (see chapter 2), the percentage for Year 1 beginning in August is 1. Filing federal and state taxes for free 364% and the depreciation deduction for Year 1 is $2,005 ($147,000 × . Filing federal and state taxes for free 01364). Filing federal and state taxes for free Renting Part of Property If you rent part of your property, you must divide certain expenses between the part of the property used for rental purposes and the part of the property used for personal purposes, as though you actually had two separate pieces of property. Filing federal and state taxes for free You can deduct the expenses related to the part of the property used for rental purposes, such as home mortgage interest, qualified mortgage insurance premiums, and real estate taxes, as rental expenses on Schedule E (Form 1040). Filing federal and state taxes for free You can also deduct as rental expenses a portion of other expenses that normally are nondeductible personal expenses, such as expenses for electricity, or painting the outside of the house. Filing federal and state taxes for free There is no change in the types of expenses deductible for the personal-use part of your property. Filing federal and state taxes for free Generally, these expenses may be deducted only if you itemize your deductions on Schedule A (Form 1040). Filing federal and state taxes for free You cannot deduct any part of the cost of the first phone line even if your tenants have unlimited use of it. Filing federal and state taxes for free You do not have to divide the expenses that belong only to the rental part of your property. Filing federal and state taxes for free For example, if you paint a room that you rent, or if you pay premiums for liability insurance in connection with renting a room in your home, your entire cost is a rental expense. Filing federal and state taxes for free If you install a second phone line strictly for your tenant's use, all of the cost of the second line is deductible as a rental expense. Filing federal and state taxes for free You can deduct depreciation on the part of the house used for rental purposes as well as on the furniture and equipment you use for rental purposes. Filing federal and state taxes for free How to divide expenses. Filing federal and state taxes for free   If an expense is for both rental use and personal use, such as mortgage interest or heat for the entire house, you must divide the expense between rental use and personal use. Filing federal and state taxes for free You can use any reasonable method for dividing the expense. Filing federal and state taxes for free It may be reasonable to divide the cost of some items (for example, water) based on the number of people using them. Filing federal and state taxes for free The two most common methods for dividing an expense are (1) the number of rooms in your home, and (2) the square footage of your home. Filing federal and state taxes for free Example. Filing federal and state taxes for free You rent a room in your house. Filing federal and state taxes for free The room is 12 × 15 feet, or 180 square feet. Filing federal and state taxes for free Your entire house has 1,800 square feet of floor space. Filing federal and state taxes for free You can deduct as a rental expense 10% of any expense that must be divided between rental use and personal use. Filing federal and state taxes for free If your heating bill for the year for the entire house was $600, $60 ($600 × . Filing federal and state taxes for free 10) is a rental expense. Filing federal and state taxes for free The balance, $540, is a personal expense that you cannot deduct. Filing federal and state taxes for free Duplex. Filing federal and state taxes for free   A common situation is the duplex where you live in one unit and rent out the other. Filing federal and state taxes for free Certain expenses apply to the entire property, such as mortgage interest and real estate taxes, and must be split to determine rental and personal expenses. Filing federal and state taxes for free Example. Filing federal and state taxes for free You own a duplex and live in one half, renting the other half. Filing federal and state taxes for free Both units are approximately the same size. Filing federal and state taxes for free Last year, you paid a total of $10,000 mortgage interest and $2,000 real estate taxes for the entire property. Filing federal and state taxes for free You can deduct $5,000 mortgage interest and $1,000 real estate taxes on Schedule E (Form 1040), and if you itemize your deductions, you can deduct the other $5,000 mortgage interest and $1,000 real estate taxes on Schedule A (Form 1040). Filing federal and state taxes for free Not Rented for Profit If you do not rent your property to make a profit, you can deduct your rental expenses only up to the amount of your rental income. Filing federal and state taxes for free You cannot deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year. Filing federal and state taxes for free Where to report. Filing federal and state taxes for free   Report your not-for-profit rental income on Form 1040 or 1040NR, line 21. Filing federal and state taxes for free For example, if you are filing Form 1040, you can include your mortgage interest and any qualified mortgage insurance premiums (if you use the property as your main home or second home), real estate taxes, and casualty losses on the appropriate lines of Schedule A (Form 1040) if you itemize your deductions. Filing federal and state taxes for free   If you itemize your deductions, claim your other rental expenses, subject to the rules explained in chapter 1 of Publication 535, as miscellaneous itemized deductions on Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9. Filing federal and state taxes for free You can deduct these expenses only if they, together with certain other miscellaneous itemized deductions, total more than 2% of your adjusted gross income. Filing federal and state taxes for free Presumption of profit. Filing federal and state taxes for free   If your rental income is more than your rental expenses for at least 3 years out of a period of 5 consecutive years, you are presumed to be renting your property to make a profit. Filing federal and state taxes for free Postponing decision. Filing federal and state taxes for free   If you are starting your rental activity and do not have 3 years showing a profit, you can elect to have the presumption made after you have the 5 years of experience required by the test. Filing federal and state taxes for free You may choose to postpone the decision of whether the rental is for profit by filing Form 5213. Filing federal and state taxes for free You must file Form 5213 within 3 years after the due date of your return (determined without extensions) for the year in which you first carried on the activity or, if earlier, within 60 days after receiving written notice from the Internal Revenue Service proposing to disallow deductions attributable to the activity. Filing federal and state taxes for free More information. Filing federal and state taxes for free   For more information about the rules for an activity not engaged in for profit, see Not-for-Profit Activities in chapter 1 of Publication 535. Filing federal and state taxes for free Example—Property Changed to Rental Use In January, Eileen Johnson bought a condominium apartment to live in. Filing federal and state taxes for free Instead of selling the house she had been living in, she decided to change it to rental property. Filing federal and state taxes for free Eileen selected a tenant and started renting the house on February 1. Filing federal and state taxes for free Eileen charges $750 a month for rent and collects it herself. Filing federal and state taxes for free Eileen also received a $750 security deposit from her tenant. Filing federal and state taxes for free Because she plans to return it to her tenant at the end of the lease, she does not include it in her income. Filing federal and state taxes for free Her rental expenses for the year are as follows. Filing federal and state taxes for free   Mortgage interest $1,800     Fire insurance (1-year policy) 100     Miscellaneous repairs (after renting) 297     Real estate taxes imposed and paid 1,200   Eileen must divide the real estate taxes, mortgage interest, and fire insurance between the personal use of the property and the rental use of the property. Filing federal and state taxes for free She can deduct eleven-twelfths of these expenses as rental expenses. Filing federal and state taxes for free She can include the balance of the allowable taxes and mortgage interest on Schedule A (Form 1040) if she itemizes. Filing federal and state taxes for free She cannot deduct the balance of the fire insurance because it is a personal expense. Filing federal and state taxes for free Eileen bought this house in 1984 for $35,000. Filing federal and state taxes for free Her property tax was based on assessed values of $10,000 for the land and $25,000 for the house. Filing federal and state taxes for free Before changing it to rental property, Eileen added several improvements to the house. Filing federal and state taxes for free She figures her adjusted basis as follows:   Improvements Cost     House $25,000     Remodeled kitchen 4,200     Recreation room 5,800     New roof 1,600     Patio and deck 2,400     Adjusted basis $39,000   On February 1, when Eileen changed her house to rental property, the property had a fair market value of $152,000. Filing federal and state taxes for free Of this amount, $35,000 was for the land and $117,000 was for the house. Filing federal and state taxes for free Because Eileen's adjusted basis is less than the fair market value on the date of the change, Eileen uses $39,000 as her basis for depreciation. Filing federal and state taxes for free As specified for residential rental property, Eileen must use the straight line method of depreciation over the GDS or ADS recovery period. Filing federal and state taxes for free She chooses the GDS recovery period of 27. Filing federal and state taxes for free 5 years. Filing federal and state taxes for free She uses Table 2-2d to find her depreciation percentage. Filing federal and state taxes for free Since she placed the property in service in February, the percentage is 3. Filing federal and state taxes for free 182%. Filing federal and state taxes for free On April 1, Eileen bought a new dishwasher for the rental property at a cost of $425. Filing federal and state taxes for free The dishwasher is personal property used in a rental real estate activity, which has a 5-year recovery period. Filing federal and state taxes for free She uses Table 2-2a to find the percentage for Year 1 under “Half-year convention” (20%) to figure her depreciation deduction. Filing federal and state taxes for free On May 1, Eileen paid $4,000 to have a furnace installed in the house. Filing federal and state taxes for free The furnace is residential rental property. Filing federal and state taxes for free Because she placed the property in service in May, the percentage from Table 2-2d is 2. Filing federal and state taxes for free 273%. Filing federal and state taxes for free Eileen figures her net rental income or loss for the house as follows: Total rental income received  ($750 × 11) $8,250 Minus: Expenses     Mortgage interest ($1,800 × 11/12) $1,650   Fire insurance ($100 × 11/12) 92   Miscellaneous repairs 297   Real estate taxes ($1,200 × 11/12) 1,100   Total expenses 3,139 Balance $5,111 Minus: Depreciation     House ($39,000 × . Filing federal and state taxes for free 03182) $1,241   Dishwasher ($425 × . Filing federal and state taxes for free 20) 85   Furnace ($4,000 × . Filing federal and state taxes for free 02273) 91   Total depreciation 1,417 Net rental income for house   $3,694       Eileen uses Schedule E, Part I, to report her rental income and expenses. Filing federal and state taxes for free She enters her income, expenses, and depreciation for the house in the column for Property A. Filing federal and state taxes for free Since all property was placed in service this year, Eileen must use Form 4562 to figure the depreciation. Filing federal and state taxes for free See the Instructions for Form 4562 for more information on preparing the form. Filing federal and state taxes for free Prev  Up  Next   Home   More Online Publications